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How to Start a Profitable Henna Powder (Mehndi) Manufacturing 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 in almost all age groups use henna or Mehendi for beautifying their hands, and legs. Also, the henna powder is a great hair conditioner. And it helps to color the hair too. So, it is also a herbal hair dye.

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

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 Manufacturing Project Plan Guide

Here are the 8 Steps to Start a Henna/mehndi manufacturing plant business with cost, licenses, profit, and manufacturing process:

1. Henna Powder Market Potential

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

In earlier days, women use henna only on an 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 small-scale manufacturing business in the herbal industry.

2. Business Registration & License Needed for Setting up Henna Manufacturing  Plant

As henna comes under herbal cosmetics, the manufacturing needs different licenses and permits. However, the specific requirements vary highly depending on the 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.

Presently GST registration is a must to run a manufacturing business in India. If you want to sell the product in the international market, then you must apply for an IEC number.

3. Cost of Starting a Henna Powder Manufacturing Business

The cost of starting a Henna or Mehendi manufacturing plant will largely depend on the scale of production and the features of the machine you are looking forward to. For example, a pulverized machine which is a must in this business will cost in the range of Rs25,000 to 2lacs.

To start a henna-making plant on small scale with a floor area of 500sq.ft – 800 sq. ft, roughly an initial investment of Rs 5 Lacs to 10 Lacs will be necessary. The factory land cost will be extra.

4. 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 clear financial planning. Also, you will need to put a considerable amount of funds into logistics, distribution, and marketing.

Broadly, the working capital cost involves procuring raw materials, hiring manpower, utility bills, and other administrative expenses.

Check: Best Business Loans for Small Businesses

5. Henna Powder Making Plant Setup & Machinery

For setting up the unit, you will need to secure the space. Generally, the actual area required depends on the intended production output. Also, this type of production unit demands a lot of space for storing 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 an electricity connection.

Broadly, you can establish the plant in two ways. Either as a fully-automatic or semi-automatic basis. If you are an absolute beginner in this industry, then it is advisable to initiate the plant on a 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)

6. 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 a better result.

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

The quality of the product must be as per the customer’s demand and the product may not contain any impurity or unwanted elements in it.

7. How Much Profit You Can Make in Henna Making Business

It is obvious that the amount of profit will depend on production output. The more the production, the less becomes the cost of a single unit of henna powder packet production cost.

On average, existing manufacturers keep a 20-30% profit margin while selling the products to wholesalers and distributors.

8. 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 establishing an intensive distribution network in your nearby locations.

Also, you can consider selling from online marketplaces. In any case, you must put hard efforts into creating brand awareness of the product. And for this type of product, electronic media, television channels, and Radios play an effective role.

Finally, you must have your own business website from where you can promote the henna powder-making business online

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.