How To Start Liquid Soap Making Business – In India

Introduction on How to start a Liquid Soap making business

Liquid soap includes a wide variety of soaps such as liquid detergent, car wash, body wash, hand wash, dish wash, baby soap, etc. Every type has a separate demand and they also need various licenses and permissions from different government authorities.

A step by step guide to start a Liquid Soap making business

An entrepreneur who has an idea about the chemical consumable industry or having practical experience in this segment can initiate this venture with considerable investment.

Market potential for Liquid Soap making business in India

The liquid soap making business comprises a wide range of processing, packaging, and marketing steps. The business also requires extensive market analysis and marketing plan. Liquid soap is a consumable item and its demand is increasing in the villages as well as in cities. Total annual soap sale by branded companies is about 14000 tones, while a total soap market is considered to be around 1,26,000 tones.

Business plan to start a Liquid Soap making business

It is essential to have a detailed business plan for the liquid soap making business. Decide the type of liquid soap that you desire to make. While initiating any manufacturing business it is suggested to have a sample project report handy. Calculate the startup financial requirements with fixed and working capital specifications.

Consider the expenses related to legal compliances. Clearly, plan your marketing and promotion strategy and costs. Check the water pH balance of the region where you are planning to establish the unit. Go for a trendy and attractive name for your product.

While beginning the liquid soap making business you should obtain some licenses from various authorities. Register your business and ownership pattern in ROC. Apply for Pan Card. Get Trade License from Local authority. Apply NOC from the Pollution Control Board. Apply for ISI Mark at the Bureau of Indian Standards (BIS) which from time to time pertaining to quality, safety, and performance. Should apply the Factory License to your State Govt. authority. Get a GST number from the state sales tax department.

  • Registration of firm: You have to register your firm as either a proprietorship or partnership firm even though it is a small to medium scale Liquid Soap making business. 
  • GST registration: Additionally, you need to get registered for the GST number.  
  • Trade license: You also need to register for the Trade License from your local authorities.
  • Pollution certificate: As Liquid Soap making business deals with a chemical that may create pollution to the environment so for safety purposes, it is better to take pollution control certificates from the pollution control board. 
  • MSME/SSI registration: MSME Udyog Aadhaar Online Registration should be acquired and is compulsory for every business to start this will allow you to avail of all the government schemes related to your business.
  • Trademark: You need to protect your brand then you must apply for trademark registration from the municipal authority in your area where you have decided to start the business. 
  • IS 4955-1968: Along with all these the BIS registration and IS 4955-1968 registration have to be done for the household use of Liquid Soap and it is also required to initiate a distribution network for your business then you have to get ‘distribution agreement paper’. 
  • SSI unit registration: You also have to apply for SSI unit registration which helps you to avail of the government subsidy and other benefits. For this, you need to open a current account in the bank in the name of your business. 

Area required to start a Liquid Soap making business plant

You can start a small scale Liquid Soap manufacturing unit within 500 sq. ft. area, so you can place the machinery and store the raw material as well as the finished product. The area should be provided with an electronic power supply, water source, and transportation so it will be easily available for manufacturing the Liquid Soap.

Machinery required to start a Liquid Soap making business

It is recommended to start the business on a small scale. When your business grows shift to large-scale production. Choose and busy the machinery as per the required production output. It is suggested to start using a semi-automatic operation based unit. You must have a mixing unit with the stirrer and a definite rpm. The filling and sealing unit must be specialized for packaging. You must definitely have a water treatment plant to treat the hard water into soft water.

Raw material required for Liquid Soap manufacturing business

As per your formula procure quality raw materials from reliable dealers. The notion is never wrong that Quality product is obtained from quality raw materials. Focus on packaging materials with the quality of shelf appeal and ease of use. Attractive leak-proof bottles will enhance the value of your final products.

Packaging of Liquid Soap

After completion of making the Liquid Soap, you need to pack it on different weights and to transport and for selling purposes you need a packaging machine to pack your product. Commonly, the Liquid Soap is packed in polythene bags or bottles with a quantity of 500 ml, 1 liter, 2 liters, 5 liters, etc. based on the market demand. The packaging is an important aspect of marketing as you can print complete details like ingredients used, company details, quantity, expiry date, customer care number, email, etc. You can also design differently on the packets to attract customers.

Budget needed for Liquid Soap making business

Budget needed for Liquid Soap making business
Budget needed for Liquid Soap making business

Below is the budget required to start the Liquid Soap making business in India. 

Land preparation and building rent = Rs. 1,00,000

Amount needed to purchase the raw materials = Rs. 50,000 

Salaries of the employees = Rs. 2,00,000

Machinery and equipment cost = Rs. 1,00,000 

The cost spent on advertising your product is Rs. 5,000 

Costs involved for licensing and registration = Rs. 10,000

The total cost involved is Rs. 4,50,000

Profit margin in Liquid Soap making business

Liquid Soapmaking business is on boom today. As it has many benefits compared to others. So, you can expect a good profit margin in this business with 25-30%. If you can produce good quality products then your business will automatically attract customers. So, first, concentrate on producing a quality product.

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Wholesale market for Liquid Soap

You can sell your Liquid Soap in the wholesale market of your city.

How to sell Liquid Soap online

B2B websites: You may register your Liquid Soap making business on B2B websites like – Indiamart, Tradeindia, Exportersindia, etc. you can sell your product on bulk orders.

B2C websites: You can also register on B2C websites like – Amazon, Flipkart, Snapdeal, where you can sell your product directly to the customers online. 

Online market for Liquid Soap

Social media is one of the largest and best effective methods to promote your brand online and it reaches the maximum number of customers. You can post a brief story along with the video that attracts more customers and helps to gain more clients.

Marketing ideas for promoting Liquid Soap product in India

  • As liquid soap is a consumer durable product it needs huge publicity for the brand.
  • The most effective option to attract housewives is FM Channels and through ads.
  • Think about understanding the customer segments in both a data sense and a very human manner.
  • For huge market penetration, you should establish a strong dealer connection.
  • Do some outdoor publicity activities like hoarding in the busy areas of the city, programs, etc.
  • Concentrate on the tagline. It should be clearly explaining the product in short.
  • Create an online presence for your business.
  • Harnessing customer data to know their preferences, buying fashion, and problems in conversion or satisfaction are significant and give scope for improvement.
  • Offer annual sales promotion discounts to your channel associates.
  • In advertisement concentrate on the advantages of its usage.


Liquid soap making business is a worthy business if planned carefully. As a beginner, if you are looking to start a small scale business in the chemical segment, the liquid soap manufacturing business could be the best choice.

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