herbal hairoil

SECTION I

PRODUCT CHARACTERISTICS

Hair oils are combination of oils and suitable perfumes.

Coconut oil is the most commonly used base for hair oil manufacture, to which manufacturers add other herbal or non-herbal ingredients in order to add value to the product.

The base oils like Castor oil, Coconut oil and Seasamum oil are mostly used vegetable based oils. Besides vegetable based oils, another class of base oils which are used in Hair Oils are floral oils such as Bela Oil, Chameli oil, Henna oil etc., which poses most delicate fragrances.

Vegetable oils are refined before using it in the Hair Oil formulations.

The natural scents added to hair oil such as Balsom peru, Cantharidin and Fly Cantharides help to invigorate the growth of hairs and prevent baldness.

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SECTION II

PRODUCT APPLICATIONS

In the earlier days, many Indians have been using coconut oil as hair oil because of its inherent properties.

However, in recent times, this trend has been changing and people now buy attractive and expensive packs of hair oil, which have several other constituents such as perfumes.

Perfumed liquid paraffin hair oils called as non-sticky hair oils are available and purchased as the users need not wash their hands after application.

Such developments have given scope for introduction and development of market for Herbal Hair oil in a big way.

Herbal hair oil are particularly preferred in view of the medicinal and eco friendly properties that it possesses.

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SECTION III

INDIAN MANUFACTURERS

Both herbal oils and non-sticky hair oils have been quite successful as product concepts.

Dabur India’s Vatika hair oil is one of the first herbal hair oils to be introduced in the sector.

Hindustal Lever Ltd’s (HLL’s) Clinic Plus non-sticky hair oil(which combines coconut oil and mineral oil) has also been an unqualified success.

There are number of producers of Herbal hair oil in India, both in the organised and unorganised sector..

The Indian producers include the following:

* A.G.I.Restorative FoundationAnil House D - 136, Shankar Road, New Rajinder Nagar, New Delhi - 110060

* Aditi Herbochem5, Jairam Niwas, 1st Floor, Swastik Park, Sion Trombay Road, Chembur, Mumbai - 400 071

* Ajantha ChemicalsP.O. Poonithura, Thripunithura, Kochi - 682 317

* Ajay Pharmacy36/201,Race Course Park, Airport Road, Rajkot - 360 001

* Aravindh Herbals75/11, North Vadambokki Street(Near Zam Zam Sweets)Madurai-625 001

Shanmuga, KallekulengaraPalakkad-678 009

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* APS Pharma Chem Pvt. Ltd.31, Chittaranjan Avenue, 2nd Floor, Kolkata - 700 012

* Auriga International13, Subhlaxmi Society, Opp Police Staion, Sabarm, Ahmedabad - 380 005

* Arshik Herbal Remedies (India) Ltd.Mulayara, Thiruvananthapuram

* ABI Herbal ProductsVettukattu ValasuIngur P.O.,Erode-638 058, Tamil Nadu

* Bakson Drugs & Pharmaceuticals Pvt. Ltd.Delhi

Works : Parwancoo, Himachal Pradesh

* Bhavnagar Oil & Chemical Industries Pvt. Ltd.414, Rewa Chambers, Sir. V.T. Marg, New Marine Lines Street, Mumbai - 400 020

* Bio - Remedies969, Sector-4, Gurgaon - 122001

* Dabur India Ltd.3, Factory Road, Near Safdarjun HospitalNew Delhi-110 029

* Emami Group of Companies18, R.N. Mukherjee Road, Kolkata - 700 001,

* Goolabkhan Peerkhan Co.178, Nagdevi Street, Mumbai - 400 003

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* Grow-On Exports (India) Limited19/5 IIIrd Floor, Shakti Nagar,New Delhi - 110 007

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

No.50 & 51, SIPCOT Indl. ComplexHosur-635 126.

The company launched a new range of Ayurveda products called Ayush, backed by an Ayush Therapy centre as well.

The Lever Ayush range at present includes five products : Cough Naashak syurp, Headache Naashak Roll on, Hair poshak oil, Dandruff naashak shampoo and Body rakshak shampoo. These over-the counter products will be sold through chemists and retail outlets.

* H V Homeopaths (P) Ltd.Malviya Road, Sitabuldi, Nagpur - 440 012

* Hi-Tech Global Enterprises4/14, Ragavi Complex, Opposite Tamil Nadu Theatre, Pall, Coimbatore - 641 605

* J.D. Corporation203 Yogeshwar, 135/139 Kazi Sayed Street, Masjid Bunder, Mumbai - 400 003

* Madhu Exports95/1 CPWD Quarters, K.K Nagar, Chennai - 600 078

* Pravek Kalp Ayurvedic Oils1711, S.P. Mukherjee Marg, New Delhi - 110 006

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* Prima Exports1106, Pragati Tower, Rajendra Place, New Delhi - 110 008

* Radhika HerbalB-159, Faridabad - 121 001Phone: +(91)-(129)-5424870

* Regal Enterprises7-D, Nedungadan Residency, Chittoor Road, Ernakulam - 682 018, Kerala

* Sujan Chem- TechVile Parle (E), Mumbai - 400 057

* Sunrise Remedies Pvt. Ltd.13, Subhlaxmi Society, Opp Police Station, Sabar, Ahmedabad - 380 005Phone: +(91)-(79)-7506907/6754164Fax: +(91)-(79)-7506907

* Saini Herbs (P) Ltd.17, 19, 20 Kanishka Shopping Complex, Kanishka Hotel, Ashoka Road, New Delhi - 110 001

* Vaipani Herbal (Keshwardhini)Maharashtra

Product range

Vaipani Keshwardhini Oil: Keshawardhini hair oil is made from Brahmi, Amal Jabakusum and other vital herbs. This oil prevents hair fall, greying and strengthens hair root. It helps in sound sleep and release tension.

* Wonder Herbs604-L, Model Town,Panipat - 132103

* Tamil Nadu Medicinal Plant Farms & Herbal Medicine Corporation Ltd., (TAMPCOL)

(A Government of Tamil Nadu Undertaking)Arignar Anna Government Hospital of Indian

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Medicine Campus,Arumbakkam, Chennai-600 106.

The Corporation commenced its commercial activities in August 1985 with one product namely Herbal Hair Tonic (a siddha medicine) by producing and marketing in a small scale. In the subsequent years, the production and sale of Herbal Hair tonic has reached to the level of 1,00,000 litres per annum.

Tampcol Hair tonic, at one point of time, commanded about 36% of the market share in Tamil Nadu. It is the first product of Tampcol. It had gained wider acceptance in the hair oil market.

At present, the Herbal hair oils and other thailams (oils) are manufactured in the pharmacy complex of Anna Hospital at Chennai..

Now Corporation is planning to increase the production of herbal hair oils by expanding the production facilities. Tampcol has proposed to market the herbal hair oils in the neighbouring states such as Andhra Pradesh, karnataka and Kerala and to expand the marketing activities to all Metro towns like Calcutta, Bombay and other States in India.

Range of herbal hair oils produced

a) Improved herbal hair tonic 100 ml and 200 mlb) Amla thailam 100 ml and 200 mlc) Classic herbal hair tonic 100 ml and 250 ml

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SECTION IV

IMPORT/EXPORT LEVEL

4.1. Imports Negligible quantity

4.2. Exports

4.2.1. Sample of individual exports

Name of the exporter Brand name Quantity Value in Rs Country Date Port

National Trading Co. Castroline 100 ml 378 Port Kelang

January 2002

Chennai

National Trading Co. Castroline 400 ml 260 Port Kelang

January 2002

Chennai

San Exports V.V.D. 420 Pcs 19635 Singapore January 2002

Chennai

San Exports V.V.D. 40 Pcs 3133.58 Singapore January 2002

Chennai

San Exports Brami Amla 60 Pcs 2880.92 Singapore January 2002

Chennai

India Exports and Imports

Dabur Amla 60 Pac 4656.09 Le Havre January 2002

Chennai


Dabur Amla 120 Pac 3724.89 Le Havre January 2002

Chennai


Dabur Vatika

45 Pac 2667.96 Le Havre January 2002

Chennai


Dabur Vatika


Chennai


Dabur Vatika


Chennai


Dabur Vatika


Chennai

Foor Exports Hair Oil 600 doz 81838.11 Port Kelang

February 2002

Chennai

Foor Exports Hair Oil 450 doz 11048.48 Port Kelang

February 2002

Chennai

Sri Sakthi Exim Hair Oil 67 Doz 8556.60 Colombo February 2002

Chennai

Yusuff Exports Hair Oil 5 Box 4342.50 Singapore February Chennai8

2002Rajan & Company Cocount

Hair Oil48 doz 4271.51 Port

KelangMarch 2002

Chennai

Remy Impex Cocount Hair Oil

90 doz 16861.31 Port Kelang

March 2002

Chennai

Kamar exports Medimix Hair Oil

20 Box 20088.49 Singapore April 2002

Chennai

Durga Exports Almond Hair Oil

125 Pcs 2121.89 Port Kelang

April 2002

Chenai

Sambavi Enterprices Navratan Hair Oil

80 Nos 3220.40 Mombasa April 2002

Chennai

Delux Export and Import Co.,

Herbal Hair Oil

200 Ltrs 38359.96 Singapore April 2002

Chennai

KR & CO. Aswini Hair Oil

5 CTN 64464.71 Singapore May 2002

Chennai

KR & CO. Kesavarthini Hair Oil

4 CTN 9710.24 Singapore May 2002

Chennai

Gaffor Exports Amla hair Oil

800 Doz 190758.05 Port Kelang

June 2002

Chennai

Kumar Traders Pvt.Ltd.

Amla hair oil

5 CTN 7503.27 Melbourne June 2002

Chennai

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SECTION V

PRICE

Price of 144 packs and each pack of size 100 ml

Rs.3083

Price of 72 packs and each pack of size 250 ml

Rs.3547

Taxes and duties extra as applicable

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SECTION VI

INDIAN DEMAND

6.1. Size of Indian Hair Oil Industry

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Size of Indian Hair Oil Industry Rs.2000 crores

Indian production level of Hair oil Around 1000 Kilo litre per annum

6.2. Market Share of the Hair oils of various types

6.3. Important Herbal oil brands

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Clinic All Clear-150 ml Clinic Plus-100 ml & 200 ml

Dabur Amla-200 ml Dabur Vatika-150 ml

Parachute-100 ml & 200 ml Nihar-200 ml VVD-200 ml

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Estimated Indian market for Herbal hair oil 75 to 100 kilo litre per annum

Estimated growth rate in demand 15% per annum

SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

7.1. Important Herbal Hair oil extracts

Coconut oil is the base for most of the herbal hair oils.

Herbal well known for use in Hair oils are processed into thick pulp which is soluble in both vegetable and mineral oils. These include the following:

Common name Sanskrit name Botanical name Part used

Amla AmarphalamAmalakam

Emblica OffcienalisPhyllanthus emblica

Dried fruit

Brahmi Mandukaparni Centella asiatica HerbBhiringraj Bringraja Ecliptica alba/eracta HerbKaddu seeds Alabu Legenarie sinceraria Seeds

7.2. Efficacy of Herbal Hair Oils

Hair oil containing any one or combination of herbs mentioned above have been used in India since time immemorial and are highly spoken of in folklore and books on indigenous drugs.

Amla Fruits are rich in tannins; Fixed oil berries strengthen and promote growth of hair.

Brahmi Local stimulant useful for skin eruption, Eczema. The extract is a remedy in ulcers. Eczema and Psoriasis.

Bhringraj Antiseptic, excellent for head: renders hair black and promotes luxurious growth; paste of herb in oil is useful for skin diseases, itch, headache and also for dyeing hair black.

Bhangra Contains oil soluble dye useful in alopecia and skin disease.

Kaddu seeds Have fatty oil which is applied in headache, 14

The oil has cooling effect and is emollient.Henna leaves For treatment of head ache; astringent;

detergent and deodorant applied to hair to promote growth.

7.3. Manufacturing process for Herbal Hair oil

The herbs are cleaned thoroughly, dried and ground in a pulveriser to a fine powder.

A known weight of the herb is taken and boiled in 10 times its volume of water to extract all its nutrients.

The solution is filtered and the resulting solution is concentrated on a simmering flame till a dark fluid mass results, after almost complete evaporation of water.

40% of the mixture is mixed with 60% of pure coconut oil and the mixture is heated to remove completely any traces of water.

The oil is cooled and packed in suitable container.

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

Gas burners and accessories Measuring vessels Stainless steel reactors Bottle washing machine Stainless steel working tables Working tools

Supplier of plant and machinery

* Spark Engineers Pvt. LtdSpark Enterprises5/332, State Bank Colony IISalem-636 004

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SECTION VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

8.1. Formulation Details

Formulation-I

Ingredients QuantityRefined Coconut or Sesamum oil 5 seersBalsam peru 2.50 ozFly Cantharides 5 drop.Sanda Oil 15 drop.Alkanet root 15 drop.Otto of Henna 5 drop.Oil Rosemary 10 drop.

Process outline:

First of all the oil is treated with alkanet root and allowed to remain undisturbed for 2 days for colouring. Then strain the oil through cloth.

The fly canthanrides are nex fried in fresh coconut or seasamum oil and when these are well fried and discoloured, these are allowed to cool.

Afterwards, add the previously coloured oil, and the Balsam Peru (after melting it over a slow fire). Finally add the other ingredients one by one with constant shaking.

Formulation-II

Ingredients QuantityRefined Seasamum Oil 24 ozAlkanet root 2 drop.Oil Bergamot 6 drop.Oil Lemon 3 drop.Oil Rosemary 2 drop.Oil Neroli 1 drop.Oil Lavender(English) 2 drop.Oil Orange 1 drop.Oil Rose Geranium 2 drop.

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Canthridin 3 grainsBalsam Peru 2 drop.

Process outline

The best quality of refined seasamum oil is taken and into it is added alkanet root previously cut into small pieces.

The whole is then allowed to stand undisturbed for 2 days and then filtered through a piece of fine cloth.

Next add the other ingredients one after another in the order they appear in the recipe and shake the whole for 15 minutes after each such addition.

Balsam Peru, the last ingredient, is to be melted over a slow fire before incorporation. When the ingredients are all incorporated, the whole is kept aside air-tight in a vessel for a fortnight and then packed.

Formulation-III

Ingredients QuantityChameli Oil 2 litreAlmond oil 1 litreAlkanet root 1 oz.Cantharidin 12 grainsBalsam Peru 5 oz.Sandal oil 3 oz.Flora Jasmine 12 drop.English lavender 2 oz.

Process outline

Mix the Chameli and almond oil together and drop into this the alkanet root in small pieces and let the oil remain undisturbed for 2 days.

Then strain through a piece of cloth and add the ingredients one after another with constant shaking. While adding the balsam peru, take care that it is melted over a slow fire before addition.

When all the ingredients are well incorporated, pack in a vessel with the mouth well-covered and put in strong sunlight for 20 days together. Finally strain and pack into container.

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Formulation-IV

Ingredients QuantitySesamum oil 6 litreAlkanet root 2 ozOtto Keora 1 ozOil Lavender 2 oz.Oil Rosemary 1 oz.

Process outline

The seasamum oil is first of all treated with animal charcoal and put in Sun for a fortnight. This is then filtered through a filter paper or through flannel.

To the oil thus refined, add the alkanet root in small bits and strain after two days. Then incorporate the other ingredients one after another with constant stirring and let the whole stand for 7 days in a vessel tightly closed.

Finally strain again and pack into containers.

This oil keeps the brain cool and stimulates the growth of hair.

Formulation-V

Ingredients QuantityCoconut oil 12 chWhite oil 4 chOil Lavender 3 drop.Oil Sandal 3 drop.Oil Bergamot 3 drop.Alkanet root 1.5 drop.

Process outline

First refine the coconut oil and add the alkanet roots.

The whole is left for colouring for 2 days. Now filter and add the essential oils one by one and shake well before the addition of the next one.

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The whole is left well closed for 7 days for ripening.

Formulation-VI

Ingredients Quantity

Coconut or Castor Oil 500 partsBalsam Peru 15 partsOil of Jasmine 60 partsOil of Roses 30 partsOil of Bitter Almons 30 partsOil of Vanilla 60 partsOil of Ambergris 30 partsOil of Musk 30 parts

Process outline

The balsam peru is first of all digested for 14 days in the oil, shaking the vessel frequently.

When the mixture is clear, add the essential oils one by one.

The oil keeps for a long time and resembles very much the heliotrope oil in odour.

Formulation-VII

Ingredients Quantity

Benzoated Oil 20 ozOtto of Rose 25 minimsHeliotropin 20 dr.

Process outline:

The benzoated oil is made by digesting an ounce of benzoin, in a pint of almond or olive oil for three hours and filtering through filter paper. Finally add the scent, shake. The oil does not become rancid.

In the preparation of these scented hair oils, precautions are to be taken that procedures are to be followed strictly so that desired quality is achieved. The addition of scents and colouring of hair oils are two important steps.

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8.2. Availability

The above raw materials are available from the various trading houses who are located in leading cities all over the country.

SECTION IX

DISCUSSIONS ON ECONOMIC CAPACITY,PROJECT COST AND PROFITABILITY PROJECTIONS

Economic capacity 15 Kilo litress per annum

Project cost Rs.26 lakhs

Assessment of project cost

Land

S.No. Description CostRs.in lakhs

1.1 Cost of land of 0.3 acre at Rs.5.5 lakh per acre 1.651.2 Cost of levelling, laying internal roads/fencing and

Compound wall0.17

Subtotal 1.82

2. Building


2.1 Factory building at Rs.3200 per sq.m. 3.202.2 Non-factory building at Rs.4500 per sq.m. 2.25

Subtotal 5.45

3. Cost of Plant & Machinery


3.1 Cost of basic plant and machinery 7.003.2 Instrumentation and control 0.533.3 Pipelines and valves 0.703.4 Structurals for erection 0.35

Subtotal 8.58

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3.5 Octroi, excise duty, sales tax, etc.at 12% 1.033.6 Packaging and insurance charges (2%) 0.173.7 Transportation charges (2%) 0.173.8 Machinery stores and spares (2%) 0.173.9 Foundation charges (2%) 0.173.10 Installation charges (2%) 0.17

Total cost of plant and Machinery 10.46

4. Technical know-how fees Rs. 1.20 lakhs

5. Miscellaneous fixed assets


5.1. Electrification 1.25.2. Water storage tank, borewell etc. 0.35.3. Laboratory equipment 0.35.4. Office machinery & equipment 0.35.5. Material handling equipment, packaging machinery,

weigh balance, etc.0.3

Total 2.4

6. Preliminary & Pre-operative expenses:


6.1. Preliminary expenses 0.206.2. Pre-operative expenses:-6.2.1 Establishment 0.206.2.2 Rent rates and taxes 0.306.2.3 Travelling expenses 0.206.2.4 Interest and commitment charges on borrowings 0.406.2.5 Insurance during construction period 0.20

Total 1.50

7. Provision for contingency Rs.1.17

8. Working capital margin Rs. 2.25

9. Total project cost Rs. 26

10. Means of finance

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Promoter's contribution Rs 10 lakhsTerm loan from financing institutions Rs 16 lakhsTotal project cost Rs 26 lakhs

Financial statements (Rs. in lakhs)

Cost of production

Variable Cost

Raw material and utilities 11.16Spares and maintenance 0.63Selling expenses 1.61Total variable cost 13.40

B Fixed cost

Salaries and wages 6.00Interest on term loan and working capital loan 4.05Depreciation 1.42Administrative expenses 0.97Total fixed cost 12.5

C. Total cost of production A + B 25.69

D. Selling price per kg. (in Rupees) 215

E. Annual sales turnover (Rs.in lakhs) 32.25

F. Net profit before tax (Rs.in lakhs)(E-C)) 6.35

G. Breakeven point in % 66

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SECTION X

SWOT ANALYSIS

Strength Growing demand due to increasing per capita income

Weakness Higher price compared to synthetic hair oilOpportuntiy Export opportunityThreat Mushroom growth and competitive market

conditions

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SECTION XI

FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATIONS

Entry into the value-added hair oils segment is an attractive investment opportunity.

Major players in the branded hair oils market have been training their sights on value added hair oils. This has spawned a range of product innovations such as hair oils with herbal ingredients, non-sticky oils, light hair oils and lately dandruff solution hair oil.

There is no particular entry barrier to set up the project from the point of technology or raw material availability.

The challenging task would be the market penetration ,since the market is bound to remain competitive.

The project promoter should carefully evaluate his strength to operate in a highly competitive consumer market, before venturing into the project.

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PROFILE ON HERBAL HAIR OIL

CONTENTS PAGE NO.

SECTION I PRODUCT CHARACTERISTICS 1

SECTION II PRODUCT APPLICATIONS 2

SECTION III INDIAN MANUFACTURERS 3

SECTION IV IMPORT/EXPORT LEVEL 8

SECTION V PRICE 10

SECTION VI INDIAN DEMAND 11

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS 14

SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY 16

SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY,PROJECT COST AND PROFITABILITY PROJECTIONS 20

SECTION X SWOT ANALYSIS 23

SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATIONS 24

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