Shampoo Manufacturing Business Cost, Investment, Profit, Requirements | SkillsAndTech

Shampoo Manufacturing Business Cost, Investment, Profit, Requirements | SkillsAndTech

Shampoo Manufacturing Business..?? Why this business?? Would this business grow?? Would it lead to success?? Would this would that…. and there is a big list of such questions in your head. But have you ever tried to find the answers to these? Maybe finding their answers can give your incomplete and left over thoughts a direction towards the great vision. 

Let us begin to understand the Shampoo Manufacturing Business and all of its aspects in detail. This article covers all the details of- the raw materials used, different types of shampoo, the production process formulation, and the packaging process.

Not only will this article help you in exploring this business idea, but it will also give you great ideas to establish it successfully. 


Earlier to the emergence of shampoos, people usually used soaps to wash their hair. But, due to the definite disadvantages of being irritating to the eyes and not compatible with hard water, the soaps used to leave the hair dull. It is one of the biggest reasons behind the existence of shampoos.  


The shampoo is a well-recognized personal care product used for washing and cleaning the hair. Additionally, these days different types of shampoos are found in the market. Different types of shampoos come for infants, children, men and women. 

Establishing a Shampoo Manufacturing Business

The Shampoo Manufacturing Business can be set up by any individual with an average investment. In today’s time, shampoos are available with numerous solutions. Customized shampoos for different kinds of hairs are also made and sold in the market on larger scales. 

These shampoos are made while keeping the hair quality and hair type in mind. A few of such shampoos are listed below:- 

Shampoo for- 

  • Oily hair
  • Dry hair
  • Rough hair
  • Curly hair
  • For Split ends
  • Smoothing and straightening shampoos
  • Dandruff-free shampoo
  • Volumizing shampoos

Moreover, there are two variants present under one different segment of shampoo and, i.e.-

  • Herbal Shampoo 
  • Organic Shampoo

The ingredients of every shampoo are different and are chosen based upon the hair type and quality. In addition to this, the value-added shampoo segment is gaining major popularity as most of the companies are launching multiple variants of these shampoos. 

Analysis of the Shampoo

Based on the properties, physical appearance, and constituents, several forms of shampoos can be found. 

A few of them are mentioned below:- 

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  • Cream paste shampoos.
  • Liquid clear shampoos.
  • Baby shampoos.
  • Beer shampoos
  • Cream lotion or Liquid cream shampoos.
  • Liquid dry and dry shampoos.
  • Egg shampoos.

Is the Shampoo Manufacturing Business Profitable?

Additionally, shampoos can be segregated into three main categories, and these are as follows:- 

  • Cosmetic (Shine, Volume, and strength)
  • Herbal
  • Anti-dandruff

Though, with growing awareness and rising advertising activities, shampoo penetration is prone to multiply threefold in the future. The target market for selling the shampoo is mainly the middle-class, upper-middle-class, and upper class. Shampoo is a product whose craze has never faded from the market to date. It is particularly sold the most amongst the housewives and girls. 

One big reason behind the craze and never-ending love for shampoo is its availability in numerous fragrances and types suitable for all kinds of hair-quality.

The rapid change in the lifestyle of people is a reason behind using hygienic products for their well-being. Shampoo is one such product that is majorly seen in every household. 

The consumption of each wash of the shampoo sachet of Indians is higher as compared to most of the western countries. For instance, a sachet of 6 ml shampoo is used as 4 ml per person. This is mainly associated with the length of the hair. Hence, we can say that Shampoo Manufacturing Business can be a profit-earning business. 

Raw Materials Used and Shampoo Manufacturing Process

  • To prepare the liquid shampoo, stearic acids and Triethanolamine lauryl sulfate are heated at a temperature of 65° Celsius. The preservatives, along with water, are also heated at the same temperature. Both of these solutions are then mixed thoroughly and are kept to cool down.  
  • Once the solutions are cooled, you need to add perfumes to them. This will be your final step towards making the shampoo. 
  • Now, you can move the shampoo towards the packaging and bottling area. Here, you need to be sure about using a well-designed automatic filling machine. 
  • This step will bottle the shampoo.

Raw Materials

Usually, the raw materials used in shampoo manufacturing processing differ depending upon their specification. Here is a list comprising of basic raw materials used:- 

  • Oleic acid/Stearic acid.
  • Triethanolamine Lauryl Sulfate.
  • Ethyl Alcohol. 
  • Colour, perfumes & preservations.
  • Sulfonated castor oil.
  • Coconut oil.

These raw materials can be easily purchased either from the local retailers and wholesalers or directly from the manufacturers. Except for these raw materials, you will also have to buy the packaging consumables such as- shrink jackets, plastic bottles, outer corrugated boxes, and labels.

Since packaging plays a crucial role in protecting and maintaining the quality of cosmetics products, you must choose your packaging consumables attentively. Additionally, mention the name of your product, clearly stating the manufacturing address with it. In addition to this, describe the net contents of all the ingredients used in the manufacturing of the product.

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Also, provide the following details:- 

  • Ingredients
  • Manufacturing date
  • Expiry date
  • Batch number
  • The direction of use
  • Maximum Retail Price (MRP)

Shampoo Manufacturing Process

Once the shampoo formula is made, it is tested to ensure its quality. 

Primarily, stability testing is used to detect the physical changes in the shampoo. These changes are- the colour, the thickness, and the odour of the shampoo.

While performing the shampoo manufacturing process, its testing is being done in two steps:- 

  • The shampoo is made.
  • It is packed in the designated bottles.

Here is an infographic that represents the steps of the shampoo manufacturing business.

  • Compounding
  • Quality Control Check
  • Filling

Steps of Shampoo Manufacturing Process

Following are the steps used in the shampoo manufacturing processing:- 

  • COMPOUNDING– In this step, the manufacturing unit follows the formula to makes the batches that can be 3,000 gals. 
  • Quality Control Check– After the process of compounding, these ingredients are kept to cool down. Now, once these ingredients turn cool, they are added to the batch, and a sample is taken for the Quality Control Check. The sample of the shampoo is tested based on its odor, color, detergent, and other added preservatives.  
  • The raw materials are put in large drums and bags and sent to the compounding area with the help of forklift trucks. Then, these materials are poured into the batch tank and are mixed evenly.
  • FILLING– This is a process where the bottles are filled with shampoo. At first, the empty bottles are put in a hopper. Then these bottles are kept standing upright. The bottles are moved and are filled one-by-one with the shampoo. 
  • The amount of shampoo that is dispensed is uniform for all the bottles as they are of the same size. Once these bottles are filled, they get moved ahead, and twisted tight caps are put on the filled bottles. 
  • These bottles are then taken to the labeling area. Here the filled bottles are labeled. 
  • Then, in the final step, these bottles are moved to the boxing area and are put in large boxes. Typically, 12 bottles are kept in one box and are sent to the distributors with the help of large trucks.

Resources for Shampoo Manufacturing Process

Intending to set up a shampoo manufacturing unit, you need to ensure the recruitment of qualified technical staff.

Educational Qualifications

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  • Your shampoo manufacturing unit must be formed of people having a Diploma in Pharmacy approved by the Pharmacy Council of India under the Pharmacy Act, 1948.
  • Should have cleared the intermediate with having Chemistry as the primary subject.
  • Must have cleared any other examination equivalent to it, and it should be recognized by the Licensing Authority.

Cost of a Shampoo Manufacturing Plant

Based on several factors, the cost of a shampoo manufacturing plant differs. These factors are:- 

  • The scale of operation.
  • The features.
  • The production output. 

The cost of a shampoo manufacturing plant can range between ₹1 lakh per unit to ₹20 lakh per unit. This costing depends upon the type of plant you buy as well as on the quantity of your produce. 

Licenses and Registrations

To establish a business, attaining certain registrations and licenses is a compulsion. Different kinds of business demand different licenses and registrations. 

Shampoo is a cosmetic product, and to establish a shampoo manufacturing business, obtaining specific licenses is a must.

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product


state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 


The shampoo is a cosmetic product that has maintained its extensive demand since its existence. With the changing time and lifestyle of people, its demand has continued to increase rapidly. Seeing the rising demand for shampoos, it will be highly profitable to invest in the shampoo manufacturing business. Doing this business will surely assure you a great profit.

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