Profits in Henna Powder (Mehendi) Making Business

Introduction to profits in Henna powder (Mehendi) making business in India

Hello readers, if you want to start a low-investment business and earn a good range of profits. Then let us go through the henna powder making business plan, which is a very simple, home-based business with good returns. This blog provides you all the information to start a henna powder making business or simply a henna plant? If yes, you can find here a complete business plan and checklist of Mehendi manufacturing business. Also, the article comprises industrial analysis, market potential, raw materials, and machinery requirements along with production steps.

What we discuss in this article are;

• The machinery required for Henna powder making
• The cost to start a Henna powder making business in India
• Requirements for Henna powder making process
• The license and registration required  to set up a Henna powder making plant
• The extraction process of Henna powder
• Profits in the Henna powder manufacturing business
• The marketing tips for Henna powder

Ideas to start and make profits with Henna powder making

Commonly, henna comes under the beauty and cosmetics industry. Even the product has different uses. Generally, women of age group apply henna or Mehendi for beautifying the hands, and legs. Also, the henna powder is considered as a great hair conditioner. It also used to color the hairs thus can be considered as herbal hair dye.

If you are dwelling in a henna leaves producing area, then only you may plan to start this business. In India, northwestern states like Rajasthan, Gujarat, Madhya Pradesh, and Punjab are considered to be major regions in producing henna leaves.

So, based on your budget and projected production output, you can begin a henna powder producing business as a small and medium scale business.

The market potential for making Henna powder to make good profits  

Initially, the henna powder is having demand in the domestic as well as in the international market. Henna or Mehendi is a famous product in Asia Pacific countries. Moreover, few of the major Henna importing countries are Australia, USA, Canada, and Russia, UAE, and European countries.

In previous days, women use henna only on special occasions. Whereas, the product is now required almost throughout the year for its increasing demand. Apart from henna body art, it is a vital item for hair care as well. It is useful to nourish the hair. Thus, beginning a henna plant is a highly profitable business in the herbal industry.

License, registration, and permissions for Henna powder making business

As henna comes is classified under herbal cosmetics, the manufacturing requires different licenses and permissions. But, the specific requirements differ based on your location where you are starting the unit. Also, it differs subject to the use of your product. So, you should approach a local small business consultant for the necessary and specific permissions.

• Usually, you should register your business first.
• Next, you should apply for MSME Udyog Aadhaar registration and then for a trade license.
• Also, acquire a NOC from the state Pollution Control Department.
• It is important to have GST registration in India.
• If you are planning to sell the product in the international market, then you should apply for the IEC number as well.
• You need to get register for a PAN card for your business.
• You also need to acquire a tax identification number for your business.

The machinery required for Henna powder making business

For arranging the unit, you must secure the land. Generally, the estimated area requirement is based on the intended production output. Also, this type of production unit requires an area for storing raw materials. However, you can even open a small-scale henna plant with a covered space of about 300-500 sq. ft. Moreover, you must have a water supply for general use and even power connection.

Broadly, you can set-up the henna production plant within two ways. It can be a fully-automatic or semi-automatic unit. If you are a beginner in this segment, then it recommended initiating the plant in a semi-automatic manner only. Some of the henna powder making machines are listed below.

• Pulverizer \ Grinder with accessories
• Leaf drying machine
• Weighing machine
• Packing machine
• Paste making mixer (if needed)

Henna powder manufacturing process

In case if you miss this: Real Ways to Make Money from Home.

The henna powder manufacturing procedure is very easy. And it begins with obtaining the henna leaves from the farmers and cultivators. After getting the leaves, you must remove the other impurities. And the leaves should be dried as well under the sunlight. But comparatively, the machine drying will provide a better result.

Then you must grind and sieve as per the required quality of the finished product. Apart from henna powder, the henna paste also has a high demand. So, you can even consider producing henna or Mehendi paste. At last, you must proceed to pack the product.

The quality of the product should be up to the mark to satisfy the customer’s demand and you must take care that the product should not contain any impurities.

The cost or investment to start a henna powder making business for good profits

This business is a working capital intensive business. It mostly needs fixed capital investment for procuring machinery and acquiring the space. Before starting the business, you should have proper financial planning. Also, you must keep a considerable amount for logistics, distribution, as well as for advertising. Broadly, the investment is spent on obtaining raw materials, hiring people, utility bills, and other administrative expenses.

The automatic henna powder making machine price varies from Rs. 20,000 to Rs. 35,000 it is based on the capacity of the machine.

Land cost is Rs. 1,00,000

Note: As it is a home-based business you can minimize this cost just by using the space in your home.

The cost of raw materials for henna powder manufacturing is Rs. 50,000

The cost of packaging is Rs. 10,000

The miscellaneous charges are Rs. 10,000.

The total cost involved to start the henna powder manufacturing business at a small scale is Rs. 2,05,000. If you start it as a home-based business then you can minimize the land costs where it costs only Rs. 1,05,000 to start with the business.

How much money can you make? profits in Henna powder making business

You can earn a good percentage of profits in henna making business. First, you need to go through the costs of the other henna manufacturers in India. Based on that, you can decide the price rate. Easily you can earn Rs. 3,00,000 to Rs. 5,00,000 within 8 to 9 months in small-scale business, whereas in larger scale set-up you can earn more than that. As it has high demand in both national and international markets you can make good profits. Hence by going through all these factors you can expect a profit range from 50 to 60% in the henna powder manufacturing business in India.

How to promote Henna powder making business

Practically, there are numerous ways you can encourage your brand and sell the product. However, you should consider developing an intensive distribution network in your close locations. You can also contact henna suppliers in India for increasing your market. Also, you can think of selling via online marketplaces. In any case, you should work hard into creating awareness about the product in your area. And for this type of product, television channels, electronic media, radios play a significant role. Finally, you should have an online website for henna powder making business wherein you can advertise and have bookings of the henna powder online.

To reduce input costs and increase profits, you can start commercial Henna Farming.