Business Plan Herbal Hair Oil PDF

HERBAL HAIR OIL
PRODUCT CODE : 314601007
QUALITY AND STANDARDS : As per Market Requirement
PRODUCTION CAPACITY : 60 MT (per Annum)

Value : Rs. 1,20,00,000/-
MONTH AND YEAR : June, 2014

OF PREPARATION
PREPARED BY : Sh. Sandeep Agarwal

Assistant Director (Chemical)
1. 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.
-14-
Herbal Hair Oil
2. 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, satellite 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 perfumed hair oil is
an important part of it.
3. PRODUCTION TARGETES (PER ANNUM)

Quantity : 60 MT
Value : Rs. 1,20,00,000/-
4. 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.
5. IMPLEMENTATION SCHEDULE
Quotation period _ 10 days
Provisional registration _ 10 days
Sanction of loans _ 2 months
Delivery and erection of machine, _ 1 month

electrification etc.
-15-
Chemical Division
6. TECHNICAL ASPECTS
6.1. Process of Manufacturing
The process of herbal hair oil manufacturing involves following steps:
6.1.1. 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.
6.1.2. Filtration
The oil is now filtered through filter press.
6.1.3. Inspection/Testing
Filtered oil is sent to laboratory for necessary testing.
6.1.4. Bottling and Labeling

After passing through required inspection, oil is now filled in cleaned and
dried bottles in required volumes. Bottles are sealed and labeled.
6.1.5. Packaging
Bottles are now packed in corrugated boxes for marketing.
Process Flow Chart

Base Oil
Mixing
Herbal Extract Oil Filtration Colour
Inspection
Bottling & Labeling
Packaging
Marketing
-16-
Herbal Hair Oil
6.2. 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.
6.3. 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.
6.4. Energy Conservation

Machinery & equipments purchased should be as per relevant standard
Regular maintenance of machinerys is required.
6.5. Motive Power 5 HP
7. FINANCIAL ASPECT
7.1. Fixed Capital
Land & Building (Rented):
Description Amount (Rs.)
Land 300 Sq. meters.

12,000.00
Building Work shed Office & store
7.1.1. Machinery and Equipments

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 9,00,000/-
4 Filtering equipment 01
5 Testing & other miscellaneous equipments LS
6 Installation & Electrical Charges @ 10% 90,000/-
7 Cost of office equipment 60,000/-
Total 10,50,000/-
-17-
Chemical Division
7.2. Working Capital (per month)

7.2.1. Personnel
S. No. Designation Nos. Salary Amount (Rs.)
1. Manager Cum Chemist 01 12,000 12,000
2. Salesman 01 7,000 7,000
3. Skilled Workers 02 9,000 18,000
4. Unskilled Workers 02 7,000 14,000
Total 51,000
Perquisites @ 15% of total Salaries 7,650
Total 58,650
7.2.2. Raw Material

S. No. Particulars Quantity Rate (Rs.) Amount (Rs.)
1 Coconut oil 4000 Kg. 140 5,60,000
2 Castor oil 900 Kg. 45 40,500
3 Other Herbal oils/ Perfumes 90 Kg. 800 72,000
4 Color 10 Kg. 400 4,000
5 Packaging material @ Rs. 10/-
5000 Kg. 10 50,000
per kg of finished product
Total 7,26,500
7.2.3. Utilities
S.No. Particulars Amount (Rs.)
1 Electricity charges, 600 units @ Rs.7/- 4,200
2 Water charges 500
Total 4,700
7.2.4. 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 1/- per kg of 5,000
finished goods
5 Other unforeseen expenses 2,000
6 Rent 12,000
Total 22,000
-18-
Herbal Hair Oil
7.2.5. Total Recurring Expenditure (per month)

S. No. Particulars Amount (Rs.)
1 Staff & Labor 58,650
2 Raw Material 7,26,500
3 Utilities 4,700
4 Other expenses 22,000
Total 8,11,850
7.3. Total Capital Investment

Total Fixed Capital Rs. 10,50,000
Total Working Capital (for 2 months) Rs. 16,23,700
Total Rs. 26,73,700
8. FINANCIAL ANALYSIS
8.1. Cost of Production (per annum)
S.No. Particulars Amount (Rs.)
1. Total Recurring Cost 97,42,200
2. Depreciation on plant & machinery @ 10% 99,000
3. Depreciation on furniture @ 20% 12,000
4. Interest on total capital @ 14% 3,74,318
Total 1,02,27,518
8.2. Turnover (per annum)

Total Sale of 60 MT of Herbal Hair oil @ Rs. 2,00,000/M.T Rs. 1,20,00,000
8.3. Net Profit (per annum)

= Turnover cost of production
= Rs. 1,20,00,000 1,02,27,518
= Rs. 17,72,482
8.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year
17,72,482
= X 100
1,20,00,000
= 14.77 %
-19-
Chemical Division
8.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment
17,72,482
= X 100
26,73,700
= 66.3 %
8.6. Break-even Point

S. No. Fixed Cost Amount (Rs.)
1 Depreciation on machinery 99,000
2 Depreciation on furniture 12,000
3 40% of salary & wages 2,81,520
4 40% of other expenses 48,000
5 Rent 1,44,000
6 Interest on total investment 3,74,318
Total 9,58,838
B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit
9,58,838
= X 100
9,58,838 + 17,72,482
= 35 %
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
-20-

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HERBAL HAIR OIL

PRODUCT CODE : 314601007

QUALITY AND STANDARDS : As per Market Requirement

PRODUCTION CAPACITY : 60 MT (per Annum)

MONTH AND YEAR : June, 2014

PREPARED BY : Sh. Sandeep Agarwal

3. PRODUCTION TARGETES (PER ANNUM)

4. BASIS AND PRESUMPTIONS

Provisional registration _ 10 days

Sanction of loans _ 2 months

Delivery and erection of machine, _ 1 month

6.1.4. Bottling and Labeling

Process Flow Chart

Herbal Extract Oil Filtration Colour

Bottling & Labeling

6.2. Quality Control and Standards

6.3. Pollution Control

6.4. Energy Conservation

6.5. Motive Power 5 HP

Land 300 Sq. meters.

7.1.1. Machinery and Equipments

7.2. Working Capital (per month)

7.2.2. Raw Material

7.2.4. Other Contingent Expenses

7.2.5. Total Recurring Expenditure (per month)

7.3. Total Capital Investment

8.2. Turnover (per annum)

8.3. Net Profit (per annum)

8.4. Net Profit Ratio

8.5. Rate of Return

8.6. Break-even Point

NAME & ADDRESSES OF MACHINERY SUPPLIERS

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

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

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

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

RAW MATERIAL SUPPLIERS Locally available

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