How to Start A Cosmetic Manufacturing Unit?

This article covers Complete Detail About Cosmetics, essential requirements, licenses required, space required, technical persons, step by step procedure, marketing types, investment, and machinery & equipment’s required etc

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:

• Company Registration (If required)
• Cosmetic Manufacturing License
• Factory Act Registration
• Goods and Service Tax Identification Number

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?

• Third party manufacturing
• Contract Manufacturing
• Loan license manufacturing
• Own marketing and Distribution Channel

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?

Approximate cosmetic manufacturing plant cost in India is as below:
Land + Building (If owned) – 80 lakh rupees. If rented then this cost could be prevented. We can add rent charges. For cosmetic manufacturing license, drug authority ask for premises at industry approved area.
HVAC – 8 lakh, machinery – 20 to 40 lakh, compressed air supply – 5 lakh, licenses and formalities – 2 to 5 lakh plus other expenses 5 lakh.

So, approximate cost for cosmetic manufacturing unit set-up will be 40 lakh rupees other than land and building.

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…