How to Start Henna Powder (Mehndi) Making Business

Do you want to initiate a henna powder making business or simply a henna plant? If YES, find here a comprehensive business plan checklist of Mehendi manufacturing. Also, the article includes market potential, industrial analysis, raw materials machinery requirement and production process.

Generally, henna comes under the beauty and cosmetics industry. Also, the product has diversified usage. Basically, women almost all age group use henna or Mehendi for beautifying the hands, and legs. Also, the henna powder is a great hair conditioner. And it helps to color the hairs too. So, it also a herbal hair dye.

If you live in a henna leaves producing area, then only you can consider initiating this business. In India, northwestern states like Gujarat, Rajasthan, Madhya Pradesh and Punjab hold the major share in producing henna leaves.

So, depending on your investment capacity and intended production output, you can initiate a henna powder producing business on a small and medium scale basis.

Henna Powder Market Potential

First of all, the henna powder has both the domestic and international market demand. Henna or Mehendi is a well-known product in the Asia Pacific countries. In addition to that, some of the major Henna importing countries are  USA, Australia, Canada, UAE, Russia and Europian countries.

In earlier days, women use henna only on the occasional basis. Nowadays, the product has growing demand throughout the year. Apart from henna body art, it is an essential item in hair care. Basically, it helps to nourish the hair. Hence, initiating a henna plant is a highly lucrative business in the herbal industry.

Business Registration & License for Henna Plant

As henna comes under the herbal cosmetics, the manufacturing needs different licenses and permits. However, the specific requirements vary highly depending on your location where you are initiating the plant. Also, it varies depending on the end use of your product. So, you must consult with a local small business consultant about the necessity of the specific permissions.

In general, you must register your business first. And only after that, you can apply for MSME Udyog Aadhaar registration and Trade License. Also, obtain a NOC from the state Pollution Control Department. Also, you need GST registration in India. If you want to sell the product in the international market, then you must apply for an IEC number.

Arrange Finance for Henna Plant

Basically, it is a working capital intensive business. And also, it needs fixed capital investment in procuring machinery and securing the space. Before getting into the business, you must have a clear financial planning. Also, you will need to put a considerable amount of fund in logistics, distribution, and marketing. Broadly, the working capital cost involves procuring raw materials, hiring manpower, utility bills, and other administrative expenses.

Henna Powder Making Plant Setup & Machinery

For setting up the unit, you will need to secure the space. Generally, the actual area requirement depends on the intended production output. Also, this type of production unit demands a lot of space for storing the raw materials. However, you can open a small scale henna plant with a covered space of 1000 Sq Ft in whole. Additionally, you need water resources for general use and electricity connection.

Broadly, you can establish the plant in two ways. Either as the fully-automatic or semi-automatic basis. If you are an absolute beginner in this industry, then it advisable to initiate the plant as the semi-automatic basis only. Some of the most important henna powder making machines are

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

Henna Powder Manufacturing Process

The manufacturing process is so simple. And it starts with procuring the henna leaves from the farmers and growers. After getting the leaves, you will need to eliminate the other impurities. And the leaves need drying. Firstly, dry under the sun. And finally, machine drying provides the better result.

Then you will need to grind and sieve according to the required quality of the finished product. Apart from henna powder, the henna paste has also great demand. So, you can also consider producing henna or Mehndi paste. Finally, you will need to pack the product.

Quality of the product must be as per customers demand and product may not contain any impurity or unwanted elements in it.

How to Promote Henna Powder Making Business

Practically, there are several ways you can promote your brand and sell the product. However, you must consider in establishing an intensive distribution network in your nearby locations. Also, you can consider selling from the online marketplaces. In any case, you must put hard efforts into creating a brand awareness of the product. And for this type of product, electronic media, television channels, Radios play the effective role. Finally, you must have your own business website from where you can promote the henna powder making business online.