The shampoo is a very well-known personal care product for cleaning and treating hair. In addition, nowadays you will find different types of shampoo for men, for women and for babies. The object of crafting this article is to provide detailed information about starting a small-scale shampoo manufacturing project. Any individual can start a shampoo manufacturing company with a moderate capital investment.
In recent days, shampoo comes with various solutions. The list includes shampoo for dry or oily hair, straightening & smoothing Shampoos, volumizing shampoos, dry shampoo, dandruff protection shampoo, etc. Furthermore, there is another segment of organic and herbal shampoo. The ingredients for every different type of shampoo vary.
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However, the value-added shampoo segment is gaining immense popularity these days, with many companies launching a myriad of variants to tap market share. According to the physical appearances, constituents, and properties, you can find various forms of shampoos like
- Liquid clear shampoos.
- Liquid cream or cream lotion shampoos.
- Cream paste shampoos.
- Egg shampoos.
- Beer shampoos
- Dry shampoos & liquid dry shampoos.
- Baby shampoos.
Here are the Steps to Follow to Start a Shampoo Manufacturing Business
1. Is Shampoo Manufacturing Business Profitable?
Further, you can divide shampoos into three predominant categories. These are cosmetic (Volume, shine, strength), herbal, and anti-dandruff. However, with increasing awareness and growing advertising activities, shampoo penetration is likely to multiply threefold in the coming years.
The target market for shampoos is mainly the upper class, upper-middle-class, middle class, and particularly, housewives and college-goers. However, the one-time use of sachets gets immense popularity in rural India.
With the rise in the standard of living & health consciousness of people, the demand for cosmetics is growing very fast. The shampoo is one of such cosmetic products that are found in every household (both urban & rural households).
Read: Top 10 Best Popular Shampoo Brands In India
The per wash consumption of shampoo of Indians is higher than in most western countries: 6 ml as compared to an average of 4 ml per person. This is mainly attributed to the hair length of Indian women. Thus we can say, in the present market scenario you can start a shampoo manufacturing company successfully.
2. How Much Does a Shampoo Manufacturing Plant Cost?
The cost of shampoo manufacturing cost differs on a lot of factors like production output, features, and scale of operation. The cost of the plant will range from as low as Rs. 1 Lac per unit to 20 Lac per unit depending on the production and type of plant you buy.
3. Shampoo Manufacturing Business Registration & Licenses
The shampoo is a cosmetic product. And it demands specific licensing before commencing the manufacturing operation. Check the state law of your area. Here we put some of the basic requirements.
- First of all, register your business with ROC. Choose your organization form carefully.
- Obtain Trade License from the local authority.
- Apply for NOC from the state Pollution Control Board.
- In addition, you must apply for Udyog Aadhaar MSME online registration.
- Apply for GST Registration.
- Furthermore, obtain BIS Certification. It is mandatory.
- Finally, you must obtain a license under the Drugs and Cosmetics Act, 1940.
- Furthermore, you can also go for ISO 9001 certification to get the trust of your consumers.
4. Shampoo Manufacturing Plant Setup & Machinery
Secure a good location for the manufacturing operation. In addition, you will need to arrange important utilities like water and electricity. For a full-scale factory operation, you must secure an area of 4000 Sq Ft for the factory.
It is advisable to craft a floor plan. Identify the specific space for manufacturing, storage, laboratory, and office administrative work. in addition, you must ensure a space for packing and loading-unloading. Some of the basic machinery requirements are
- S.S. 304 open tank with slow speed stirrer for shampoo
- Mixing machine
- Cooling machine
- Bottle filling and sealing machine
- Weighing machine
- Finally, laboratory equipment for R&D purposes.
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4. Shampoo Manufacturing Process
For preparing liquid shampoo, Triethanolamine lauryl sulfate, and stearic acids are heated to about 65oC. Water & preservatives are also heated to 65oC. Both the solutions are mixed together and then cooled. Then you will need to add the perfumes. Thus, you will get the finished shampoo. Then the shampoo goes to the bottling and packaging area. Use the right automatic filling machine to bottle the shampoo.
5. Procure Raw Materials
Generally, the raw materials vary depending upon the specification. However, here we put a basic raw material list. The major raw materials requirement includes
- Triethanolamine Lauryl Sulfate
- Sulfonated castor oil
- Ethyl Alcohol.
- Oleic acid/Stearic acid.
- Coconut oil.
- Colour, perfumes & preservations.
You can procure the raw materials from the local wholesale suppliers or direct from the manufacturers. Apart from these raw materials, you will need to procure the packaging consumables like plastic bottles, labels, shrink jackets, and outer corrugated boxes.
Packaging plays an important role in cosmetics products. So, you must be careful about that. Moreover, clearly, mention the name of the product along with the manufacturing address. In addition, specify the net contents of the ingredients used in the manufacture of the product. Also provide the ingredients, direction of use, batch number, manufacturing date, and MRP.
6. Hire Skilled Manpower
In the shampoo manufacturing unit, you must ensure the recruitment of competent and qualified technical staff. And at least one of the staff persons should possess the following educational requirements:
- Holds a Diploma in Pharmacy approved by the Pharmacy Council of India under the Pharmacy Act, 1948; or
- Is registered under the Pharmacy Act, 1948; or
- Has passed the intermediate examination with Chemistry as one of the subjects or any other examination as recognized by the Licensing Authority as equivalent to it.
Learning Resource For Shampoo Manufacturing
If you want to start your own shampoo manufacturing business then you must have knowledge of different aspects. You must know the detailed raw materials for different types of shampoo, formulation, production process, packaging, etc. And for that, we recommend you read this book. This book caters to a wide range of aspects that are highly needed for a commercial shampoo manufacturing business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.