Cosmetic Manufacturing

Cosmetic Manufacturing

Palmist Healthcare Pvt. Ltd. is a cosmetic and personal care production company located in the business heart of India. A one-stop solution for all your private labeling needs with the aim to bring you exceptional quality cosmetics at the most affordable prices. With an extensive product range, we are pleased to provide you with hair care, skin care, face care, and bathing products. 

Our state-of-the-art manufacturing unit was developed with the aspiration of safe, effective, and reliable products. Our enthusiastic, competent, and effective teams run Palmist Healthcare Pvt. Ltd. in coordination in the most efficient way which is led by young and qualified founders. We are proud to announce accreditation by different national and international agencies and associations for our products, business management, and quality control. 

We have more than 30 product categories, more than 50 brands, and more than 500 products and increasing. In compliance with international standards, we deliver all over the world.

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 required, etc

The cosmetic and Beauty industry is one of the biggest industries with respect to sales and turnover. As the purchasing power of people is increasing, awareness about personal hygiene and beauty is also increasing.

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

What are 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 the cosmetic or new cosmetic;

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

• Under Ayurvedic Manufacturing License

• Under Cosmetic Manufacturing License

The procedure and requirements to start an Ayurvedic Manufacturing Company we have discussed in our article:

 

How to start an Ayurvedic Company?

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

• Essential Requirements:

• Area, Location, and Surroundings:

Drug and cosmetic acts discuss the location and surroundings that are required for the manufacturing of cosmetics. The factory should be situated in a sanitary place and clean place. Hygienic conditions should be maintained within premises and outside the premises. Premises should not be used as residences or be interconnected with residences.

Building:

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

• Minimum Area and Space:

The minimum area requirement is different for different types of cosmetic preparations. You can start cosmetics products manufacturing of single cosmetic preparation or more than one cosmetic preparation in a 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, brilliantine, shaving cream, hair oils, etc: A 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 an Industrial area. This section should have a flameproof exhaust system.

• For Lipsticks and Lip gloss etc: A 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 sections of eye preparations separately and the manufacturing area must maintain strict hygienic conditions
• For Aerosol (Deodorant/Cents etc): Minimum of 15 square meter area is required.
• For Alcoholic 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, toothpaste, and tooth powder black.

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

 

The area and space discussed above are for machinery installation and basic manufacturing processes. In addition to the area and space discussed above, there should be adequate space in the 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 a separate section or premises depending upon the type of preparation, you are manufacturing on-premises.

 

cosmetics products manufacturer

Technical Person

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

 

Cosmetic Manufacturing License Procedure:

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

 

You need to fulfill all requirements and documents and submit them to the state drug control office for a grant of license to manufacture cosmetic products. The application could be submitted online or offline depending on state policy regarding this.

 

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

 

You also need to take the 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

• Blueprint 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 a pharmacist or competent person, in case, if any of the partners or proprietors are not registered pharmacist under the respective state pharmacy council

• Affidavit of a registered pharmacist

• A list of cosmetics intend to be manufactured with formula

• List of machinery and laboratory equipment

• Site Master File

• NOC if any

 

After receipt of the application, the concerned authority physically inspects the premises and approves or rejects the application based on their inspection. In case of approval, concerned department issued a 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 the Drug Control office for discussing all particulars

• Finalize premises for manufacturing (according to norms and area discussed above) preferably in Industrial Area

• Company registration or incorporation of the 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 equipment

• Take NOC if required from other departments

• Prepare a file with a covering letter having complete detail of the firm or company

• Submit the file to licensing authority

• If accepted and approved, a license will be issued for the manufacturing of cosmetic preparations for which the 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 manufacture under your Cosmetic Manufacturing License?

Cosmetics products include mainly Dusting Powder, Baby Powder, Lipsticks, Eyeliner, Face powder, Toothpastes, Tooth powder, Hair oil, Hair Shampoo, 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 the type of cosmetic preparation you want to manufacture as well as according to the area, location and country. Exact investment estimation is difficult to find out. Here we will try to find out a way to calculate the investment required to set up a cosmetic manufacturing unit.

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

1. Fixed Capital Investment

2. Working Capital Investment

3. Inventory Investment

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

The 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 licenses, the drug authority asks for premises in industry-approved areas.

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.

 

Third-party Cosmetic manufacturers in India