How to Start a Profitable Soap Making Business in India

Soap is an essential commodity in homes, hospitals and dormitories. The business is highly lucrative and competitive. You will compete with different brands in the market.

To start the business you need to learn the trade then purchase soap making equipment. You can start the business small scale and expand as it grows.
The amount of startup depends on the size and scope of the enterprise. The amount of money you make depends on the quality of the product, marketing, consumer interest.
You can do the business part time or full time from the comfort of your home. The major advantage is the huge Indian market and cost differentiation's. Here are a few ideas on how to start a soap Business.
Soap Making Business in India
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Starting a Soap Business in India
Types of Soap
The different types of soap are separated into soft or hard soap. The harden agent constitutes the composition of the soap. While natural soaps are usually softer than regular ones.
Common kitchen soaps are categorized as cleansers or detergents.  Cleansers constitute mild abrasives and formulated to remove solid oils. Detergents include two types of dishwashers.
Other types are antibacterial soaps for personal hygiene and cleaning soaps. More include novelty, perfumed, medicated and beauty. There are also miniature guest soaps, transparent and liquid soaps.
Different of Soaps
  • natural soaps
  • cleansers
  • detergents
  • dishwashers
  • antibacterial soaps
  • novelty
  • perfumed
  • medicated
  • beauty soaps
  • miniature guest soaps
  • transparent
  • liquid soaps
  •  
Location
The location of the business is very important. This is because there are environmental issues in soap production.
Make sure adequate provision is provided to avoid external contamination of the surrounding area. This includes proper care of drainage system, public lavatories and drains leading out of the factory.
The location should be close to source of raw material and easily accessible. You cannot establish a soap factory near residential areas.
The building should be properly ventilated with safety equipment installed. Provide proper sanitation facility including building maintenance.
The design should prevent external contaminants such as birds, rodent’s, pests, and insects. Proper provisions are necessary for liquid and solid waste disposal. You need to also provide safe storage, healthcare for staff.
Things to consider while choosing a Soap Factory Location
  • environmental issues
  • avoid external contamination
  • proper drainage system
  • public lavatories
  • close to source of raw material
  • easily accessible
  • establish away from residential areas
  • building properly ventilated
  • safety equipment installed
  • proper sanitation facility
  • building maintenance
  • proper liquid and solid waste disposal
  • provide safe storage
  • healthcare for staff
License Requirement for Hand Made Soap in India
We have earlier established that hand made soap is in high demand. They are used for washing, eliminating harmful bacteria and have a pleasant smell.
Legislation pertaining to manufacturing of soap is covered in the Drug and Cosmetic act of 1940 rules of 1945. The section involves cosmetic chemicals used for cleaning, beatification and rubbing.
Others are sprinkling, spraying or applying to human body. This effectively points to hand soaps as a good contender. You need a manufacturing license and the soap should have an approved number.
There are also safety protocols, insurance, tax requirements. To get a manufacturing license visit the state drug authority. Apply in person, fill form 31 and pay the respective fees.
Specify the classification and provide knowledge of basic chemistry. You are required to have appropriate education, diploma, bachelor’s degree or vocational training certification.
The application requires information on manufacturing facility, equipment and technical competence.
Soap Making Ingredients
Different types of ingredients can be used in the manufacturing process. The ingredients establish the color, aroma and foaming.
The ingredients are basically used as colorants, preservatives, oils fats and base elements. The common base element used in making home soap is lye and potash.
Lye helps harden the soap to your desired consistency. The acidic element used in soap manufacture is the oils and fats.
Common oils are jojoba, castor oil, peanut oil, coconut oil, avocado oil and olive oil. More include Shea-butter, palm oil, cotton seed oil and lard.
Skincare ingredients are honey, aloe vera, oatmeal, balsam and alfalfa meal. A natural preservative increases the shelf life of the soap.
Common preservatives are tocopherols, carrot root oil and grapefruit extract. Some manufacturers also introduce soap dyes.
Soap Making Equipment
First you need to customize your system and design. This will provide efficiency in the manufacturing process. There are some equipment’s you need to start your production line.
Equipment's are oil/wax mixing tanks, bomb presses, soap cutters and soap molds. Others include drying trays, rack, lye tanks and Shrink wrap system.
You need pumps, pot tippers, mixing pots, utensils, dispensers, weighing equipment. More are soap shaper, sampler, stirring equipment and soap stamps.
Soap Equipment
  • oil/wax mixing tanks
  • bomb presses
  • soap cutters
  • soap molds
  • drying trays
  • rack
  • lye tanks
  • shrink wrap system
  • pumps
  • pot tippers
  • mixing pots
  • utensils
  • dispensers
  • weighing equipment
  • soap shaper
  • sampler
  • stirring equipment
  • soap stamps
Hand Soap Manufacturing
Soap goes through different processes to become bar or detergents. The process is associated to the size, shape color, fragrance and foam content.
The manufacturer combines fats, oils and chemical in a predetermined formula. It involves blending, alteration, ornamentations and finishing.
The bar goes through cutting, branding, packaging, labeling. The label should contain indications of the ingredients, company name and address.
Soap Manufacturing Process
Marketing
The marketing requirements involve branding and promotions. Advertise your product in newspapers magazines and newsletters. Use billboards, signboards, flyers and business cards.
Employ sales representatives to work on commission per sale. Sell in bulk to shop owners, provision stores, supermarkets, soap retailers.
Build a website to showcase your products and add HD images, description, prices. Include factory location, email address, customer service lines. Create an ecommerce store to sell your product to customers. You can direct traffic to your website through social media advertisement and Adwords.


 


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