Entrepreneurship Development

[Live Project]

PanchTatva Herbal Oil

Project Presentation

Prepared & Presented By –

Mradul Maheshwari, Aditya Kumar, Isaac Lalthazuala,
Gaurav Aswal, Rishabh Kumar[017]
{B.com 5th sem}
 Company Details

• Company Name :-
PanchTatva Herbal Hail Oil

• Company Address :-
Industrial Estate Ganapathy, Kochi - 641006,Kerala, India.

• Contact Details :-
Email - herbal@panchtatva.com
Customer support – care@panchtatva.com
Tel. no. – 0422 - 2352563
Website – www.panchtatva.com
Introduction
• Along with a good shampoo and conditioner, good hair oil completes hair
care. Different hair oils are used for different purposes- to moisturize
scalp and hair, to prevent hair fall, to fight dandruff, to promote hair
growth, to stop hair graying, to impart shine and smoothness to hair.
There are some essential and ayurvedic oils which focus on hair growth
and prevent hair loss. Herbal hair oil mainly comprises of oils of vegetable
in origin as base and a suitable blended perfume. Vegetable oils
commonly used are coconut, castor and sesame oils. To avoid rancidity of
hair oils, antioxidants are added in very little quantities. Perfumes used
for preparation of hair oils should not fugitive and to prevent this they are
usually fixed by sandal wood oils or other fixatives.

• The hair oils may be made colored by the use of oil soluble colors. Care
should be taken that the dyes used should not be injurious to the human
body. Now days, people have special attraction for use of herbal hair oil.
The ingredients used in herbal hair oil are Amala dry fruits, Mehandi
leaves, Brahmi Plant, Lemon oil. Harar dry fruits, Bahera dry fruits,
kapurkachari rhizome, Almond oil etc. The ingredient is used from 0.01 to
1%. The ingredients used are either single or in combinations of two or
three or more of the above, as per the consumers requirement viz. Amla
Hair oil or Brahmi-Amla Hair Oil or Almond hair oil etc. The base of these
oils remains the same.
PanchTatva – LOGO & Design
• LOGO
 Departments
❑ Accounting & Finance:-
In this we will be handling all the work regarding payments of vendors, salaries, and
issuing and passing the budgets.

❑ Marketing :-
In this we will be handling all marketing things. I.E. Instagram, Facebook, and all other
online campaigns, Brand promotion.
[Annual Budget – 2.5 lakh]

❑ Production And Purchasing :-

In this we will be handling all the purchasing part of raw material to ending to finished
packaging of the product.

❑ Human Resource Management :-

In this the only work is that finding the best fitted employee for the job and make the
work environment healthy. Main focus to get best result in productions.

❑ Research & Development :-

In this we will be having all the testing and development regarding the product
quality. And to make sure product Quality.
 TECHNICAL ASPECTS
▪ 1. Process of Manufacturing
The process of herbal hair oil manufacturing involves following steps:

Mixing
In this step all the ingredients like base oil, herbal extract/oils, perfumes and colors are mixed
in the desired proportions in mixing tank using slow speed stirrer for 15-20 Minutes and then
allowed to settle for two to three hours.

Filtration
The oil is now filtered through filter press.

Inspection/Testing
Filtered oil is sent to laboratory for necessary testing.

Bottling and Labelling

After passing through required inspection, oil is now filled in cleaned and dried bottles in
required volumes. Bottles are sealed and labeled.

Packaging
Bottles are now packed in corrugated boxes for marketing.
 Process Flow Chart
BASE OF OILS

MIXING & HEATING

HERBAL EXTRACT
FILTRATION NATURALS COLOURS
OIL

INSPECTION &TESTING

BOTTLING & LABELING

PACKAGING

MARKETING
▪ 2. Quality Control and Standards
• The quality of Herbal Hair Oil depends upon the market
requirement there is no separate Indian Standard for
manufacturing of Herbal Hair Oil. Entrepreneurs are suggested
to contact drug controller in this matter and also advised to
appoint an approved / qualified chemist for regular testing &
quality control.

▪ 3. Pollution Control
• The manufacturing process of herbal hair oil does not attract
pollution control measures, however, it is advised to consult
State Pollution Control Board and follow the guidelines offered
by them.

▪ 4. Energy Conservation
• Machinery & equipments purchased should be as per relevant
standard.
• Regular maintenance of machinery’s is required.
 ❖ PRODUCTION TARGETES (PER ANNUM)
Quantity : 6,000 Litres
Value : Rs. 57,60,000/-

❖ BASIS AND PRESUMPTIONS

i. The production capacity is calculated on single shift basis at 70% efficiency and
300 working days in a year.
ii. The rate of interest in this project profile has been calculated 14% per annum
on total capital investment. However, this figure is likely to vary depending on
the financial outlay of the project as well as location of the unit.
iii. The breakeven point has been calculated on the full capacity utilization.
iv. The cost of machinery and equipment as indicated refer to a particular make
and prices are approximate those prevailing at the time of preparation of
project profile. Similarly the rent of land and building indicated in the profile
relates to a particular place and should be updated depending upon place of
implementation.
v. The cost of installation and electrification is taken at the rate of 10% of the cost
of machinery and equipments.
vi. Payback period 5 years from second year of operation.
 FINANCIAL ASPECT

❖Funding & Capital :-

Total Investment – Rs. 75Lakhs

• Each Partner Came up with 15Lakh Amount.

[5 Partner * Rs. 15Lakh = Rs. 75Lakh]
 FINANCIAL ASPECT Conti..
FINANCIAL ASPECT
1. Fixed Capital
Land & Building (Rented):

Description Amount (Rs.)

Land 400 Sq. Meters. (4305.56 Sq. Foot) 16,000.00

Building Work Shed Office & Store

1.1. Machinery and Equipment :

S. No. Description Amount (Rs.)

1 Mixing tank with stirrer capacity – 200 litre 01

2 Constant filling machine (two headed) 01
3 Cap Sealing machine 01
4 Filtering equipment 01

5 Testing & other miscellaneous equipments LS 9,00,000/-

6 Installation & Electrical Charges @ 10% 90,000/-

7 Cost of office equipment 60,000/-

Total 10,50,000/-
2. Working Capital (per month)
2.1. Personnel
S. No. Designation Nos. Salary Amount (Rs.)
1. Manager Cum Chemist 01 25,000 25,000
2. Salesman 01 15,000 15,000
3. Skilled Workers 02 20,000 40,000
4. Unskilled Workers 02 8,000 16,000
Total 96,000
Perquisites @ 15% of total
Salaries 14,400
Total 1,10,400

2.2. Raw Material (Per annum)

S. No. Particulars Quantity Rate (Rs.) Amount (Rs.)

1 Almond Oil 1200 Litre 500 6,00,000

2 Coconut oil 1200 Litre 160 1,92,000
3 Castor oil 1200 Litre 45 54,000
4 Other Herbs 600 Kg 35 21,000
5 Mustard Oil 1200 Litre 85 42,000
6 Olive Oil 1200 Litre 400 4,80,000

Packaging material @ Rs. 10/-

7 per Bottle of finished product 24000 nos 10 2,40,000

Total 16,29,000
2.3. Utilities (per month)
S.No. Particulars Amount (Rs.)
1 Electricity charges, 1200 units @ Rs.10/- 12000
2 Water charges 1000
Total 13,000
2.4. Other Contingent Expenses
S. No. Particulars Amount (Rs.)
1 Postage & Stationery 500
2 Telephone 1,000
3 Repair & maintenance 1,500
4 Transportation Charges @ Rs 35/- per bottle of 70,000
finished goods (2000 bottles per month)
5 Other unforeseen expenses 2,000
6 Rent 16,000
Total 91,000

2.5. Total Recurring Expenditure (per month)

S. No. Particulars Amount (Rs.)
1 Staff & Labor 1,10,400
2 Raw Material 1,35,750
3 Utilities 13,000
4 Other expenses 91,000
Total 3,50,150

3. Total Capital Investment

Rs. 10,50,000
Total Fixed Capital
Rs. 3,50,150
Total Working Capital (for 1 month)
Total Rs. 14,00,150
3. FINANCIAL ANALYSIS
3.1. Cost of Production (per annum)
S.No. Particulars Amount (Rs.)
1. Total Recurring Cost 42,01,800

2. Depreciation on plant & machinery @ 10% 99,000

3. Depreciation on furniture @ 20% 12,000

4. Interest on total capital @ 14% 1,88,776

Total 45,01,576

3.2. Turnover (per annum)

Total Sale of 6,000 Litres of Herbal Hair oil @ Rs. 240/250ml Rs. 57,60,000

3.3. Net Profit (per annum)

= Turnover – cost of production
= Rs. 57,60,000 – 45,01,576
= Rs. 12,58,424

3.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

12,58,424
= X 100
57,60,000

= 21.84 %
3.5. Rate of Return
Net profit per year
= X 100
Total Capital Investment

12,58,424
= X 100
52,51,800

= 23.96 %

NAME & ADDRESSES OF MACHINERY SUPPLIERS

1 M/s. T. S. Enterprises Road No.14, Plot No. E – 412,

Vishwakarma Indstrial Area, Jaipur

2 M/s. Danyal Engineering 3022,Gali Nal Bandan Shahgang

Company Ajmere Gate, Delhi-110006

3 M/s. Sehgal Industrial Works T-1698,Malkaganj, Subji Mandi, Delhi-

110007

4 M/s. Rank & Company A-95/3 Wazirpur Industrial Area, New

Delhi-110052

RAW MATERIAL SUPPLIERS Locally available

❑ Market Analysis
• MARKET POTENTIAL
Hair oil is a most common commodity used
everywhere. The demand of perfume hair oil is visible from rural
area to cosmopolitan cities. The ladies used it for both its
functional purpose as well as a beauty care commodity. The
demand is increasing at par with the awareness of hair care,
advertisement messages in different media, TV channels and
enhancement of purchasing power of the individuals. At the
same time Hair oil is having export worthiness too. The Indian
market for hair care is estimated more than Rs.1000 crores and
Herbal hair oil is an important part of it.

▪ Target clients
Hair oil segment with natural ingredients
(Coconut, Almond,Olive etc.) Target Group are Youth and middle
aged men and women in urban and rural areas.
❑ Company Objective
❖Short Term
- To increase our Sale from 2000 Bottles/month to 3500
Bottles/month in Coming future.

❖Long Term
- To Position in a market as a loyal & service fulfilled
Brand with maximum Market share.
 STRENGTH
1. Core Knowledge of Ayurveda.
2. Contains trusted natural ingredients
like Coconut and Almond 100% natural
oils.
3. Introduction of oil in the market with
better fragrances, ingredients and
innovation.
SWOT
Analysis
OPPORTUNIES
1. Export Opportunities
2. Increase in Oil consumption due to
awareness.
3. Innovation in other hair products.
WEAKNESS
1. New Brand Launched recently.
2. .Sticky and oily, stains the pillow when
used overnight Opportunity.
3. Will be Preferred by loyal customers,
but youth find other brands attractives
such as Hair Gel and other hair care
products
THREATS
1. Aggressive competitors.
2. Threat from new entrants or local
players selling oil with natural
ingredients.
Marketing Mix
▪ Product :-
PanchTatva Herbal Oil is a product of 5 components contains
Almond, Olive, Castor, Mustard & Coconut.

▪ Price :-
250ml @ Rs.240/-

▪ Place :-
PanchTatva oil sells all over India both in urban as well as rural
India through the medium of Internet. Our selling Partner is Nykaa.com,
thebodycare.in, Flipkart.com.
With that our product also collaborate with courier company like
Fedex, Ecom express, Delhivery etc.

▪ Promotion :-
• Provide Sample product to the Youtubers.
• Digital Marketing.
• Free Trail Samples through website [in selected regions only].
THANKYOU!