SHAMPOO MANUFACURING UNIT - Invest in Assam

(a) Product Mix (based on various shampoo products proposed for manufacturing)(b) Demand : Supply Gap (in the North East Region)(c) Minimum Economic Plant Size- The economic size for manufacturing for NERregion is 200-Kg batch size (Based on the discussion with large shampoo manufacturersand various units involved in contract manufacturing).Rated Capacity of the key equipmentThe proposed plant will have a batch size of 200 kg in one shift and will operate on two-shiftbasis. With annual sales realisation of Rs. 2.6 crore, the manufacturing unit will be accountingfor about 15 to 16% of the total NER shampoo market (considering the retail value of theproducts as the unit will be involved in contract manufacturing) and about 45% of the demandsupplygap of NER shampoo market in year 2001-02.It is proposed that the unit would be involved in contract manufacturing for a larger shampoomanufacturing/ marketing company. It would primarily cater to the needs of the NER.There is an opportunity for about 2 to 3 shampoo manufacturing units of similar size in NER.Summing up:Batch Size: 200 Kg. on a single batch basis (two batches per day)Plant Capacity: 11.4 lakh bottles per annum (@ 100 ml per bottle)Capacity Utilisation: 50% (Year 1)Full Capacity Utilisation: Year 2RAW MATERIALS AND INPUTSRaw MaterialsRaw materials used in the process depend upon the type of shampoo manufactured. Typically, inany shampoo manufactured there are two types of raw materials used:- Active Ingredients (AIs) – These are the chemicals used in manufacturing theshampoo. Active ingredients used in the manufacturing process are different for differentvariants. Commonly used active ingredients include emulsifying/ suspending agents likeAmmonium/ Sodium Lauryl Sulfate, Zinc Pyrithione, etc.- Others- Other ingredients include Citric Acid, Sodium Hydroxide,Ammonium Chloride, Fragrances, Pigments, etc.WaterThe requirement of water for 200-kg batch shampoo-manufacturing unit is approximately 3,000litres per day.ELECTRICITYApproximate power requirement of a 200-kg batch shampoo-manufacturing unit is 40 kW,which can be availed from the nearest sub-station of respective State Electricity Board (SEB).MANUFACTURING PROCESSThe flow chart for the manufacturing process is as shown below in the Exhibit 2.The shampoo manufacturing process is a batch process. Initially, the raw material goes through aQuality Check (QC) and if approved various Active Ingredients (AIs) and other raw materials aredispensed for processing.Initially, active ingredients and other raw materials are taken into a vessel known as ‘MixingVessel’. In this vessel the raw materials are mixed with hot water. The water used for thisprocess should be De-mineralised and free from any kind of impurities. The mixing process iscarried out at a specific temperature (about 75 to 80 0 C).Subsequently, the solution is taken to another vessel (known as ‘Side Vessel’) and otheringredients like Fragrances, Pigments, etc. are added. The mixture is agitated for about 20-30