How to Start Lipstick Making Business in Small Scale

Lipstick is generally used by women to make their lips beautiful, attractive and decorated.  Lipstick has an important contribution in cosmetics because many colours of lipstick are bought by a woman to use. This is the reason that they are always sold in the market. (Lipstick Making Business) And today in the era of fashion, the demand for cosmetics has increased and all women are very interested in a cosmetic product.

This product is packaged in very small quantity at 3 to 5 grams, hence its cost is also low and it can be easily bought by women of every section of the society.  That is to say, lipstick is such a product that every section of society is economically product accessible to it. And also there are many companies that produce lipsticks and do business of crores and this business will never decrease in the coming years. so, if you want to start your own small business then you can start this Lipstick Manufacturing Business.

Market Scope for Lipstick-Making Business

Color  Lipstick has always been in great demand in the market.  But at present, due to urbanization and the improvement in the standard of living of the people, awareness about cosmetics has spread among the people.  These days it has been seen that especially the women living in the cities have started taking more care of their lips, eyes, hair, and teeth. This is the reason that Lipstick is used by women to make their lips attractive and beautiful.

Furthermore, companies promote cosmetics through television and newspapers. due to which the awareness of cosmetics among the common people increases and they also buy them from the market when needed. Further, If we consider the data provided by various reports, the growth rate of the lipstick business across the globe is in an upward direction. A report by NPD Group states that every year the beauty or cosmetic industry takes a growth rate of 8% or more, And the turnover of the same industry is always on an upward trend.

Investment for Lipstick Making Business

We can estimate the investment required for our small or large-scale lipstick manufacturing firm by reading about the raw materials, equipment, and staff requirements. However, we also need to consider the funds that will be spent on marketing, branding and factory settings. The total investment required to start your own lipstick-making business in India is, if you start on a Small scale then the invest 1 to 4 lakh rupees need, And if you start in a medium or large scale 5 to 30 lakh rupees need.

Land for Lipstick Making Business

You will require a total area of 500 to1000 Sq Mt, with a built-up area, to start this Lipstick manufacturing business. Additionally, You’ll also need a floor plan for certain processes like production, storage, and so on. And also, You must also offer utilities such as water, power, and skilled personnel. After that, a godown must be built, as well as some space needed for transport.

License & Registration for Business

The business of manufacturing lipstick comes under the category of cosmetics. As a result, before starting the manufacturing process, the business needs specific licencing. And Check your state’s legislation. Some of the basic requirements are listed below.

First of all, register your business with ROC. And Obtain Trade License from the local authority. And Apply for VAT And Trademark Registration. You must also apply for Udyog Aadhaar MSME online registration. Furthermore, obtaining BIS Certification, And get GST Registration, It is mandatory. Finally, under the 1940 Drugs and Cosmetics Act, you must obtain a licence.

Raw material Required for Lipstick Making

Like any other business, you will need certain raw materials, which will act as the basis for the quality of your product. Following are the different types of raw materials required for lipstick making business.

Bees Wax, Castor Oil, Isopropyl Myristate, Lanolin or Cocoa Butter, Pigments, Fragrance, and  Stearic Acid.

Required Machinery for Lipstick Making

You Need A variety of equipment, that will help you further process your lipstick products, especially if you plan to make different types of lipstick. This tool will be worth most of your money. The equipment ranges from various start-to-end processes. The list of machinery and equipment is as follows.

Mixing tank, heating machine, moulds, Fleming Machine, gaze machine, triple roller mill, jacketed vessel, Refrigerator, Weight Scale, Plastic container, aluminium tube and lipstick filling machine.

The Manufacturing Process

In the lipstick manufacturing process, the wax is first melted in a melting tank and the colour is dissolved in it. 

Then, using the Mixing Machine, ingredients such as castor oil and others are added to the machine and thoroughly mixed.

When all the ingredients are mixed well, then this mixture is poured into moulds. 

After that, it is cooled to solidify the mixture poured into the moulds so that the mixture becomes solid by evaporating the moisture from the mixture.

When the mixture solidifies to the size of the moulds, they are removed from the moulds and fitted into plastic or aluminium tubes.

After that, earning can be done by packing them and selling them in the market.

And on the basis of the type of Ingredients used to make lipstick, the price of lipstick is also decided.  This is the reason that some expensive lipsticks are always present in the market.

Marketing the Lipstick Business

Shop owners and retailers are typically the most important targets for this business. When you walk into a shopping mall, you’ll notice a range of businesses selling cosmetics and skincare items. The mall is an ideal location for selling your goods and form partnerships with the shopping mall’s in-house stores.

And With so many e-commerce websites and retail outlets to choose from, you can always create an account and have your products shown in all of them. Such online retail stores sell a lot of cosmetics and skincare goods, so you should absolutely try it. Also, create effective television commercials.

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