How to Start Herbal Hair Oil Making Business – Cost, Profit, Requirements | StartupYo


How to Start Herbal Hair Oil Making Business

Herbal Hair Oils come under the category of ‘Ayurvedic products’, and that itself makes a strong reason for many people to use these products. Ayurvedic products usually have a lot of confidence in the market and are preferred by many due to their fruitful effects. One of the major reasons for using Herbal Hair Oil is for people with hair problems and those who are health conscious. This makes a huge demand in the market and for businesses a wonderful opportunity to provide a quality product in return for profits.


 Herbal Hair Oil is a simple product that is made from the mixing of vegetable oil with slight perfumes. It usually has a constituent of various well-known and useful ingredients such as Amla, Bahera, Hartago, Chandan, Lawanga, Kewara, Jatamansi along with Pudina Satta Kapur, and Til oil. This alone explains how useful and effective the product can be on a user’s body.  
As we discussed earlier, due to the increasing awareness about health factors, Ayurvedic products such as Herbal Hair Oil have become a widely used personal care item for genders and even children. This is the reason why it has very great market potential. 
Another major factor to be noted here is that Herbal Hair Oil also has an international market, that is many countries are exporting this product for consumption. Herbal Hair Oil has international potential at, Australia, The United States of America, Japan, Singapore, etc.

License Required for Herbal Hair Oil Making Business

A. MSME Udyog Aadhar 
B. Firm Registration  
C. IEC Code 
D. State Licensing Authority 
E. Current Bank Account 
F. Trade Mark 
G. GST Registration 
H. Trade License

Investment required

The total investment that would be required for starting your Herbal Hair Oil Making Business in India is as follows. The major difference in the investment majorly depends on the type of industry you choose.

Small Scale 3 to 5 lakhs
Medium Scale 6 to 20 lakhs
 Expected Profits that can be Made.
  • An average amount of Profit that can be earned by individuals doing Herbal Hair Oil making business on a monthly basis would go around INR 20000 to 1 lakh per month. This would depend on the total number of markets that you could capture, as the demand for Herbal Hair Oils is already out there in the market.
  • Health- conscious people and increasing awareness make things easier for businesses dealing with Herbal Hair Oil and Ayurvedic products, and hence it can get you a huge number of profits if done correctly.
  • In a medium-sized Herbal Hair Oil Making business, you can even earn more than 2 lakhs per month.
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Target Consumers

Local shops: Local shops are your first and foremost targets, even if your business is on a small scale or a larger scale, you should always start with local shops 
 Retailers: Some Retailers focus on only a few lines of product, however, most of them focus on Herbal Hair Oils too, you can approach them. 
 Supermarkets: This is the source where you would have a greater demand. As supermarkets usually have greater demand for products and huge stocks, you can definitely approach them. 
Online Retail Stores: Many Online stores deal with a wide range of products, you can offer your Herbal Hair Oil and target them for business. 
 Distributors: This is another effective way of reaching more retailers and a good audience, you can approach Distributors to expand your reach. 
 Ayurvedic stores: Your best and valuable target would be Ayurvedic stores that would have customers who would only opt for Ayurvedic products. You can sell your product in huge stocks

Raw Materials required

 Just like any other business, you’d require some raw materials, that would act as a base for your product quality. The following are the various types of raw materials that are required for the Herbal Hair Oil Making business. 
 A. Coconut Oil 
B. Castor Oil 
C. Perfumes 
D. Colours 
E. Packaging Materials 
F. Herbal Hair Oils 
G. Filtering equipment

Equipment Required

 Along with raw materials, you would also require various equipment that would help you to process the Herbal Hair Oils further at each stage. The Equipment ranges from various start to end processes. 
A. Cap Sealing Machine 
B. Constant filing machine (Two-headed) 
C. Equipment related to filtering 
D. Mixing tank with stirrer 
E. Weighing scale 
F. Testing Equipment 
G. Miscellaneous equipment

 Manpower Required
  • It is not possible for a single person to handle all the processes of the Herbal Hair Oil Making Business by himself or herself. You would require manpower, and perhaps such people who have some knowledge or experience with the same.
  • The manpower required to set up a small scale-based Herbal Hair Oil making business would be around; 2 to 3 skilled workers.
  • The manpower required for a medium-scale Herbal Hair Oil making business would be; 5 to 8 workers at the most.
Profit Margin

 In Herbal Hair Oil Making Business, with efficient product quality and market price, you can expect to keep a profit margin between 20% to 30%.

Some Useful tips for starting your Business.

Stick with One product Line: When it comes to starting a business, many beginners go ahead and start manufacturing all the types of hair oils, all in one go. This can become very challenging for you and the workers, especially if you are handling your business on a medium or large-scale. It is always suggested to start with just one type of hair oil, capture your market, create good demand and then try to proceed with the other type of hair oil. 
 Location: If your business is on a medium or larger scale for Herbal Hair Oil, then your manufacturing unit or your factory should be situated at a location where you would have easy access to all the raw materials that you require and the basic elements such as electricity, water, etc. You would require an area of not more than 300 sq. ft.  
 Have a Marketing Plan: This goes without saying, but you need a marketing plan, the best way would be to create social media handles, and maintain some online presence.

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