Name Roll # Class: Section: Submitted to:

SABAH AFZAL 77136 ADP A-1 MR.FAROOQ

Pre-Feasibility Study
HERBAL COSMETICS

INTRODUCTION
General Brief: The art of creating beauty products from natural ingredients reaches back at least to the Egyptian period, when women anointed themselves with perfumes made by steeping the essences of herbs and flower in oils such as sesame, safflower, almond, and olive - the same oils we use in the kitchen today. The ancient Greeks felt that in order to aid health and beauty, herbal cosmetics should gladden the senses. It was they who first perfected cold cream. The pleasure-seeking Romans took the art of the fragrant bath seriously, and spent much time soaking in luxurious flower-scented waters. In the middle ages, violet perfume was made just to cheer one up by simply smelling the fragrance, and chamomile was boiled with honey to clear up skin blemishes. In the 17th century the American housewife treasured her "still room", which had her special kitchen where she made the family's aromatic waters and household cosmetics, gathered from the herbs in her garden. Making your own natural cosmetics by gathering these historical plants for the same purposes is the continuation of a time-honored tradition.

Project Brief:

The proposed project has been designed as a small scale-processing unit. Herbal cosmetic Products- Increasing Marketability Being Socially Responsible is the buzz word these days. When majority are focusing on sophistication, indentifying themselves with brands they use rather than their names, very few are conscious about aligning their life style with nature and using products that keeps its contribution to environmental degradation to lower extent. Of these conscious citizens, how many of them who start to respect nature continue to do so? What could be reason for not to continue? Are they being made available to the consumers at affordable prices? What are the medium through which the herbal product manufacturers try to reach customers? How can reach consumers better thereby achieving their goals? Well try to analyze answers for these questions in this article I happened to visit one of the NGOs that manufacture herbal products with help of tribal women. Not to criticize any of the practices, I was actually taken aback when I heard the prices of the products. I agree that neither I never thought of using pure herbal cosmetics nor inquired any information about them so far. To my surprise, a single 75mg soap cake is priced at Rs100 and I also came to know that actual prices charged by other vendors reach as high as Rs300 per 75mg of soap. Not only the soaps, almost all the cosmetics, including shampoos, body wash, face creams etc. are charged at a premium. Investigating further the reason for charging so high when compared to the usual products, it was found that the raw material cost accounts for 40% of price, 30% of the price has been given as discount and another 20% for inventory and supply chain, leaving behind only 10% margin on each soap. Further discussion with the producers revealed that reason behind giving flat 30% discount to retailers is just to promote the product and increase the sales.
Opportunity Rationale The function of ayurvedic herbs is to purify skin & eliminate vitiated Doshas from the body as they are mainly responsible for skin disorders & other diseases.Several herbs have been mentioned in Ayurveda which can be used to obtain healthy skin & glowing complexion. In Pakistan, processing of herbal cosmetics products is a viable and profitable business opportunity that is yet to be fully exploited. Currently growers are not familiar with latest processing techniques that can add value to the products and bring lot of foreign exchange through exports. The introduction of agro food based common facility centers enables to minimize the post harvest losses. Introduction of such facility can increase the income of the growers and as well as exports from the country. Viable Economic Size Herbal products processing plant can be designed with a wide range of optimal processing capacity and product mix. However, it is suggested that the viable economic processing unit should have 500 kg 1000 kg of herbs processing capacity per hour. Project Cost The approximate cost of the proposed project is worked out to be Rs. 5,000,000.

Implementation Period One (1) Year

Processing:

Process & Products 1- Gentle Herbal Shampoo:

Herbal shampoos give strength, body and luster to hair, and makes it more manageable. Use Calendula blossoms for red heads, Lavender for brunettes, and Chamomile blossoms for blondes. 1/3 cup Calendula ,Chamomile or Lavender blossoms 8 oz. distilled Water 8 oz. Baby Shampoo Bring herb blossoms and water to a gentle boil in a stainless steel or enamel saucepan. Immediately turn off heat, cover to steep and let cool. Strain out blossoms, pour mixture into plastic container. Add Baby Shampoo and shake until mixed. Makes 16oz. mixture, 4 shampoos

2- Herbal Hair Rinse:

Herbal rinses stimulate the glands and tissues of the scalp, and encourage hair growth. Make the following rinse 15 minutes ahead of your shampoo, so it will be cool when you are ready for it. 1/3 cup Calendula, Lavender, Chamomile blossoms or Sage Leaves 2 cups distilled Water 1 T Cider Vinegar or 1 T Lemon Juice (if using Chamomile) Select the appropriate herb according to your hair color. Bring water to a boil in stainless steel or enamel saucepan. Add herbs, turn off heat, cover to steep and let cool. Strain herbs, pour mixture into glass jar or pitcher, add vinegar (blondes can use lemon juice). Pour rinse through hair several times, catching liquid in large bowl. Rinse with warm water. Makes 16oz. rinse

3- Herbal Skin Care:

A gentle, cleansing facial steam, an astringent herbal mask to stimulate the skin and tighten pores, a luxurious sweetly scented massage oil are all easily made in your kitchen from your own herbs. Sage is an excellent astringent. It cleanses, tightens pores, and restores the skin's natural acid balance. Here are some easy ones to use: Calendula is a healing herb, especially good for oily skin. Chamomile is a soothing herb which softens and whitens the skin. Lavender is a tonic herb and gentle cleanser, good for all types of complexions. We suggest using only the sweet lavenders (Lavendula angustifolia).

4- Facial Steam:
An herbal facial steam is the easiest and most accessible cosmetic treatment with the most immediate effect. The humidity and concentrated temperature of the steam purges impurities from the skin, then softens and prepares it for the immediate application of an herbal moisturizer. (Caution: Steam facials should not be used for those with very dry skin, or whose veins are close to the facial surface; nor asthmatics, or those with heart trouble.) 1 cup Sage, Calendula, Chamomile or Lavender blossoms 4 cups distilled Water Pin or tie back your hair, then wash your face thoroughly. Choosing one or a combination of herbs from the above list, measure 1 cup fresh herbs, or cup dried, and place them in a large ceramic bowl. Bring 4 cups of distilled water to the boil, then pour it over the herbs. Cover your head with a large towel to form a tent over the bowl. Holding your head about 12 inches over the bowl, allow the steam to surround your face for approx. 10 minutes, or as long as you feel comfortable. Your face and neck will be flushed and supple. Cool the face down by sponging it with tepid water, or an infusion of cool lavender or chamomile water. It is best to remain indoors for about an hour to let your skin adjust to its normal temperature.

5- Facial Masks:
A facial mask draws impurities to the surface and tightens the skin, while stimulating circulation. It nourishes and cleanses the skin, giving the face a restored, fresh appearance. After mask is removed, always wash face with warm water, followed by cool water to close the pores, then apply a thin layer of moisturizer. Cucumber & Sage Mask Cucumber (peeled & chopped) 2/3 cup Sage leaves 2 Egg Whites 1 t. Lemon Juice Pure all ingredients in blender, pour into glass jar. With fingertips, apply mask to face (avoiding lips and eyes), leave on for 10 minutes (maximum), then rinse with warm water. Makes 4oz. mask mixture

Chamomile & Oatmeal Mask 1 Cup distilled Water 2 T. Chamomile Blossoms 2 T. Instant Oatmeal Boil water in a small stainless steel saucepan, add chamomile, turn off heat, cover and let cool. Strain chamomile. Place oatmeal in ceramic bowl, add enough chamomile infusion to make a spreadable paste, using a blender if necessary. Apply mask to face (except eyes and lips), leave on for 20 minutes, and remove with warm water. Makes 2oz. mask mixture

6- Fragrance Gel:
1/8 oz. grated beeswax 1/2 tbsp non-petroleum jelly 3 to whatever drops of essential or fragrance oil is desired NOTE: If you wish to avoid the natural fragrance of beeswax, you can simply combine non- petroleum jelly and the essential oils by melting the jelly first and adding the essential oils when it has cooled slightly.

7-Creams: (procedure) Step-1: Melt waxes, fats, liquid lecithin, cocoa butter (if used), and honey (if used) in
the top of a double boiler over simmering water. Watch that the mixture gets only warm enough to melt the contents. Beeswax should be gratd for easiest melting. Make sure all is blended well and then remove from heat. Allow to cool about a minute. To this add the vitamin E if it is used. Make sure all is well combined. Step-2: In a mixer bowl or blender, add the water, glycerin and herb extract (if using), the tincture of Benzoin or grapefruit seed extract, and a few drops of essential oil if desired. Step-3: While blender or mixer is operating, slowly drizzle the warm melted oils and waxes into the water mixture. It will become thick. The longer you blend, the fluffier it will become. It will appear to be a little 'loose' at this point, but will continue to harden as it comes to room temperature. Pour into a suitable jar and allow to sit on the counter for 20 to 30 minutes, then cap and store in the refrigerator. Lightweight Face & Body Cream: 1/3 cup coconut oil 1/8 cup sweet almond oil 1/8 cup vegetable glycerin 2/3 cup rosewater (or sterile water) 1 tbsp liquid lecithin 1/4 oz. grated beeswax 9 drops tincture of benzoin

Follow directions as given in Procedure above. Shelf life is about one month.

Aloe Moisturizing Hand Cream

This cream is designed for work-worn hands in need of soothing repair
1/4 cup rosewater 12 drops herbal extract (if desired) 1 tbsp aloe gel 1/8 cup sweet almond oil 1/2 tbsp peanut oil 1 tsp cocoa butter 1/2 tbsp olive oil 1/4 tsp anhydrous lanolin 1/2 tbsp liquid lecithin 1/8 oz. grated beeswax 400 I.U. vitamin E 6 drops tincture of Benzoin

Melt waxes, oils, cocoa butter, lanolin and lecithin and allow to cool a bit as per procedure (above). Place aloe gel in blender and whip for a bit. Add rosewater to aloe and blend. Stir tincture of benzoin (or grapeseed extract, if desired) and vitamin E into the warm oils. With blender running, slowly drizzle the oils into the aloe-water mix. Put up into suitable containers and store in refrigerator. Shelf life is about one month. Hand Lotion
1/4 cup coconut oil 1/3 cup sweeet almond oil 3 oz. vegetable glycerine 1/2 tbsp liquid lecithin 1/8 oz grated beeswax 8 drops tincture of benzoin

Melt wax and oils in top of double boiler. Place glycerin in bottom of bowl or blender. Turn on machine and begin to drizzle the oil mix into the glycerin per procedure (above).

8-Non-Petroleum Jelly:
A softer or firmer gel can be made by changing the amount of beeswax used. Try the recipe as written, then decide if it suits or if you would like to change the next batch to a different consistency. For a softer gel, use 1 oz. of beeswax. For a firmer gel, use 1 oz. of beeswax. For a very soft gel - more like an ointment in consistency - use 1/2 oz of beeswax. Combine 1 oz. grated beeswax and 3/4 cup sweet almond oil (or olive oil) in the top of a double boiler. With water in the lower pan at a simmer, thoroughly melt ingredients together. Remove from heat and pour into suitable container(s). This recipe will fill two 3 to 4 oz. containers. This allows one jar to be used 'as is' and the other to be used as a base for products you wish to make.

9-Lip Gloss:
This is a good way to use up those colors of lipstick you aren't very fond of. It is also possible to create new colors by mixing small amounts of differing colors. Keep a record of what you use and how much in case it turns out to be a really good color. You can control the hardness of the product by using less or more beeswax according to preference. If it doesn't turn out quite right, simply toss the experiment back into the top of the double boiler and melt it down again, then add a little more of whatever you need. 1 Tbsp non-petroleum jelly lipstick the size of a small pea 1/2 tsp grated beeswax

10-Skin Herb Extract:

Thoroughly combine: 1/4 cup comfrey leaf or 1/8 cup comfrey root 1/4 cup chickweed 1/4 cup calendula petals 1/8 cup lavender 1/8 cup elderflower 1/8 cup rose petals, packed down

Weigh out 1/2 ounce of the above mixture and set aside. Store remaining herbs in an amber glass jar and label for future use. In a coffee mill or blender, grind the 1/2 oz of herbs to a powder. Using 100 proof vodka, combine 2 oz of the liquid with the powdered herbs in a wide-mouthed jar. Cover and allow to sit for two weeks in a warm spot out of direct light. Shake daily. At the end of the two weeks, strain through a coffee filter and put up in a 2-oz amber bottle. The shelf life is one to two years etc

MARKET
The Country The growth of the manufacturing sector has averaged more than 8% over the last 40 years. In manufacturing, cotton yarn & textiles is the leading sector, followed by food processing industries, largely based on indigenous raw materials. Agriculture is still the mainstay of the economy. The geographical location provides a large variety of agricultural crops used for both food and raw material for industries. Moreover herbal cosmetics are not genetically modified. In addition to the local market, the markets of Afghanistan and Central Asian Republics can be effectively catered from Pakistan. Pakistan is a member of both the Economic Co-operation Organization (ECO) and the South Asian Association for Regional Co-operation (SAARC), which further expands the potential of the target market enabling the establishment of economic size herbal products processing plants for industrial activity. In Pakistan, processing of herbal cosmetics products is a viable and profitable business opportunity that is yet to be fully exploited. Herbal cosmetics processing industry, in general, is showing signs of healthy growth with expanding product range and increased acceptability in the local market. Favorable natural environment, increasing population, rising demand for processed vegetables and fruits, and lower cost of the factor of production are some of the

factors that can contribute towards sustained high growth rate in this particular sector. Products, such as Gentle Herbal Shampoo, herbal hair rinse, herbal skin care, facial steam, facial mask, hand lotion, non-petroleum jelly, aloe moisturizing hand cream, lip gloss etc. have potential demand with local herbal products processors as well as the retail market. Rise of the cosmetic industry in the country is also having a significant impact on the demand for herbal products. It is expected that this trend will continue in the near future, and increase the consumption of processed herbal products significantly. Herbal cosmetic industry has become one of the world's major herbs based businesses. Potential Markets The markets for herbal cosmetic processed products are: Local Market: According to estimates about 95% of the processed products (Gentle Herbal Shampoo, herbal hair rinse, herbal skin care, facial steam, facial mask, hand lotion, non-petroleum jelly, aloe moisturizing hand cream, lip gloss etc) are sold in the local market. The proposed project has very wide market for processors Showbiz and retail sellers of herbal cosmetic products. Export Market: There is great potential of herbal cosmetic processed products in Middle East, Far East, UK, European Countries, USA and Malaysia Growth, Trends and Target Customers An annual growth of 5 to 10% is expected in the light of discussions and survey conducted. The target market of herbal cosmetic is as follows: 1. Parlours 2. Export market in Middle East, Malaysia and European Countries. 3. Working women 4. House wives On the basis of interviews with some of the representatives of the beauty salons following are the potential buyers of herbal cosmetics products. Al-e-Noora Deplex Vanity Hollywood beauty saloon Sola singhar Deep looks Shinning stars Whole sellers Retail Shops

Raw Material Requirements Packaging Requirements

Raw Material Prices We are the manufacturer of herbal product for facial, body and hair care product. We focus on using only natural herbal extracts for our products which proved to be very effective and cause no side effects. Business Type: Manufacturer Product/Service: Herbal Cosmetic&Hair and Skin Care Product, through personal interview and data is narrated as follows: Table: - Raw material pricesS Price of herbs: Calendula 935 Chammomile 1275 Aloe-vera 335.75 Green tea 1830

MACHINERY AND EQUIPMENT

Available Options of Machinery & Equipment
Machinery Fabricators: Both Local and imported plants can be selected for the project. Local fabricators use local and imported material and parts (available locally).But imported machinery is more reliable then local machinery in quality and results however local machinery or a mix of local and imported machinery can be selected for this plant. Cleaning: After the plants are harvested or gathered, they must be cleaned. Cleaning may involve screening, washing, peeling, or stripping leaves from stems. Any unnecessary parts are removed prior to drying to avoid wasting time and energy. Cleaning is often done by hand. Drying: In some cases, botanicals are used for extraction while fresh, but generally, they are dried first. The purpose of drying is to reduce the water content so that the plant can be stored. Most plants contain 60 to 80 percent moisture when harvested and must be dried to within 10 to 14 percent moisture before storage. Plants must be dried or processed as soon as possible after harvest because they begin to deteriorate immediately. Processing up to this point is generally done by the producer of the plants (Hornok, 1992). Plants can be dried naturally or by a number of artificial methods. The type of plant or plant part being used will determine the appropriate drying technique.

Natural Drying: A practice that has been used since ancient times is sun-drying in the field. Although this method requires no drying equipment and uses solar energy, it requires large amounts of space, and plants can be damaged by the weather. Sometimes plants are placed by hand on drying frames or stands, to be air-dried in barns or sheds. This method of drying is labor-intensive and can take several weeks. The exact length of time for adequate drying depends on temperature and humidity (Hornok, 1992).

Artificial Drying: With the use of artificial dryers, drying time can be reduced to hours or minutes, and labor can also be greatly reduced. Fans that blow unheated air (cold-air drying) can reduce drying time to several days. Warm-air drying, which is the most widely used method for medicinal plants, uses a counter-current flow of warm air. There are several different types of systems for warm-air drying. One type is the plate chamber dryer, which blows warm air across plates on which plants have been placed. This method is useful for fragile flowers and leaves but requires large amounts of labor. Workers must load and unload the plants from the plates manually. The capacity of these dryers is relatively low, as well. Conveyor dryers are a commonly used type of warm-air dryer. Fresh plants travel on a conveyor belt through a counter-current flow of warm air. These dryers can operate continuously, require relatively little labor, and have high throughput. However, they require a large capital investment and have high energy requirements. The drying time required for conveyor dryers ranges from 2.5 to 6 hours, and the temperature of the drying air ranges from 40 to 80C. Hot air dryers, which use very high temperatures (200 to 1,000C) for very short periods (2 to 5 minutes), are not commonly used for drying medicinal plants. Packaging of Dried Plants: Once drying is complete, plants are packaged in preparation for shipping and further processing. Dried herbaceous plants are generally compressed into bales weighing from 60 to 100 kg (13 to 220 pounds), which are then sewn into fabric bags or wrapped in plastic. Materials that cannot be baled, such as roots and bark, are placed in sacks. Smaller bags may be used for dense materials such as dried fruits or seeds. Very fragile materials, such as flowers, are packaged in crates. Dried plant materials tend to be hygroscopic (readily absorbing moisture) and must be stored under controlled humidity. Highly hygroscopic materials are generally packed in plastic. Cleaning and Sorting: When the sacks or bales arrive at the processing facility, processors open the packages and clean the dried plants to remove as many impurities as possible. Sand is removed pneumatically and iron-containing metals are removed magnetically. Next, processors sort the plant pieces by size, since different end-uses require different particle sizes. For example, finely shredded material may be used for tea bags and somewhat less finely shredded material for loose teas or infusions, while coarsely shredded material may be sold directly to consumers or used for extraction. Particles that are already the desired size can go directly into storage to await further processing. Particles that are too big undergo additional grinding, cutting or shredding, and sieving. Various methods are used to reduce particle size including hammer action, pressure, friction, impact cutting, and shredding (List and Schmidt, 1989). Some plant materials are packaged and sold at this point without any additional processing. Some proceed through an extraction process, which the following section describes. Extraction: Extraction is a process whereby the desired constituents of a plant are removed using a solvent. The following section describes several methods used for preparing extracts, including organic solvent extraction, supercritical gas extraction, and steam distillation.

Organic Solvent Extraction: Organic solvent extraction is one process for separating the desired substance from plant material. As was previously mentioned, dried plants are usually used for extraction, although fresh plants are sometimes used. The plants are first ground and then thoroughly mixed with a solvent such as hexane, benzene, or toluene inside a tank. The choice of solvent depends on several factors including the characteristics of the constituents being extracted, cost, and environmental issues. If the end product will contain trace amounts of residual solvent, a nontoxic solvent must be used. Once the solvent dissolves the desired substances of the plant, it is called "miscella." The miscella is then separated from the plant material (Hornok, 1992). There are a number of techniques for solvent extraction, which include maceration, percolation, and countercurrent extraction. The following is a brief description of each. Maceration: This method involves soaking and agitating the solvent and plant materials together. The solvent is then drained off. Remaining miscella is removed from the plant material through pressing or centrifuging. This method does not totally extract the active ingredients from the plant materials. Percolation: With this method, the plant material is moistened with solvent and allowed to swell before being placed in one of a series of percolation chambers. The material is repeatedly rinsed with solvent until all the active ingredient has been removed. Solvent is reused until it is saturated. New solvent is used on plant material that is almost completely exhausted, and then re-used on subsequently less exhausted batches. This method is more effective at removing active ingredients than the maceration technique. Countercurrent extraction: This is a highly effective process whereby solvent flows in the opposite direction to plant material. Unlike maceration and percolation, which are batch processes, this method is continuous. Screw extractors and carousel extractors are two types of equipment used for countercurrent extraction. Extraction with Supercritical Gases: This is a method for extracting active ingredients using gases. The plant material is placed in a vessel that is filled with a gas under controlled temperature and high pressure. The gas dissolves the active ingredients within the plant material, then passes into a separating chamber where both pressure and temperature are lower. The extract precipitates out and is removed through a valve at the bottom of the chamber. The gas is then reused. Gases suitable for supercritical extraction include carbon dioxide, nitrogen, methane, ethane, ethylene, nitrous oxide, sulfur dioxide, propane, propylene, ammonia, and sulfur hexafluoride. An advantage of supercritical extraction is that it can take place at low temperature, thus preserving the quality of temperature-sensitive components.

Cold Pressing: Cold pressing is a process used to extract essential oils from citrus plants through pressing. The enfleurage process is the same as the technique used to make perfume from flowers: purified fats are used to extract essential oils from plant parts. Plant material is spread onto sheets of purified fat, which dissolve the essential oils. Sometimes practitioners of herbal medicine prepare extracts for immediate use. These include aqueous extracts known as decoctions, infusions, or macerations. Plant material is mixed, agitated, and soaked in water to dissolve the active ingredients. Controlling microbial contamination can be difficult in aqueous extracts. Oily drug extracts, also called "medicinal oils," may be prepared by soaking or macerating the plant material in an oil such as almond, peanut, olive, poppy seed, apricot kernel, or peach kernel oil. Vinegar is sometimes used to extract active ingredients as well. Plant materials are soaked in acetic acid, and the vinegar is consumed as the final dosage.

Other Items
Other items of plant and machinery are as under: 1. Electrical motors, control cables and cables trays 2. Steel structure, stairs, walkways etc 3. Standby power generator of 150 KVA (used generator has been recommended)

LAND AND BUILDING REQUIREMENTS

Suitable Location for the Project On the basis of availability of herbs and close proximity to the market, the project can be set up in any of the following areas of the country.

Province Location
Punjab Central Punjab Sind Hyderabad Division NWFP Malakand Division & Dargai Balochistan Loralai Division However, on the basis of low price of herbs in Punjab. The other considerable factors while selecting the location of the project are: 1. Presence of soft water, 2. Availability of skilled labor. 3. Location of main processors to whom the products are to be sold. 4. Presence of beauty saloons. 5. Availability of retail market. 6. Easy access to roads. 7. Availability of utilities required for the project. Utilities Required 1. Electricity 2. Gas or Furnace Oil or Coal 3. Water 4. Telephone 5. Fax

PROJECT ECONOMICS Project Cost Description

Land 12,00,000 Building 8,00,000 Office Equipment 1,00,000 Plant & Machinery 15,00,000 Preliminary Expenses 2,00,000 Herbs 10,00,000 Packaging 200,000 Total Project Cost 5,000,000

STRATEGIC FACTORS Key Success Factors

1. Effective quality control in operations 2. Competitive price of end products 3. Abundant supply of raw material 4. Cost efficiency through better management 5. Media campaign for the awareness of the retail customers 6. Availability of low cost skilled labor

Threats
1. Crop failure 2. Influence of major local and foreign brands operating in the market 3. Change in the Government regulations 4. Shrinkage of retail customer market over a period of time.