How To Start A Home Based Hair Oil Business? | A - Z Guide


The hair oil production business has grown rapidly in the last half-decade. Buyers want branded and value-added products. Hence, hair oil manufacturers are thronging this industry. Consumers are becoming health-conscious and aware of product ingredients; the products should not contain any chemicals or traces of metal or animal by-products. This has made the companies invest in R & D to manufacture new natural and safe products.

People of all age groups, men, women, and children are beginning to use ayurvedic/herbal hair oil as it contains health-related benefits. Herbal products and ayurvedic products are in great demand nowadays. Hair oil is also recommended by doctors for patients having a dry scalp to use hair oil on regular basis.

This article is an A-Z guide on how to start a home-based hair oil business. Starting a hair oil business can be said to be lucrative as people in India are more inclined toward all things natural which are rooted in our culture.

Green 200ml Amla Hair Oil

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Once you have properly established your business, you can export it to other countries where there is a growing demand for other genuine herbal oil products. It cannot be predicted how much money you are going to make in this business.

Ayurvedic products are in high demand due to their benefits. The two main reasons why people are using herbal hair oil are hair problems and those who are conscious about their health.

Herbal hair oil is a simple product made by mixing vegetable oil with subtle perfumes., it contains many natural ingredients such as Chandan, amla, hartago, bahera, kewara, lawanga, pudinasattakapur, and til oil. That is why herbal hair oil can be very useful and effective on the body.

The herbal hair oil business has large market potential.

1. Documents required for starting a hair oil business

  • Firm Registration
  • MSME Udyog Aadhar
  • Trade Mark
  • IEC Code
  • GST Registration
  • Trade Linse

2. Machinery needed

  • A mixing tank along with a stirrer
  • A sealing machine
  • A filling machine
  • A bottle washer
  • A dryer press
  • Testing equipment

3. Profits

If you are running a herbal hair oil manufacturing business, you can earn between Rs 20000 and Rs 1 lakh per month. If this business is carried out properly, then it can give you a large profit.

4. Targeted customers

  • Local shops- first, you should target the local shops whether your business is small or large.
  • Retailers- you can approach the retailers who specialize in herbal hair oils.
  • Supermarkets- Supermarkets are a source of products and inventories with the highest demand.
  • Online retail stores- online retail stores sell different types of products. You can target them and sell your herbal hair oil at these online stores.
  • Distributors- To broaden your audience and reach more retailers, you can approach the distributors.
  • Ayurvedic stores- You can sell your products in large quantities in ayurvedic stores as here customers come to buy solely ayurvedic products.
  • Manpower- One cannot run a manufacturing business for hair oil single-handedly. The manpower needed to run a small-scale business for herbal hair would be 2 to 3 skilled workers, and 6 to 8 workers to run a medium-scale herbal hair oil manufacturing business.
  • Investment- Coming to the investment, you can start your home-based hair oil business as follows:

Small-scale- Rs 3 lakhs to 5 lakhs
Medium-scale- Rs 5 lakhs to 19 lakhs

  • Focus on a single product- It is advised to focus on only one type of hair oil and establish a strong market in this category. Later on, you can expand to another type of hair oil.
  • Location- The manufacturing unit should be located in areas where raw materials and other essential elements such as energy and water are easily available, and the minimum amount of space required is 300 square feet.
  • Marketing strategies- One should promote one’s product online via social media channels and offline too. Advertising should be done continuously.

Read More About: India’s Best Essential Oil Manufacturers & Suppliers

The Production Process of the Home-Based  Hair Oil Business

  • Combining
  • Filtering
  • examination/testing
  • Labeling and bottling
  • Protective packaging

Top Advantages of starting a Hair Oil Business

There are many advantages of starting a hair oil business. These are:

  • Products can be purchased at participating salons. They can also be directly purchased from clients through online sales or personal delivery.
  • A few successful influencers and stylists can endorse your products. In this way, you can establish a foundation for consistent sales. If they have a good reputation, most of your clients or colleagues will readily try your product.
  • You can market your products to specific audiences.
  • You can earn between 250 USD and 1300 USD per month on average by running a herbal hair oil manufacturing business. But this will depend on the total number of markets that you can cater to. People are also growing awareness of the health-related benefits of ayurvedic products. Thus, if you can invest in this business, it will result in profits in large numbers.

Top Disadvantages of starting a Hair Oil Business

  • Though the demand for organic products is on the rise, competition in the hair care industry has become very tough. There is limited shelf space and is dominated by large distributors.
  • The time is taken to conduct R & D, and testing takes quite a lot. So, if you do not have a good amount of investment, then you will probably have to keep working as a stylist while you try to get your products ready for the market.
  • Some customers will go away if you are quoting a high sales pitch.
  • You have to have a strong base of knowledge regarding hair care products and organic ingredients. You should know how different organic ingredients happen to get interacted with different skin and hair types.
  • Motivating a sales team can be sometimes difficult.
  • You should provide good incentives and pleasant working for your employees.
  • For hair products, you have to pay self-employment taxes, which can be quite high. You have to know how much time you are paying in taxes so that you can decide whether the business you are doing is profitable or not.
  • It is tedious to find the ideal niche market and target audience.
  • There are also overhead costs while selling a physical product when starting a herbal hair oil business.
  • You should plan your budget to meet these overhead costs.

Shikakai Hair Oil

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When starting a hair oil business, many newbies make the mistake of making different types of hair oil. This will not be easy for you and your employees if you are running a medium or large-scale business. It is advised to start initially with only one type of product and make a base for yourself by creating a good demand. Later on, you can venture into other types of hair oil.

The herbal hair oil such as banphool is one of the best ayurvedic hair oil. It contains extracts of amla, bahera, lawanga, hartago, kapur, kewara, chandan, jtamnasi, til oil, and pudina satta. Because it contains ayurvedic properties, banphool oil is popular and in great demand. The demand for the product outnumbers its supply. Therefore, it calls for many new units to be established in this industry to meet the huge demand for supply gap. So think no further. You can venture into the hair oil business

Hope this A-Z guide helped you in understanding the whole process of the home-based hair oil business and the vast opportunities in it.

FAQs: Hair Oil

Q. Is hair oil a profitable business?

Ans. Yes, the hair oil business is profitable because you can earn around Rs 20,000 to Rs 1 lakh on average per month. You can also earn more than 2 lakhs in a medium-sized business per month.

Q. Can hair oil be sold without a license?

Ans. Hair oil needs a license to manufacture and market in India under the Drug and Cosmetics Act, 1940.

Q. What are the permits and licenses needed to manufacture hair oil?

Ans. To manufacture, you need a license under the Drug and Cosmetic Act. If you wish to sell in an Ayurvedic Medicine, then you need to get a license from the Ayush Department.

Q. What are the steps to be followed to start a home-based hair oil business?

Ans. The following steps are to be followed to start a home-based herbal hair oil business:

  • Do market research
  • Know how herbal hair oil is manufactured
  • Make a business plan
  • Train yourself
  • Get the licenses
  • Arrange capital
  • Select factory location
  • Hire workforce

Q. Can you suggest good ayurvedic hair oil for hair growth?

Ans. There are many products available in the market for ayurvedic hair oil for hair growth. One such product is Kama Ayurveda.

Q. Which is the best ayurvedic oil for hair fall?

Ans. You can opt for Blue Nectar which is an effective ayurvedic oil for hair fall.

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