MANUFACTURE OF SHAMPOO

Introducti on: Shampoo is defined as a preparation of a surfactant (surface active material) in suitable form liquid solid or power which when used under the conditions specified will remove surface grease, dirt an skin debris from the hair shaft and scalp without affecting adversely the hair, scalp or health of the user. Shampoos are of various types and forms on the basis of physical appearances, constituents and properties. Various forms are as under: iquid clear shampoos. iquid cream or cream lotion shampoos. !ream paste shampoos. "gg shampoos. #ry shampoos $ liquid dry shampoos. %aby shampoos. Market Potential: &ith the raise in the standard of living $ health consciousness of people the demand for cosmetics is growing very fast. Shampoo is one of such cosmetic products which find application in every household (both urban $ rural household). #emand is still growing very fast as smaller si'es (sachet type) are vigorously promoted by the leading manufacturers and selling it even in the smaller roadside panshops. (hus for cleaning $ conditioning of hairs shampoos have largely replaced normal bath soap with the different requirement for different types of hairs vi'. #ry, )il, and normal wide varieties of shampoos are in demand. %esides this shampoos fortified with protein sources like egg and almond etc show e*clusive demand. Plant Capacity: 1

(he production basis for a typical tiny unit would be as under: &orking hours+day : , (- shift) &orking days in a year : .// 0nnual 1roduction capacity : -.2/ lakh liters of shampoo. (he unit has been assumed to operate at 3/4, ,/4 and 5/4 of its installed capacity in the first, second and third year and onwards of its operation. Raw Material: (he main raw materials required are provided below: (riethanolamine anvyl Sulfate Sulphofated castor oil "thyl 0lcohol. )leic acid+Stearic acid. !oconut oil. !olour, perfumes $ preservations. (he above raw materials can be procured through local dealer in 6uwahati and from 7olkata. Proce :
8oropreparing liquid shampoo, (riethanalamine lauvyl sulfate, stearic acid are heated to about o

92 !. &ater $ preservatives are also heated to 92 !. %oth the solutions are mi*ed together and then cooled. 1erfumes are added after that. (he shampoo thus prepared is bottled by automatic bottle filling machine.

1rocess 8low !hart (riethanolamine : Stearic 0cid &ater : 1reservative

;eating in a <acketed tank <acketed tank =i*in g !oolin g 1erfume 1reservative Shampo o
%ottling

;eating in a

=i*ing

8inished 1roducts
Mac!inery:

(he ma<or equipment required for manufacture of shampoo are as follows: S.S. ./> open tank with slow speed stirrer for shampoo ? - @o. =i*ing machine ? - @o. !ooling machine ? - @o. %ottle filing and sealing machine ? - @o. "ocatio n: (he suitable locations for the pro<ect may be ? 6uwahati $ (insukia in 0ssam Shillong in =eghalaya. #imapur in @agaland. 0gartala in (ripura. In#ra tructu re: (he basic infrastructure required are : 3

and 9,/// sq.ft. %uilding A,/// sq.ft. 1ower A/ 7& &ater : 1er day. =anpower : 8actory Staff (-/), Total Capital Re$uire%ent:
A&

: : : A,/// tr. -2 @os. (0dministrative (2),

Fi'ed Capital: and %uilding =achinery =iscellaneous fi*ed assets 1reliminary and preCoperative e*penses -orkin. Capital: Baw materials $ 1acking material 8inished goods &orking e*penses Beceivables

,&

(R in lak!) Bented Bented -2.// ..// DA.// Total (A) *+&++ EEEE E A weeks 9./ / - week 9./ / - month -./ / - week 9.2 / Total (,) /0&1 + EEE E Total (A)2(,) 30&1 +

(he total capital requirement including fi*ed capital and working capital is estimated at Bs .5.2/ lakhs as follows. )f this, the pro<ect cost comprising fi*ed capital and margin money on working capital is Bs A9.2/ lakhs.

@ote: &orking capital may be financed as: %ank 8inance =argin =oney Mean o# Finance:

F.. F..

Bs -..// lakhs B s 9.2/ lakhs Bs -5.2/ lakhs

(he pro<ect cost of Bs A9.2/ lakhs including margin money for working capital may be financed as under: 1romoterGs contribution (.24) (erm oan (924) Bs 5../ lakhs B s -3.A/ lakhs Bs A9.2/ lakhs EEEEEEEEE EE Operatin. E'pen e : (he annual operating e*penses are estimated at Bs A52.5/ lakhs (3/4 capacity utili'ation) as given below: (R in lak! ) -. Baw materials $ consumables A3>.// A. Htilities A.>/ .. &ages $ Salaries 3.2/ >. )verheads -.,/ 2. Selling e*penses I -.24 on annual sales >.3/ 9. Jnterest on term loan (-..2/4) A../ 3. F. F.

,. #epreciation I-/4
Sale Reali4ation:

Jnterest on %ank 8inance for working capital(-.4)

-.2/ *01&0+ EEEEE

-.3/

(he basis on which average e*Cfactory sales reali'ation from the sale of shampoo is based is provided below:
Ite% Shampoo 5ty&("tr ) -,2/,/// Unit Sale Price (R ./ per /+C Annual Sale Price (R ) >2/,//,///

%ased on this the annual sales reali'ation is estimated to be Bs >2/.// lakhs and at 3/4 capacity utili'ation the same is Bs .-2.// lakhs. Pro#ita6ility : %ased on the sales reali'ation and the operating e*penses, the profit would be Bs -5.-/ lakhs per year (3/4 capacity utili'ation). (his works out to a return on investment of 324. (he plant will break even at >/4 of the rated capacity. Hi.!li.!t: (he ma<or highlights of the pro<ect are as follows: (otal capital requirement 1romoterGs contribution 0nnual sales reali'ation (3/4 cap.) 0nnual operating e*penses (3/4 cap.) 0nnual profit (preCta*) 1reCta* Beturn on Sales %reak "ven 1oint @o.of persons employed : : : : : : : : Bs .5.2/ Bs 5../ Bs .-2.// Bs A52.5/ Bs -5.-/ 34 >/4 -2 lakhs lakhs lakhs lakhs lakhs

"i t o# Mac!inery Supplier : -. =+s !hemi (e* "ngineers, -., a*mi !oCop Jndustrial "state, @ear @agarvel ;anuman mandir, 0mvaiwadi, 0hmedabad ? .,/ /A9 =+s Jndustrial =achinery =fg.1vt. td., .9/3 to .9/5, 6J#! "state, 1haseC JV 0hmedabad ;ighway, Vatva, 0hmedabadC .,A >>2

"i t o# Raw Material Supplier : . 8rom local dealers in 6uwahati

A.

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