Project Profile

Product Product code Quality Standard Herbal Hair Oil 314601007 IS: 7123:1993 IS: 7123:1993

Production Capacity (Per Annum) Quantity . Value Month and year of Preparation Prepared By 59.70 MT Rs. 59,70,000. March , 2011 Chemical Division MSMEDI Opp Okhla Industrial Estate, Okhla, New Delhi-20 Phone No-6838118 6838068 6838269 Fax No. 6838016

Herbal Hair Oil

I. Introduction

Herbal hair oil mainly comprises of oils of vegetable in origin as base and a suitable blended perfume. Vegetable oils commonly used are coconut, caster and seasome 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 coloured by the use of oil saluble colours. Care should be taken that the dyes used should not be injurious to health. Now a 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 are 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 Almonds hair oil etc. The base of oils remains same. II MARKET POTENTIAL

Cosmetic Industry is registering a growth of 15%. Indian Herbal cosmetic products are always in demand although there is a tough competition in this line but there exists a gap between demand and supply for the quality products. Now a-days people are very crazy for the herbal products in attractive packs have good demands. III PRODUCTION TARGETES ( PER ANNUM) Quantity : Value : 59.70 MT Rs. 59,70,000

2 IV BASIS AND PRESUMPTION:

1. 2..

The production capacity is calculated on single shift basis at 70% efficiency and 300 working days in a year. The rate of interest in this project profile has been calculated 16% 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. The break even point has been calculated on the full capacity utilization. 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. The cost of installation and electrification is taken at the rate of 10% of the cost of machinery and equipments. Pay back period 5 years from second year of operation.

3. 4.

5. 6.

V. PROCESS OF MANUFACTURE: The process of herbal hair oil manufacturing involves following steps:
1. MIXING :

In this step all the ingredients like base oil, herbal extract/oils, perfumes and colours 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 hrs.
2. FILTERATION :

The oils is now filtered through filter press

3. INSPECTION/TESTING :

Filtered oil is sent to laboratory for necessary testing.

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4. BOTTELING AND LABELLING :

After passing through required inspection, oil is now filled in cleaned and dried bottles in required volumes and then sealed and leveled.
5. PACKGING :

Bottles are now packed in corrugated boxes for marketing.

Process flow chart is as under: PROCESS FLOW CHART

Base Oil

Herbal extract Oil

Mixing

Colour

Filtration

Inspection

Bottling & leveling

Packaging Marketing

VI.

QUALITY 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.
VII 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.
VIII. ENERGY CONSERVATION :

Machinery & equipments purchased should be as per relevant standard Regular maintenance of machinerys is required.
IX MOTIVE POWER 5 HP Land & Shed

Land & Shed

Rented

Rs.10,000

MACHNERY & EQUIPMENT

Mixing tank with stirrer capacity 01 200 kg, 2. Constant filling machine ( two 01 headed ) 3 Cap Sealing machine 01 4 5 6 Filtering equipment Testing & other miscellaneous equipment Cost of office equipment 01

Rs. 4,00,000

Rs. 20,000 7. Installation & Electronic Charges @ 10% Total Non Recurring cost Rs. 4,70,,000 5 Rs. 50,000

XI

STAFF & LABOUR ( PER MONTH)

S.No. 1 2 3 4

Designation Manager Cum Chemist Clerk cum Accountant Sales Representative Workers Total Perquisites @ 15% of total Salaries

Nos. 01 01 02 04

Salary 6,000 4,000 4,000 3000

Total Rs. 6,000 4,000 8,000 12,000 30,000 4,500 34,500

XII

RAW MATERIALS PER MONTH

S.No. 1 2 3 4 5
XIII

Particulars

Quantity

Coconut oil 4000Kg. Soyabeen oil 900 Kg. Other Herbal oils / 90Kg. Perfumes Colour 10Kg. Packaging material

Rate (Rs.) 60 60 800 600

Amount (Rs.) 2,40,000 54,200 72,000 6,000 10,000 3,82,000

UTILITIES PER MONTH

1. 2.

Electricity charges Water charges Total

Rs.5,000 Rs.1,000 Rs.6,000

XIV

OTHER EXPENSES ( PER MONTH)

1. 2. 3. 4.

Postage & Stationery Telephone Repair & maintenance Other unforeseen Total

Rs 0500 Rs.2,000 Rs.2,000 Rs.2,000 Rs.6,500

XV XVI

WORKING CAPITAL ( PER MONTH) 4,29,000 TOTAL CAPITAL INVERTMENT

1. 2.

Total fixed capital Working capital for3 months Total

Rs. 4,70,000 Rs 12,87,000 Rs.17,57,000

XVII. COST OF PRODUCTION (PER YEAR)

1. 2. 3.

Total Recurring Cost Rs.51,48,000 Depreciation on machinery & Rs.42,000 equipment @ 10% Interest on total capital @ Rs.2,81,120 16% Say Rs. Rs.54,71,120

XVIII. TOTAL SALES ( PER YEAR)

Annual production of oil @ Rs. 100/Kg ( in 100 ml, 300ml & 500ml Bottles )
XIX. PROFIT PER ANNUM : 4,99,000

59.70 MT

Rs.59,70,000

XX.

PROTITABILITES

% Return on Total Capital Investment: 28.4% % Profit on Sales

XXX

8.3%
31%

BREAK- EVEN ANALYSIS : FCx 100/FC+Profit

XXII. NAME & ADDRESSES OF MACHINERIES SUPPLIERS :

M/S T.S. ENTERPRIES Road No.14 ,Plot No.E-412 Vishwakarma Indstrial Area, Jaipur M/s Danyal Engineering Company 3022 ,Gali Nal Bandan Shahgang Ajmere Gate ,Delhi-6 M/s Sehgal Industrial Works T-1698 ,Malkaganj Subji Mandi ,Delhi-7 M/S Rank & Company A-95/3 Wazirpur Industrial Area New delhi-52. XXIII,NAME & ADDRESSES OF RAW MATERIAL SUPPLIERS: M/S Amrit Lal Burabhai & Company Anand Bhawan Shamadas Gandhi Marg Princess Street ,Mumbai-2 M/S Suresh Chandra & Company 48 Princess Street ,Mumbai-2