Body Lotion Making Business - How To Start

Starting a Body Lotion Making Business to Earn Huge Profit

Introduction

Cosmetics or Skincare goods have been a recent charm for many individuals. Skincare products do not only aid to maintaining the virtue and the novelty of your skin, but it also helps to make you appear good and feel more self-assured. Cosmetics is a chief market, be it females or even men, the increasing consciousness about skin and the increasing pollution levels have augmented the demands for Skin lotions and beauty products.

A step-by-step guide to Body Lotion Making Business Plan in India, License, permissions, registrations, and profit

Body Lotion Cream (Image credit: pixabay)

Market potential of Body Lotion Making Business in India

As we discussed previously, cosmetics already have a huge market, even for international markets. On average, every home would need a cosmetic or a skincare item every month at least once. This shows a great market potential and repetitive requirement of products for the businesses related to that particular industry.

If we speak about Cosmetics or Skincare products as a whole, it is analyzed as the fastest-growing segment when compared with other consumer merchandise. There are so many new products that have started to enroll themselves in some of the other groups of the Beauty Industry.

Taking reference from numerous stats that are developed on a global scale, a report by the NPD Group states that, every year the Beauty industry takes an upsurge of 8% or more, the turnover of the same business is seen as a linear graph.

Body Lotion making business plan

Let us dive straight into the specifications and know the formalities and necessities to start a lotion-making Business.

Raw Materials required to start a Body Lotion Making Business

Similar to any other business, you need some raw materials that would serve as a base for your product standard. The following are the different types of raw materials needed for the Body Lotion Making business in India.

Herbal Ingredients
Antioxidants
Citric Acids
Oil
Sugar
Natural Oils
Plant-based oils
D Panthenol
Lactic Acid
Alkalis
Amino Acids
Silicones

Equipment Required:

Raw materials may consume less capital but you would also need various equipment that would aid to process your Lotion products further at each step. This machinery will consume the majority of the capital. Some of the necessary equipment that is used from the beginning to end-stage are stated below.

Digital Scale
Weighing scale
Overhead mixer
Surface
Beakers
Cleaning tools
Thermometer
Water Pots
Hot Plates
Pipettes
pH strips and pH meter

License, permissions, and registrations required to start a Body Lotion Making Business in India

FBA License
Primarily, you must define the management design of your organization. And then as per the design, register your business.
Firstly, apply for MSME Udyog Aadhaar which is available as online registration.
Then, the important trade license from the local municipality should be applied.
The business comes under the food Industry category and requests consent from FSSAI which is also done online.
Nowadays it is a must to apply for GST registration.
Try to create a current account in any of the nearby banks.
Then it is important to apply for the BIS certification. The product must also conform to the PFA Act, guidelines
Moreover, it is essential to check the tax liabilities as well for this business.
AGMARK certification
Fire license
Mandi Act
Labor Laws such as the following: ESIC, EPFO, etc.
CLU – for land
Electricity Bills

Investment required to start Body Lotion Making Business

After acquiring Raw materials and Equipment into account, we can have a small estimate of the investment that is required for you to begin this business. However, there are different other aspects such as branding marketing, and so on to reflect as well for the finance. The total investment necessary for starting your Body Lotion Making Business in India is shared below.

Total investment required to start Body Lotion Making Business

Small Scale basis Rs.70000 to 3 lakhs
Medium/ Large Scale Rs. 5 to 15 lakhs

Profit in Body Lotion Making Business

While investing in any venture a businessman will have expectations when it comes to the gains that can be earned by the Lotion Making Business.

If we make an analysis, an average Lotion-making business, on a moderate scale you would be gaining around Rs. 50000 to 1 lakh monthly. However, these numbers are just a projected value derived by taking several businesses’ experiences and suggestions into account.

If we speak about a lotion-making business that is well-established and performing well, with a good brand value and market, they can gain more than 2 lakhs for a month.

The manpower required for Body Lotion Making Business

Whether it’s a small a large-scale venture, you must acquire some skilled and unskilled workers to assist your manufacturing procedure or to operate the business. Here we have stated the essential workforce that you would require for manufacturing or distribution tasks.

For arranging a small scale-based Lotion making business, you must appoint 2 to 3 skilled workers
And if we think about a business that is on a moderate level, the needed manpower would be; 4 to 8 people at the most and around 8 to 10 workers if opted for large-scale Lotion making business.

Profit margin in Body Lotion Making Business

In Lotion Making Business, with enough promotion with good marketing practices, along with a good competitive market price, you can estimate to have around 30% to 40% as profit margin.

Target customers in Body Lotion Business

Local shops: Your primary and main customers or target would be the individuals who live around your locality, your apartment, and your colony. And the proper way to reach all the people in your area is by approaching local shops?

Retailers: Most Retailers keep products that are circulating, and that is compulsory for consumption by the consumers. Lotions and skin care products are not considered to be fast-moving and well-favored products by retailers unless from a popular brand. But you can always contact them as a target for growing your customer base.

Supermarkets/Shopping malls: Even for supermarkets skincare products or mainly Lotions are not stocked by them in high quantities, but with proper convincing and explanation of market potential, you can pursue them to become a constant buyer for your business, the same you will have to do for Shopping malls.

Online Retail Stores: With numerous E-commerce websites and Retail shops, you can always arrange an account and have your products listed on all the nearby retail stores. Lotions and skincare products sell well on such online retail stores; hence you could necessarily try for that.

Medical Shops and Beauty Stores: Medical shops even display your products as it is related to their segment, and as for beauty shops, they are even a major target for getting your lotion showcased to the potential audience.

How to market Body Lotion

In case if you miss this: Aloe Vera Juice Making Business in India.

You can sell your Body Lotion Business in local markets or you can even sell in online stores. You can also register in B2B websites and B2C websites in online markets to promote Body Lotion Business products.

You can also sell your products in supermarkets, small stores in shopping malls, etc. Advertise about your product through social media to get a huge number of clients in this way you can increase and promote your business. There are very limited Body Lotion Business manufacturers in India, but the demand for encouraging the new product is also high because of its medicinal properties. So, you need not worry about the market. You can sell your product based on the Body Lotion Business wholesale price in India.

Marketing strategies to promote your Body Lotion product

As Body Lotion is consumer goods you must be careful on creating brand equity, maximize brand perceptibility, and endorsing brand usage. You can begin selling them locally by starting a distribution channel. Approach some retail brands to have a deal with your business. In India spas, saloons, hotels, restaurants, retail markets, online markets, hospitality management companies are the major customers of Body Lotion.

You can plan for some creative designs for Body Lotion. Register your product with diverse online shopping platforms to entice online consumers. Get prepared to establish an online presence in your Body Lotion-making business. Give some clear informative facts there about numerous varieties of Body Lotion and their great aroma.

Important points to note before starting your business

Commercial body lotion needs a strategic economic and marketing plan. You must focus on production, marketing, distribution, and sales promotion.
Secondly, it is important to do market analysis at the beginning. Identify the local requirement for the specific body lotion in specific temperatures. Also, recognize the basis of raw materials.
Body Lotion is a capital-intensive business. So, it is recommended to start the business by availing loan from bank or lending money to other financial institutions.
Check your state’s legal guidelines carefully. Obtain the mandatory licenses and permissions from the concerned authority. Moreover, detect the upcoming tax liabilities.
Begin the body lotion manufacturing plant judiciously. If you have an extra area, you can begin the business from home.
Prudently select the machinery. Procure the appropriate machinery according to the required production output and standard.
Investment, transportation, and labor concerns (cost and availability) drive the body lotion production industry. Therefore, properly calculate the break-even and predicted ROI.
Finally, get the manufacturing technology from reliable places. Generally, Government Research centers provide manufacturing technology in return for some costs.

Body Lotion Making Business – How To Start

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