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: brdcdi-raya@dcmsme.gov.in

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 1st year;75% in 2nd year 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.

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 para phynelin 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 400-450C. 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 are maintained as per BIS specification vide IS 98481. Production Capacity: 15,00,000 packs containing both Hair Dye and developer in 100 ml pack each.

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 Building a) 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/Machinery & Equipment: Name of Machine Planetary Mixer (250 kg) Heating Vessel (200 kg) Mixing tank with stirrer (1000 ltrs.) Storage Tank (500 ml) Filling and Sealing machine Packing table with conveyer belt(12 ft) Bottle Labelling machine Errection & Electrification

II) Sl. No. 01. 02. 03. 04. 05. 06. 07. 08.

Qnty. 2 3 2 3 1 1

Price Value (Rs.) (Rs.) 3,00,000 6,00,000 50,000 1,50,000 1,00,000 2,00,000 50,000 1,50,000 1,50,000 1,50,000 1,50,000 1,50,000 1,50,000 1,00,000 16,50,000

1 1,50,000 L.S. Total:

III)

Other Fixed Assets: 1. Tools and equipment 2. Working Table, Furniture and Fixtures 3. Testing Equipments 4. Office Equipments 5. Stand by D.G. set 50 KVA Total: TOTAL PLANT AND MACHINERY AND OTHER FIXED ASSETS(II + III)

50,000 1,00,000 1,50,000 2,00,000 2,50,000 7,50,000

IV)

24,00,000

V) VI)

PRELIMINARY EXPENSES: Total Fixed Capital Requirement ( I+IV+V)

1,00,000 43,00,000/-

WORKING CAPITAL REQUIREMENT: I) PERSONNEL: TECHNICAL Sl. Designation No. 01. 02. 03. 04. 05. Production Manager Production Supervisor & Chemist Skilled Worker Semi Skilled Worker Un-skilled worker Mechanic & Electrician

No.

1 2 10 8 12 2

Salary Total Salary (Rs.) 15,000 15,000 7,500 15,000 3,000 30,000 2,500 20,000 2,000 24,000 4,000 8,000 Total: 1,12,000/-

ADMINISTRATIVE Sl. Designation No. 01. 02. 03. 04. 05. 06. Factory Manager Asst. Manager Administrative Assistant Accountant cum cashier Store Keeper Security/Watchman

No.

Expected pay bill per month Add 20% perquisites II. Sl. No. 01. 02. RAW MATERIAL(PM) Item

Salary Total Salary (Rs.) 1 20,000 20,000 1 10,000 10,000 2 3,000 6,000 1 4,000 4,000 2 3,000 6,000 4 2,000 8,000 Total: 54,000/1,66,000/34,000/Total: 2,00,000/Rate Total (Rs.) (Rs.) 600 3,00,000 150 3,00,000

Qnty.

Dye Ingredient Active(para 500 kgs. phynelin in diamine) Thickening Agent (Cetostyl alcohol/ 2000 kgs ceto microgol)

03. 04. 05. 06. 07.

Hydrogen Peroxide Surfactant (SLS or SLES) Stabiliser (Methyl Parabene) Perfume Packing materials / bottle

750 kgs 1000 kgs. 400 kgs. 70 kg. 2,50,000

250 110 250 1500 4.5

1,88,000 11,000 1,00,000 1,05,000 11,25,000 22,68,000

III)

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

IV)

Other expenses (PM): i) Repairs & maintenance ii) Other Consumable Stores iii) Insurance iv) Travelling Expenses v) Telephone/Fax/Telegram Exp. vi) Printing &Stationery vii) Advertising and publicity viii) Other expenses Total:

Rs. 5,000/Rs. 3,000/Rs. 3,000/Rs. 10,000/Rs. 5,000/Rs. 2,000/Rs. 10,000/Rs. 2,000/Rs. 40,000/-

V)TOTAL RECURRING EXPENSES PER MONTH: VI) WORKING CAPITAL REQUIREMENT (3 months recurring expenses) TOTAL CAPITAL INVESTMENT: i) Fixed Capital ii) Working Capital for 3 months Total:

Rs. 24,61,000/-

Rs. 73,83,317/-

VII)

43,00,000/73,83,000/1,16,83,000/-

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

Furniture and fix. @ 20% 60,000 Other Fixed Assets @ 10% 25,000 4. Interest on total investment @ 14%

3,75,000/16,36,000/3,15,43,000/-

IX)

EXPECTED SALES (PER ANNUM): 15,00,000 packs containing @ Rs.25/(100 ml of Dye & 100 ml of developer) Profitability = Sales - cost of production=

3,75,00,000/59,57,000/15.89% 50.99%

X) XI) XII) XIII)

PERCENTAGE OF PROFIT (ON NET SALES) Rate of Return Break Even Point: Total Fixed Cost (per annum) 1. Insurance 2. Depreciation 3. Interest 4. 40% of salary & wages 5. 40% of other contingent expenses Total:

Rs. 36,000/Rs. 3,75,000/Rs.16,36,000/Rs. 6,05,000/Rs. 3,07,000/Rs.29,59,000/33.19%

XIV)

Break- Even-Point(%) = Fixed Cost x 100 = Fixed Cost + Profit

LIST OF MACHINERY SUPPLIERS BALL MILLS 1. 2. 3. HSP Engineering Company, C-179/1, Bulandshahar Road, Site No.1. Ghaziabad (UP). New Lahore Welding & Engineering Works, B 75, Mayapuri Industrial Area, Phase-1, New Delhi 110 064. Mechamico Manufacturing Engineers, 15,Okhla Industrial Estate, Phase III, New Delhi 110 020.

BOTTLE FILLING, SEALING AND WASHING MACHINE 1. 2. 3. Amar Mechanical Engineers, 6, Industrial Area, N 17, Faridabad 1. Amar Enterprisers (India), F11, DSIDC Industrial Complex, Rohtak Road, Nanglol, Delhi 110 041. Bottling Machinery Company of India, B-280, Okhla Industrial Area, Phase-1, New Delhi 110 020.

BOTTLE WASHING AND DRYING MACHINES 1. 2. 3. 4. Amstrong Smith Limited, 106, Armenian Street, Madras -1. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Kripson and Company (I), Ranade Road, Mumbai 400 028. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr Estate, Mumbai 400 001.

CAP SCREWING MACHINES 1. 2. 3. Amstrong Smith Limited, 106, Armenian Street, Madras 1. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

BOTTLE FILLING MACHINES 1. 2. 3. 4. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai 400 013. Kripson and Company (I), Ranade Road, Mumbai 400 028. Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

COLLAPSIBLE TUBE FILLING MACHINES 1. Larson and Toubro Limited, L & T House, N. Morarji Marg, Balladr Estate, Mumbai 400 001.

2.

Rank and Company, A-95/2A, Wazirpur Industrial Estate, Delhi 110 052.

EMULSIFIERS AND STIRRERS 1. 2. 3. 4. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Frederick Herbert, No. 10, 2nd Pasta Lane, Colaba, Mumbai 400 005. Gladwyn & Co., 251, Naoroji Road, Fort, Mumbai 400 001.

FILTER PRESSES 1. 2. 3. 4. Basp Industries, G.P. Industrial Area Complex, Thane. Dashmesh Industries (India), WZ-470, M.S. Block, Hari Nagar, New Delhi 110 064. H.S. Engineering Works, 16/17, Singh Sabha, Guruduara, New Delhi 110 015. R.P. Engineering Company, 7/8, Gali No.7, Anand Parbat, New Delhi 110 005.

GLASS BOTTLES CONTAINERS 1. 2. Sun India Printing,B-193, Okhla Industrial Area, Phase-1, New Delhi110 020. Universal Glasses, Plot No.17, Site No.IV, Industrial Area, Sahibabad, Ghaziabad.

GRINDING MACHINES 1. 2. 3. 4. Hindustan Metal Works, 17-B, Bhayandar Udyog Nagar, 9-Goddeo Road, Bhayandar, Thane. Yesco (India) Engineering Co., 21-A, Naraina Indl. Area, Phase-II, New Delhi 110 028. Water Well Engineers, 20/76, S. Bhagatsingh Road, Mumbai. Tirupati Industries, 8, Nand Deep Indl. Estate, Kondivitta Road, Mumbai

 400 059.

LABEL GUMMING AND APPLYING MACHINES 1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039.

MARKING AND PRINTING MACHINES 1. Modern Industries, Factory Plot No.98, Sector No.24, Faridabad 5. MIXER) AND OTHER CHEMICAL

MIXERS (PLANETARY MACHINERY 1. 2. 3.

Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Process Machinery and Equipments, 144, Ashutosh Mukerjee Road, Flat No.7, Kolkata 25. 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 Estate, Mumbai 400 001.

POWER FILLING MACHINES 1. 2. 3. 4. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1. Gladwyn & Company, 251, Naoroji Road, Fort, Mumbai 400 001. Frederick Herbert, No.10, 2nd Pasta Lane, Colaba, Mumbai 400 005.

PULVERISING MACHINES 1. 2. Batliboi Private Limited, Silver Jubilee Park Road, Bangalore 2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007.

3.

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

RIBBON BLENDERS 1. 2. 3. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400 007. Macneill and Barry Limited, 2, Fairlie Place, Kolkat 1. Crush Machinery Manufacturers, 3rd Floor, 361, Dr. D.N. Road, Fort, Mumbai 400 001.

SCIENTIFIC APPARATUS AND LAB EQUIPMENT 1. 2. 3. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder, Mumbai 400 039. Toshniwal Brothers Private Limited, 198, Jamshedji Tata Road, Mumbai 400 001. Valcun-Lavel Limited, Mustafa Building, 7-A, Sir P.M. Road, Mumbai 400 001. LIST OF MACHINERY SUPPLIERS AND PRODUCTION OF COSMETIC PRODUCTS 1. 2. Mamko Machine Fabricators Pvt. Ltd., 105, Heera Panna Indl. Estate, Goregaon (E), Mumbai 400 063. 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, Navi Mumbai 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.

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.