Business Plan Hair Dye

8/13/2019 Business Plan Hair Dye

1/12

Product: COLOUR HAIR DYE & DEVELOPER

Product Code: (Based on NIC -2004): 24247

Product Code: (Based on ASICC -2000): 36207

Production Capacity:15,00,000 packs containing @ Rs.25/-

(100 ml of Dye & 100 ml of developer) = 3,75,00,000/-

Month & Year of Preparation : April 2010

Prepared by:

Chemical Division

Branch MSME Development Institute

New Colony, RAAGADA-765001 (Odisha)

Phone/Fax: 06856-222268

Email: [email protected]


2/12

PROJECT PROFILE ON

COLOUR HAIR DYE & DEVELOPER

INTRODUCTION:This project Profile has been prepared aiming at production of

liquid hair dye and developer. Hair improves the beauty of a person. Not

only the dense hair is a requirement of people but also they are fascinated to

maintain it into a brilliant shade with natural black or any other colour as a

fashion.

In few regions, the multi colours is a fashion. There are many

types of hair dyes. Many are water based, many are solvent based, many are

temporary and many others are permanent. Hair colours are used normally

in an interval of 15-21 days by the black haired people where as more

frequently by the grey white haired people to maintain the consistency look.

MARKET POTENTIAL:

The cosmetics products in India has a tremendous demand at the

pace of urbanization, increasing awareness on beauty consciousness, and

living standards of people. Latest trend shows, people are very much

concerned to take care of fair where as the food habits, atmospheric

conditions, and stress level results early hair graying/whitening. It increases

the demand of hair dyes and developers through out the country and abroad.

Earlier the rich people and many of the urban dwellers were in habit of using

hair dyes but, now it has penetrated to semi-urban areas and even rural areas

due to repeated advertisements in various TV channels, News papers,

Magazines, Beauty consciousness and increasing purchasing power of

people. The demand of liquid hair dye and Developers is quite visible and

an unit manufacturing the same will be having a good scope.

BASIS ANDK PRESUMPTION:1.Working hours : Single shift of 8 hours, for 300 working days in a year

2. Capacity utilization: 60% during 1styear;75% in 2

ndyear and

90% in 3rd year and onwards.3. Salary and wages : Monthly basis.

4. Margin money : 35% of total capital investment.

5. Interest charges : 14% has been calculated on total capital

Investment considering the opportunity cost of

margin money.

6. Power tariff : Rs.4.50 per unit.


3/12

IMPLEMENTATION SCHEDULE:The project is estimated to commence production within one year from the

conception of the project.

The delivery of the machinery is expected within 2 months from the

placement of orders. The time taken for preparation of the project report is 1

month.

The loan formalities will take about 6 months and one month will be taken

for installation and erection of machinery.

TECHNICAL ASPECTS:

Manufacturing process: Permanent hair coloring preparations consists of

dye ingredients, mostly of aromatic amino and nitro compounds such as paraphynelin diamine, meta amino phenyl, para amino phenyl, usually in an aqua

solutions of soap or synthetic detergent, these may be alkanolamines or alkyl

sulphates. Solubilising agents such as ethanol or propylene, glyclol are

included. Besides certain plasticizers, stabilizers and preservatives are

added for hair conditioning and to prevent premature oxidation of the dye

preparation. Perfume is added to improve the fragrance to the preparation.

The preparation is made in two different phases, i.e.I the oil phase where the

Dye ingredient active, thickening agent and the perfume are added together

in a mixing vessel at 700C and then in phase II, water based chemicals are

mixed separately in heating vessels at 650C for 10-25 minutes each and then

allowed to cool to 400-45

0C. Then both are added together along with

emulsifier and stirred for about one hour, then the preparation is allowed to

be cooled and filled in the bottles, sealed and packed subsequently. Similarly

the developer is prepared with hydrogen peroxide as the base material

instead of Dye ingredients as in case of Hair Dye preparation. Both the Hair

Dye and developer are packed in two separate bottles and kept in one box

for sales.

Quality Control and Standards: The quality of these products aremaintained as per BIS specification vide IS 98481.

Production Capacity: 15,00,000 packs containing both Hair Dye and

developer in 100 ml pack each.


4/12

Pollution Control: The units producing liquid hair dye/developer does not

produce any toxic pollutants. However, the workers should use mask and

gloves during handling the chemicals in the factory.

FINANCIAL ASPECT:

I) Land and Buildinga) Land 1 Acre Rs. 3,00,000/-

b) Building

Built up floor area of 500 sq.mt @ 2500 = Rs12,50,000/-

c) Other Civil Constructions including

Water Connections = Rs. 2.50,000/-

Total: Rs.18,00,000/-

II) Machinery & Equipment:Sl. No. Name of Machine Qnty. Price

(Rs.)

Value (Rs.)

01. Planetary Mixer (250 kg) 2 3,00,000 6,00,000

02. Heating Vessel (200 kg) 3 50,000 1,50,000

03. Mixing tank with stirrer (1000

ltrs.)

2 1,00,000 2,00,000

04. Storage Tank (500 ml) 3 50,000 1,50,000

05. Filling and Sealing machine 1 1,50,000 1,50,000

06. Packing table with conveyerbelt(12 ft)

1 1,50,000 1,50,000

07. Bottle Labelling machine 1 1,50,000 1,50,000

08. Errection & Electrification L.S. 1,00,000

Total: 16,50,000

III) Other Fixed Assets:1. Tools and equipment 50,000

2. Working Table, Furniture and Fixtures 1,00,000

3. Testing Equipments 1,50,000

4. Office Equipments 2,00,000

5. Stand by D.G. set 50 KVA 2,50,000

Total: 7,50,000

IV) TOTAL PLANT AND MACHINERYAND OTHER FIXED ASSETS(II + III) 24,00,000


5/12

V) PRELIMINARY EXPENSES: 1,00,000

VI) Total Fixed Capital Requirement ( I+IV+V) 43,00,000/-

WORKING CAPITAL REQUIREMENT:

I) PERSONNEL:

TECHNICAL

Sl.

No.

Designation No. Salary Total

Salary

(Rs.)

01. Production Manager 1 15,000 15,000

02. Production Supervisor & Chemist 2 7,500 15,000

03. Skilled Worker 10 3,000 30,000

04. Semi Skilled Worker 8 2,500 20,000

05. Un-skilled worker 12 2,000 24,000Mechanic & Electrician 2 4,000 8,000

Total: 1,12,000/-

ADMINISTRATIVE

Sl.

No.

Designation No. Salary Total

Salary

(Rs.)

01. Factory Manager 1 20,000 20,000

02. Asst. Manager 1 10,000 10,00003. Administrative Assistant 2 3,000 6,000

04. Accountant cum cashier 1 4,000 4,000

05. Store Keeper 2 3,000 6,000

06. Security/Watchman 4 2,000 8,000

Total: 54,000/-

Expected pay bill per month 1,66,000/-

Add 20% perquisites 34,000/-

Total: 2,00,000/-

II. RAW MATERIAL(PM)Sl.

No.

Item Qnty. Rate

(Rs.)

Total (Rs.)

01. Dye Ingredient Active(para

phynelin in diamine)

500 kgs. 600 3,00,000

02. Thickening Agent (Cetostyl alcohol/

ceto microgol)

2000 kgs 150 3,00,000


6/12

03. Hydrogen Peroxide 750 kgs 250 1,88,000

04. Surfactant (SLS or SLES) 1000

kgs.

110 11,000

05. Stabiliser (Methyl Parabene) 400 kgs. 250 1,00,000

06. Perfume 70 kg. 1500 1,05,00007. Packing materials / bottle 2,50,000 4.5 11,25,000

22,68,000

III) UTILITIES:

Electricity 6000 units @ Rs. 4.50 Rs. 27,000/-

IV) Other expenses (PM):i) Repairs & maintenance Rs. 5,000/-

ii) Other Consumable Stores Rs. 3,000/-iii) Insurance Rs. 3,000/-

iv) Travelling Expenses Rs. 10,000/-

v) Telephone/Fax/Telegram Exp. Rs. 5,000/-

vi) Printing &Stationery Rs. 2,000/-

vii) Advertising and publicity Rs. 10,000/-

viii) Other expenses Rs. 2,000/-

Total: Rs. 40,000/-

V)TOTAL RECURRING EXPENSES PER MONTH: Rs. 24,61,000/-

VI) WORKING CAPITAL REQUIREMENT(3 months recurring expenses) Rs. 73,83,317/-

VII) TOTAL CAPITAL INVESTMENT:i) Fixed Capital 43,00,000/-

ii) Working Capital for 3 months 73,83,000/-

Total: 1,16,83,000/-

VIII) COST OF PRODUCTION (PER ANNUM) :

1. Recurring expenditure per annum 2,95,32,000/-

2. Depreciation on Plant & M/c. @ 10%

3. Building @ 5% 75,000

Machinery @ 10% 1,65,000

Tools & Equip. @ 25% 50,000


7/12

Furniture and fix. @ 20% 60,000

Other Fixed Assets @ 10% 25,000 3,75,000/-

4. Interest on total investment @ 14% 16,36,000/-

3,15,43,000/-

IX) EXPECTED SALES (PER ANNUM):15,00,000 packs containing @ Rs.25/-

(100 ml of Dye & 100 ml of developer) 3,75,00,000/-

X) Profitability = Sales - cost of production= 59,57,000/-

XI) PERCENTAGE OF PROFIT (ON NET SALES) 15.89%

XII) Rate of Return 50.99%

XIII) Break Even Point:

Total Fixed Cost (per annum)

1. Insurance Rs. 36,000/-

2. Depreciation Rs. 3,75,000/-

3. Interest Rs.16,36,000/-

4. 40% of salary & wages Rs. 6,05,000/-

5. 40% of other contingent expenses Rs. 3,07,000/-

Total: Rs.29,59,000/-

XIV) Break- Even-Point(%) = Fixed Cost x 100 = 33.19%

Fixed Cost + Profit

LIST OF MACHINERY SUPPLIERS

BALL MILLS

1. HSP Engineering Company, C-179/1, Bulandshahar Road, Site No.1.

Ghaziabad (UP).

2. New Lahore Welding & Engineering Works, B 75, Mayapuri

Industrial Area, Phase-1, New Delhi 110 064.

3. Mechamico Manufacturing Engineers, 15,Okhla Industrial Estate,

Phase III, New Delhi 110 020.


8/12

BOTTLE FILLING, SEALING AND WASHING MACHINE

1. Amar Mechanical Engineers, 6, Industrial Area, N 17, Faridabad 1.

2. Amar Enterprisers (India), F11, DSIDC Industrial Complex, Rohtak

Road, Nanglol, Delhi 110 041.

3. Bottling Machinery Company of India, B-280, Okhla Industrial Area,

Phase-1, New Delhi 110 020.

BOTTLE WASHING AND DRYING MACHINES

1. Amstrong Smith Limited, 106, Armenian Street, Madras -1.

2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai

400 013.

3. Kripson and Company (I), Ranade Road, Mumbai 400 028.4. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr

Estate, Mumbai 400 001.

CAP SCREWING MACHINES

1. Amstrong Smith Limited, 106, Armenian Street, Madras 1.


400 013.

3. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110

052.

BOTTLE FILLING MACHINES

1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder,

Mumbai 400 039.


400 013.

3. Kripson and Company (I), Ranade Road, Mumbai 400 028.

4. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110052.

COLLAPSIBLE TUBE FILLING MACHINES

1. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr



9/12

2. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110

052.

EMULSIFIERS AND STIRRERS


Mumbai 400 039.

2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400

007.

3. Frederick Herbert, No. 10, 2nd

Pasta Lane, Colaba, Mumbai 400

005.

4. Gladwyn & Co., 251, Naoroji Road, Fort, Mumbai 400 001.

FILTER PRESSES

1. Basp Industries, G.P. Industrial Area Complex, Thane.

2. Dashmesh Industries (India), WZ-470, M.S. Block, Hari Nagar,

New Delhi 110 064.

3. H.S. Engineering Works, 16/17, Singh Sabha, Guruduara, New Delhi

110 015.

4. R.P. Engineering Company, 7/8, Gali No.7, Anand Parbat, New Delhi

110 005.

GLASS BOTTLES CONTAINERS

1. Sun India Printing,B-193, Okhla Industrial Area, Phase-1, New Delhi-

110 020.

2. Universal Glasses, Plot No.17, Site No.IV, Industrial Area,

Sahibabad, Ghaziabad.

GRINDING MACHINES

1. Hindustan Metal Works, 17-B, Bhayandar Udyog Nagar, 9-GoddeoRoad, Bhayandar, Thane.

2. Yesco (India) Engineering Co., 21-A, Naraina Indl. Area, Phase-II,

New Delhi 110 028.

3. Water Well Engineers, 20/76, S. Bhagatsingh Road, Mumbai.

4. Tirupati Industries, 8, Nand Deep Indl. Estate, Kondivitta Road,

Mumbai


10/12

400 059.

LABEL GUMMING AND APPLYING MACHINES


Mumbai 400 039.

MARKING AND PRINTING MACHINES

1. Modern Industries, Factory Plot No.98, Sector No.24, Faridabad 5.

MIXERS (PLANETARY MIXER) AND OTHER CHEMICAL

MACHINERY


007.

2. Process Machinery and Equipments, 144, Ashutosh Mukerjee Road,

Flat No.7, Kolkata 25.

3. Frederick Herbert, No.10, 2nd

Pasta Lane, Colaba, Mumbai 400 005.

PASTE FILLING AND CRUMPING MACHINES

1. Mather and Platt Limited, Hamilton House, 8, Graham Road, Ballard


POWER FILLING MACHINES


007.

2. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1.

3. Gladwyn & Company, 251, Naoroji Road, Fort, Mumbai 400 001.

4. Frederick Herbert, No.10, 2ndPasta Lane, Colaba, Mumbai 400 005.

PULVERISING MACHINES

1. Batliboi Private Limited, Silver Jubilee Park Road, Bangalore 2.


007.


11/12

3. Mechanico, 15, Okhla Industrial Estate, New Delhi 110 020.

RIBBON BLENDERS


007.

2. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1.

3. Crush Machinery Manufacturers, 3rd

Floor, 361, Dr. D.N. Road, Fort,

Mumbai 400 001.

SCIENTIFIC APPARATUS AND LAB EQUIPMENT


Mumbai 400 039.

2. Toshniwal Brothers Private Limited, 198, Jamshedji Tata Road,

Mumbai 400 001.

3. Valcun-Lavel Limited, Mustafa Building, 7-A, Sir P.M. Road,

Mumbai 400 001.

LIST OF MACHINERY SUPPLIERS AND PRODUCTION OF

COSMETIC PRODUCTS

1. Mamko Machine Fabricators Pvt. Ltd., 105, Heera Panna Indl. Estate,

Goregaon (E), Mumbai 400 063.

2. Square Pharma Machineries, Unit No.33, Arihant Indl. Estate,Behind

Ansa Estate, Off. Saki Vihar Road, Mumbai 400 072.

LIST OF RAW MATERIAL SUPPLIERS AND PRODUCTION OF

COSMETIC PRODUCTS

1. Galaxy surfactants Limited, C-49/2, TTC Indl. Area, Pawane, NaviMumbai 400 703.

2. Chemhouse Marketing, 42, 1st Floor, Asiatic Commercial Arcade,

Vartak Nagar, Pokhran Road, Thane (W) 400 606.

3. International Flavours and Fragrances (I) Ltd., Delphi 501-503, C

Wing, Hiranandani Business Park, Powal, Mumbai 400 076.


12/12

4. Yasham Bio-Science, 3B Nityanand Sadan, Bharadawadi, Andheri

(W), Mumbai 400 058.

5. WF Limited, 109 Sion (East), Mumbai 400 022.

6. Stan-Pack Industries, B/5, Mahalaxmi Industrial, Navghar, Vasai

Road (E), 401210, Dist. Thane.

7. Arofine Chemical Industries, 2/11, Arondekar Bhavan, 14 HF Society

Road, Jogeshwari (E), Mumbai 400 076.

8. Yasham Bioscience, 3/8, Nityanand Sadn, Bhardawadi JP Road,

Andheri (W), Mumbai 400 058.

9. Alpha Plastic Industries, Gala No.1, Navnandan Indl. Estate, Opp

P&T Colony, Mulund (W), Mumbai 400 080.

10. Koel Colours Pvt. Ltd., F-11, Nand-Jyot Ind. Premises, Andheri-Kurla

Road, Safed Pool, Sakinaka, Andheri (E), Mumbai 400 072.

11. Ultra International Limited, 304, AVG Bhawan, M-3, Connaught

Circus, New Delhi 110 001.12. Lucid Colloids Limited, 401A, Navbharat Estates, Zakaria Bunder

Road, Sewri West, Mumbai 400 015.

13. Vivimed Labs Limited, 2nd

Floor, Veerang Towers,Habsiguda,

Hyderabad 500 006.

14. RYM Expoorts, 23, Anuradha Society, Old Nagardas Road, Andheri

(E), Mumbai 400 069.

15. Sankhubaba International, 425 Milan Industrial Estate, Opp. T.J Road,

Cotton Green (West), Mumbai 400 033.

16. Gujarat Heavy Chemicals, 20 Community Centre, New Friends

Colony, New Delhi 110 065.

17. Evancil Cosmetics, 6/9, Kirthi Nagar, Ind. Area,New Delhi 110 005.

18. JBT Perfumes (P) Ltd., 9/405 Laxmi Plaza, Link Road, Andheri (W),

Mumbai 400 053.

19. Anglo American Colour and Chemical Industries, A-40, Gali No.6,

Anand Parbat Indl. Area, New Delhi 110 005.

20. Oriental Carbon and Chemicals Limited, 5th

Floor, 506, Dahyog

Building, 58, Nehru Place, New Delhi 110 001.

21. Wesix Chemicals, Marshal Building, 3rd

Floor, 20, Ballard Road,

Mumbai 400 038.

Documents

Business Plan Hair Dye