Project Profile - HERBAL SHAMPOO

INTRODUCTION:

         Shampoo occupies a prominent and very important place among the products available today. Due to the increasing awareness and importance of cleanliness and healthiness of hair, the use of “HERBAL SHAMPOO” is increasing every day.
Earlier the use of HERBAL SHAMPOO was confined to the upper and upper middle classes of urban society, but with increasing awareness the use of HERBAL SHAMPOO has become well established in even rural households.

         Herbal Shampoo is used to make out hair Healthy, Shining, soft Black and strong.

        AMLA:                      To make the hair strong and Black
        REETHA                   To cleaning the hair
        SHIKAKAI               To makes the hair soft
        BRAHMI                   To coolniness
        Leaves of Neem         To make the hair healthy
        Acid Slurry For          cleaning
        C.H.G As a                preservative
        Others like                 perfume and color

MARKET:

         Future demand for Herbal Shampoo depends upon the per capita rate of consumption and segment of population using shampoo. While asking about the consumer, it is understood that most of the consumers still use shampoo only once or twice in a week. Average consumption is under stood to be 1 to 1.5 kg. Per annum per person. That is average size family required around 500 ml each a month.
         The demand in past is found to have increased with increase in number of middle class population.
         Herbal shampoo will be packed in plastic bottles of 50 ml, 100 ml and 200 ml. The product will be sold through retailers at an average rate of Rs. 75 per kg. There are approximately 350 units of Ayurvedic medicine manufacturers are located in Haryana out of them only very few units are engaged in manufacturing Herb Based shampoo whereas the demand of herbal products is increasing day by day.

IMPLEMENTATION SCHEDULE:

1
Preparation of Project profile
One month
2
SSI Registration & approval from Director of Ayurveda
One month
3
Finance/Loan from Banker or Financial Institutions
Two months
4
Power connection / Building construction
Six months
5
Machinery procurement & Trial run
Two months
6
Recruitment of Staff & Labour
One month
7
Actual commercial production
One month
 
Total
Fourteen months

BASIS & PRESUMPTIONS:

         The project has been drafted taking into account of the following aspects:

1
No. of working shift in a day.No. of working shift in a day.
One
2
Duration of shift in term of time
8 hours
3
Number of working days in a year
300
4
Working efficiency of the unit
75%
5
Construction of building (built up are) will be in accordance with the provision laid down by Director of Ayurveda.
 
6
The estimates are drawn from a production capacity generally considered techno-economically viable for a modern type of manufacturing unit.
 
7
G.M.P will be followed.
 
8
The wages of the Staff & Labour is taken as as per the prevailing Labour Wages Laws.
 
9
The entire expenditure will be borne by entrepreneur.
 
10
The rate of interest has been shown as applicable.
 
11
Plant & Machinery, Testing equipments & all other equipments used in manufacturing such type of products may also be employed in manufacturing all other similar type medicines.
 
12
Although the unit is free from pollution & effluent discharge but still provision of exhaust fan may ensure the fresh environment.
 

Manufacturing Process:

         Amla, Reetha & Shikakai are powered to a fine mesh and subjected to DM-water treatment over-night. The quantity of water and mixture of all 3 above should be 1:1. The quantity of Amla Reetha & Shikakai should be 1:1:1.

         The water mixture of all above is brought into the form of paste by mixing and subjected to heat for 3-4 hours. The temperature to be maintained is preferably between 60 degree C to 70 degree C. After the ingredients are heated they are removed from heat and cooled down. The entire mixture is now further diluted with water and the viscosity /mix is maintained as required by the manufacturer or as per the requirement of the buyer. At this stage the colour of filtered material is quite dark reddish brown which can be made further light and more transparent by treatment with either using activated charcol or activated fuller earth. For quick filtration with funnel can be used to avoid expenses on vacuum filtered. To this filtered material potassium carbonate can be added for adjusting pH of the entire liquid shampoo.
         For better froth 0.25 to 0.5% of SLS can also be added. In 1 Kg of above herbal mixture one TSF lanolene and ½ TSP of Lecithin can also be used in addition to glycerine or EGMS (ethyle glycole mono stearate).
         In case any precipitation is observed during the process this can be filtered. Now shampoo is ready for mixing essence, colour, preservative, emulsifying/ suspended agent etc. For giving desired combing application to the hairs, 1 TSP of cologne can be used. For still better combing of hairs, it is recommended to use Neem and Henna leaves water.

FINANCIAL OUTLAY:

Fixed Capital Investment:

Land & Building:

        Land - 400 sq. meter @ 1500/- p.                                  6.0 lacs.

        Building- Manufacturing shed                 10x8               = 80 sq.m.
        Herbs Processing Shed                         10x8                = 80 sq.m.
        R/M Storage room                                6x6                 = 36 sq.m.
        Finished product storage Room             6x6                 = 36 sq.m.

        Office                                                                        5x4     = 20
        Laboratory                                                                4x4     = 16 Sq.m.
        Utilities                                                                      2x4      = 8
        Total covered area                                                                = 276 sq.m.
        Construction value of 276 sq.m. @ 1000 per sq.m.               = 2.76 lacs.
        Expenses of Fencing                                                             = Rs. 0.24
        Total                                                                                   Rs. 3.0 lacs


        Rest being area may be used for future planning and greenery. It is advisable to purchase the land in out skirt of city where rates of the land arequite cheap compare to other areas.

Total cost of land and building = Rs. 6.0+3.0 = Rs. 9.0 lacs.

Plant and Machinery:

Sl.No.
Name of Machinery & Appratus
Qty.
Rate
Rs.
1
Distillation Appratus with Heating coil and jar
1
50,000
50,000
2
Puliveriser with 5 HP motor.
1
75,000
75,000
3
Stirrer with 2 HP motor and S.S.Tank
1
35,000
35,000
4
Mixer with motor
1
30,000
30,000
5
Weighing Balance & Weights
1
5,000
5,000
6
S.S. Containers
5
2,000
10,000
7
Misc. equipments
-
-
5,000
 
Total
2,18,000

 

Lab equipment:
5,000
Pollution Control equipments
3,000
Furniture and fixture
15,000
Pre-operative expenses
5,000
Total
28,000
Total cost of Plant & Machinery
2.38 lacks

 

Total Fixed Capital Investment:

        =9.0+2.38

        = 11.38 lacs

RECURRING EXPENSES:

         Raw Material (p.m.):

Brahmi, Amla, Reetha, Shikakai, Neem LeavesColour, Perfume, Preservative, Chemicals & Packaging Material 20000 kg @ 20/- per kg.
4.0 lacs

STAFF & LABOUR(P.M)

Designation
Nos.
Salary
Rs.
Manager
Self
 
 
Manufacturing Chemist
1
4,000
4,000
Analytical Chemist
1
4,000
4,000
Skilled Worker
2
2,500
5,000
Unskilled Worker
3
1,500
4,500
Sales Man cum store keeper
1
1,500
1,500
Peon cum Chowkidar
1
1,500
1,500
Perquisites @ 15%
 
 
3,000
Total
23,500

UTILITIES: (P.M.)

Electricity
300
Water
500
Postage and Stationery
250
Advertisement and Publicity
250
Maintenance and Repairing
250
Insurance
200
Transportation
2500
Telephone
400
Misc.
500
Total
7,850
Total cost of raw material p.m. = Rs.4.0 lacs + 23500+7850
4,31,350
Say
4.31 lacks

        Working capital for 3 months = 4.31x3

        = 12.93 lacs

        Total Capital Investment

        = Total Fixed Capital Investment + 3 Month Working Capital

        = 11.38 + 12.93

        = Rs. 24.31 lacs.

Cost of Production (p.a.)

        Recurring Expenditure ---------------51.72 lacs
        Depreciation on building -------------15000
        Depreciation on plant & machinery --23800
        Depreciation on furniture ------------3000
        Interest on T.C.I @ 10% -----------1.83 lacs

        Total ------------------------------------Rs. 53.96

        Turnover by sale of 3,0 lacs bottles of shampoo @ 20/-
        Per bottle ------------------------------------------------Rs. 60,00000 lacs.

        Net Receipt = 60.00 – 53.96

        = 6.04 lac

        Less 10% Discount to whole seller & Stockiest etc.

        = 6.04 – 0.61

        = 5.53 approximately.

        Profit on Sale = 5.53 x100 / 60

        = 9.3 %

        Percentage profit on T.C.I. = 5.53 x100 / 24.31

        = 22.7%

Break Even Point

        40% of Staff & Labour ---------------------1.12
        40% of O.E --------------------------------0.37
        Total depreciation on Building plant
        & machinery and furniture ------------------0.418
        Interest on T.C.I. @ 10% ------------------2.43

        Total ----------------------------------------------4.33

BEP = 4.33 x100 / 4.33 + 5.53

        = 43 %

Addresses of Machinery Manufacturers:

        1.     M/s Ajay Engineering,
                L-52, GIDC, Odhav,
                Ahmedabad-382415 (Guj.)

        2.     M/s Burman Plant & Machinery Pvt. Ltd.,
                36, Sarjar Lane,
                Calcutta-700007.

        3.     M/s Amkay Engineering Works,
                B-33, DDA Shed, Okhla,
                Industrial Area II,
                New Delhi-20.

        4.     M/s Famach Machinery Co.,
                6, Gurjar Ind. Estate,
                Ajod Dairy Road, Rakhial,
                Ahmedabad-380023.

        5.     M/s Frederick Herbert,
                10, Second Pasta Lane, Colaba,
                Mumbai-400005.

        6.     M/s Ganesh Engineering Works,
                1507, Ganesh Pura Main Market, Tri Nagar,
                Delhi-110035.

        7.     M/s Indo German Phamachem Equipments,
                Kothari House, Plot No,. A-13, Off Cross Road,
                Steet Nio. 5, MIDC,
                Andheri (E)
                Mumbai400093.

        8.     M/s K. Mahadev & Co. Pvt. Ltd.,
                Dutta Mandir Road,
                Bhandup,
                Mumbai-400078.

Suppliers of Raw Materials:

Raw materials can be purchased related to Herbal products is easily available at Khari Bawli, New Delhi. However, addresses of some other raw material suppliers are also given below:

        1.     M/s Amritlal Bhurabhai,
                Princess Street, Mombay-2.

        2.     M/s R. Suresh Chander & CO.,
                48, Princess Street,
                Bombay-2.

        3.     M/s Haribhai Jesbhai,
                Princess Street, Bombay-2.

        4.     M/s Chemical Market,
                Tilak Bazar, Fatehpuri,
                Delhi-6.

        5.     M/s Veena Perfumery,
                Fatehpuri Delhi-6.