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.

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.

SECTION III INDIAN MANUFACTURERS Both herbal oils and non-sticky hair oils have been quite successful as product concepts. Dabur Indias Vatika hair oil is one of the first herbal hair oils to be introduced in the sector. Hindustal Lever Ltds (HLLs) 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 Foundation Anil House D - 136, Shankar Road, New Rajinder Nagar, New Delhi - 110060 Aditi Herbochem 5, Jairam Niwas, 1st Floor, Swastik Park, Sion Trombay Road, Chembur, Mumbai - 400 071 Ajantha Chemicals P.O. Poonithura, Thripunithura, Kochi - 682 317 Ajay Pharmacy 36/201, Race Course Park, Airport Road, Rajkot - 360 001 Aravindh Herbals 75/11, North Vadambokki Street (Near Zam Zam Sweets) Madurai-625 001 Shanmuga, Kallekulengara Palakkad-678 009
3

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 Arshik Herbal Remedies (India) Ltd. Mulayara, Thiruvananthapuram ABI Herbal Products Vettukattu Valasu Ingur 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 - Remedies 969, Sector-4, Gurgaon - 122001 Dabur India Ltd. 3, Factory Road, Near Safdarjun Hospital New Delhi-110 029 Emami Group of Companies 18, R.N. Mukherjee Road, Kolkata - 700 001, Goolabkhan Peerkhan Co. 178, Nagdevi Street, Mumbai - 400 003
4

Grow-On Exports (India) Limited 19/5 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. Complex Hosur-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 Enterprises 4/14, Ragavi Complex, Opposite Tamil Nadu Theatre, Pall, Coimbatore - 641 605 J.D. Corporation 203 Yogeshwar, 135/139 Kazi Sayed Street, Masjid Bunder, Mumbai - 400 003 Madhu Exports 95/1 CPWD Quarters, K.K Nagar, Chennai - 600 078 Pravek Kalp Ayurvedic Oils 1711, S.P. Mukherjee Marg, New Delhi - 110 006

Prima Exports 1106, Pragati Tower, Rajendra Place, New Delhi - 110 008 Radhika Herbal B-159, Faridabad - 121 001 Phone: +(91)-(129)-5424870 Regal Enterprises 7-D, Nedungadan Residency, Chittoor Road, Ernakulam - 682 018, Kerala Sujan Chem- Tech Vile Parle (E), Mumbai - 400 057 Sunrise Remedies Pvt. Ltd. 13, Subhlaxmi Society, Opp Police Station, Sabar, Ahmedabad - 380 005 Phone: +(91)-(79)-7506907/6754164 Fax: +(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 Herbs 604-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 Medicine Campus, Arumbakkam, Chennai-600 106.
6

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) b) c) Improved herbal hair tonic Amla thailam Classic herbal hair tonic 100 ml and 200 ml 100 ml and 200 ml 100 ml and 250 ml

SECTION IV IMPORT/EXPORT LEVEL 4.1. 4.2. Imports Exports Negligible quantity

4.2.1. Sample of individual exports

Name of the exporter National Trading Co. National Trading Co. San Exports San Exports San Exports India Exports Imports India Exports Imports India Exports Imports India Exports Imports India Exports Imports India Exports Imports Foor Exports Foor Exports Sri Sakthi Exim Yusuff Exports Rajan & Company Brand name Castroline Castroline V.V.D. V.V.D. Brami Amla and Dabur Amla and Dabur Amla and Dabur Vatika and Dabur Vatika and Dabur Vatika and Dabur Vatika Hair Oil Hair Oil Hair Oil Hair Oil Cocount Hair Oil Quantity 100 ml 400 ml 420 Pcs 40 Pcs 60 Pcs 60 Pac 120 Pac 45 Pac 35 Pac 4 Pac 56 Pac 600 doz 450 doz 67 Doz 5 Box 48 doz
8

Value in Rs 378 260 19635 3133.58 2880.92 4656.09 3724.89 2667.96 2075.08 430.82 6031.79 81838.11 11048.48 8556.60 4342.50 4271.51

Country Port Kelang Port Kelang Singapore Singapore Singapore Le Havre Le Havre Le Havre Le Havre Le Havre Le Havre Port Kelang Port Kelang Colombo Singapore Port Kelang

Date January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 January 2002 February 2002 February 2002 February 2002 February 2002 March 2002

Port Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai Chennai

Remy Impex Kamar exports

Cocount Hair Oil

90 doz 20 Box 125 Pcs 80 Nos 200 Ltrs 5 CTN 4 CTN 800 Doz 5 CTN

16861.31 20088.49 2121.89 3220.40 38359.96 64464.71 9710.24 190758.05 7503.27

Port Kelang Singapore Port Kelang Mombasa Singapore Singapore Singapore Port Kelang Melbourne

March 2002 April 2002 April 2002 April 2002 April 2002 May 2002 May 2002 June 2002 June 2002

Chennai Chennai Chenai Chennai Chennai Chennai Chennai Chennai Chennai

Medimix Hair Oil Durga Exports Almond Hair Oil Sambavi Enterprices Navratan Hair Oil Delux Export and Herbal Hair Import Co., Oil KR & CO. Aswini Hair Oil KR & CO. Kesavarthini Hair Oil Gaffor Exports Amla hair Oil Kumar Traders Amla hair Pvt.Ltd. oil

SECTION V PRICE Price of 144 packs and each pack of size Rs.3083 100 ml Price of 72 packs and each pack of size 250 Rs.3547 ml Taxes and duties extra as applicable

10

SECTION VI INDIAN DEMAND 6.1. Size of Indian Hair Oil Industry

Size of Indian Hair Oil Industry

Rs.2000 crores

Indian production level of Hair oil

Around 1000 Kilo litre per annum

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6.2.

Market Share of the Hair oils of various types

Coconut based oils (Dabur Vatica, Clinic Plus, Parachute Herbal) 10%

Hair tonics 2% (Brylcream, Cinic Active, Vaseline Hair tonic) Cooling hair oils (Himtaj, Banphool, Dabur keshraj) 10%

Heavy hair oils(Dabur Amla,Dabur Jasmin, Bajaj Brahmi Amla) 55%

Light hair oils (Keo Karpin, Dabur Special, Hair & Care) 23%

6.3.

Important Herbal oil brands

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

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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 Amla Brahmi Bhiringraj Kaddu seeds 7.2. Sanskrit name Amarphalam Amalakam Mandukaparni Bringraja Alabu Botanical name Emblica Offcienalis Phyllanthus emblica Centella asiatica Ecliptica alba/eracta Legenarie sinceraria Part used Dried fruit Herb Herb Seeds

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 Brahmi Bhringraj Fruits are rich in tannins; Fixed oil berries strengthen and promote growth of hair. Local stimulant useful for skin eruption, Eczema. The extract is a remedy in ulcers. Eczema and Psoriasis. 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. Contains oil soluble dye useful in alopecia and skin disease. Have fatty oil which is applied in headache, The oil has cooling effect and is emollient. For treatment of head ache; astringent; detergent and deodorant applied to hair to promote growth.
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Bhangra Kaddu seeds Henna leaves

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. Ltd Spark Enterprises 5/332, State Bank Colony II Salem-636 004

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SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY 8.1. Formulation Details

Formulation-I Ingredients Refined Coconut or Sesamum oil Balsam peru Fly Cantharides Sanda Oil Alkanet root Otto of Henna Oil Rosemary 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 Refined Seasamum Oil Alkanet root Oil Bergamot Oil Lemon Oil Rosemary Oil Neroli Oil Lavender(English) Oil Orange Oil Rose Geranium Canthridin Balsam Peru Quantity 24 oz 2 drop. 6 drop. 3 drop. 2 drop. 1 drop. 2 drop. 1 drop. 2 drop. 3 grains 2 drop. Quantity 5 seers 2.50 oz 5 drop. 15 drop. 15 drop. 5 drop. 10 drop.

16

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 Chameli Oil Almond oil Alkanet root Cantharidin Balsam Peru Sandal oil Flora Jasmine English lavender 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. Quantity 2 litre 1 litre 1 oz. 12 grains 5 oz. 3 oz. 12 drop. 2 oz.

17

Formulation-IV Ingredients Sesamum oil Alkanet root Otto Keora Oil Lavender Oil Rosemary 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 Coconut oil White oil Oil Lavender Oil Sandal Oil Bergamot Alkanet root 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. The whole is left well closed for 7 days for ripening. Quantity 12 ch 4 ch 3 drop. 3 drop. 3 drop. 1.5 drop. Quantity 6 litre 2 oz 1 oz 2 oz. 1 oz.

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Formulation-VI Ingredients Coconut or Castor Oil Balsam Peru Oil of Jasmine Oil of Roses Oil of Bitter Almons Oil of Vanilla Oil of Ambergris Oil of Musk 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 Benzoated Oil Otto of Rose Heliotropin 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. 8.2. Availability Quantity 20 oz 25 minims 20 dr. Quantity 500 parts 15 parts 60 parts 30 parts 30 parts 60 parts 30 parts 30 parts

The above raw materials are available from the various trading houses who are located in leading cities all over the country.
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SECTION IX DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity Project cost Assessment of project cost
Land S.No. 1.1 1.2 Description Cost of land of 0.3 acre at Rs.5.5 lakh per acre Cost of levelling, laying internal roads/fencing and Compound wall Subtotal 2. S.No. 2.1 2.2 3. S.No. 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 Building Description Factory building at Rs.3200 per sq.m. Non-factory building at Rs.4500 per sq.m. Subtotal Cost of Plant & Machinery Description Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%)
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15 Kilo litress per annum Rs.26 lakhs

Cost Rs.in lakhs 1.65 0.17 1.82

Cost Rs.in lakhs 3.20 2.25 5.45

Cost Rs.in lakhs 7.00 0.53 0.70 0.35 8.58 1.03 0.17 0.17 0.17 0.17 0.17

Total cost of plant and Machinery 4. 5. S.No. 5.1. 5.2. 5.3. 5.4. 5.5. Technical know-how fees Miscellaneous fixed assets Description Electrification Water storage tank, borewell etc. Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, weigh balance, etc. Total

10.46 Rs. 1.20 lakhs

Cost Rs.in lakhs 1.2 0.3 0.3 0.3 0.3 2.4

6. S.No. 6.1. 6.2. 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 7. 8. 9. 10.

Preliminary & Pre-operative expenses: Description Preliminary expenses Pre-operative expenses:Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Total Provision for contingency Working capital margin Total project cost Means of finance Rs 10 lakhs Rs 16 lakhs Rs 26 lakhs Cost Rs.in lakhs 0.20 0.20 0.30 0.20 0.40 0.20 1.50 Rs.1.17 Rs. 2.25 Rs. 26

Promoter's contribution Term loan from financing institutions Total project cost

21

Financial statements (Rs. in lakhs) Cost of production

Variable Cost Raw material and utilities Spares and maintenance Selling expenses Total variable cost B Fixed cost 6.00 4.05 1.42 0.97 12.5 25.69 215 32.25 6.35 66 11.16 0.63 1.61 13.40

Salaries and wages Interest on term loan and working capital loan Depreciation Administrative expenses Total fixed cost C. D. E. F. G. Total cost of production A + B Selling price per kg. (in Rupees) Annual sales turnover (Rs.in lakhs) Net profit before tax (Rs.in lakhs)(E-C)) Breakeven point in %

22

SECTION X SWOT ANALYSIS

Strength Weakness Opportuntiy Threat

Growing demand due to increasing per capita income Higher price compared to synthetic hair oil Export opportunity Mushroom growth and competitive market conditions

23

SECTION XI FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND 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

SECTION SECTION SECTION SECTION SECTION SECTION SECTION I II III IV V VI VII PRODUCT CHARACTERISTICS PRODUCT APPLICATIONS INDIAN MANUFACTURERS IMPORT/EXPORT LEVEL PRICE INDIAN DEMAND BROAD OUTLINE OF MANUFACTURING PROCESS

PAGE NO.
1 2 3 8 10 11 14

SECTION

VIII

RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY

16

SECTION

IX

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS 20 SWOT ANALYSIS FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRYAND RECOMMENDATIONS 23

SECTION SECTION

X XI

24

25