1. Product Description: hair oil is an essential item for every day use.

It is used almost
daily especially by women to give the hair luster, good appearance and moisture. Like all other
cosmetics products, the use of hair oil increases as more and more women starts using the
product. Growing urbanization boosts the consumption of hair oil.
2. Market Potential: The main consumers of hair oil are women who live in urban areas.
About 1.1 million women live in the urban centers of the Amhara Region of whom about
968,000 are above the age of four. At the minimum one urban woman consumes about 0.3 kg
of hair oil per year. Consumption of hair oil by urban women (above age 4) in the Amhara
Region is about 290000 kgs per year. Currently the hair oil need of the Region is met by
imports both from Addis Ababa and abroad. But the consumption volume of hair oil by the
urban women of the Region alone can justify the establishment of small scale hair oil
formulation plants in the Region.

3. Source of Raw materials: The main raw materials for hair oil are coconut oil, castor oil,
perfume and color. For the first phase these raw materials will be imported, but at later stage,
castor oil will be produced locally.
4. Process and Technology: Hair oil is prepared by mixing perfumes and oils like coconut
and castor oil. First coconut oil and castor oil are blended or thoroughly mixed in a mixing
tank. Then perfumes and colors are added in an appropriate ratio. The most commonly used
perfumes are flower essence like lavender, rose and jasmine. The ratio of addition of perfume
and oil is 2:30. After adding perfumes and colors, the product is thoroughly mixed and
continuous stirring is done. Then it is filtered and packed in bottles. The bottles are sealed by
cap sealing machine. Main plant and machinery required include mixing tank with stirrer,
filling machine, sealing machine, bottle washing machine, bottle dryer, filter press, testing
equipments.

5. Estimated Investment: For a plant which can produce about 63,000 kgs of hair oil per
year, the estimated investment will be:o

Building/shade 150m2 at Birr 2000/m2 = Birr

Machinery .. = Birr

Working capital .. = Birr

300,000
100,000

Total = Birr

100,000
500,000

6. Benefits: Similar to other project ideas.

7. Location: Any urban center in the region but preferably with the largest population.