How To Start A Small-Scale Shampoo Manufacturing Business

The shampoo is a very well-known personal care product for cleaning and treating the hair. In addition, nowadays you will find different types of shampoo as for men, for women and for babies. The object of crafting this article is to provide the detail 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 an another segment of organic and herbal shampoo. The ingredients for the every different type of shampoos vary. However, 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

  • Shampoo ManufacturingLiquid clear shampoos.
  • Liquid cream or cream lotion shampoos.
  • Cream paste shampoos.
  • Egg shampoos.
  • Beer shampoos
  • Dry shampoos & liquid dry shampoos.
  • Baby shampoos.

 

Shampoo Manufacturing Market Opportunity

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 activates, 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 the immense popularity in the 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 which find application in every household (both urban & rural household). The per wash consumption of shampoo of Indians is higher than most western countries: 6 ml as compared to an average 4 ml per person. This is mainly attributed to hair length of Indian women. Thus we can say, in the present market scenario you can start a shampoo manufacturing company successfully.

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 VAT Registration.
  • Furthermore, obtain BIS Certification. It is mandatory.
  • Finally, you must obtain the license under the Drugs and Cosmetics Act, 1940.
  • Furthermore, you can also go for ISO 9001 certification to get the trust of your consumers.

Related: Small Business Registration In India | Basic Guide

Shampoo Manufacturing Plant Setup & Machinery

Secure a good location for the manufacturing operation. In addition, you will need to arrange the 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 purpose.

Related: How To Choose The Best Filling Machine For Your Business

Shampoo Manufacturing Process & Raw Materials

For preparing liquid shampoo, Triethanolamine lauryl sulfate, 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 a right automatic filling machine to bottle the shampoo.

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 the 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.

Related: 25 Profitable Healthcare Business Ideas In Medical Industry

Human Resource For Shampoo Manufacturing Business

In shampoo manufacturing unit, you must ensure the recruitment of a 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.