PROJECT REPORT

Of

SHAVING GEL

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Shaving Gel.

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
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : SHAVING GEL

6 Name of the project / business activity proposed : SHAVING GEL MANUFACTURING UNIT

7 Cost of Project : Rs.22.55 Lakhs

8 Means of Finance
Term Loan Rs.15.3 Lakhs
Own Capital Rs.2.26 Lakhs
Working Capital Rs.5 Lakhs
9 Debt Service Coverage Ratio : 2.92

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 41%

13 Employment : 14 Persons

14 Power Requirement : 30 KW

Deionized water, Aloe vera Gel, Glycerin, Propylene Glycol, Sodium

15 Major Raw materials PCA, Carbomer 940, Sodium Laureth sulphate, Packing material,
: Flavor & other consumables

Estimated Annual Sales Turnover (Max Utilized

16 Capacity) : 182.88 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 2000 Sq ft Own/Rented
Plant & Machinery 15.50
Furniture & Fixtures 1.50
Working Capital 5.55
Total 22.55

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.26
Term Loan 15.30
Working Capital 5.00
Total 22.55
 SHAVING GEL

Introduction: Shaving Gel or shave gel is a category of cosmetics used for

shaving preparation. The purpose of shaving cream is to soften the hair by
providing lubrication, comes out clear but works into a rich, creamy lather
that comforts and protects your skin while you shave. Shaving gels tend to be a
little heavier in weight and are more lubricating, forming a closer bond with
the hairs on your face. They form rich lather and best shaving gels will be
more conditioning and nourishing than foam.These personal care products is
a broad term used to refer to supporting with personal hygiene, along with
dressing and maintaining your personal appearance. Shaving gels also
provides conditioning and smoothing of skin causes irritation reduction.Using
shave gel properly will help prevent moisture loss and add an additional layer
of protection to avoid any nicks, cuts and hair pulls while you shave, and thus
cut down on itchy razor bumps and skin irritation post-shave; especially if you
have more sensitive skin.
USES & MARKET POTENTIAL: An increasing number of luxury salons
and small size barbershops is driving the sales of grooming products. This
factor is projected to positively influence market growth. The foam creates a
thin layer of protection between razor and skin minimizing friction, the risk of
redness, razor burn, dryness, and irritation. The product nourishes the skin
and prevents rashes thereby driving the product demand.he Global Shaving
Foam Market size is expected to reach $569.3 Million by 2025, rising at a
market growth of 4.6% CAGR during the forecast period. Customers from
developing economies of China and India are witnessing an increase in their
spending power, which is another prominent factor that can dramatically
influence the demand and purchase of personal care products like shaving
foam. Brands like Nivea and Gillette have actively penetrated the Asia Pacific
market and are expected to drive the shaving foam market. Furthermore, the
demand for organic shaving products is on the rise majorly due to the low and
rare side effects. Manufacturers focus on developing and innovating to
manufacture skin and environment-friendly shaving foam products.

Product:
Shaving Gel

Raw Material:
1. Deionized Water
2. Aloe Vera Gel
3. Glycerin
4. Propylene Glycol
5. Sodium PCA
6. Carbomer
7. Sodium Laureth Sulfate
8. Fragrance & other consumables
Manufacturing Process:

Fig.1 – Flow Chart

In personal care products manufacturing, formulation of raw material with

fragrance plays an important role. The raw material for shaving gel is
procured from the local authorized vendor and stored in the inventory. In the
first step, the deionized water and aloe vera gel are mixed in required
proportion in a tank. The tank is heated to a temperature of 80-85 ℃ by using
steam jacketed kettle.The jacketed kettle, resembles a double boiler with one
container placed inside another, is heated when steam is circulated through
the outer container. Inside the interior kettle are blades that revolve to mix
the oils as they are heated. After heating for 40-50 minutes the first group of
ingredients has turned smooth. The steam is released from the outer
container of the kettle, and the mixture is allowed to cool.
In the next step, the mixture is allowed to cool down to a temperature of 60℃.
At this temperature glycerin, propylene glycol and sodium PCA is added. The
mixture is stirred continuously for uniform composition. Agitators are used
for stirring. Heating is used to maintain the temperature. The stirring is done
for 30 minutes.

After this, sodium laureth sulphate is added into the mixture in desired
proportion and mixture is allowed to cool down.. SLS are the surface active
agents lower the surface tension, penetrate and loosen surface deposits and
emulsify or suspend the debris.

In the next step, when the mixture temperature reaches to 45℃panthenol,

lanonin and comfrey extract are added in desired proportion. Comfrey extract
are used in wound healing, reduces itching. Fragrance is added in desired
composition as per requirement. The mixture is allowed to cool down with
continuously stirring. The mixture is allowed to settle down and to reach the
room temperature conditions.

In the next step, the mixture is transferred into homogenizer and carbomer is
added in desired proportion. Continuous stirring is done to avoid any bubble
formation into the solution. After 15-20 minutes of continuous stirring gel
formation begins. The mixture is allowed to settle down into freezers for gel
formation.

The gel prepared in the previous step is check for desired specifications. After
this, they are filled in the bottles using filling machine. After this, they are
packed and dispatched as per the required quantity.

Area:
The industrial setup requires space for Inventory, workshop or manufacturing
area, space for power supply utilities and auxiliary like Generator setup. Also
some of the area of building is required for office staff facilities,
documentation, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1800 - 2000Sqft.
Machines:
1. Steam Jacketed Kettle– A steam jacketed kettle has double boiler
container with steam heating and stirring capability. Easy in filling and
emptying the vessel for handling.

2. Agitator – The purpose of Agitator is to rotate the water at desired rpm so

that calcium hypochlorite is thoroughly mixed in the water.
3. Hommogenizerr –This maachine is used
u to make the un
niform con
ncentratio
on of
gel by
b reducin
ng its visco
osity.

4. Pastte Filling and Sealing Mach hine– Thiss machine is used to

o fill the paste
p
and seal the tu
ube as perr required quantity.
Equipments:
Storage Tank –The tanks are used to store the paste during processing phase.

Pump–Pumps are used to transfer the oil from crude oil tank to filter cloth.
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 3.38 5.19 10.22 15.30
Add: Additions 2.26 - - - -
Add: Net Profit 2.12 3.81 9.03 13.08 16.65
Less: Drawings 1.00 2.00 4.00 8.00 12.00
Closing Balance 3.38 5.19 10.22 15.30 19.95
CC Limit 5.00 5.00 5.00 5.00 5.00
Term Loan 13.60 10.20 6.80 3.40 -
Sundry Creditors 1.07 1.37 1.71 2.07 2.46

TOTAL : 23.04 21.76 23.72 25.77 27.41

APPLICATION OF FUND

Fixed Assets ( Gross) 17.00 17.00 17.00 17.00 17.00

Gross Dep. 2.48 4.59 6.39 7.92 9.24
Net Fixed Assets 14.53 12.41 10.61 9.08 7.76

Current Assets
Sundry Debtors 2.61 3.44 4.27 5.15 6.10
Stock in Hand 4.47 5.54 6.77 8.12 9.59
Cash and Bank 1.44 0.36 2.07 3.42 3.96

TOTAL : 23.04 21.76 23.72 25.77 27.41

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 78.30 103.32 128.04 154.56 182.88

Total (A) 78.30 103.32 128.04 154.56 182.88

B) COST OF SALES

Raw Mateiral Consumed 45.90 58.91 73.13 88.65 105.57

Electricity Expenses 2.83 3.46 4.09 4.72 5.35
Repair & Maintenance 0.39 0.52 0.64 0.77 0.91
Labour & Wages 13.66 15.03 16.53 18.18 20.00

Depreciation 2.48 2.11 1.80 1.54 1.31

Cost of Production 65.26 80.02 96.19 113.87 133.15

Add: Opening Stock /WIP - 2.18 2.60 3.12 3.69

Less: Closing Stock /WIP 2.18 2.60 3.12 3.69 4.31

Cost of Sales (B) 63.09 79.60 95.67 113.30 132.53

C) GROSS PROFIT (A-B) 15.21 23.72 32.37 41.26 50.35

19.43% 22.95% 25.28% 26.70% 27.53%

D) Bank Interest (Term Loan ) 1.66 1.36 0.98 0.61 0.23

ii) Interest On Working Capital 0.55 0.55 0.55 0.55 0.55
E) Salary to Staff 4.62 5.08 5.59 6.15 6.76
F) Selling & Adm Expenses Exp. 6.26 12.92 16.01 19.32 22.86

TOTAL (D+E) 13.09 19.90 23.13 26.63 30.41

H) NET PROFIT 2.12 3.81 9.24 14.64 19.94

2.7% 3.7% 7.2% 9.5% 10.9%
I) Taxation - - 0.21 1.56 3.29

J) PROFIT (After Tax) 2.12 3.81 9.03 13.08 16.65

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.26 -

Net Profit 2.12 3.81 9.24 14.64 19.94
Depreciation & Exp. W/off 2.48 2.11 1.80 1.54 1.31
Increase In Cash Credit 5.00
Increase In Term Loan 15.30 - - - -
Increase in Creditors 1.07 0.30 0.33 0.36 0.39
TOTAL : 28.22 6.23 11.38 16.54 21.65

APPLICATION OF FUND

Increase in Fixed Assets 17.00 - - - -

Increase in Stock 4.47 1.07 1.23 1.35 1.47
Increase in Debtors 2.61 0.83 0.82 0.88 0.94
Repayment of Term Loan 1.70 3.40 3.40 3.40 3.40
Taxation - - 0.21 1.56 3.29
Drawings 1.00 2.00 4.00 8.00 12.00
TOTAL : 26.78 7.31 9.67 15.19 21.11

Opening Cash & Bank Balance - 1.44 0.36 2.07 3.42

Add : Surplus 1.44 - 1.08 1.71 1.35 0.55

Closing Cash & Bank Balance 1.44 0.36 2.07 3.42 3.96
COMPUTATION OF SHAVING GEL MANUFACTURING UNIT

Items to be Manufactured SHAVING GEL

Manufacturing Capacity per Day 1,000.00 pcs of 150 ML tubes

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 300,000 pcs of 150 ML tubes

SHAVING GEL
Year Capacity MANUFACTURING
UNIT
Utilisation

I 45% 135,000
II 55% 165,000
III 65% 195,000
IV 75% 225,000
V 85% 255,000

COMPUTATION OF RAW MATERIAL

Quantity of Total CostPer
Item Name Unit Unit Rate of
Raw Material Annum (100%)
Deionized Water 16,000.00 LTR 14.00 224,000.00
Aloe vera Gel 14,000.00 LTR 400.00 5,600,000.00
Glycerin 2,400.00 LTR 150.00 360,000.00
Carbomer 940 1,500.00 kg 450.00 675,000.00
Propylene Glycol 2,400.00 kg 115.00 276,000.00

Sodium PCA 5,000.00 kg

550.00 2,750,000.00
Flavor & other consumable l.s 250,000.00
Total 10,135,000.00

Total Raw material in Rs lacs at 100% Capacity 101.35

Average Cost per PCS (In Rs) 34.00
Raw Material Consumed Capacity Rate Amount (Rs.)
Utilisation

I 45% 34.00 45.90

II 55% 35.70 58.91
III 65% 37.50 73.13
IV 75% 39.40 88.65
V 85% 41.40 105.57
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 2.18 2.60 3.12 3.69 4.31
Raw Material
(15 Days requirement) 2.30 2.95 3.66 4.43 5.28

Closing Stock 4.47 5.54 6.77 8.12 9.59

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 4.47
Less:
Sundry Creditors 1.07
Paid Stock 3.40 0.34 3.06

Sundry Debtors 2.61 0.26 2.35

Working Capital Requirement 5.41

Margin 0.60

MPBF 5.41
Working Capital Demand 5.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 20,000.00 1 20,000.00
Plant Operator 15,000.00 1 15,000.00
Unskilled Worker 8,500.00 6 51,000.00
Helper 5,000.00 2 10,000.00
Security Guard 7,500.00 1 7,500.00

103,500.00
Add: 10% Fringe Benefit 10,350.00
Total Labour Cost Per Month 113,850.00
Total Labour Cost for the year ( In Rs. Lakhs) 11 13.66

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary

Accountant cum store keeper 10,000.00 1 10,000.00

Administrative Staffs 12,500.00 2 25,000.00
Total Salary Per Month 35,000.00

Add: 10% Fringe Benefit 3,500.00

Total Salary for the month 38,500.00

Total Salary for the year ( In Rs. Lakhs) 3 4.62

COMPUTATION OF DEPRECIATION
Year

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance Own/Rented - - -
Addition - 15.50 1.50 17.00
- 15.50 1.50 17.00

TOTAL - 15.50 1.50 17.00

Less : Depreciation - - 2.33 0.15 2.48
WDV at end of Ist year - - 13.18 1.35 14.53
Additions During The Year - - - - -
- - 13.18 1.35 14.53

Less : Depreciation - - 1.98 0.14 2.11

WDV at end of IInd Year - - 11.20 1.22 12.41
Additions During The Year - - - - -
- - 11.20 1.22 12.41
Less : Depreciation - - 1.68 0.12 1.80
WDV at end of IIIrd year - - 9.52 1.09 10.61
Additions During The Year - - - - -
- - 9.52 1.09 10.61
Less : Depreciation - - 1.43 0.11 1.54
WDV at end of IV year - - 8.09 0.98 9.08

Additions During The Year - - - - -

- - 8.09 0.98 9.08
Less : Depreciation - - 1.21 0.10 1.31
WDV at end of Vth year - - 6.88 0.89 7.76
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 15.30 15.30 0.42 - 15.30
Iind Quarter 15.30 - 15.30 0.42 - 15.30
IIIrd Quarter 15.30 - 15.30 0.42 0.85 14.45
Ivth Quarter 14.45 - 14.45 0.40 0.85 13.60
1.66 1.70
II Opening Balance
Ist Quarter 13.60 - 13.60 0.37 0.85 12.75
Iind Quarter 12.75 - 12.75 0.35 0.85 11.90
IIIrd Quarter 11.90 - 11.90 0.33 0.85 11.05
Ivth Quarter 11.05 11.05 0.30 0.85 10.20
1.36 3.40
III Opening Balance

Ist Quarter 10.20 - 10.20 0.28 0.85 9.35

Iind Quarter 9.35 - 9.35 0.26 0.85 8.50
IIIrd Quarter 8.50 - 8.50 0.23 0.85 7.65
Ivth Quarter 7.65 7.65 0.21 0.85 6.80
0.98 3.40
IV Opening Balance
Ist Quarter 6.80 - 6.80 0.19 0.85 5.95
Iind Quarter 5.95 - 5.95 0.16 0.85 5.10
IIIrd Quarter 5.10 - 5.10 0.14 0.85 4.25
Ivth Quarter 4.25 4.25 0.12 0.85 3.40

0.61 3.40
V Opening Balance
Ist Quarter 3.40 - 3.40 0.09 0.85 2.55
Iind Quarter 2.55 - 2.55 0.07 0.85 1.70
IIIrd Quarter 1.70 - 1.70 0.05 0.85 0.85
Ivth Quarter 0.85 0.85 0.02 0.85 0.00

0.23 3.40

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 4.60 5.93 10.83 14.62 17.96

Interest on Term Loan 1.66 1.36 0.98 0.61 0.23

Total 6.25 7.28 11.82 15.22 18.20

REPAYMENT
Repayment of Term Loan 1.70 3.40 3.40 3.40 3.40

Interest on Term Loan 1.66 1.36 0.98 0.61 0.23

Total 3.36 4.76 4.38 4.01 3.63

DEBT SERVICE COVERAGE RATIO 1.86 1.53 2.70 3.80 5.01

AVERAGE D.S.C.R. 2.92

COMPUTATION OF SALE

Particulars I II III IV V

Op Stock - 4,500.00 5,500.00 6,500.00 7,500.00

Production 135,000.00 165,000.00 195,000.00 225,000.00 255,000.00

135,000.00 169,500.00 200,500.00 231,500.00 262,500.00

Less : Closing Stock(10 Days) 4,500.00 5,500.00 6,500.00 7,500.00 8,500.00

Net Sale 130,500.00 164,000.00 194,000.00 224,000.00 254,000.00

Avg Sale Price per pcs 60.00 63.00 66.00 69.00 72.00

Sale (in Lacs) 78.30 103.32 128.04 154.56 182.88

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required KW 30
Load Factor
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 5.40

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
Hour per
No of Working Hours 0.5
day
Total no. of Hour 150
Diesel Consumption per Hour 8
Total Consumption of Diesel 1,200
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.78
Add : Lube Cost @15% 0.12
Total 0.90

Total cost of Power & Fuel at 100% 6.30

Year Capacity Amount

(in Lacs)

I 45% 2.83
II 55% 3.46
III 65% 4.09
IV 75% 4.72
V 85% 5.35
 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
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considering specific requirement of the project, capacity and type of plant and
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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,
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