Herbal Hair Oil Project Report, Business Plan

Introduction to Herbal Hair Oil Project Report, and Manufacturing Business Plan: There are some important and ayurvedic oils that concentrate on hair growth and avoid hair loss. Herbal hair oil usually contains the base which is vegetable in origin and an appropriately blended perfume. However, generally considered base oils are castor, coconut, and sesame oils. Also, you can add oil soluble colors along with the oil. You can plan for a small-scale herbal oil manufacturing business.

Generally, herbal hair oil is available as single or as combinations of two or three or more of the base oils stated above. And some of the most prevalent are Amla Hair oil, Almond hair oil, Brahmi-Amla Hair Oil, etc. However, the base of these oils is the same. Furthermore, you can begin with moderate capital. Here in the post, we state and summarize how to start a small herbal hair oil manufacturing plant.

A guide to Herbal Hair Oil Project Report and Manufacturing Business Plan

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Herbal Hair Oil (Image credit: pixabay)

Uses and application of Herbal Hair Oil

  • Amla in hair oil has plenty of tannins. Fixed oil berries fortify and endorse hair growth.
  • Bhringraj is an antiseptic and excellent for the head. Moreover, it keeps hair black and endorses luxurious growth.
  • Bhangra comprises an oil-soluble dye that is helpful in alopecia and the treatment of skin diseases.
  • Kaddu seeds used in making herbal oil contain fatty oil that is a pain reliever and prevents headaches. Also, the oil will give a cooling effect and relieves stress.

Market potential of Herbal Hair Oil Manufacturing Business

This is a very general personal care item among women, men, and even kids. Demand is growing at a fast pace. Due to the consciousness about hair care, promotional ads in various media, like TV channels and radio, the market is increasing. Moreover, the augmentation of the purchasing power from the crowd is another driving aspect.

At the same time, herbal hair oil has great export potential too. Yemen, Singapore, Malaysia, Australia, the USA, and Japan serve as highly potential export markets for herbal hair oil.

Business plan for starting Herbal Hair Oil Manufacturing Business in India

Before starting Herbal Hair Oil Manufacturing Business in India, you need to craft a perfect business plan by considering the following points:

  • Basis and presumptions of the project
  • Implementation schedule
  • List of approvals required for starting the business
  • Raw materials required for starting Herbal Oil Manufacturing Business
  • List of machinery and equipment for extracting Herbal Hair Oil
  • The manufacturing process of Herbal Hair Oil
  • Project economics of Herbal Hair Oil Manufacturing Business

Basis and presumption for starting Herbal Hair Oil Manufacturing Business

  • Number of Working Days in a year: 308 days
  • Number of Shifts in a day: 2
  • Hours in a shift: 8 hours per shift
  • Plant capacity by considering the average production capacities
  • Raw material availability
  • Depreciation
  • Manpower required for starting the business
  • On the basis of the current market price of the area in which you are willing to start
  • Marketing the product online or offline
  • If the project is started by taking a loan, then the term loan would be: 60 – 80% of the total investment
  • Moratorium Period:  6 – 12 months
  • Repayment Period: 7 – 9 years

Implementation schedule of Herbal Hair Oil Manufacturing Business

The project of Herbal Hair Oil Production is executed within nine to ten months. The estimated break-up of activities and the duration for each step is given below:

  • Project preparation and permissions: 0 – 2nd month
  • Registration under MSME Act 2006 and loan sanction: 2nd – 4th month
  • Machinery and equipment purchase and installation: 4th – 5th month
  • PFA License: 5th – 7th month
  • Power connection setup: 5th – 7th month
  • Machinery installation: 7th – 8th month
  • Recruiting staff and test run: 8th – 9th month
  • Commercial production can be assumed to begin: 10th month

List of license, permits and registrations required to Start Herbal Hair Oil Manufacturing Business

For beginning any business, you must obtain various registrations and approvals from the Government authority. Similar is the case for your business on Herbal Oil Manufacturing. Verify your own state law. Here we put some of the basic necessities.

  • Main this is you should register your business under ROC. Select the organization pattern properly.
  • Apply for Trade License from the local authority.
  • Next, try to apply for MSME Udyog Aadhaar through an online portal.
  • This product is classified under the Cosmetics sector. You must get approvals and licenses from the State Drugs Controller or from State Licensing Authority. Approach the Local Drugs Inspector for obtaining all legal details for the steps.
  • Verify if the product needs a VAT application or not in your state.
  • Lastly, if you plan to export, get an IEC code.

Raw materials required to start Herbal Hair Oil Manufacturing Business

Chief raw material requisites are coconut oil, castor oil, amla oil, hibiscus oil, aloe vera, and other herbal oils, perfumes, etc. Moreover, for Herbal Oil packaging, you should get the packaging materials.

The machinery required to set up Herbal Hair Oil Production Unit

Choose the plant location appropriately. You must acquire around 300 sq ft area for the manufacturing works. In addition, you should check if the facilities such as water and electricity are properly. Furthermore, you have to appoint skilled and semi-skilled workers for the production tasks. Manufacturing equipment is usually based on technology. However, we have mentioned a proper and essential list of machines for your convenience.

  • Mixing tank with stirrer
  • Filtering equipment
  • Cap Sealing machine
  • Constant filling machine (two-headed)
  • Finally, testing and other miscellaneous equipment

Manufacturing process of Herbal Hair Oil

In case if you miss this: Flaxseed Oil Manufacturing Project Report.

Herbal Oil
Herbal Oil (Image source: pixabay)

Commonly, the manufacturing method comprises the following stages:

  • Mixing

First of all, you should blend all the components like base oil, perfumes, herbal extract/oils, and colors in the appropriate proportions. You must keep a mixing tank and it should have a slow speed stirrer for around 15-20 minutes and then stand for 2-3 hours.

  • Filtration

Then you will filter the oil by passing through the filter press.

  • Testing of the extracted oil

After filtration, you must have to examine the oil for testing in the laboratory.

  • Bottling and Labeling of the final product

After passing through the required inspection, oil is now filled in cleaned and dried bottles in required volumes. Bottles are sealed and labeled.

  • Packaging

Now you can take various boxes for outer packaging. Finally, the products are ready for dispatch and transporting to market.

Herbal Hair Oil Project Report/ Economics of Herbal Hair Oil Making Business in India

Fixed Capital

  • Land and site development: Rs. 1,00,000
  • Building and civil works: Rs. 5,00,000
  • Plant and machinery:  Rs. 15,27,000
  • Misc. Fixed Assets: Rs. 1,98,000
  • Preliminary and pre-operative expenses: Rs. 2,23,000
  • Contingencies and escalation @ 5%: Rs. 1,16,000
  • Working capital: Rs. 1,15,000
  • Total: Rs. 27,79,000

Working Capital

  • Raw Materials: Rs. 88,000
  • Power and Utility: Rs. 10,000
  • Salaries: Rs. 74,000
  • Finished Goods: Rs. 1,34,000
  • Receivables: Rs. 1,49,000
  • Total: Rs. 4,58,000

Total cost of Herbal Hair Oil Manufacturing Business 

Fixed Capital + Working capital = Rs. 27,79,000 + Rs. 4,58,000 = Rs. 32,37,000

Income per annum in Herbal Hair Oil Manufacturing Business 

Total income per annum: Rs. 36,25,000

Profitability in Herbal Hair Oil Small-scale Production Unit

Profit = Total Cost – Total Income = Rs. 36,25,000 – Rs. 32,37,000 = Rs. 3,88,000.

Conclusion of Herbal Hair Oil Manufacturing Business 

If you have good knowledge about making herbal hair oil, then what you are thinking for. You can immediately start a business that earns you good returns. Your profitability increases yearly, but it mainly depends upon the quality of the oil you produce. The product should give nourishment, increase growth and reduce other hair-related problems. These factors definitely increase your customers and in turn profit returns.

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