Product: SHAVING CREAM

Product Code: (Based on NIC -2004): 24246

Product Code: (Based on ASICC -2000) :36325

Production Capacity:
300,000 Pcks @ 21/- 63,00,000

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
SHAVING CREAM

INTRODUCTION

This project profile envisages the production of Shaving Cream in a
small scale sector with a Production capacity of 1000 tubes containing 100
gms each. Shaving is an essential activity by the gents to maintain clean
face by removing beards regularly using razor. The skin needs to be soaked
well, softened for smooth shaving for which shaving cream is used. Shaving
cream should have the properties of soaking, Lather forming, Preservation
with a pleasant fragrance.

MARKET POTENTIAL

Complete Shaving or Beard shaving is treated as an indication of the
developed civilization. The demand of shave cream is seen everywhere in
the market very cheap to high cost products. Various branded products are
available in the market. The quantity, quality and price are major concerns
for the customers choice. Besides the individual customers, the saloons n
different locations use a huge amount of shaving reams. This product being
an essential commodity is having enormous demand in the country as well
as abroad. Thus it is felt that a unit manufacturing shaving cream will be
having an excellent potentiality.

BASIS AND PRESUMPTION

1. Working hours : Single shift of 8 hours, for 300 working days in a
year. The clicking machines and the injection moulding
plant will work for two shifts.

2. Capacity utilization: 60% during 1
st
year
75% in 2
nd
year
90% in 3
rd
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 tarrif : Rs. 4.50 per unit. Its variety features i.e. lather in
shaving is necessary for maintaining the personality which is being
observed from very ancient days. Early days soap was used
to soak and soften the skin for smooth shaving now.
Nowadays shaving has been more popular due to formation
and retaining throughout the shaving besides and softening.
IMPLEMRENAION SCHEDULE
1. Site selection, Registration, Market Survey,
Preparation of Business plan seeking Bank Finance. 2 months
2. Purchase of machine, installation and trial production 1 month
3. Working capital arrangement, market tie up 1 month
Trial Period required for commencing commercial
Production 4 months.

TECHNICAL ASPECT

Manufacturing process:
Formulation:
Stearic Acid 15%
Wax 0.4%
Coconut Fatty Acid 10%
Glycerin 5%
Caustic soda 0.5%
Sorbit Oil 10%
Emulsifying Agent 0.1%
Caustic Potash 0.5%
Sodium Silicate 0.3%
Lathering Agent (AOS)1%
Borax 0.5%
Water to make 100%

Phase 1: First of all the wax is melted at 70
0
C and all oil based chemicals
are added together and mixed well for one hour at the same temperature.

Phase 2: Glycerine, Sorbita oil and water at 70
0
C are mixed for an hour.

Phase 3: The Emulsifier group such as Caustic Potash, Caustic Soda,
Borax, Sodium Silicate are added together and mixed at 75
0
.

Phase 4: Add all those 3 mixtures together alongwith water and heat at 55
0

with continuous stirring for one hour. Then cool the stock at 40
0
and stir for
one hour. Add perfume and keep the stock overnight. Sometimes it is kept
upto 3 days. The tubes are filled, sealed and packed suitably.



QUALITY CONTROL AND STANDARDS

The quality of these products are maintined ask per the buyers
specification. Important quality controlling parameters are lather forming,
soaking effect and shelf life. The IS specification for shaving cream is IS:

PRODUCT CAPACITY : 3,00,000 tubes of 100 gm pack
Rs.60,00,000
MOTIVE POWER REQUIREMENT: About 10.00 hp

POLLUTION CONTROL: The shaving cream manufacturing unit does
not produce any toxic pollution. However it is recommended to the aprons
and gloves when handling the chemicals.

ENERGY CONSERVATION: The machineries suggested in this project
are advanced and highly captive ones and consumes minimum electricity.
However, regular preventive maintenance can help in minimum
consumption.
FINANCIAL ASPECT
I) LAND AND BUILDING: Built up floor area of 500 sq.ft. for Rs.5,000
on rent.
II) MACHINERY AND EQUIPMENTS
Sl.
No.
Name of the machinery Ind/
Imp.
Qnty. Price
(Rs.)
Amount
(Rs.)
01. S.S. Kattle 50 Kg. Cap. 3 20,000 60,000
02. S. S. Mfg. Tank with jacket 1 1,50,000 1,50,000
03. Tube filling machine hand
operated
1 30,000 30,000
04. Storage Tank 2 30,000 60,000
05. Tube Sealing Machine 1 25,000 25,000
Electrification and errection 20,000
TOTAL 3,40,000


III) OTHER FIXED ASSETS:
1. Tools and equipment 40,000
2. Working Table, Furniture and fixtures 20,000
3. Testing Equipments 20,000
4. Office Equipments 50,000
5. Stand by D.G. Set 50 KVA ______
1,30,000
________

IV) TOTAL PLANT & MACHINERY
AND OTHER FIXED ASSETS (II + III) 4,70,000
V) PRELIMINARY EXPENSES: 30,000
VI) TOTAL FIXED CAPITAL REQUIREMENT 5,00,000

WORKING CAPITAL REQUIREMENT

I. PERSONNEL
TECHNICAL
Sl.
No.
Title of the post No(s.) Salary/wage
Per month
(Rs.)
Pay Bill
1. Manager 1 10000 10000
2. Production supervisor cum
chemist
1 6000 6000
3. Skilled worker 2 3000 6000
4. Semi-Skilled worker 2 2500 5000
5. Un-Skilled worker 1 2000 2000
6. Accountant cum cashier 1 3000 3000
7. Store keeper 1 3000 3000
8. Watchman 1 2000 2000
TOTAL 37,000

Expected pay bill per month 37,000
Add 20% perquisites 7,000
44,000


II.RAW MATERIAL REQUIREMENT (including packing materials)
Sl.
No.
Particulars Ind/
Imp
Unit Qty. Price
(Rs.)
Amount
(Rs.)
1. Stearic Acid Ind. Kg. 375 Kg 50 18,750
2. Coconut Fatty Acid 250 Kg 90 22,500
3. Glycerin 125 KG 100 37,500
4. Methyl Paraben 12.5 Kg 400 125
5. Caustic Soda 12.5 Kg 20 250
6. Sodium Silicate 7.5 Kg 50 375
7. Bees Wax 10 Kg 150 1000
8. AOS 25 Kg 150 3,750
9. Packing Tube ( Non
collapsible print & tube
with lead)
25000
Kg
10 2,50,000
10. Cover Pack 25000
pcs
1 25,000
TOTAL 3,60,375
III. UTILITIES

1. Electricity 2000 units @ Rs.4.50 9,000

IV. OTHER EXPENSES
1. Rent 5,000
2. Repair & Maintenance 2,0003.
Other consumables 2,000
4. Insurance 1,000
5. Travelling expenses 3,000
6. Telephone, Fax & Postal Exp. 3,000
7. Printing & Stationery 1,000
8. Advertisement and Publicity 5,000
9. Other expenses 2,000
Total 24,000

V. TOTAL RECURRING EXPENSES PER MONTH 4,37,000

VI. WORKING CAPITAL REQUIREMENT :
3 Months recurring expenses 13,11,000


VII. TOTAL CAPITAL INVESTMENT:
Fixed capital 4,00,000
Working capital 13,11,000
TOTAL 17,11,000

PROFITABILITY

I. COST OF PRODUCTION:
1. Recurring expenditure 52,44,000
2. Depreciation:
- Machinery @ 10% 34,000 )
- Tools & equip. @ 25% 10,000 ) 62,000
- Furniture and fix. @ 20% 18,000 )

3. Interest on total capital Investment @ 14% 2,54,000
Total 55,60,000

II. EXPECTED SALES PER ANNUM:
300,000 Pcks @ 21/- 63,00,000

III. PROFIT: Net sales Cost of production = 7,40,000
IV. PERCENTAGE OFK PROFIT: (on net sales)= 11.75%
V. RATE OF RETURN: = 41%
VI. BREAK EVEN POINT:

Total fixed cost per annum:
1. Rent 60,000
2. Insurance 12,000
3. Depreciation 62,000
4. Interest 2,54,000
5. 40% of salary and wages 2,11,000
6. 40% of utility and other expenses
(excluding insurance) 1,20,000
7,29,000

Break Even Point(%) = Fixed Cost
--------------------- X 100 = 49.63%
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.

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.
2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai
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.
2. Kiv Group Industries, Sunmill Compound, Lower Parel, Mumbai
400 013.
3. Kripson and Company (I), Ranade Road, Mumbai 400 028.
4. 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. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder,
Mumbai 400 039.
2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400
007.
3. Frederick Herbert, No. 10, 2
nd
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-Goddeo
Road, 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
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.

MIXERS (PLANETARY MIXER) AND OTHER CHEMICAL
MACHINERY

1. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400
007.
2. Process Machinery and Equipments, 144, Ashutosh Mukerjee Road,
Flat No.7, Kolkata 25.
3. Frederick Herbert, No.10, 2
nd
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. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400
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, 2
nd
Pasta Lane, Colaba, Mumbai 400 005.

PULVERISING MACHINES

1. Batliboi Private Limited, Silver Jubilee Park Road, Bangalore 2.
2. Chemida (India), Maganlal Nagar, 347, Grant Road, Mumbai 400
007.
3. Mechanico, 15, Okhla Industrial Estate, New Delhi 110 020.




RIBBON BLENDERS

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

SCIENTIFIC APPARATUS AND LAB EQUIPMENT

1. J.T. Jagtiani, Ntional House, 6-Tulloch Road, Apollo Bunder,
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, Navi
Mumbai 400 703.
2. Chemhouse Marketing, 42, 1
st
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, 2
nd
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, 5
th
Floor, 506, Dahyog
Building, 58, Nehru Place, New Delhi 110 001.
21. Wesix Chemicals, Marshal Building, 3
rd
Floor, 20, Ballard Road,
Mumbai 400 038.