How to Start Herbal Hair Oil Manufacturing Business

Herbal hair oil manufacturing is a very relevant business idea in the present circumstances when people are very much aware of their appearance and personality as well. From eight to eighty, everybody needs hair oil to keep their hair healthy and manageable but herbal hair oil has a great significance to nourish our hair and treat many hair related issues like hair fall, hair growth, and dandruff, hair graying and much other. In fact, it contains variety of herbal ingredients like Amla, Bahera and Harar dry fruits, Brahmi plants, Aleovera juice, Mehendi leaves, lemon oil, almond oil, olive oil etc. Either single or along with the two or more ingredients are mixed with base oils like coconut, sesame or castor oils to produce different types of herbal hair oils.

Thus, along with shampoos and conditioners, herbal hair oil is quite a mandatory item for hair care in every household, be it in rural or urban areas. This gives a great boost to the herbal hair oil manufacturing business idea. So, for people who are looking to start a small scale manufacturing business, then herbal oil making is an attractive idea to choose from.

Why Choose Herbal Oil Manufacturing Business Idea

Before starting herbal hair oil manufacturing business, it is very important to do a thorough research about the demand of the product, total market share and positively about the competitors who are already in the market. Every business has its own pros and cons, which you need to find out in prior. This will help you to reap the benefits of the business and take necessary steps to tackle the cons. Let’s find out the different pros and cons of the herbal oil manufacturing business idea: –

Must Read: Perfume Making Business Idea

Pros: –

Market Potentiality:

India has a population of over 120 crores and mostly all the families use hair oil on daily basis. So, just imagine the market demand of hair oils in India. The advertisements coming in TV channels and other media also feed the fuel in this matter. At the same time it is also true that people are spending more to buy personal care and luxurious commodities. Additionally, women are the base customers of the herbal hair oil as they usually have long hairs; the required amount of oils is also big. This gives a great opportunity for the herbal oil manufacturing business to flourish.


You will not need expertise in any specific area to start this business. As almost all the production work will either be done by the machine or labors. You just need to invest your capital and use your bright ideas to grow the business.

Small Scale:

You will not require a huge capital to start the business. Being a small scale manufacturing business idea, a maximum investment of around 5 lacs will suffice the need. Over that with the help of new government policies, you can get easy loans from banks by submitting a well-crafted business plan and that is also without any collateral deposit.

Cons: –


There are many companies which are already into the business of herbal hair oil in India. They have their own established brand name in the market. So being a new entrant in the market, it will be a tough condition to survive with the existing competition. You need to have a solid backup plan to cope up with the same.


As it is a consumable item, you always need to ensure a high level of quality of the product. There are set standards for the quality of hair oils which are as per BIS specifications vide IS 7123-1984. This is the standard that you need to maintain in each and every unit.

So, these are the few pros and cons of the herbal hair oil manufacturing business. There are many more which you need to find out in your research-work.

Manufacturing Process of Herbal Hair Oil

Herbal hair oils are either manufactured with one single composition or mixing two, three or more  other different components together along with natural color and essence. Coconut oil, castor oil, sesame oils are the basic raw materials required for the same. First, different herbs are boiled with 6-8 times of water in a S.S vessel to get their liquid extract. Then different base oils are rigorously mixed with it in a mixing tank and boiled under control temperature. The boiling procedure is continued until all the water gets evaporated in the stove.  Finally, the oil is cooled and filtered through filter press. After that perfumes and colors are added in the appropriate ratio. The ratio of added perfume and oil is 2:30. Again the content is mixed thoroughly with continuous stirring for about 30 minutes. Then after filtration, the product is packed into bottles and sealed.

Required Machinery for the Process

A mixing tank along with a stirrer, a filling machine, sealing machine, bottle washer and dryer filter press along with testing equipment are the basic required machinery for the same. Glass bottle containers are also required for pouring the oil.

Steps to Start the Herbal Hair Oil Manufacturing Business

As you are now having a bit of idea regarding the herbal hair oil manufacturing process and about the prospect of the business, let’s discusses the different required steps to begin the same.

Step 1 Business Plan:

A business plan firstly helps you to get financial assistance from banks and it is also necessary to prepare as it will contain your planning and steps to run and grow the business.

Step 2 Capital:

As mentioned earlier, you will need a minimum capital of 5 lacs to commence the business. You can get assistance from the bank, but you also need to have your own cash arrangement for the free flow of the production.

Step 3 Location:

Urban area will be an ideal location to set up the unit as you will get a huge market here in compare to rural sides.

Step 4 Registration:

Contact your local Municipal Corporation to get the detailed information about the process of registration.

Step 5 Promotion:

To compete with the existing brands in the market, you need to do extensive promotion of your business. Take all kind of necessary steps like digital marketing or traditional marketing ways to promote your product. The promotion should be a continuous process even when the business reaches to a good customer base.

If you can deliver a high-quality product at a reasonable price, then it is definite that with such a high market potentiality you can taste the success with the herbal hair oil manufacturing business.

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How to Start Herbal Hair Oil Manufacturing Business
Article Name
How to Start Herbal Hair Oil Manufacturing Business
Planning to start herbal hair oil manufacturing business? Here is a checklist for starting and running a small scale hair oil making unit successfully.
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Home Business Ideas Center
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