Product: LIPSTIC MASCARA AND KAJAL PENCIL Product Code: (Based on NIC -2004): for Lipstic: 24246 For

eye make-up: 24246

Product Code: (Based on ASICC -2000) for Lipstic: 36214 For eye make-up: 36205 Production Capacity: Lipstick 50 kg. per day Mascara 100 kg. per day Kajal 50 kg per day Valuing Rs.6,75,00,000/- per annum.

Month & Year of Preparation : April 2010

Prepared by: Chemical Division Branch MSME Development Institute New Colony, RAAGADA-765001 (Odisha) Phone/Fax: 06856-222268 Email: brdcdi-raya@dcmsme.gov.in

PROJECT PROFILE ON LIPSTIC MASCARA AND KAJAL PENCIL

INTRODUCTION: Thos Project Profile has been prepared aiming at production of Lipstick Mascara and Kajal Pencil in a small scale unit. These products are some important cosmetic products having enormous demand every where. Lipstick used in lips by the ladies almost of all groups for beautification and improvement of the face look. The mascara is used on the eye lashes to attract the attention of the eyes and the kajal has been in use from the very ancient days by the ladies kin their eye lids. Kajal is believed to have dual objective i.e. to clean the eyes and make it cold in one hand and in the other to improve eye look. MARKET POTENTIAL: The colour cosmetic products in India has a tremendous demand at the pace of urbanization, increasing awareness on beauty consciousness, and living standards of people. Latest trend shows, ladies specially dwelling in urban areas are very much concerned to take care of their eyes and lips. It increases the demand of products like Lipstick, Mascara and Kajal through out the country and abroad. Repeated advertisements in various TV channels, News papers, Magazines, TV serials, Cinemas and Theaters etc. have influenced the beauty and style consciousness and the demand is quite visible throughout. BASIS AND PRESUMPTION: 1. Working hour year. 2. Capacity utilization : Single shift of 8 hours, for 300 working days in a : 60% during 1st year 75% in 2nd year 90% in 3rd year and onwards. : Monthly basis. : 35% of total capital investment. : 14% has been calculated on total capital investment considering the opportunity cost of margin money. : Rs. 4.50 per unit.

3. Salary and wages 4. Margin money 5. Interest charges

6. Power tarrif

IMPLEMENTATION SCHEDULE: The Project is estimated to commence production within one year from the conception of the project. The delivery of the machinery is expected within 2 months from the placement of orders. The time taken for preparation of the project is 1 month. The loan formalities will take about 6 months and one month will be taken for installation and erection of machinery.

TECHNICAL ASPECTS: Manufacturing Process: A variety of ingredients in different receipes are used for making colour cosmetic products depending upon the properties and the price of the end products and targeted markets segments. Some typical formulations for manufacturing Lipstick, Mascara and Kajal Pencil are given below: Lipstick: Bees Wax Castor Oil Isopropyl myristate Lanolin or coco butter Pigments Preservatives Flavours : : : 20-30% 60-70% 5-7% : 5-6% : 3-7% 0.2-0.5% : 0.5-0.7%

Procedure: The was is melted and added with the pigment and caster oil together milled in triple roller mill for thorough mixing. The material is then poured into the moulds according to the specific size and shape. The moulds are chilled to allow the moisture to solidify. Each of the item is removed from the moulds and put into lipstick containers. The final product is flamed or glazed for gloss and visual appeal. The product is then packed in paper covers for dispatch.

Mascara: Veegum Glycery-Mono-Starate Isopropyl myristate Oleyl alcohol Tri ethanolamine Pigments Preservative Water to make : 01-1.2% : 5-7% 5-6% 2-3% 1% : 02-5% 0.1-02% : 100%

: : : :

Procedure: The pigment is ground well into the base material i.e. Glycery-Mono-Starate the fine grinned mixture is then added with the other ingredients and water together and stirred well for cream formation then the cream is filled in the tubes and sealed. Kajal Stick: Carbon Black Castor Oil Bees Wax Preservative

: : : :

5-8% 70-75% 15-20% 0.1%

Procedure: The Bees Wax is melted and added with other ingredients, mixed well in three roller mixing machine for thorough and uniform mixing. The stock is then filled in the moulds of specific diameter and shape followed by chilling. The sticks are then released and put into the containers and packed suitably. Quality Control and Standards: The quality of these products are maintained as per the BIS specification. PRODUCTION CAPACITY PER ANNUM: Lipstick Mascara Kajal 50 kg. per day 100 kg. per day 50 kg per day

Valuing

Rs.6,75,00,000/- per annum.

POLLUTION CONTROL: The units producing Lipstick, Mascara, Kajal does not produce any toxic pollutants. However, the workers should use mask and gloves during handling the chemicals in the factory. FINANCIAL ASPECT: I) Land and Building: a) Land 600 sq. mt. 5,00,000/b) Building Built up floor area of 500 sq.mt.@ 4,000/c) Other civil construction including water connections: Total :

Rs.

Rs.20,00,000/Rs. 1,00,000/Rs.26,00,000/-

II) Machinery & Equipment: Sl. Name of Machine Qnty. Price Value (Rs.) No. 01. S.S. Tripple Roller(12x 6) 2 1,00,000 2,00,000 02. S.S. Mixing Tank (200 kg) 1 75,000 75,000 03. Tube filling and ceiling machine (Semi Automatic) 04. Lipstick & Kajal filling machine 2 1,25,000 2,50,000 05. Heating Apparatus 1 25,000 25,000 06. Chilling Plant 2 50,000 1,00,000 07. Jacketed Vessel 3 20,000 60,000 08. Wax Heating Vessel 1 25,000 25,000 09. Moulds for lipstick 24 4,000 96,000 10. Moulds for Kajal 24 3,000 72,000 11. Errection and Electrification LS 1,00,000 Total: 13,75,000 III) Other Fixed Assets: 1 2. 3. Tools and equipment Working Table, Furniture and fixtures Testing Equipments 60,000 1,00,000 1,00,000

4.

Office Equipments

Total:

1,00,000 3,60,000

IV)

TOTAL PLANT AND MACHINERY AND OTHER FIXED ASSETS (II+ III) PRELIMINARY EXPENSES:

17,38,000 1,00,000

V)

VI) TOTAL FIXED CAPITAL REQUIREMENT = (I+IV+V)= WORKING CAPITAL REQUIREMENT I) PERSONNEL: TECHNICAL Sl. No. Designation 01. 02. 03. 04. 05. 06. Production Manager Production Supervisor Chemist Skilled Worker Semi Skilled Worker Unskilled worker Mechanic & Electrician

44,38,000

No(s) 1 2 4 4 3 1

Salary

&

Total Salary (Rs.) 10,000 10,000 6,000 12,000 3,000 2,500 2,000 4,000 Total 12,000 10,000 6,000 4,000 54,000

ADMINISTRATIVE Sl. No. Designation 01. 02. 03. 04. 05. Assistant Manager Administrative Assistant Accountant cum cashier Store Keeper Security/Watchman

No(s) 1 1 1 2 2

Salary 8,000 3,000 4,000 3,000 2,000 Total:

Total Salary (Rs.) 8,000 3,000 4,000 6,000 4,000 25,000 79,000 16,000 95,000

Expected pay bill per month Add 20% perquisites

Total:

II)

RAW MATERIAL (PM)

Raw Material requirement per day i.e. Lipstick-50 kg, Mascara-100 kg and Kajal-50 kg. Sl. No. Item Qnty. Rate Total (Rs.) (Rs.) Lipstick 01. Bees Wax 15 kg 500 7,500 02. Castor Oil 30 kg 100 3,000 03. Lanolin 2.5 kg 200 500 04. Isopropyl myristate 2.5 kg 200 500 05. Pigment 3 kg 500 1,500 06. Propyl P. Hydroxin Benzoate 07. Flavours 0.5 kg 1,000 500 Mascara 08. Veegum 1 kg 600 600 09. GMS 5 kg 150 750 10. IPM 5 kg 200 1,000 11. Oleyl alcohol 2 kg 250 500 12. Tri ethanolamine 1 kg 150 150 13. Pigment 4 kg 300 1,200 14. Preservative 0.5 kg 400 200 Kajal 15. Carbon Black 3 kg 400 1,200 16. Castor Oil 40 kg 100 4,000 17. Bees Wax 8 kg 500 4,000 Packing Material 18. Lipstick Container 10,000 5 50,000 pcs 19. Mascara Tube 5,000 3 15,000 pcs 20. Kajal Container 20,000 1 20,000 pcs 21. Corrugated PaperBox LS 50,000 Total: 1,62,500 Or say Rs.1,63,000

Raw Material Requirement per month III) Utilities: Electricity 600 units @ Rs. 4.50 IV) Other expenses (PM) : i. ii. iii. iv. v. vi. vii. viii. Repairs & Maintenance Other Consumable Stores Insurance Travelling Expenses Telephone / Fax / Telegram Exp. Printing & Stationery Advertising and publicity Other expenses

= Rs. 40,75,000/-

27,000

Total :

5,000 3,000 3,000 10,000 5,000 2,000 10,000 2,000 40,000 42,91,000

V) VI)

Total recurring expenses per month Working capital requirement (3 months recurring expenses)

1,28,73,000

VII) TOTAL CAPITAL INVESTMENT: i. ii. Fixed Capital Working Capital for 3 months Total: 44,38,000 1,28,73,000 1,73,11,000

VIII) COST OF PRODUCTION (PER ANNUM): 1. 2. Recurring expenditure per annum 5,14,92,000 Depreciation on Plant & Machinery @ 10% Building @ 5% 1,05,000 Machinery @ 10% 1,38,000 Tools & Equipment @ 25% 40,000 Furniture and fixtures @ 20% 40,000 3,23,000 Interest on total capital investment @ 14% Total : 24,24,000 5,42,39,000

3.

IX)

EXPECTED SALES (PER ANNUM) : Lipstick 30,00,000 pieces @ 12/Mascara 15,00,000 pieces @ 15/Kajal 60,00,000 pieces @ 1/ Total: 3,60,00,000 2,25,00,000 60,00,000 Rs. 6,45,00,000 Rs. 1,02,61,000 15.91%

X) XI)

Profitability cost of production

PERCENTAGE OF PROFIT (ON NET SALES)

XII) Rate of return XIII) Break Even Point: Total fixed cost (per annum): 1. 2. 3. 4. 5. Insurance Depreciation Interest 40% of salary & wages 40% of other contingential expenses Total:

59%

36,000 3,23,000 24,24,000 4,56,000 3,07,000 35,46,000

XIV) Break Even Point (%) =

Fixed Cost x 100 = 25.68% Fixed Cost + Profit

LIST OF MACHINERY SUPPLIERS BALL MILLS 1. 2. 3. HSP Engineering Company, C-179/1, Bulandshahar Road, Site No.1. Ghaziabad (UP). New Lahore Welding & Engineering Works, B 75, Mayapuri Industrial Area, Phase-1, New Delhi 110 064. Mechamico Manufacturing Engineers, 15,Okhla Industrial Estate, Phase III, New Delhi 110 020.

BOTTLE FILLING, SEALING AND WASHING MACHINE 1. 2. 3. Amar Mechanical Engineers, 6, Industrial Area, N 17, Faridabad 1. Amar Enterprisers (India), F11, DSIDC Industrial Complex, Rohtak Road, Nanglol, Delhi 110 041. Bottling Machinery Company of India, B-280, Okhla Industrial Area, Phase-1, New Delhi 110 020.

BOTTLE WASHING AND DRYING MACHINES 1. 2. 3. 4. Amstrong Smith Limited, 106, Armenian Street, Madras -1. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Kripson and Company (I), Ranade Road, Mumbai 400 028. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr Estate, Mumbai 400 001.

CAP SCREWING MACHINES 1. 2. 3. Amstrong Smith Limited, 106, Armenian Street, Madras 1. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

BOTTLE FILLING MACHINES 1. 2. 3. 4. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Kripson and Company (I), Ranade Road, Mumbai 400 028. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

COLLAPSIBLE TUBE FILLING MACHINES 1. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr Estate, Mumbai 400 001.

2.

Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

EMULSIFIERS AND STIRRERS 1. 2. 3. 4. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Frederick Herbert, No. 10, 2nd Pasta Lane, Colaba, Mumbai 400 005. Gladwyn & Co., 251, Naoroji Road, Fort, Mumbai 400 001.

FILTER PRESSES 1. 2. 3. 4. Basp Industries, G.P. Industrial Area Complex, Thane. Dashmesh Industries (India), WZ-470, M.S. Block, Hari Nagar, New Delhi 110 064. H.S. Engineering Works, 16/17, Singh Sabha, Guruduara, New Delhi 110 015. R.P. Engineering Company, 7/8, Gali No.7, Anand Parbat, New Delhi 110 005.

GLASS BOTTLES CONTAINERS 1. 2. Sun India Printing,B-193, Okhla Industrial Area, Phase-1, New Delhi110 020. Universal Glasses, Plot No.17, Site No.IV, Industrial Area, Sahibabad, Ghaziabad.

GRINDING MACHINES 1. 2. 3. 4. Hindustan Metal Works, 17-B, Bhayandar Udyog Nagar, 9-Goddeo Road, Bhayandar, Thane. Yesco (India) Engineering Co., 21-A, Naraina Indl. Area, Phase-II, New Delhi 110 028. Water Well Engineers, 20/76, S. Bhagatsingh Road, Mumbai. Tirupati Industries, 8, Nand Deep Indl. Estate, Kondivitta Road, Mumbai

 400 059.

LABEL GUMMING AND APPLYING MACHINES 1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039.

MARKING AND PRINTING MACHINES 1. Modern Industries, Factory Plot No.98, Sector No.24, Faridabad 5. MIXER) AND OTHER CHEMICAL

MIXERS (PLANETARY MACHINERY 1. 2. 3.

Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Process Machinery and Equipments, 144, Ashutosh Mukerjee Road, Flat No.7, Kolkata 25. Frederick Herbert, No.10, 2nd Pasta Lane, Colaba, Mumbai 400 005.

PASTE FILLING AND CRUMPING MACHINES 1. Mather and Platt Limited, Hamilton House, 8, Graham Road, Ballard Estate, Mumbai 400 001.

POWER FILLING MACHINES 1. 2. 3. 4. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1. Gladwyn & Company, 251, Naoroji Road, Fort, Mumbai 400 001. Frederick Herbert, No.10, 2nd Pasta Lane, Colaba, Mumbai 400 005.

PULVERISING MACHINES 1. 2. Batliboi Private Limited, Silver Jubilee Park Road, Bangalore 2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007.

3.

Mechanico, 15, Okhla Industrial Estate, New Delhi 110 020.

RIBBON BLENDERS 1. 2. 3. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1. Crush Machinery Manufacturers, 3rd Floor, 361, Dr. D.N. Road, Fort, Mumbai 400 001.

SCIENTIFIC APPARATUS AND LAB EQUIPMENT 1. 2. 3. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Toshniwal Brothers Private Limited, 198, Jamshedji Tata Road, Mumbai 400 001. Valcun-Lavel Limited, Mustafa Building, 7-A, Sir P.M. Road, Mumbai 400 001. LIST OF MACHINERY SUPPLIERS AND PRODUCTION OF COSMETIC PRODUCTS 1. 2. Mamko Machine Fabricators Pvt. Ltd., 105, Heera Panna Indl. Estate, Goregaon (E), Mumbai 400 063. Square Pharma Machineries, Unit No.33, Arihant Indl. Estate,Behind Ansa Estate, Off. Saki Vihar Road, Mumbai 400 072. LIST OF RAW MATERIAL SUPPLIERS AND PRODUCTION OF COSMETIC PRODUCTS 1. Galaxy surfactants Limited, C-49/2, TTC Indl. Area, Pawane, Navi Mumbai 400 703. 2. Chemhouse Marketing, 42, 1st Floor, Asiatic Commercial Arcade, Vartak Nagar, Pokhran Road, Thane (W) 400 606. 3. International Flavours and Fragrances (I) Ltd., Delphi 501-503, C Wing, Hiranandani Business Park, Powal, Mumbai 400 076.

4. Yasham Bio-Science, 3B Nityanand Sadan, Bharadawadi, Andheri (W), Mumbai 400 058. 5. WF Limited, 109 Sion (East), Mumbai 400 022. 6. Stan-Pack Industries, B/5, Mahalaxmi Industrial, Navghar, Vasai Road (E), 401210, Dist. Thane. 7. Arofine Chemical Industries, 2/11, Arondekar Bhavan, 14 HF Society Road, Jogeshwari (E), Mumbai 400 076. 8. Yasham Bioscience, 3/8, Nityanand Sadn, Bhardawadi JP Road, Andheri (W), Mumbai 400 058. 9. Alpha Plastic Industries, Gala No.1, Navnandan Indl. Estate, Opp P&T Colony, Mulund (W), Mumbai 400 080. 10.Koel Colours Pvt. Ltd., F-11, Nand-Jyot Ind. Premises, Andheri-Kurla Road, Safed Pool, Sakinaka, Andheri (E), Mumbai 400 072. 11.Ultra International Limited, 304, AVG Bhawan, M-3, Connaught Circus, New Delhi 110 001. 12.Lucid Colloids Limited, 401A, Navbharat Estates, Zakaria Bunder Road, Sewri West, Mumbai 400 015. 13.Vivimed Labs Limited, 2nd Floor, Veerang Towers,Habsiguda, Hyderabad 500 006. 14.RYM Expoorts, 23, Anuradha Society, Old Nagardas Road, Andheri (E), Mumbai 400 069. 15.Sankhubaba International, 425 Milan Industrial Estate, Opp. T.J Road, Cotton Green (West), Mumbai 400 033. 16.Gujarat Heavy Chemicals, 20 Community Centre, New Friends Colony, New Delhi 110 065. 17.Evancil Cosmetics, 6/9, Kirthi Nagar, Ind. Area,New Delhi 110 005. 18.JBT Perfumes (P) Ltd., 9/405 Laxmi Plaza, Link Road, Andheri (W), Mumbai 400 053. 19.Anglo American Colour and Chemical Industries, A-40, Gali No.6, Anand Parbat Indl. Area, New Delhi 110 005. 20.Oriental Carbon and Chemicals Limited, 5th Floor, 506, Dahyog Building, 58, Nehru Place, New Delhi 110 001. 21.Wesix Chemicals, Marshal Building, 3rd Floor, 20, Ballard Road, Mumbai 400 038.