List of approved dyes, colors and pigments in Cosmetics and Soaps

Cosmetics and Soaps contains dyes, colours and pigments. For manufacturing of cosmetics and soaps, only approved colors could be used. Colors that are not approved by Bureau of Indian Standard and Schedule Q, can’t be used in manufacturing process of cosmetics and soaps.
Synthetic Organic Colours and Natural Organic Colours Used in the Cosmetics that are permitted for use shall not contain more than:
  • 2 parts per million of Arsenic calculated as Arsenic Trioxide.
  • 20 parts per million of lead calculated as lead.
  • 100 parts per million of Heavy Metals other than lead calculated as the total of the respective metals.
Guinea Green BChemical Name: Monosodium salt of 4-(N-ethyl-p-sulfobenzylamino)–diphenylmethylone-(1-(N-ethyl-N-p-sulfoniumbenzyl) 2,5-cyclohexadienimine).

Light Green SF YellowishChemical Name: Disodium salt of 4-[4-(N-ethyl-p-sulfobenzylamine)-phenyl)-4-sulphoniumphenyl) methylene]-2(-(N-ethyl-N-sulfobenzyl) 2,5-Cyclohexadienimine.

TartrazineChemical Name: Trisodium salt of 3-carboxy-5-hydroxy-1-p-sulfophenyl-4-p-sulfophenylazo-pyrazole.

Sunset yellow FCFChemical Name: Disodium salt of 1-p-sulfophenylazo-2- naphthol-6-sulfonic acid.

Ponceau 3RChemical Name: Disodium salts of a mixture of 1-alkyl- phenylazo-2-napthol 3, 6-disulfonic acids.

AmarnathChemical Name: Trisodium salt of 1-(4-sulfo-1- napthylazo) 2-naphthol 3, 6-disulfonic acid.

ErythrosineChemical Name: Disodium salt of 9-0-carboxyphenyl-6- hydroxy 2,4,5, 7-tetraiodo-3- isoxanthone.

Ponceau SXChemical Name: Disodium salt of 2-(5 sulfo-2, 4-xylyl- azo)-1-naphthol-4-sulfonic acid.

Brilliant Blue FCFChemical Name: Disodium salt of 4-(9-4-(N-ethyl-p-sulfobenzylamino)-phenyl)-2-sulfonium phenyl)- methylene)-(1-(N-ethyl-N-p-sulfobenzyl)- Δ 2, 5-cyclohexadienimine).

IndigocarmineChemical Name: Disodium salt of 5,5’-indigotindisulfonic acid.

Wool Violet 5 BN (Acid- violet 6B)Chemical Name: Monosodium salt of 4-(N-ethyl-p-sulfobenzylamino)-phenyl)-(4-(N-ethyl-p-(sulfonium-benzylamine)-phenyl) methylene)-(N, N-dimethyl-Δ 2,5-cyclohexadienimine)

Light Green SF YellowishChemical Name: Calcium salt of 4-(4-(N-ethyl-p-sulfobenzylamino)-phenyl) (4-sulfonium-phenyl)methylene), (1-(N-ethyl-N-p-sulfobenzyl)-Δ 2,5-cyclohexadienimine).

Alizarin Cyanine Green FChemical Name: Disodium salt of 1,4-bis (O-sulfo-p-toluino) anthraquinone

Quinazarine Green SSChemical Name: 1,4-bis-(p-Toluino)-anthraquinone

Fast Green FCFChemical Name: Disodium salt of 4-(4-(ethyl-p-sulfobenzylamino)-phenyl) (4-hydroxy-2 sulphoniumphenyl) methylene)-(1-N-ethyl-N-p-sulfobenzyl) Δ 2, 5, cyclohexadienimine).

Acid Fast GreenChemical Name: Monosodium salt of 4-(4-N-ethyl-p-sulfobenzylomino) phenyl)-(o-chlorophenyl)-methylene)- 1-(N-ethyl-N- p-sulfonium-benzyl- Δ 2,5, cyclohexadienimine).

Pyranine ConcentratedChemical Name: Trisodium salt of 10-hydroxy-,3,5,8-pyrene-trisulfonic acid.

Quinoline Yellow WSChemical Name: Disodium salt of disulfonic acid of 2-(2-Quinolyl)-1, 3-indandione.

Quinoline Yellow SSChemical Name; 2-(2-quinolyl)-1, 3 indandiene.

Poneceau 2 RChemical Name: Disodium salt of 1-xylylazo-2-naphthol-3, 6-disulfonic acid.

Lithol Rubin B.Monosodium salt of 4-(o-sulfo-p-tolylazo)3 hydroxy-2-naphthoic acid.

Lithol Rubin BCAChemical Name: Calcium salt of 4-(o-sulfo-p-tolylazo)-3-hydroxy-2-naphthoic acid

Lake Red D.Chemical Name: Monosodium salt of 1-0-carboxyphenylazo-2-naphthol.

Lake Red DBAChemical Name: Barium salt of 1-o-carboxyphenylazo-2-naphthol.

Lake Red DCAChemical Name: Calcium salt of 1-o-carboxyphenylazo-2-naphthol.

Toney RedChemical Name: I-p-phenylazophenylazo-2-naphthol.

Oil Red OS
Chemical Name: I-Xylylazoxylylazo-2-napththol

TetrabromofluoresceinChemical Name: 2,4,5,7-Tetrabromo-3, 6-flurandiol.

Eosin TSChemical Name: Disodium salt of 2,4,5,7-tetrabromo-9-0 carboxyphenyl-6-hyroxy-3-isoxanthone.

Eosin YSK
Chemical Name: Dipotassium salt of 2,4,5,7-tetrabromo-9-0 carboxyphenyl-6-hyroxy-3-isoxanthone

Tetrachlorofluorescein NA
Chemical Name: 2,4,5,7- tetrachloro-S, 6-Fluorandiol

Tetrachlorofluorescein K
Chemical Name: Disodium salt of 9-0-carboxyphenyl-2,4,5,7-tetrachloro-6-hydroxy-3-isoxanthone.

Tetrachloro Tetrabromofluorescein
Chemical Name: 2,4,5,7-Tetrabromo-12,13,14,15-tetrachloro-3, 6-fluorandiol.

Phloxine B
Chemical Name: Disodium salt of 2,4,5,7-tetrabromo-9 (3,4,5,6-tetra chloro-o-carboxyphenyl)-6-hydroxy-3-isoxanthone

Bluish Orange T.R.
Chemical Name: 1,4,5,8, 15-Pentabromo-2, 7-dicarboxy-3, 6-fluoran diol.

Helindone Pink CN.
Chemical Name: 5, 5-Dichloro-3, 3’ dimethyl-thioindigo

Deep Maroon (Fanchon Maroon)
Chemical Name: Calcium salt of 4-(I-sulfo-2-naphthylazo 3- hydroxy-2-naphthoic acid.

Toluidine Red
Chemical Name: 1-(o-Nitro-p-tolylazo)-2-naphthol.

Flaming Red
Chemical Name: I- (o-Chloro-p-nitrophenylazo)-2-naphthol

Deep Red (Maroon)
Chemical Name: 3-Hydroxy-N- (m-nitrophenyl)-4-(o-nitro-p-tolylazo)-2-naphthamide.

Alba Red
Chemical Name: o-(p,β,β-Dihydroxy-diethylamino)- phenylazo)-benzoic acid.

Orange G
Chemical Name: Disodium salt of 1-phenylazo-2-naphthol-6-8-disulfonic acid.

Orange II
Chemical Name: Monosodium salt of 1-p-sulfophenylazo-2-naphthol.

Dichlorofluorescein
Chemical Name: 4,5-Dichloro-3, 6-fluorandiol.

Dichlorofluorescein. NA
Chemical Name: Disodium salt of 9-o-carboxyphenyl-1-4,5- dichloro-6-hydroxy-3-isoxanthone

Diiodofluorescein
Chemical Name: 4,5 –Diiodo-3, 6-fluorandiol

Erythrosine Yellowish NA
Chemical Name: Disodium salt of 9-o-carboxyphenyl-6- hydroxy-4, 5-diiodo-3-isoxanthone.

Erythrosine Yellowish K
Chemical Name: Dipotassium salt of 9-o-carboxyphenyl-6-hydroxy-4, 5-diiodo-3-isoxanthone.

Erythrosine Yellowish NH
Chemical Name: Dipotassium salt of 9-o-carboxyphenyl-6-hydroxy-4, 5-diiodo-3-isoxanthone

Orange TR
Chemical Name: 4,5, 15-Tribromo 2, 7-dicarboxy-3, 6- fluorandiol.

Alizarin
Chemical Name: 1,2- Anthraquinonediol.

Dibromodiiodofluorescein
Chemical Name: 4 ,5- Dibromo-2, 7-diiodo-3, 6-fluorandiol.

Resorcin Brown
Chemical Name: Monosodium salt of 4-p-sulfophenylazo-2-2 4, xylylazo)-1, 3-resorcinol.

Alphazurine FG
Chemical Name: Diammonium salt of 4-(N-ethyl-p- sulfobenzyl amino)-phenyl)-(2-sulfoniumphenyl)-Methytlene)-(-(1 (N-ethyl-N-p-sulfobenzyl) Δ 2 ,5-cyclohexadienimine).

Allarin Astrol B

Chemical Name: Monosodium salt of 1-methylamino-4-(o-sulfo-p-toluino)-anthroquinone.

Indigo
Chemical Name: Indigotin.

Patent Blue NA
Chemical Name: Monosodium salt of 4-(4- (N-ethyl- benzyl-amino)-phenyl –(5-hydroxy-4-sulfo-2-sulfoniumphenyl-methylene)(N-ethyl-Benzyl- Δ 2, 5-cyclohexadienimine).

Patent Blue CA
Chemical Name: Calcium salt of 4-(4- (N-ethyl- benzyl-amino)-phenyl)-(5 hydroxy-4-sulfo-2-sulfoniumphenyl, methylene)- (N-ethyl-N-benzyl- Δ 2- 5-cyclohexadienimine).

Curbrantherene Blue
Chemical Name: 3, 3- Dichloroindanthrene.

Napthol Blue Black

Chemical Name: Disodium salt of 8-amino-7-p- nitrophenylazo 3-phenylazo-1-naphthol-3, 6-disulfonic acid

Alizurol purple SS
Chemical Name: I-hydroxy-4-p-toluino-anthraquinone

Acid Red 89

Acid Red 97

Acid Blue 1

Food Blue 3

Natural Orange

Solvent Blues 4

Solvent Yellow 18

Food Yellow 18

Solvent Red 1

Solvent Yellow 32

Fanchon Yellow
(Hansa Yellow G)
Chemical Name: (α) -(O-Nitro-p-tolylazo) accetoacetanilide

Part II – List of Colours permitted to be used in Soaps.
Phthalocyanine Blue
Chemical Name: (phthalocyninate (2–) copper.

Iragalite Red CVPB Paste or Pigment Orange 5Chemical Name: 1-(2,4-dinithro phenylazo)-2-Naphthalenol.

Citrus Red No.2.Chemical Name: 1-2(2,5-dimethoxy phenylazo) 2-naphthol.

Rhodamine B 500
Chemical Name: 3-ethochloride of 9-0 carboxy-ethenyl-6-diethylamino-3-ethylamine-3-isoxanthene.

Aqueous Green PasteChemical Name: Polychloro copper Phthalocyanine.

Pigment Yellow 3Chemical Name: 2-(4-Chloro-2-nitrophenyl)-azo-N-(-2-Chloro-phenyl)-3-Oxobutamide.

Irgalite Carmine F-P Powder or Pigments Red 5.Chemical Name: N-(5-Chloro-2, 4-dimethoxy-phenyl)-4-(CS-diathylamine) Sulfonyl-2-methoxyphenyl)azo-3-hydroxy-2-naphthalene carboxamide.

Monolite Red 4R HV Paste or Pigment Red 7
Chemical Name: N-(4-Chloro-2-methylphenyl-4-(-4-Chloro-2-methylphenyl) azo 3-hydroxy-2-naphthalenol Carboxamide.

Oil Red No.1 or Solvent Red 24 or Oil Red 3R.
Chemical Name: 4-0-Tolylazo-Toluidine azo 2-naphthalenol.]

Above list is best of author’s knowledge. But there is possibility of error and correctness in above list. You should first verify by your own for correctness of details before any commencement. 

How to Start A Cosmetic Manufacturing Unit?

Cosmetic and Beauty industry is one of the biggest industry in respect to sale and turnover. As purchasing power of people is increasing, awareness about personnel hygiene and beauty is also increasing.

We received lot of queries related to starting cosmetic product company at home. Number of persons wants to start homemade cosmetic products. Here we want to clear cosmetic products can’t be manufactured without any manufacturing license.

What is Cosmetics?

According to Drug and Cosmetic Act – “cosmetic” means any article intended to be rubbed, poured, sprinkled or sprayed on, or introduced into, or otherwise applied to, the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and includes any article intended for use as a component of cosmetic or new cosmetic;

Cosmetic Products are covered under Drug and Cosmetic Act & rules. A cosmetic preparation can be manufactured in two ways:

  1. Under Ayurvedic Manufacturing License
  2. Under Cosmetic Manufacturing License

About procedure and requirement to start Ayurvedic Manufacturing Company we have discussed in our article: How to start Ayurvedic Company?

In this article, we will discuss about manufacturing of cosmetic under Cosmetic Manufacturing License. Cosmetic manufacturing license is issued by State Drug Control Office in similar way as of Pharmaceutical Manufacturing License. Technical person and area required is different in case of cosmetics.

Essential Requirements:

Area, Location and Surroundings:

Drug and cosmetic act discuss about location and surroundings that is required for the manufacturing of cosmetics. The factory should be situated at sanitary place and clean place. Hygienic conditions should be maintained within premises and outside premises. Premises should be not be used as residence or be interconnected with residence.
Building:

Building should be so constructed to facilitate easy production environment under hygienic conditions. It should have adequate space for machinery installation and smooth manufacturing process.

Minimum Area and Space:

Minimum area requirement is different for different types of cosmetic preparations. You can start manufacturing of single cosmetic preparation or more than one cosmetic preparation in single manufacturing unit but section should be separate from each other.

For Powder Section: Minimum of 15 square meter area is required. Adequate Exhaust Fan availability should be present at premises.

For Cream, lotions, emulsions, paste, cleansing milk, shampoo, pomade, brillantine, shaving cream, hair oils etc: Minimum of 25 square meter area is required

For Nail Polishes and Nail Lacquers: Minimum of 15 square meters area is required and premises should be situated in Industrial area. This section should have flameproof exhaust system.

For Lipsticks and Lip gloss etc: Minimum of 15 square meter area is required

For Depilatories: Minimum of 10 square meters area is required

For preparations used for Eyes: Minimum of 10 square meters area is required for different section of eye preparations separately and manufacturing area must maintain strict hygienic conditions

For Aerosol (Deodorant/Cents etc): Minimum of 15 square meter area is required.

For Alcohalic Fragrance Solutions: Minimum of 15 square meters area is required

For Hair Dyes: Minimum of 15 square meters area is required

For Tooth Preparations (Tooth powder and paste): Minimum of 15 square meters is required separately for Tooth powder general, tooth paste and tooth powder black.

For Toilet Soaps: Minimum of 100 square meters area is required.

Area and space discussed above is for machinery installation and basic manufacturing process. In addition to area and space discussed above there should be adequate space in manufacturing unit for

  • Receiving and Storage of Raw Material and Packaging Material
  • Quality Control Section
  • Packaging Section
  • Finished goods
  • Rejected Material and Finished Goods Storage
  • Office etc

Each type of category mentioned above may require separate section or premises depend upon type of preparation, you are manufacturing in premises.

Technical Person

A competent person is required to handle all activities of manufacturing and quality control. Qualification for competent person for manufacturing is minimum of Diploma in Pharmacy with pharmacist registration under state pharmacy council. With D. Pharmacy qualified person, one more competent person is required for analytical work. He/she may be minimum of Bachelor in Science with Chemistry as one of the subject. If competent person is having qualification of B. Pharmacy along with pharmacist registration then he/she is eligible for performing both manufacturing and analytical work.

Licenses Required:

Cosmetic Manufacturing License Procedure:

Manufacturing License for Cosmetic Products is issued by State Drug Control Office generally situated at state capital. Before applying for manufacturing license, we will recommend you to visit state drug control office for getting whole information related to your proposed land and building approval, technical person required, documents to be submitted, machinery required etc.

You need to fulfill all requirements and documents and submit to state drug control office for grant of license to manufacture cosmetic products. Application could be submitted online or offline depend at state policy regarding this.

After receiving your application, drug control authority will inspect your premises for justifying the details furnished with application form. If all requirements are found to be satisfactory, a manufacturing license will be issued for manufacturing of cosmetic preparation for which you have granted manufacturing license.

You also need to take approval of each formula and preparation, you want to manufacture in your manufacturing unit.

Documents Required for Applying for Cosmetic Manufacturing License:

  • Application at Prescribed Form
  • Fees Slip/Challan
  • Blue print and layout of premises
  • Ownership proof or rent agreement in case of rented premises
  • Nature of Business i.e. Proprietorship, partnership or private limited etc along with affidavit accordingly
  • Detail of Technical or competent Staff
  • Qualification certificate of Pharmacist or competent person along with Registration certificate copy under state pharmacy council of concern state
  • Appointment or Joining letter of pharmacist or competent person, in case if any of partner or proprietor is not registered pharmacist under respective state pharmacy council
  • Affidavit of registered pharmacist
  • List of cosmetics intend to be manufactured with formula
  • List of machinery and laboratory equipments
  • Site Master File
  • NOC if any

After receipt of application, concern authority physically inspects the premises and approves or rejects the application on the basis of their inspection. In case of approval, concern department issued license at Form no. 32 for manufacture for sale and distribution of cosmetic products.

 

Step by Step Procedure for Setting -Up Cosmetic Manufacturing Unit:

  • Prepare a Business Plan
  • Choose a Cosmetic Company Name
  • Visit to Drug Control office for discussing about all particulars
  • Finalize a premises for manufacturing (according to norms and area discussed above) preferably in Industrial Area
  • Company registration or incorporation of firm
  • Furnishing and setting up premises as per requirement. Section wise partition of premises and set-up of manufacturing process flow chart as per Good Manufacturing Practice
  • Purchase of machinery and lab equipments
  • Take NOC if required from other departments
  • Prepare a file with covering letter having complete detail of firm or company
  • Submit file to licensing authority
  • If accepted and approved, a license will be issued for manufacturing of cosmetic preparations for which license is applied
  • Apply for GSTN

How can you sell your cosmetic Products?

What can you manufactured under your Cosmetic Manufacturing License?

 

Cosmetics products includes mainly Dusting Powder, Baby Powder, Lip sticks, Eye liner, Face powder, Tooth pastes, Tooth powder, Hair oil, Hair Samphoo, Hair Creams, Skin Creams, Shaving Creams and After shave lotions, Nail polishes, Hair Dyes/lotions/liquids, Liquid soaps, Baby Soaps, Shaving Soaps, Toilet Soap, Bindi, Kum-kum powder etc. But you require to take approval product wise to manufacture any product.

Investment required to Set-UP Cosmetic Manufacturing Plant:

A cosmetic manufacturing unit investment varies according to type of cosmetic preparation you want to manufacture as well as according to area, location and country. Exact investment estimation is difficult to find out. Here we will try to find out way to calculate investment required to set-up cosmetic manufacturing unit.

There are three type of investment required for setting-up unit.

  1. Fixed Capital Investment
  2. Working Capital Investment
  3. Inventory Investment

You can read in detail about investment at our article: How much investment required to set-up plant?

Equipment and Machinery Required:

Powders Section:

Cosmetic Powder preparations include face powder, cake make-up, compacts, face packs, masks and rouges etc.

Equipment and Machinery:

  • Powder mixer of suitable type provided with a dust collector.
  • Perfume and colour blender.
  • Sifter with sieves of suitable mesh size.
  • Ball mill or suitable grinder
  • Trays and scoops (stainless steel).
  • Filling and sealing equipment provided with dust extractor.
  • For compacts: – (i) a separate mixer, (ii) compact pressing machine.
  • Weighing and measuring devices
  • Storage tanks.

Creams, lotions, emulsions, pastes, cleansing milks, shampoos, pomade, brilliantine, shaving creams and hair-oils etc:

  • Mixing and storage tanks of suitable materials.
  • Heating kettle – steam, gas or electrically heated.
  • Suitable agitator.
  • Colloidal mill or homogeniser (wherever necessary).
  • Triple roller mill (wherever necessary).
  • Filling and sealing equipment.
  • Weighing and measuring devices.

 Nail Polishes and Nail lacquers:

Equipment and Machinery:

  • A suitable mixer.
  • Storage tanks.
  • Filling machine – hand operated or power driven.
  • Weighing and Measuring devices.

Special Requirements:

Premises:

  • The following are the special requirements related to Nail Polishes and Nail Lacquers: –
  • It shall be situated in an industrial area.
  • It shall be separate from other cosmetic-manufacturing areas by metal/brick partition up to ceiling.
  • Floors, walls, ceiling and doors shall be fireproof.
  • Smoking, cooking and dwelling shall not be permitted and no naked flame shall be brought in the premises.
  • All electrical wiring and connections shall be concealed and main electric switch shall be outside the manufacturing area.
  • All equipment, furniture and light fittings in the section shall be flameproof.
  • Fire extinguisher like foam and dry powder and sufficient number of buckets containing sand shall be provided.
  • All doors of the section shall open outwards.

Storage:

  • All explosive solvents and ingredients shall be stored in metal cupboards or in a separate enclosed area.

Manufacture:

  • Manufacture of lacquer shall not be undertaken unless the above conditions are complied with.
    Workers shall be asked to wear shoes with rubber soles in the section.

Other requirements:

  • No objection certificate from the local Fire Brigade Authorities shall be furnished.

Lipsticks and Lip-gloss etc:

  • Vertical mixer
  • Jacketted kettle – steam, gas or electrically heated
  • Mixing vessel (stainless steel)
  • Triple roller mill/Ball mill
  • Moulds with refrigeration facility
  • Weighing and measuring devices

Depilatories:

  • Mixing tanks
  • Mixer
  • Triple roller mill or homogeniser (where necessary).
  • Filling and sealing equipment.
  • Weighing and measuring devices.
  • Moulds (where necessary).

Preparations used for Eyes:

Such preparations shall be manufactured under strict hygienic conditions to ensure that these are safe for use.

Eyebrows, Eyelashes, Eyeliners etc:

  • Mixing tanks.
  • A suitable mixer.
  • Homogeniser (where necessary)
  • Filling and sealing equipment.
  • Weighing and measuring devices.

Kajal and Surma:

  • Base sterilizer.
  • Powder sterilizer (dry heat oven).
  • Stainless steel tanks.
  • A suitable Mixer.
  • Stainless steel sieves.
  • Filling and sealing arrangements.
  • Weighing and measuring devices.
  • Homogeniser (where necessary).
  • Pestle and Mortar (for Surma).

Special Requirements for Eye Preparations:

  • False ceiling shall be provided wherever required.
  • Manufacturing area shall be made fly proof. An airlock or an aircurtain shall be provided.
  • Base used for Kajal shall be sterilized by heating the base at 150 degree C for required time in a separate enclosed area.
  • The vegetable carbon black powder shall be sterilized in a drying oven at 120 degree C for required time.
  • All utensils used for manufacture shall be of stainless steel and shall be washed with detergent water, antiseptic liquid and again with distilled water.
  • Containers employed for ‘Kajal’ shall be cleaned properly with bactericidal solution and dried.
  • Workers shall put on clean overalls and use hand gloves wherever necessary.

Aerosol:

  • Air-compressor (wherever necessary).
  • Mixing tanks.
  • Suitable propellant filling and crimping equipments.
  • Liquid filling unit.
  • Leak testing equipment.
  • Fire extinguisher (wherever necessary)
  • Suitable filtration equipment.
  • Weighing and measuring devices.

Special Requirements

  • No objection certificate from the Local Fire Brigade Authorities shall be furnished.

Alcoholic Fragrance Solutions:

  • Mixing tanks with stirrer
  • Filtering equipment.
  • Filling and sealing equipment.
  • Weighing and measuring devices.

Hair Dyes:

  • Stainless steel tanks.
  • Filling Unit.
  • Weighing and measuring devices.
  • Masks, gloves and goggles.

Tooth powders and toothpastes etc:

Tooth-powder in General:

  • Weighing and measuring devices.
  • Dry mixer (powder blender).
  • Stainless steel sieves.
  • Powder filling and sealing equipments.

Toothpastes

  • Weighing and measuring devices.
  • Kettle – steam, gas or electrically heated (where necessary).
  • Planetary mixer with de-aerator system.
  • Stainless steel tanks.
  • Tube filling equipment.
  • Crimping machine.

Tooth-powder (Black)

  • Weighing and measuring devices.
  • Dry mixer powder blender.
  • Stainless steel sieves.
  • Powder filling arrangements.

Areas for manufacturing “Black” and “White” tooth powders should be separate.

Toilet Soaps:

  • Kettles/pans for saponification.
  • Boiler or any other suitable heating arrangement.
  • Suitable stirring arrangement.
  • Storage tanks or trays.
  • Amalgamator/chipping machine.
  • Triple roller mill.
  • Pressing, stamping and embossing machine.
  • Weighing and measuring devices.

Hope above information is useful to you…

You can mail us at pharmafranchiseehelp@gmail.com for any query and suggestion…

 

How Much Investment is Required to Start Pharmaceutical Company?

Most of person has issue of investment. 98 out of 100 person who think to start own business faces investment problem. Investment and money is most important prospect for starting any type of business. Here we are providing some basic calculations to calculate investment required to start pharmaceutical company.

Pharmaceutical Sector is one of the fastest growing sectors in world. As we have discussed in our Article: How to start Pharmaceutical Company? Pharmaceutical companies are of two types:

  • Pharmaceutical Marketing Company
  • Pharmaceutical Manufacturing Company

Investment required for both types of companies are also different. While preparing a Business Plan, investment is an important part of it. Pharmaceutical Marketing Company require less investment as compare to manufacturing company because manufacturing unit requires lot of machinery, a world class infrastructure, building and much more.

In this article we will try to calculate total investment required for starting marketing company and manufacturing company. Investment is of three types generally:

  • Fixed Capital Investment (One Time investment)
  • Working Capital Investment (Investment to run a company)
  • Inventory Investment (Stock, Raw Material, packaging material etc.)

Fixed Capital Investment:

We can say it also as One Time Investment. Fixed Capital Investment is the investment in fixed assets (like land, building, office, vehicle, machinery and equipment etc.). Fixed Capital Investment will be different for marketing company and manufacturing company.

Working(Operating) Capital Investment:

Working investment is liquid assets needed to run a company. Operative capital includes salary, wages, raw material cost, and marketing & promotional expenses etc. These are planned and unplanned investments (timely arise) require in daily basis to smoothly run an organization. Operating capital investment require till company start to earn adequate profit to handle its regular expense and wages.

Inventory Management:

Third type of Investment required for Stock and Product Availability (Inventory). Inventory investment depend at number of products you want to launch and manufacture in starting.

Investment Required for Pharmaceutical Manufacturing Company:

Pharmaceutical Manufacturing is a highly investment project. Major portion of investment will invest in purchasing a land, Building and infrastructure etc. This can be prevented if you start at rented premises and building. But location, area, plant and building infrastructure should meet with requirement of GMP certification (WHO: GMP and/or Schedule M).

Area required and machinery detail for starting manufacturing unit, you can read at our article:  Area and machineries required for each section in Pharmaceutical Manufacturing Unit.

If you have own land and building that Good, but that is also an investment. We will consider it as investment. If you don’t have, you have two options: Either you purchase or you take a building at rent. In case of rented premises, rent and/or deposited money will be calculated as investment.

It’s not easy to calculate actual investment as cost of land, plant, cost to build a building, rent, machinery and equipment, staff salary, worker wages are not same at all locations, area’s, states and countries. Cost of any particular thing, we will replace with any alphabets. By replacing that alphabet with cost of that thing in you locality, you can calculate actual investment required to start pharmaceutical manufacturing company.

Requirements for Starting Pharmaceutical Manufacturing Unit:

Fixed assets:

  • Land (L)
  • Building (B)
  • HVAC (Heating, Ventilation and Air Conditioning) System (H)
  • Air Lock System (A)
  • Fitting, Finishing and Furnishing (F)
  • Machineries and Lab Equipments (M)
  • Electricity Supply (E)
  • Water Supply (W)
  • Compressed Air Supply (C)
  • Investment for completing Licenses and formalities (I)
  • Other Requirements (R)

Liquid Assets:

  • Skilled and Technical Staff Wages (S)
  • Non Skilled Worker Wages (N)
  • Repair and maintenance (H)
  • Rent if applicable (T)
  • Bank Loan installments and related expenses (I)
  • Promotional and Marketing (P)
  • Other expenses (J)

Inventory Investment:

  • Raw Material and Packaging Material Stock (R)

You need to calculate fixed capital investment and operating capital investment separately. This will help to establish and run manufacturing company smoothly. Fixed capital investment can be calculated by adding fixed assets cost where as operating capital investment can be calculated by adding liquid assets.

Fixed Capital Investment = L+ B + H + A + F + M + E + W + C + I + R

Operative Capital Investment = S + N + H + T + I + P + J

Other than these, a manufacturing company also needs to market its own product in market. So it also requires investment needed for marketing and promotion as needed by marketing company. We can also include investment that will require for starting pharmaceutical marketing company in below portion.

Investment Required for Pharmaceutical Marketing Company:

Investment for Pharmaceutical Marketing Company is relatively low as compare to manufacturing company. In marketing company there is less infrastructure and capital required. For marketing company, less space, small office and fewer requirements are needed but marketing and promotional budget could be higher side.

A pharmaceutical manufacturing company has few addition marketing tools other than conventional marketing tools and advantage in marketing like third party manufacturing, contract manufacturing, loan licensing, greater reputation and institutional supply etc. That is not available for pharmaceutical marketing companies. Marketing has to reliable at conventional marketing solutions like ethical, generic, pcd, franchise etc only.

In marketing company, office and premises can be at rented basis if not owned. If owned premises, we will add it in fixed capital investment. Otherwise rent will be considered as operating capital investment.

Fixed Assets:

  • Office Building (B)
  • Office Furniture and Accessories (A)
  • Computer and Electronic Equipments (C)
  • Fitting and Furnishing (F)
  • Investment at licenses and documents (L)
  • Other Requirements (X)

Liquid Assets:

  • Office Staff Wages (O)
  • Rent if applicable (R)
  • Bank Loan installments and related expenses (I)
  • Promotional and Marketing (P)
  • Other expenses (J)

Inventory Investment:

  • Stock Investment (S)

Fixed Capital Investment= B + A + C + F + L + X

Operation Capital Investment+ O + R + I + P +  J

Marketing Strategy and promotional methods are almost same for marketing and manufacturing companies. So there marketing and promotional expenses are almost same.

Above we have discussed about investment required to start pharmaceutical company. In short discuss about factors that affect investment for starting pharmaceutical company.

Factors:

Land Cost:

Cost of land is different at different localities. Possibilities is there if some where you can find land at cheap cost and some where cost of land is high.

Building and Premises Furnishings:

Building construction as per GMP certification is very essential for setting up manufacturing unit. A good architect is needed for it. Also building material cost varies place to place. That makes different in investment to construct a building at different places.

HVAC, Air Lock System and other machineries & equipments:

Some countries and localities are dependent at import for high quality systems and machineries for setting-up a plant. Also prices vary according to the manufacturers and quality of machineries and equipments.

Licenses and Documentation process and Fees:

Some regions and countries have relaxed policies in respect for licenses and documents to start pharmaceutical company. In some regions, it’s a difficult task to get any type of license even after completing all formalities. Bribe and unethical money distribution also affect the investment required.

Rent:

In case, you are in rented premises and/or building, rent at that particular locality affect the investment. In prime location rent may be high, in non prime locality rent would be relaxed.

Staff and Workers wages:

Easy availability of skilled and technical staff, Non availability of skilled staff directly or indirectly affects operation investment. If available then investment will be lesser otherwise skilled staff recruitment from outside locality may increase operation investment.

Investment required for Stock and Product Availability (Inventory Investment):

Stock may be in both assets fixed and liquid depend at situations. Stock is moving thing and will be in rotation as per demand and supply. Stock investment will be covered under Inventory management but here we will also cover important aspects regarding stock because it is an important part of Operative Capital Investment.

We can divide stock investment in three parts.

  • Initial Investment
  • Second investment in second batch to prevent shortage of products
  • Emergency money

You could need double of your initial investment as reserve money for smooth flow of stock at initial stage. You have to invest in market, doctors and products. You have to invest at stock irrespective of marketing and/or manufacturing type. You also have to invest at market by providing credit to chemist and stockiest.

Monthly Expenses:

Monthly expenses like Rent of Premises, Electricity bill, office expenses and other miscellaneous expenses depend at location and area. Some expenses like accountant/CA fee, quarterly sale tax return etc also will be added in your expenses.

Promotional Inputs:

Design of logo, company profile, product card, reminder card, catch cover, writing pads, visuals etc. Designing charges may vary printer to printer but most of printers do designing free of cost if you are printing all material from them.

Hope this article is helpful for you to calculate investment required for starting pharmaceutical company.

You can also read here about- how much you have to invest in third party manufacturing of your products?

You must read : Investment at Packing material of Each Dosage form also to prepare your complete budget.

We are also mentioning few queries related to Investment here for more elaboration. Hope you will get some help for these queries:

Query 1: I am a Doctor working in a reputed medical college. My wife is a gynecologist and she is in private sector. We want to start a pharma business of our own. What we want is that to have product packaging from reputed company and sell at our company name. Please guide us in following points. .
1. Starting budget is 12 to 15 lacs. Is it adequate?
2. Do we have to form a company to do that?
3. Where do we get quality manufacturer because we don’t want to comprise quality.
Please advice.

Response 1: You want to start pharma business and sell products from your name and thinking about starting your own Pharma marketing company.

  1. Starting budget is 12 to 15 lac. Is it adequate?

Starting budget depend upon number and type of products you want to get manufactured. Few products are costlier and few are cheaper in rates. The molecules and/or salts you want in your product list will affect your budget. For example, you are starting with 26 products and products are A, B, C etc. Your budget is depend upon rates of A to Z products.

If your products are costlier like Cefixime, Cefpodoxime, Cefuroxime , levofloxacin, Azithromycin etc then chances are you have to invest big amount. If you start with vitamins, ferrous combinations, nimusulide, paracetamol, ofloxacin etc then budget will be less. Above molecules are example purpose only, costing of products can depend upon circumstances.

12 to 15 lakhs is sufficient amount if you invest it wisely. We have seen person to start their own marketing company with amount as less as 1 Lakh.

You can start your company from 1 product or you can start with above 100 products or as number you want. We will recommend to start with lesser number of products and add new products gradually.

  1. Do we have to form a company to do that?

To work with your company name, you have to start your own marketing company. Read Procedure by clicking following link: How to start your own pharma marketing company

  1. Where do we get quality manufacturer because we don’t want to comprise quality?

Searching for Quality manufacturer is difficult task but you can find good quality manufacturer easily. You are doctor and prescribe medicines. You better know which product is good in quality and efficacy. Products which you are prescribing will have manufacturer address. Even multinational companies like pfizer, lupin, cadila, sun pharma, unichem, cipla are also get manufactured their products at third party or loan license basis. See the address of manufacturer on strip or box, you trust the most. You can easily find quality manufacturer address. Search for that manufacturer at internet and will get contact number easily. Contact them and ask them to manufacture your products.

Query 2:Estimate Budget for Pharmaceutical Marketing Company!!!

Query 3:How much cost required to set-up pharma marketing company office?

Query 4:I want to start my own pharma company with multivitamin, iron and calcium. Please send me the budget.

Query 5:How much cost required to set-up pharma marketing company office?

Query 6:What will be budget for pharma company, please guide us !!!

Query 7:I want to start a pharma company with two products

Query 8:I want to start pharma marketing company. I want to know of budget of starting business

If you want to know about estimated budget for your new marketing pharma company read here…

You will also need to find out price to retailer/price to stockist read here…

Hope you have found it useful…..

For any query and suggestion mail us at pharmafranchiseehelp@gmail.com