Project Profile

|Product | |Herbal Hair Oil |
| Product code | |314601007 |
| | |IS: 7123:1993 |
|Quality Standard | |IS: 7123:1993 |
| | | |
| | | |
| | | |
| Production Capacity (Per Annum) | | |
| Quantity | |59.70 MT |
|. Value | |Rs. 59,70,000. |
| Month and year of | |March , 2011 |
|Preparation | | |
| Prepared By | |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 : 59.70 MT Value : Rs. 59,70,000

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IV BASIS AND PRESUMPTION:

1. The production capacity is calculated on single shift basis at 70% efficiency and 300 working days in a year.

2.. 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.

3. The break even point has been calculated on the full capacity utilization.

4. 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.

5. The cost of installation and electrification is taken at the rate of 10% of the cost of machinery and equipments.

6. Pay back period 5 years from second year of operation.

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

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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 machinery’s is required.

IX MOTIVE POWER 5 HP x Land & Shed

|Land & Shed | |
|Rented |Rs. 10,000 |

MACHNERY & EQUIPMENT

|1 |Mixing tank with stirrer capacity –200 kg, |01 | |
| | | | |
| | | | |
| | | | |
| | | |Rs. 4,00,000 |
|2. |Constant filling machine ( two headed ) |01 | |
|3 | Cap Sealing machine |01 | |
|4 |Filtering equipment |01 | |
|5 |Testing & other miscellaneous equipment | | |
|6 |Cost of office equipment | | |
| | | |Rs. 20,000 |
|7. |Installation & Electronic Charges @ 10% | |Rs. 50,000 |

Total Non – Recurring cost Rs. 4,70,,000 5

XI STAFF & LABOUR ( PER MONTH)

|S.No. |Designation |Nos. |Salary |Total Rs. |
|1 |Manager Cum Chemist |01 |6,000 | 6,000 |
|2 |Clerk cum Accountant |01 |4,000 | 4,000 |
|3 |Sales Representative |02 |4,000 |8,000 |
|4 |Workers |04 |3000 |12,000 |
| |Total | | |30,000 |
| |Perquisites @ 15% of total Salaries | | | 4,500 |
| | | | |34,500 |

XII RAW MATERIALS PER MONTH

|S.No. |Particulars |Quantity |Rate (Rs.) |Amount (Rs.) |
|1 |Coconut oil |4000Kg. |60 |2,40,000 |
|2 |Soyabeen oil |900 Kg. |60 |54,200 |
|3 |Other Herbal oils / Perfumes |90Kg. |800 |72,000 |
|4 |Colour |10Kg. |600 |6,000 |
|5 |Packaging material | | |10,000 |
| | | | |3,82,000 |

XIII UTILITIES PER MONTH

|1. |Electricity charges |Rs.5,000 |
|2. |Water charges |Rs.1,000 |
| |Total |Rs.6,000 |

XIV OTHER EXPENSES ( PER MONTH)

|1. |Postage & Stationery |Rs 0500 |
|2. |Telephone |Rs.2,000 |
|3. |Repair & maintenance |Rs.2,000 |
|4. |Other unforeseen |Rs.2,000 |
| |Total |Rs.6,500 |

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XV WORKING CAPITAL ( PER MONTH) 4,29,000

XVI TOTAL CAPITAL INVERTMENT

|1. |Total fixed capital |Rs. 4,70,000 |
|2. |Working capital for3 months |Rs 12,87,000 |
| |Total |Rs.17,57,000 |

XVII. COST OF PRODUCTION (PER YEAR)

|1. |Total Recurring Cost |Rs.51,48,000 |
|2. |Depreciation on machinery & equipment @ 10% | Rs.42,000 |
|3. |Interest on total capital @ 16% |Rs.2,81,120 |
| |Say Rs. |Rs.54,71,120 |

XVIII. TOTAL SALES ( PER YEAR)

|Annual production of oil |59.70MT |Rs.59,70,000 |
|@ Rs. 100/Kg ( in 100 ml, 300ml & 500ml Bottles ) | | |

XIX. PROFIT PER ANNUM : 4,99,000

XX. PROTITABILITES

% Return on Total Capital Investment: 28.4%

% Profit on Sales : 8.3%

XXX BREAK- EVEN ANALYSIS : FCx 100/FC+Profit 31%

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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

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Bottling & leveling

Marketing

Herbal extract Oil

Colour

Mixing

Packaging

Inspection

Filtration

Base Oil