PROJECT REPORT

ON
‘FACE WASH’

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Face wash.

The objective of the pre-feasibility report is primarily to facilitate potential

entrepreneurs in project identification for investment and in order to serve his
objective; the document covers various aspects of the project concept
development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement.
We can also prepare project report on any subject as per your requirement.]

Lucknow Office:
Sidhivinayak Building , 27/1/B,
Gokhlley Marg, Lucknow-226001

Delhi Office :
Multi Disciplinary Training Centre,
Gandhi Darshan Rajghat,
New Delhi 110002
Email : info@udyami.org.in Contact :
+91 7526000333, 444,555

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 PROJECT REPORT
ON
FACE WASH

INTRODUCTION :

Face Wash is a liquid soap used for washing the face especially. Its washing quality is
very good and it is very soft to the skin. Day by day it is becoming very popular in all
class of the society basically, the face wash is a liquid soap. And it is specialty soap for
face and sensitive skins. Additionally, almost every age group of the population use this
product these days. So it is getting rapid popularity in the Indian market. Additionally, you
can produce liquid body wash from the same production unit.
Generally, face washes provide a number of benefits. These are

 Nourishes skin
 Unclogs pores
 Removes pollutants
 Cleanse the skin due to their antimicrobial properties
 Controls excessive oil
 Rejuvenates the skin
 Anti-inflammatory properties smooth the skin
 Removes dead cells etc.
There are several different types of face wash you can find in the market. Broadly, you
can find two types such as for men and for women. Additionally, you will find face wash
for dry skin, normal skin, oily skin, for face lightening, etc. Herbal products are also
gaining rapid popularity. Some of the most popular brands are Ponds, Lakme, Himalaya,
Garnier, Nivea, Neutrogena etc. However, in the Indian market, there is an enough scope
of establishing new brands in the marke

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 MARKET :

In Some of the world’s best face wash brands belong to India. And it is one of the
essential personal care products today. Additionally, the product is not only popular in the
metro cities but also popular in the small towns and rural areas.

People are becoming more conscious about their personal care, looks, and beauty.
Broadly, these are the major reasons for the increasing popularity of the product.
Additionally, TV advertising, brand promotion, and the wide availability play a substantial
role in enhancing the market.

Any individual can start this business as small medium and large scale basis.
Additionally, the production process is simple. The business doesn’t demand any sort of
complex machinery. The raw materials are also widely available in the market throughout
the country.

In market, few established brands like Ponds, Pears, and Johnson & Johnson etc are
available. Besides, few SSI units are also having good market of their brands. Its
popularity is increasing in service class, collegiate and other skin conscious people.
There is good potential of Face Wash of good quality and economical prices.

BASIS & PRESUMPTIONS :

1. The basis of calculation of production capacity is on single shift basis and working of 25
days per month.
2. Rate of interest has been taken @ 11.50% per annum on an average on working capital
and total capital investment.
3. The minimum wages for labour prescribed under Wages Act has been calculated.
4. Whereas some names of manufacturers and suppliers of raw materials, machinery &
equipments are at the end of the profile are by no means exclusive or exhaustive.
5. The cost of machinery & equipments indicated in the profile are approximate those
prevailing at the time of preparation of the profile.
6. Non-refundable deposits of preparation of project report may be considered under pre-
operative expenses.
7. The provision made in raw materials, utilities, overhead etc. is drawn on the basis of local
market conditions/ observations and in approximate. The entrepreneur may find out the
exact cost from the concerned sources.
8. License is required under Drug & Cosmetic Act from state drug controller.

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IMPLEMENTATION SCHEDULE

The implementation of the project includes various jobs/exercise such as procurement of

technical knowhow, transfer of technology, market surveys and tie- ups, preparation of
project report, selection of site, registration, financing of project, procurement of
machinery and raw material etc. recruitment of staff, erection/commissioning of
machines, trial production and commercial productions etc. In order to efficiently and
successfully implement the project in the shortest period , According to which a minimum
period of 8 monhs is involved in family starting the project on commercial basis.

TECHNICAL ASPECTS :

Process of manufacture :

Firstly, mix the Nonyl Phenol Ethoxylate and water (40% of the total volume) slowly with
a stirrer. After mixing, add the Diethylene glycol slowly to the mixer with slow stirring.
Now add SLES followed by perfume and color. Then the continued circulation of cool
water is necessary to control the temperature. Next step is packaging. Finally, pack the
material in bottles after cooling at room temperature.

Basic Required raw materials are

 Nonyl Phenol Ethoxylate

 Diethylene glycol
 SLES
 Colour
 Perfume
 HDPE bottles
 Corrugated box

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 Quality Specification :

It may be manufactured as per customer’s specification but under Drug & Cosmetic

Power Requirement :Connected Load 5 Kwh

Pollution Control

Though there is no discharge of effluent during manufacturing of Face Wash but care
should be taken to avoid the chemicals in washings.

Production Capacity :

Capacity Installed

Quantity 67500 kg

LABOUR REQUIREMENT:

5-6 Manpower is required for Face wash manufacturing Includes:

1 Chemist
2 Skilled Labour
4 Unskilled Labour

BANK LOAN
Rate of Interest is assumed to be at 10.00%

DEPRECIATION
Depreciation has been calculated as per the provisions of Income Tax Act, 1961

APPROVALS & REGISTRATION REQUIREMENT:

Basic registration required in this project:
 GST Registration
 Udyam Registration
 License under Drugs and cosmetics act
 Choice of Brand name of the product and secure the name with Trademark if required
 NOC from State Pollution Control Board
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 FACE WASH MANUFACTURING PLANT SETUP & MACHINES

2000 Sq Ft space is sufficient for starting a small scale operation. Apart from the
production area, you will need to have space for storage and office work. Check the
location before finalizing the place. You must have electricity, adequate water supply,
and good drainage system. Additionally, you must have a laboratory setup for testing and
quality maintenance.

Some of the basic required machines are

 S.S. Jacketed Vessel with stirrer & speed control.

 Semi-automatic bottle filling machine.
 Storage Tanks , LLDPE,
 Tools & Misc. equipment
 Water circulating Pump
 Testing & laboratory equipment

FINANCIAL ASPECTS :

PROJECT AT A GLANCE
Product and By Product : Face Cream
Name of the project / business
activity proposed : Face Cream
Cost of Project : Rs17.95lac
Means of Finance
Term Loan Rs.3.77 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.1.21 Lacs
Working Capital Rs.7.09 Lacs
Debt Service Coverage Ratio : 6.58
Pay Back Period : 5 Years
Project Implementation Period : 8 Months
Break Even Point : 27%
Employment : 10 Persons
Power Requirement : 5.00 HP
Nonyl Phenol Ethoxylate , Diethylene
Major Raw materials
: glycol ,SLES
Estimated Annual Sales Turnover : 58.35 Lacs

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COST OF PROJECT (Rs. In Lacs)
Particulars Amount
Land 3500 Sqft
Rented/Owned
Building /shed 2000 Sq Ft
Plant & Machinery 3.19
Furniture & Fixtures 0.50
Pre-operative Expenses 0.50
Working Capital Requirement 7.88
Total 12.06

MEANS OF FINANCE
Particulars Amount
Own Contribution @10% 1.21
Term Loan 3.77
Workign Capital Finance 7.09

Total 12.06

Beneficiary's Margin Money (% of Project Cost)

Special General
5% 10%

PLANT & MACHINERY

S
PARTICULARS QTY. RATE AMOUNT IN RS.
N
1 S.S. Jacketed Vessel with stirrer & 1
speed control.Capacity 300 kg 2,00,000.00 2,00,000.00
2 Semi-automatic bottle filling machine. 1 50,000.00 50,000.00
3 Storage Tanks , LLDPE,Cap. 200 5
5,000.00 5,000.00
Liters
4 Tools & Misc. equipments LS 5,000.00 5,000.00
5 Water circulating Pump,1/2 HP 1 2,500.00 2,500.00
6 Testing & laboratory equipments LS 30,000.00 30,000.00
Installation
7 & Electrification charges @ -
.7 10% of machinery 25,000.00 25,000.00
Total 3,17,500.00

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 COMPUTATION OF MANUFACTURING OF FACE WASH

Manufacturing Capacity per day 225.00 Kg

No. of Working Hour 8
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 67,500.00 Kg
Capacity
Year Utilisation Kg
IST YEAR 65% 43,875
IIND YEAR 70% 47,250
IIIRD YEAR 75% 50,625
IVTH YEAR 80% 54,000
VTH YEAR 85% 57,375

COMPUTATION OF RAW MATERIAL

Quantity
Item Name of Unit Rate of Total Cost
Raw
Material Per Annum (100%)
KG /KG
Nonyl Phenol Ethoxylate 30,420.00 100.00 30,42,000.00

Diethylene glycol 6,780.00 60.00 4,06,800.00

SLES 3,420.00 50.00 1,71,000.00
Colour 36.00 700.00 25,200.00
Perfume LS LS 5,000.00
HDPE Bottles 200 gm each 3,37,500.00 4.00 13,50,000.00
Corrugated Boxes 14,000.00
Total 50,14,000.00
Annual Consumption cost ( In Lacs)
50.14

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 Raw Material Consumed Capacity Amount (Rs.)
Utilisation
IST YEAR 65% 32.59
IIND YEAR 70% 35.10
IIIRD YEAR 75% 37.61
IVTH YEAR 80% 40.11
VTH YEAR 85% 42.62

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR
Finished Goods
(30Days requirement) 2.46 2.70 2.95 3.21 3.48
Raw Material
(30 Days requirement) 3.26 3.51 3.76 4.01 4.26
Closing Stock 5.72 6.21 6.71 7.22 7.74

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 5.72
Sundry Debtors 2.92
Total 8.63
Less:Sundry Creditors 0.76
Working Capital Requirement 7.87
Lss:Margin 0.79
Working Capital Finance 7.09

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 COMPUTATION OF SALE
IVTH VTH
Particulars IST YEAR IIND YEAR IIIRD YEAR YEAR YEAR
Op Stock - 2,193.75 2,362.50 2,531.25 2,700.00
Production 43,875.00 47,250.00 50,625.00 54,000.00 57,375.00
43,875.00 49,443.75 52,987.50 56,531.25 60,075.00
Less : Closing Stock 2,193.75 2,362.50 2,531.25 2,700.00 2,868.75
Net Sale 41,681.25 47,081.25 50,456.25 53,831.25 57,206.25
Sale Price per Kg # 140.00 142.80 145.66 148.57 151.54
Sale (in Lacs) 58.35 67.23 73.49 79.98 86.69
#Face wash may be packed and sold in bottles of 200 gm each
@ 28/- each

PROJECTED BALANCE SHEET

IST IIND IIIRD IVTH

PARTICULARS YEAR YEAR YEAR YEAR VTH YEAR
SOURCES OF FUND
Capital Account 1.21 2.29 3.72 4.95 6.87
Retained Profit 6.08 7.43 8.23 9.92 11.67
Less Withdrawal 5.00 6.00 7.00 8.00 9.00
Closing capital 2.29 3.72 4.95 6.87 9.53
-
Term Loan 3.77 2.82 1.88 0.94 0.63
Cash Credit 7.09 7.09 7.09 7.09 7.09
Sundry Creditors 0.76 0.82 0.88 0.94 0.99
Provisions & Other
Liab 0.36 0.40 0.44 0.48 0.53
TOTAL : 14.26 14.84 15.23 16.31 17.51
APPLICATION OF
FUND
Fixed Assets ( Gross) 3.69 3.69 3.69 3.69 3.69
Gross Dep. 0.50 0.96 1.34 1.68 1.96
Net Fixed Assets 3.18 2.73 2.34 2.01 1.72
Current Assets
Sundry Debtors 2.92 3.36 3.67 4.00 4.33
Stock in Hand 5.72 6.21 6.71 7.22 7.74
Cash and Bank 2.45 2.54 2.50 3.08 3.71
TOTAL : 14.26 14.84 15.23 16.31 17.51

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 PROJECTED PROFITABILITY STATEMENT

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
A) SALES
Gross Sale 58.35 67.23 73.49 79.98 86.69
Total (A) 58.35 67.23 73.49 79.98 86.69
B) COST OF SALES
Raw Material Consumed 32.59 35.10 37.61 40.11 42.62
Elecricity Expenses 0.47 0.50 0.54 0.57 0.61
Repair & Maintenance - 0.67 0.73 0.80 0.87
Labour & Wages 5.28 5.81 6.39 7.03 7.73
Depriciation 0.50 0.45 0.39 0.33 0.28
Consumables,packaging
2.92 3.36 3.67 4.00 4.33
and Other Expenses
Cost of Production 41.76 45.89 49.33 52.84 56.44

Add: Opening Stock /WIP - 2.46 2.70 2.95 3.21

Less: Closing Stock /WIP 2.46 2.70 2.95 3.21 3.48
Cost of Sales (B) 39.30 45.65 49.08 52.58 56.17
C) GROSS PROFIT (A-B) 19.05 21.58 24.41 27.39 30.52
33% 32% 33% 34% 35%
D) Bank Interest (Term
Loan ) 0.28 0.34 0.25 0.15 0.05
Bank Interest ( C.C.
Limit ) 0.81 0.81 0.81 0.81 0.81
E) Salary to Staff 5.28 5.81 6.39 7.03 7.73
F) Rental expenses 3.00 3.00 3.00 3.00 3.00
G) Selling & Adm
Expenses Exp. 2.92 3.36 3.67 4.00 4.33
TOTAL (D+E) 12.30 13.33 14.13 14.99 15.93

H) NET PROFIT 6.76 8.25 10.29 12.40 14.58

I) Taxation 0.68 0.83 2.06 2.48 2.92
J) PROFIT (After Tax) 6.08 7.43 8.23 9.92 11.67

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DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.

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