Business Idea: Liquid handwash business can be the best option for small investors. By setting up with less money, you can earn good profit every month. Easy manufacturing, government subsidies and growing hygiene market make it a low-risk-high return project.
Handwash Manufacturing Business: Are you also fed up with the 9 to 5 job, now thinking of doing your own work? If yes then you can start liquid handwash business. This is a product which is used in every household. Due to the rapid growth of the hygiene products market, people are preferring handwash instead of soap, due to which its demand is very high. The most important thing about this business is that you can earn good profit every month. Let us know what is the process of starting this unit and how much it costs…
Market demand and growth of liquid handwash
The hand hygiene market is continuously growing in India. According to ‘India Hand Hygiene Market Outlook, 2021’, companies like Dettol, Lifebuoy, Godrej and Dabur hold 70% of the market. By the year 2022, the global surfactant market will reach 24 million tons and is growing at about 5.4% every year. Increasing hygiene awareness among people has opened up huge opportunities for small and local brands.
What is the process of making liquid handwash?
- You can make this product through cold blending process, that is, it does not require much machinery or technical knowledge.
- First of all, all the chemicals have to be mixed in the right proportion.
- The mixer is kept in the tank for 6 hours to settle.
- Add 60% DM water to it and mix.
- Now fill and pack in bottles.
Machines and cost required to make liquid handwash
Mixer Tank- 2 lakh rupees
Filling and Packaging Machine- 50 thousand rupees
Total cost- Rs 2.52 lakh (GST extra)
Raw Materials for Making Liquid Handwash
S.L.E.S.
glycerine
cocomide
perfume
Colour
NACL
DM Water
What things are required to start a liquid handwash unit?
Place- about 600 square feet
Monthly rent- Rs 12,000 (if on rent)
laborer- 3 to 4 people (1 skilled, 2 unskilled)
Power- 5 KW connection
Liquid Handwash Manufacturing Unit Project Cost
Machinery and Equipment- Rs 2.95 lakh
Furniture and other- 40 thousand rupees
Working Capital- 10 lakh rupees
Total cost- Rs 13.35 lakh
Liquid Handwash Project Financing
Bank Loan- Rs 3.02 lakh
Apna Capital- Rs 1.34 lakh
Working Capital- 9 lakh rupees
KVIC Margin Money Subsidy- 84 thousand rupees
Liquid Handwash Production Capacity
| Year | Capacity (Bottles) | Sales (in Rs lakh) | Profit (in Rs lakh) |
|---|---|---|---|
| first year | 6,00,000 | 132 | 2.28 |
| second year | 6,60,000 | 157.2 | 3.29 |
| third year | 7,20,000 | 178.75 | 3.47 |
| fourth year | 7,80,000 | 201.5 | 3.65 |
| fifth year | 8,40,000 | 225.45 | 4.36 |
Investment and Returns in Liquid Handwash Business
Liquid handwash units start at a low cost and deliver quick returns. Due to the consistent demand for the product and low production costs, an average 15–20% annual profit growth is possible. Payback period is 4 years 3 months.
Required licenses and registrations for liquid handwash units
GST registration
Cosmetic and Drug Control License
Pollution and Fire NOC
Trademark (for brand name)
Timeline to start liquid handwash business
Location and property final- 1 month
Machine installation- 1 month
Finance Arrangement- 1 month
Manpower Hiring- 1 month
total time- Unit completely ready in 2 to 3 months
Disclaimer: This article is for informational and educational purposes only. The information and details given here have been taken from kviconline.gov.in. Before doing business, do your own research and take advice from your financial advisor or concerned department before taking any investment decision.
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