PROFILE ON HERBAL SHAMPOO

CONTENTS PAGE NO.

SECTION I PRODUCT CHARACTERISTICS 1

SECTION II PRODUCT APPLICATIONS 2

SECTION III INDIAN MANUFACTURERS 3

SECTION IV IMPORT/EXPORT LEVEL 6

SECTION V PRICE 8

SECTION VI INDIAN DEMAND 9

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 11

SECTION VIII RAW MATERIAL REQUIREMENTS,

UTILITY AND AVAILABILITY 13

SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS 14

SECTION X SWOT ANALYSIS 17

SECTION XI FACTORS INFLUENCING THE POSITION

FOR A NEW INDUSTRYAND RECOMMENDATIONS 18

1
 SECTION I

PRODUCT CHARACTERISTICS

1.1. General details

A Shampoo can be defined “as a preparation of a surfactant (i.e. surface-active material)

in suitable form – (liquid, solid or powder-), which when used under the conditions
specified will remove surface grease, dirt and skin debris from the hair shaft and scalp
without affecting adversely the hair, scalp of health of the user”.

A successful shampoo may be defined as a product having some cleansing and foaming
action which leaves the hair soft, lustrous and manageable.

1.2. Classification of Shampoos

Classification is made according to the physical appearance or in some instances

according to the special ingredients or properties.

Liquid clear shampoos

Liquid cream or cream lotion shampoos
Cream paste shampoos
Egg shampoos
Herbal shampoos
Dry shampoos
Liquid dry shampoos
Colour shampoos
Aerosol shampoos

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 SECTION II

PRODUCT APPLICATIONS

A good shampoo should cleanse hair and scalp thoroughly without staining or irritation
and should not remove too much of the natural oil from the scalp.

The success of shampoos in replacing a cake of soap, lies in the fact that the shampoo is
not only a detergent but a cosmetic as well and that it must impart luster, beauty and
manageability.

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 SECTION III

INDIAN MANUFACTURERS

There are a number of manufacturers of Herbal shampoo, both in the organised and
unorganised sector.

The important producers include the following:

* A Spiderman India
82, Dabri Ext. Main,
New Delhi - 110 045

* Ajantha Chemicals
P.O. Poonithura,
Thripunithura, Kochi - 682 317

* APS Pharma Chem Pvt. Ltd.

31, Chittaranjan Avenue,
2nd Floor, Kolkata - 700 012

* Auriga International
13, Subhlaxmi Society,
Opp Police Staion,
Sabarm, Ahmedabad - 380 005

* Azba Herbals
6/320 M.L. Street,
Periapet,
Vaniyambadi - 635 751

* The Ayur Beauty Care

P.O. Box 6032
New Delhi-8

* Bakson Drugs & Pharmaceuticals Pvt. Ltd.

Works : Parwancoo, Himachal Pradesh

* Brihans Natural Products

Fourth Floor, Rajeev Apartments
Kale Path, Off Bhandarkar Road
Pune-411 004

A-5, Blue Bird Hsg. Society,

1046, Shivajinagar, Pune - 411 016

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* CavinKare Pvt. Limited,
(Formerly Beauty Cosmetics Limited,)
130 (New No.237), Peters Road,
Chennai-600 086

* Emami Limited
Unit I: CS 46 & 47, PIPDIC Industrial Estate
Mettupalayam, Pondicherry-605 009

6-A, R.N. Mukherjee Road, Calcutta-700 001

* Healthy Herbals
Factory & Office :
S. Duraisamypuram
Sindalakarai Post
Ettayapuram Taluk
Thookthukudi Dist.-628 902

Farm : Parambu, Keelamangalam

Ottapidaram Taluk
Thookthukudi District
Tamil Nadu

* Herbal Cosmetics Pvt. Ltd.,

MKV Road,
Cochin 25, Kerala

* Hindustan Lever Ltd.,

Hindustan Lever House,
165/166, Backbay Reclamation,
Mumbai-400 020

* H V Homeopaths (P) Ltd.

Malviya Road, Sitabuldi,
Nagpur - 440 012

* Mas International
Bodinayakanur,
Tamil Nadu

* Radico Export Import

1329, Sector-17,
Faridabad - 121 002

* Shree Baidyanath Ayurved Bhawan Ltd.

1, Gupta Lane, Calcutta-6

172, Gusainpura, Jhansi-284 002, Uttar Pradesh

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* Sarok Marketing Media
6/817, Chhpria Sheri, Mahidhar Pura,
Galemandi Bazar, Surat - 395 003

* Simla Chemicals Pvt. Ltd.

A-76, Phase-I Naraina Industrial Area,
New Delhi - 110 028

* Sidda
617, Surveyor Colony,
Madurai - 625 007

* Sky International
24, "Arunoday", Sudarshan Nagar
Chinchwad,
Pune - 411 033

* Sunprene International Ltd.

Ravi Bhavan, Jaistambh,
Raipur - 492 001

* Sunrise Remedies Pvt. Ltd.

13, Subhlaxmi Society, Opp Police Station,
Sabar, Ahmedabad - 380 005

* Sareen Herbal
E-101 Greater Kailash Enclave-1,
New Delhi - 110 048

* Vaipani Herbal
Maharashtra

* Wella Ayurvedic
`Om', 25, Ulkanagar,
Aurangabad - 431 005

* Wonder Herbs
604-L, Model Town,
Panipat - 132103

6
 SECTION IV

IMPORT/EXPORT LEVEL

4.1. Sample of individual imports

Name of the Type of Quantity Value Country Port Date

importer shampoo
J.N.Exports and Personal 703 Doz 340814 Singapore Chennai January
Imports Shampoo 2002
conditioner
J.N.Exports and Personal 1297Doz 628785 Singapore Chennai January
Imports Shampoo 2002
conditioner
Proctor and Head & 55584 Pcs 1115509 TH Chennai March
Gamble Shoulders 2002
Refreshing
Menthol
Proctor and Smooth 110400 Pcs 2164079 TH Chennai March
Gamble and Silky 2002
Proctor and Pantene 104724 Pcs 1025191 TH Chennai March
Gamble Pro-V 2002
Proctor and Head & 1763 CTN 596990 TH Chennai March
Gamble Shoulders 2002
Refreshing
Menthol
Proctor and Pantene 1040 Pcs 252369 TH Chennai March
Gamble Pro-V 2002
Multi Link Shampoo 86 doz 41691 SG Chennai March
Exporters and wild rain 2002
Importers
Multi Link Shampoo 150 doz 72718 SG Chennai March
Exporters and natural 2002
Importers
Proctor and Head & 3840 CTN 1236108 TH Chennai May 2002
Gamble Shoulders
Proctor and Pro-V Anti 32400 Nos 662414 TH Chennai May 2002
Gamble dandruff
Henkel Spic Bonacure 200 Nos 6476 DE Chennai June 2002
India Ltd. Gloss
Shampoo
Henkel Spic Bonacure 190 Nos 5719 DE Chennai June 2002
India Ltd. Gloss
Shampoo

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4.2. Sample of individual exports

Name of the Type of Quantity Value Country Port Date

exporter shampoo
Afsan Shampoo 612 Pcs 63409 Singapore Chennai January 2002
Exports
Ambika Clinic Plus 240 Pcs 17126 Singapore Chennai January 2002
Marketing Shampoo
KR & CO. Vatika 5 CTN 10236 Singapore Chennai January 2002
Shampoo
Cavinkare Nyle 120 Box 76793 Port Kelang Chennai February
Private Ltd. shampoo 2002
Cavinkare Nyle 110 Box 85776 Port Kelang Chennai February
Private Ltd. shampoo 2002
Yusuff Shampoo 5 Box 5307 Singapore Chennai February
Exports 2002
Afsan Meera 200 Pcs 7390 SG Chennai March 2002
exports Shampoo
Yusuff Shampoo 5 box 5456 SG Chennai March 2002
exports
Deluxe Herbal 600 Ltr 115079 SG Chennai April 2002
Export and Shampoo
Import Co.
KR & CO. Vatika 5 CTN 10554 Singapore Chennai May 2002
Shampoo
Cavin Kare Nyle 35 CTN 17341 Colombo Chennai May 2002
Private Ltd. shampoo
Visnukumar Vatika 2 CTN 3495 Australia Chennai June 2002
Traders Shampoo
Pvt.Ltd.
Kipling & Herbal 12 Nos 514 Stockholm Chennai June 2002
Company Shampoo
Arts Pvt.ltd.
Arhandicraft Aloe vera 144 Nos 5515 Rotterdam Chennai June 2002
shampoo
Arhandicraft Aloe vera 144 Nos 5370 Rotterdam Chennai June 2002
shampoo

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 SECTION V

PRICE

Price of herbal shampoo – 1000 ml Rs.240

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 SECTION VI

INDIAN DEMAND

6.1. Indian market size for Shampoo

Size of the Indian Shampoo market Around Rs.400 crores

(Both synthetic and herbal)

6.2. Major players

Procter & Gamble Head and Shoulders

Pantene
Hindustan Lever Ltd. Ayush antidandruff

Clinic All Clear

Organics Anti dandruff

Colgate Palmolive Optima

6.3. Market share of Hindustan Lever

Market Share of Hindustan Lever 60%

Market Share of Clinic brand of Hindustan 25%
Lever
Market Share of Pantene 15%

6.4. Herbal Shampoo market

Size of Indian herbal Shampoo market Around Rs.40 crores

Synthetic shampoo 15%

Growth rate
Natural shampoo 25%

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6.7. Major herbal shampoo brands

Nyle, a herbal shampoo owned by Madras based Beauty Cosmetic Ltd has become the
third largest selling shampoo brand in the country.

Market share of Nyle 15%

The other important Shampoo brands are Clinic Plus and Sunsilk which have largest and
the second largest shampoo market in the country.

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 SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

7.1. Amla based shampoo

Soak Amla, Shikkai, Henna, Khus, Charilla and Reetha for one night for 12 hours.

Boil till the mixture remains half strain and add lavender oil and sodium benzoate.

7.2. Coconut oil based Shampoo

Coconut Oil Shampoo is made made by saponifying odourless oil with potash.
Sometimes other fixed oils are added and these include palm, peanut etc., but they have a
tendency to decrease the foaming properties of the product and are only used in cheaper
grade articles. Usually, 1000 parts of coconut oil require for complete saponification
about 3000 parts of potassium hydroxide.

This is dissolved in 1 litre of water at about 75 deg.C and added to the oil at the same
temperature in a steam pan. Saponification can be tested by using phenolphthalein as
indicator. If the liquid remains white, further additions of alkali are necessary whereas
when it turns red more oil should be added.

The heat is continued until saponification has taken place and the product is neutral.

It is then diluted to 5 litres with distilled water in which some carbonate of potash has
been dissolved.

7.4.3. Source of technology

National Research Development Corporation,

(A Government of India Enterprise),
Anusandhan Vikas, 20-22, Zamroodpur Community Centre,
Zamrudpur, Kailash Colony Extn., New Delhi- 110 048.

7.4.4. Plant and machinery equipment and suppliers

Reactor Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street
Alwarpet, Chennai-600 018

Texel Fabricators Pvt. Ltd.,

335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

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Mixing vessel Richard Engineering (Bombay) Pvt. Ltd.
42, IIF, Veerabadran Street
Near Valluvar Kottam
Nungambakkam, Chennai-600 034

Ganson Ltd.
645, Anna Salai, Chennai-600 006
Filter Fluid Control Equipments
77/574, Mount Road, Chennai-600 006

Sri Ranga Industries

SF, 739, Ramraj Nagar,
Goldwins, Coimbatore-641 014

Packaging machinery E.C. Packaging Pvt. Ltd.,

14/7, Mile Stone, Mathura Road,
Faridabad-93, Haryana

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 SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1. The formulations for Amla based shampoo

Ingredients Quantity
Amla 1 kg
Shikakai 2 kg
Char 1 kg
Charilla 1 kg
Khus 1 kg
Reetha 2 kg
Water 25 litres
Glycerine 4 gms
Lime juice 200 kg
Sodium Benzoate 75 gms

8.2. Formulation for Coconut oil shampoo

Ingredients Quantity
Coconut oil 1000 parts
Potassium hydroxide 300 parts
Distilled water 1000 parts
Potassium Carbonate 30 parts
Distilled water 2970 parts

The raw materials are readily available in the market.

.
8.3. Hair Shampoo (dry)

Herbs Quantity
Bhandir 15 parts
Amla 20 parts
Gritakumari 5 parts
Bahera 5 parts
Harita 5 parts
Bhiringraj 15 parts
Arishtak 10 parts
Shikakai 25 parts

Availability of raw material

The raw material are readily available in the market

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 SECTION IX

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

Economic Capacity 75.00 kilo litres per annum

Project cost Rs.88 lakhs

Assessment of project cost

1. Land

Description Cost Rs. In

lakhs
Cost of land of 0.5 acre at Rs.5.5 lakh per acre 2.75
Cost of levelling,laying internal roads/fencing and compound wall 0.28
Subtotal 3.03

2. Building

Description Cost Rs. In

lakhs
Factory building at Rs.3200 per sq.m 3.20
Non-factory building at Rs.4500 per sq.m. 1.36
Subtotal 4.56

3. Cost of Plant and Machinery

Description Cost Rs. In

lakhs
Cost of basic plant and machinery 30
Instrumentation and control 2.25
Pipelines and valves 3.00
Structurals for erection 1.80
Sub total 36.75
Octroi excise duty, sales tax, etc. at 12 3.31
Packaging and insurance charges(2%) 0.74
Transportation charges (2%) 0.74
Machinery stores and spares (2%) 0.74
Foundation charges (2%) 0.74
Installation charges (2%) 0.74
Total cost of plant and machinery 44.84

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4. Technical know-how fees (Rs. In lakhs) Rs. 1.50 lakhs

5. Miscellaneous fixed assets

Description Cost Rs. Inlakhs

Electrificatiion 2
Steam boiler and auxillaries 2.60
Water storage tank, borewell etc 0.40
Fuel storage tank 0.30
Laboratory equipment 0.40
Office machinery & equipment 0.40
Material handling equipment, packaging machinery, 0.60
weigh balance etc.
Diesel generator 3.60
Effluent treatment 1.20
Total 11.5

6. Preliminary &Pre-operative expenses:

Preliminary expenses 0.60

Pre-operative expenses:-
Establishment 1.00
Rent rates and taxes 0.40
Travelling expenses 0.60
Interest and commitment charges on borrowing 2.40
Insurance during construction period 0.40
Other preoperative expenses and deposits -
Interest on deferred payment -
Total 5.40

7. Provision for contigency Rs. 4.74 lakhs

8. Working capital margin Rs.12.78 lakhs

9. Total Project Cost Rs.88 lakhs

10. Means of Finance (Rs. in lakhs)

Promoters contribution 35
Term loan from financing institutions 53
Total project cost 88

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11. Financial statements

A Variable cost Rs. In lakhs

Raw material and utilities 73.44

Spares and maintenance 2.69
Selling expenses 9.00
Total variable cost 85.13

B Fixed cost

Salaries and wages 12.00

Interest on term loan and working capital loan 16.44
Depreciation 5.82
Administrative expenses 5.40
Total Fixed cost 39.66

C. Total cost of production (A+B) 124.79

D. Selling price per litre. (In Rupees) 240.00

E. Annual sales turnover 180.00

F. Net profit before tax (E-C) 55.21

G. Breakeven point in % 42

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 SECTION X

SWOT ANALYSIS

Strength Steady increase in demand due to raising

standard of living

Weakness Non-availability of more grades and

specifications of the product for diversified
applications

Opportuntiy Export opportunity

Threat Competition from synthetic products

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 SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY

AND RECOMMENDATIONS

With the increasing standards of living in the country, the demand for Shampoo are likely
to go up steadily in the coming years.

In view of the consumer acceptance and eco friendly nature of the product, herbal
shampoo is rapidly substituting the synthetic shampoo.

Since India has good strength in the herbal sector, the export opportunity for Herbal
Shampoo can be well exploited, by introducing innovative and relevant specifications of
the product and initiating R & D efforts.

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