Herbal Hair Oil

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February 2013

Product & Applications

Herbal hair oil mainly comprises of oils of vegetable extracts in origin as base and blended with suitable perfumes and colour. Vegetable oils generally used are coconut, castor or sesame oils. To avoid rancidity of hair oils antioxidants are added in proportionate quantity.

Perfumes used for preparation of hair oils should not be fugitive and to avoid this they are usually fixed by sandal wood oils or other fixatives. The hair oil can also be colored by using oil soluble colours. The dyes used for colouring the oil are properly selected so that they are not injurious to health. In the present scenario herbal products are very popular so as to counter act the ill effects of synthetic and chemical ingredients which cause damage to skin and are injurious to health. The ingredients in herbal oils are Amla(Emblica Officinalis) fruits dried, Mehendi(Lawsonia alba) Leaves, Brahmi(Herb of Grace) plants, Lemon oil(Citrus Limonum), Harar or Haritaki(Myrobalan) fruits, Bahera dried fruits, Kapurkachari(Hedichium spicatium) rhizome, Almond oil, etc. These ingredients are in proportions varying from 0.01% to 1%. The ingredients are either used in isolation or in combination with others as per the market and consumers preference. The herbal hair oils have medicinal properties and have therapeutic properties.

Industry Profile and Market Assessment

Hair oil is an essential in everyday life be it for grooming or health reasons. In our country good lustrous hair is a part of beauty. Hair care is given a lot of importance since childhood. Girls are taught the importance of hair care and use of proper hair oil for a healthy hair growth. The present day life, with pollution and hectic work schedule calls for a lot of hair care to prevent loss of hair and other diseases related. India is a store house of medicinal herbs, roots. The medicinal plants in deep forests, Mountains or deep seas have a host of curing properties which have not been researched to the full extent.

The cosmetic industry has grown at a rate of 15%. The Indian cosmetic herbal products are always in demand although it faces tough challenge from other chemical based products. The ill effects of the chemical based products have contributed to the popularity of herbal products. The herbal products need to be properly advertised and attractively packed for better marketing.

Manufacturing Process & Know How

The process of manufacturing is simple and standardized it involves operations like mixing, filtration, inspection, Testing and packing. During mixing all the ingredients like base oil, herbal extracts/oils, perfumes and colours are mixed in desired proportions in a mixing tank using a slow speed stirrer for a short period and then allowed to settle for nearly two to three hours. The stirred mixture is next filtered through a filter press remove any suspended impurity. A sample of the filtered oil is then sent to the laboratory for necessary testing. The batch is accepted if the sample meets the standards. The tested batch is next filled in clean and dry bottles or pouches as the case may be and packed in larger card board cases for dispatch. There is no separate Indian Standard for manufacturing Herbal oil. One should contact the local drug controller in this matter. Know how is available indigenously and the machinery is all indigenously available.

The production capacity envisaged is approximately 60mt per annum on single shift basis working for 300 days per year.

Plant and Machinery

The main plant and machinery required comprise

    • Mixing Tank with stirrer 200 kg                      – 1 nos.
    • Constant filling M/C double headed             – 1 nos.
    • Cap sealing M/C.                                              – 1 nos
    • Filtering equiptment                                         – 1 nos
    • Misc. lab eqpt. &  Furniture                             – L.S

The total cost of machinery is estimated to be Rs. 5.17 lakhs.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 0.80 lakhs.

The total requirement of power shall be 5 HP.

Raw Material and Packing Material

The basic raw material for the unit is good quality coconut oil, soya bean oil etc. to be utilized as base oil, other Herbal oils and perfumes, and colours. Besides, the unit will also require bottles, plastic pouches, and other packaging material. The annual requirement of raw material and chemicals is estimated to be Rs. 50.42 lakhs. The packing may be of two types for retail sale and for bulk sale. Packing material should be such so as to properly handle fragile goods.

Land and Building

For smooth operation of the unit, it will require a built up area of 100 sq. mts. The total requirement of land and built up area is 150 sq.mts. The cost of land and constructed area is estimated to be Rs. 4.20 lakhs.


For smooth functioning of the unit the requirement of man power is expected to be around 8 persons.

Sales person self
Skilled Workers 1
Semi skilled workers                                        3
Helpers                                                             3

The annual salary bill is estimated to be around Rs. 4.55 lakhs

Sales Revenue: (100% capacity)

Selling price varies depending on the product quality. The price of  Herbal  oils depends a lot on its medicinal properties and curative value. The selling price on an average has been taken as Rs. 110/- per kg. The total annual revenue for a production of 59.70 MT works out to Rs. 65.67 lakhs.

Cost of Project

  Rs. lakhs
Land & Building 4.20
Plant & Machinery 5.17
Other assets 0.80
Contingencies 0.59
P & P expenses. 1.00
Margin money 3.99 
Total 15.75
Means of Finance  
Promoters Contribution 7.68
Term Loan 8.07
Total 15.75



Rs. lakhs
Sales 65.67
Raw material 50.42                         
Salary 4.55
Utilities 0.44                          
Stores & Spares  0.30
Repairs & Maintenance 0.30
Selling expenses 3.28
Administrative expenses 0.60
Depreciation 0.25                       
Interest on T.L 0.89
Interest on W.C 0.63                        
Cost of production 761.66                            
Profit 4.01 

Requirement of Working Capital

    Margin W.C Margin Money
Raw material & packing      15 days    30%           2.52          1.75
Stock of finished goods       15 days      25%          3.03          0.75
Working expenses                1 month 100% 0.67           0.67
Sale on credit                       15 days     25% 3.28         0.82
Margin money for W.C 3.99          

Break Even point: 30% 

Machinery Suppliers


    • M/S T.S. Enterprises, Vishwakarma Industrial Area, Jaipur.
    • M/s Dayal Engineering Co. Gali Nal Bandan Shaganj,Ajmeri Gate, Delhi.
    • M/S Sehgal Industrial Works, Malka Ganj, Subji Mandi, Delhi.

    Raw Material Suppliers


    • M/S Amrit Lal Burabhai & Company, Anand Bhavan, Shamshad Gandhi Marg, Princess street Mumbai.
    • M/S Suresh Chandra & Company, Princess Street, Mumbai.


For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com