herbal hair oil manufacturing

How To Start Herbal Hair Oil Manufacturing Business in 6 Steps

There are some essential and ayurvedic oils that focus on hair growth and prevent hair loss. Herbal hair oil mainly comprises oils of vegetables in origin as the base and a suitably blended perfume. However, commonly used base oils are coconut, castor, and sesame oils. In addition, you can add oil soluble colors with the oil. You can start a small-scale herbal oil manufacturing business.

Generally, herbal hair oil comes either as single or in combinations of two or three or more of the above. And some of the most popular are Amla Hair oil, Brahmi-Amla Hair Oil, Almond hair oil, etc. The base of these oils remains the same. Furthermore, you can start with a small capital investment also. Here in the article, we intend to explore how to start a small herbal hair oil manufacturing plant.

6 Steps to Start Herbal Hair Oil Manufacturing Business

1. Understand Herbal Hair Oil Market Potential

This is a very common personal care product among men, women, and even kids. Demand is increasing rapidly. Due to the awareness of hair care, advertisement messages in different media, satellite TV channels, the market is growing. In addition, the enhancement of the purchasing power of individuals is another driving factor.

At the same time, herbal hair oil has export worthiness too. Yemen, Malaysia, Singapore, Australia, the United States Of America, and Japan are the most potential export market for herbal hair oil.

2. Learn the Benefits of Herbal Hair Oil

There is a wide range of benefits of hair oil. Some of them are listed below:

  • Amla is rich in tannins. Fixed oil berries strengthen and promote the growth of hair
  • Bhringraj is an antiseptic. It is excellent for the head. In addition, it renders hair black and promotes luxurious growth.
  • Bhangra contains oil-soluble dye useful in alopecia and skin disease
  • Kaddu seeds have fatty oil. It is useful in a headache. Also, the oil has a cooling effect and is emollient.
  • Henna leaves are natural astringent.

Related: Most Profitable Medicinal Herbs Growing Businesses

3. Check License & Permits Required to Start Herbal Hair Oil Manufacturing

In starting this business, you will need to obtain different registration and licenses from the Govt. authority. Check your own state law. Here we put some of the basic requirements.

  • First of all, register your business with ROC. Select the form of organization rightfully.
  • Apply for Trade License from the local authority.
  • In addition, apply for MSME Udyog Aadhaar Online Registration
  • Apply for GST Registration Number
  • This product falls under Cosmetics. You must obtain a Licence from the State Drugs Controller or State Licensing Authority. Contact your Local Drugs Inspector for getting all legal information for the process.
  • You can also register your manufacturing formula with Patent Registration.
  • Finally, If you want to enter in export, obtain an IEC code.

4. Procure Herbal Hair Oil Production Unit Setup & Machinery

Select a factory location carefully. You will need to have 300 Sq Ft space for the manufacturing operation. In addition, you must arrange utilities like water and electricity. Furthermore, you must hire skilled and semi-skilled employees for the production operation. Manufacturing machinery requirement generally depends on technology. However, here we put a detailed list of machines for your ready reference.

  • Mixing tank with stirrer
  • Constant filling machine (two-headed)
  • Cap Sealing machine
  • Filtering equipment
  • Finally, testing & other miscellaneous equipment

Related: Things To Consider In Selecting Factory Location

5. Herbal Hair Oil Manufacturing Process

Generally, the manufacturing process includes the following steps:


First of all, you must mix all the ingredients like base oil, herbal extract/oils, perfumes, and colors in the desired proportions. You will need to use the mixing tank and slow speed stirrer for 15-20 Minutes and then allow to settle for two to three hours.


Then you will need to filter the oil is through the filter press.


After filtration, you will need to send the oil to the laboratory for necessary testing.

Bottling and Labeling

After passing through the required inspection, oil is now filled in cleaned and dried bottles in required volumes. Bottles are sealed and labeled.


Now you can use corrugated boxes for outer packaging. Finally, the goods are ready for marketing.

Raw Materials

Basic raw material requirements are coconut oil, castor oil, other herbal oils, perfumes, and colors. In addition, for herbal oil packaging, you must procure the packaging consumables.

6. Herbal Hair Oil Sample Project Cost Synopsis:

  • Plant Capacity: 60000 lit
  •  Plant & Machinery: 11 Lakhs
  • Total Capital Investment: 27 Lakhs                     
  • Return: 66.3%
  • Break-Even: 35%

The actual cost of the herbal hair oil manufacturing project may change deviate on different assumptions. You can modify the project capacity and project cost as per your requirement.