Beauty Parlour

BEAUTY PARLOUR
A.
INTRODUCTION
Life style is fast changing in the modern era, and the women have become more
conscious about their make up. More women are seen frequenting the beauty
parlours for availing themselves of some kind of service to enhance their
appearance to look good.
The status of women has improved a lot and is
improving further. This has resulted in their life style changing. Also their
economic independence encourages them to resort to this type of service.
B.
PRODUCT USES
This is a service industry
C.
MARKET POTENTIAL
As more and more women are becoming beauty conscious in the modern era,
the beauty parlours will have more patronage.
A beauty parlour with all
modern facilities provide services at a reasonable charges so that more visits

could be expected from each individual.
D.
TECHNICAL ASPECTS
1.
Installed capacity
Based on the service of the beauty parlour and the number of persons to be
employed the capacity is determined. For the proposed service of the beauty
parlour, the following services can be given and taken as installed capacity.
Nos.
Rate(Rs.)
Total value (Rs.)
Eye Brow
2400
15.00
36000
Manicure
600
40.00
24000
Pedicure
240
55.00
13200
Head Massage
360
55.00
19800
Hair bleaching
720
55.00
39600
Arm bleaching
840
55.00
46200
Face bleaching
960
55.00
52800
Stomach bleaching
240
55.00
13200
Waxing
840
40.00
33600
Facial
720
120.00
86400
Hair style
2400
25.00
60000
Hair cutting
2400
25.00
60000
Synthetic dye
480
80.00
38400
Bridal make up
120
800.00
96000
Puffing of hair
120
200.00
24000
Make-up
120
150.00
18000
Total
2.
661200
Equipments
Qty.
Unit Cost(Rs.)
Total cost (Rs.)
Rotating chairs
2 nos.
10000
20000
Mirrors (Big size)
2 nos.
1500
3000
Dressing tables
2 nos.
5000
10000
Drier
2 nos.
6000
12000
Massager
2 nos.
1500
3000
Ozone machine
1 no.
4000
4000
Interiors, Furniture
28000
Total
80000
3.
Process
The process of a beauty parlour is a personalised service. This will vary from
case to case.
4.
Consumables
Cosmetic items are to be regularly purchased from shops. The main cosmetics
to be purchased are moisturizers, lotions, nailpolish, lipsticks, compact
powder, eye paints, eye liners, eye shadows, muskara, blushers, pancake.
5.
Land & Building
A covered area of 300 sqft. is to be taken on rent.
6.
Utilities
Power: Only domestic power connection is required.
Water: About 500 litres of water is required for washing and human
consumption.
Man Power:
Category
Nos.
Monthly
Total
Beautician
4000
4000
Helper
3000
3000
7000
Add: 20% benefits
1400
Total
8400
Total salary per annum (Rs.lakhs)
7.
Rs.1.01 lakhs
Implementation Schedule
The projects can be implemented within a month after financial arrangements

are made.
ASSUMPTIONS
-
Total Revenue at 100% is assumed at Rs.6.61 lakhs per annum. This is

based on number of persons to be employed and infrastructure facilities
to be created. This can be increased.
During first year 60% of the capacity is proposed to utilised. This will be
increased to 70% and 80% in subsequent years.
The cost of materials at 100% works out to Rs.6000 p. m
Electricity charge for lighting is assumed at Rs.500 per month.
Wages & Salaries is assumed for two persons.
Depreciation is calculated on WDV method.
General & Adm. Expenses is estimated at Rs.6000 per month.
Interest on Term loan is calculated at 12% p.a.
Income tax is provided at 33.99% on taxable income.
LIST OF EQUIPMENT SUPPLIERS
1.
Angles, Shop No.14, 29, Cisons Complex, 150, Montieth Road, Egmore,
Chennai 600 008.
2.
Monica Beauty Centre, No. 22 (New No. 43 ) NSC Bose Road,

Chennai 600 079.
3.
The Beauty Shoppe, 6,3rd Floor,Alsa Mall, Montieth Road, Egmore-79
LIST OF CONSUMABLE SUPPLIERS
1.
Molly-An Beauty Centre, 85 New-8,4th Main Road, Gandhi Nagar

Chennai-600 020
2.
Lakme Beauty Salon, 142, Nungambakkam High Road, Chennai 600 34.
3.
Tips & Toes Cosmetic India Ltd., No.44, Vallalar Street, Aminjikarai,
Chennai 600 029.
4.
Rajendra Traders, No.12, Kasi Chetty Street, Chennai 600 001.
FINANCIAL ASPECTS
1. COST OF PROJECT
[Rs.lakhs]
Building (Advance)
0.30
Equipments
0.80
Pre-Operative expenses
0.20
Margin for Working Capital
0.10
Total
1.40
2. MEANS OF FINANCE
Capital
0.95
Term Loan
0.45
Total
1.40
3. COST OF PRODUCTION & PROFITABILITY STATEMENTS
Years
Rs. lakhs
Installed Capacity
Total Income p.a. (Rs.lakhs)
6.61
6.61
6.61
Utilisation
60%
70%
80%
Income p.a. (Rs.lakhs)
3.97
4.63
5.29
Consumables (Rs.6000 p.m)
0.43
0.50
0.58
Power
0.06
0.06
0.06
Wages & Salaries
1.01
1.06
1.11
Repairs & Maintenance
0.60
0.66
0.73
Depreciation
0.20
0.15
0.11
Cost of Production
2.30
2.43
2.59
Admin. & General expenses
0.72
0.76
0.80
Interest on Term Loan
0.05
0.05
0.03
Interest on Working Capital
0.00
0.00
0.00
Total
3.07
3.24
3.42
Profit Before Tax
0.90
1.39
1.87
Provision for tax
0.00
0.47
0.64
Profit After Tax
0.90
0.92
1.23
Add: Depreciation
0.20
0.15
0.11
Cash Accruals
1.10
1.07
1.34
Margin
Bank
4. WORKING CAPITAL:
Months Values
Consumptions
Amount Finance
Raw Materials
0.50
0.02
100%
0.02
0.00
Expenses
1.00
0.03
100%
0.03
0.00
0.05
0.00
0.05
6. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax
1.23
Sales
23%
5.29
Profit before Interest and Tax
1.90
Total Investment
136%
1.40
Profit after Tax
1.23
Promoters Capital
129%
0.95
7. BREAK EVEN LEVEL

Fixed Cost (FC):
[Rs. lakhs]
Wages & Salaries
1.11
Repairs & Maintenance
0.73
Depreciation
0.11
Admin. & General expenses
0.80
Interest on TL
0.03
2.78
Profit Before Tax (P)
1.87
FC x 100
BEL =
2.78
=
FC +P
80
x
4.65
x
100
48% of installed capacity
100

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BEAUTY PARLOUR

The status of women has improved a lot and is

This is a service industry

A beauty parlour with all

modern facilities provide services at a reasonable charges so that more visits

Total value (Rs.)

Total cost (Rs.)

Mirrors (Big size)

Land & Building

A covered area of 300 sqft. is to be taken on rent.

Power: Only domestic power connection is required.

Add: 20% benefits

Total salary per annum (Rs.lakhs)

The projects can be implemented within a month after financial arrangements

Total Revenue at 100% is assumed at Rs.6.61 lakhs per annum. This is

Monica Beauty Centre, No. 22 (New No. 43 ) NSC Bose Road,

The Beauty Shoppe, 6,3rd Floor,Alsa Mall, Montieth Road, Egmore-79

LIST OF CONSUMABLE SUPPLIERS

Molly-An Beauty Centre, 85 New-8,4th Main Road, Gandhi Nagar

Rajendra Traders, No.12, Kasi Chetty Street, Chennai 600 001.

Margin for Working Capital

3. COST OF PRODUCTION & PROFITABILITY STATEMENTS

Income p.a. (Rs.lakhs)

Consumables (Rs.6000 p.m)

Wages & Salaries

Repairs & Maintenance

Admin. & General expenses

Interest on Term Loan

Interest on Working Capital

Profit Before Tax

Provision for tax

Profit After Tax

6. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit before Interest and Tax

Profit after Tax

7. BREAK EVEN LEVEL

Wages & Salaries

Repairs & Maintenance

Admin. & General expenses

Profit Before Tax (P)

48% of installed capacity

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