Query: I am writing to you with great enthusiasm about our upcoming venture in the manufacturing and distribution of home-made herbal cosmetics in the local market. We are planning to start on a small scale and focus on serving our immediate community. I am reaching out to inquire about the necessary licenses and permits required for manufacturing in home and selling cosmetics in local area. Your guidance on this matter would be invaluable to us as we take our first steps into this endeavor... Response: For making any type of cosmetics in India, there is a requirement of manufacturing license. You can manufacture herbal cosmetics by taking either of following license i.e. ayush manufacturing license or cosmetic manufacturing license. check links to know more: How to Start Cosmetic Manufacturing Company? How to start Ayurvedic cosmetic Manufacturing Company
Ayurvedic manufacturing company is one of the most profitable businesses in current time. Increasing demand of ayurvedic and herbal products is creating new opportunities for existing Ayurvedic manufacturing Companies as well as for new ayurvedic start-ups.
Check out: How to start Ayurvedic Manufacturing Company?
In this article, we will cover up, how much investment you will require to start Ayurvedic manufacturing unit. Figures and estimates could change depend at locality and area where you are going to start your venture.
There are three types of investments required to start Ayurvedic Manufacturing Unit.
Fixed Capital Investment:
Fixed capital investment is investment required for fixed assets like land, building, office, machinery, equipments, furnishing etc.
Fixed capital investment depends at many factors like:
Fixed Assets includes:
Adding all these investments will produce fixed capital investment.
Working Capital investment:
Working Capital investment is required for liquid assets like salary, wages, paying bills, loan instalments, advertisement & promotion expenses etc. Working capital investment is required till a company/firm start to generate enough profit that is adequate for paying for all liquid assets.
Working capital investment depends at many factors like:
Liquid Assets includes:
Estimation of all expenses requires running an organisation will be helpful in calculating working capital.
Investment for Inventory:
This investment is related to working capital investment but we are putting it separate of its major importance for timely delivery of product/services. Inventory investment is required for stocking raw material for manufacturing (i.e. active ingredients, excipients etc), packaging material, bottles etc.
Read related: How to maintain stock register?
Inventory investment depends at factors like:
Check out: How to start Ayurvedic Manufacturing Company?
In this article, we will cover up, how much investment you will require to start Ayurvedic manufacturing unit. Figures and estimates could change depend at locality and area where you are going to start your venture.
There are three types of investments required to start Ayurvedic Manufacturing Unit.
- Fixed Capital Investment
- Working Capital Investment
- Investment for Inventory
Fixed Capital Investment:
Fixed capital investment is investment required for fixed assets like land, building, office, machinery, equipments, furnishing etc.
Fixed capital investment depends at many factors like:
- Area and Location where you want to set up plant
- Land Cost/Rent
- Building construction cost/Furnishing in rented premises
- Machinery and Equipment Cost
- Other miscellaneous factors
Fixed Assets includes:
- Land
- Building
- HVAC (Heating, Ventilation and Air Conditioning) System
- Air lock System
- Fitting and Furnishing
- Machinery
- Laboratory Equipments
- Electricity Supply fitting
- Water Supply System
- Compressed Air Supply
- Licenses and documentation expenses
- Other requirements if any
Adding all these investments will produce fixed capital investment.
Working Capital investment:
Working Capital investment is required for liquid assets like salary, wages, paying bills, loan instalments, advertisement & promotion expenses etc. Working capital investment is required till a company/firm start to generate enough profit that is adequate for paying for all liquid assets.
Working capital investment depends at many factors like:
- Rent of office or factory premises
- Loan amount if any
- Minimum wages given at that area to workers
- Number of workers and staff
- Salary of technical and educated staff
- Marketing Budget
- Cost of electricity, water and other services
- Other miscellaneous factors
Liquid Assets includes:
- Skilled and Technical Staff/Employee Salary
- Non Skilled worker’s wages
- Office/Factory rent if any
- Maintenance expenses
- Bank loan EMI if any
- Marketing Budget
- Monthly Bills
- Other expenses if any
Estimation of all expenses requires running an organisation will be helpful in calculating working capital.
Investment for Inventory:
This investment is related to working capital investment but we are putting it separate of its major importance for timely delivery of product/services. Inventory investment is required for stocking raw material for manufacturing (i.e. active ingredients, excipients etc), packaging material, bottles etc.
Read related: How to maintain stock register?
Inventory investment depends at factors like:
- Number of products you want to manufacture
- Minimum quantity that could be purchased for each item required
- Cost of each product
- Other miscellaneous factors
For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com
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