A BUSINESS PLAN ON
“RICINUS POWDER”
SUBMITTED TO,
JSS SCIENCE AND TECHNOLOGY UNIVERSITY, MYSURU, INDIA
In partial fulfilment of the requirements for the award of Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY,
N ANANYA
01JST21PMB053
JSS Centre for Management Studies
Mysuru – 570 006
UNDER THE GUIDANCE OF,
Dr. KAVYASHREE M B
Assistant Professor
Department of MBA
JSS CMS
JSS Science and Technology University
Mysuru – 570 006
JSS MAHAVIDYAPEETHA
JSS CENTRE FOR MANAGEMENT STUDIES
JSS SCIENCE AND TECHNOLOGY UNIVERSITY
JSS Technical Institutions Campus, Mysuru 570006
JSS Science and Technology University
2022-23
DECLARATION
I, N ANANYA, a student of Master of Business Administration at JSS Centre for
Management Studies, JSS Science and Technology University, JSS Technical
Institution Campus, Mysuru, hereby declare that this Business plan entitled
“RICINUS POWDER” is a record of an original and independent work carried
out by me during the year 2021, in my IV semester of the course under the
guidance of Dr. KAVYASHREE M B, Assistant Professor at JSS Centre for
Management Studies, JSS Science and Technology University, JSS Technical
Institution Campus,
Mysuru,
submitted
to
JSS
SCIENCE
AND
TECHNOLOGY UNIVERSITY, MYSURU, in partial fulfilment of the
requirements for the award of Master of Business Administration.
I further declare that this business plan and report has not formed the basis for the
award of any other diploma or degree of any institution or university.
PLACE: MYSURU
NAME: N ANANYA
DATE:
USN: 01JST21PMB053
ACKNOWLEDGEMENT
Any presentation completed successfully gives a great sense of achievement and
satisfaction. The Entrepreneurship development program would remain
incomplete if the people who made it possible and whose constant guidance and
encouragement go without mention.
I would like to express my gratitude to Dr P. NAGESH, Professor and Dean, JSS
Centre for Management Studies Mysuru, for always being a great source of
inspiration for providing me a congenial environment for carrying out the
Entrepreneurship development program.
I would also like to express my gratitude to Dr. SWAROOP SIMHA, Professor
and Head of Department, JSS Centre for Management Studies, Mysuru. For always
being a great source of inspiration for providing me a congenial environment for
carrying out the Entrepreneurship development program.
I express my heart filled thanks to Dr. KAVYASHREE M B, Assistant
Professor, at JSS Centre for Management Studies, Mysuru, who is also my
Entrepreneurship development program guide. Her constant support, inspiring
guidance and persistent help has provided useful insights into the issues being
addressed in project work at various stages during its execution. Her guidance
and support go beyond words.
I would like to thank my parents and friends for their cooperation and God, the
Almighty, for his blessings and strength.
N ANANYA
USN: 01JST21PMB053
JSS Centre for Management Studies
Mysuru – 570 006
JSS CENTRE FOR MANAGEMENT STUDIES
JSS SCIENCE AND TECHNOLOGY UNIVERSITY
JSS TECHNICAL INSTITUTIONS CAMPUS,
MYSURU-570006
CERTIFICATE
This is to certify that, N ANANYA (USN: 01JST21PMB053) a student of
Master of Business Administration at JSS Centre for Management Studies, JSS
Technical
Institution
Campus,
Mysuru,
India,
has
carried
out
an
Entrepreneurship development program and submitteda report on “RICINUS
POWDER” in partial fulfilment of the requirements of the award of MASTER
OF BUSINESSES ADMINISTRATION.
Ms. N ANANYA has worked under my guidance and the report is recommended
for submission.
DATE :
PLACE : MYSURU
Dr. KAVYASHREE M B
Assistant Professor
Department of JSS CMS
JSS Science and Technology
University
Mysuru – 570 006
JSS CENTRE FOR MANAGEMENT STUDIES
JSS SCIENCE AND TECHNOLOGY UNIVERSITY
JSS TECHNICAL INSTITUTIONS CAMPUS,
MYSURU-570006
CERTIFICATE
This is to certify that, N ANANYA(USN: 01JST21PMB053) a student of Master
of Business Administration at JSS Centre for Management Studies, JSS Technical
Institution Campus, Mysuru, India, has carried out an Entrepreneurship
development program and submitted a report on “RICINUS POWDER” in
partial fulfilment of the requirements for the award of MASTER OF BUSINESS
ADMINISTRATION.
Dr. SWAROOP SIMHA
Professor and Head of the Department
Department of JSS CMS,
JSS Science and Technology University
Mysuru – 570 006
Dr. P. NAGESH
Professor & Dean
Department of JSS CMS,
JSS Science and Technology University
Mysuru – 570 006
CONTENTS
BUSINESS CANVAS MODEL ..................................................................................... 1
EXECUTIVE SUMMARY ......................................................................................... 2
INTRODUCTION........................................................................................................... 3
INDUSTRY ANALYSIS ................................................................................................ 4
MARKET ANALYSIS ................................................................................................... 9
SEGMENTATION, TARGETING AND POSITIONING(STP) ............................. 11
ORGANIZATIONAL PLAN ....................................................................................... 12
ABOUT THE PRODUCT ............................................................................................ 13
OPERATIONAL ANALYSIS...................................................................................... 16
FINANCIAL ANALYSIS............................................................................................. 19
CONCLUSION ............................................................................................................. 41
BIBLIOGRAPHY ......................................................................................................... 42
BUSINESS CANVAS MODEL
Key Partners
 Local formers
 Raw material
suppliers
 Cosmetic
organisations
Custom
relationship
Customer
segments
 Profit margins
 Variety of
 Customer
ingredients
satisfaction
 For best
 Repeat Customers
results
 Quality of service  No side
effects
 Good for all
the people
Key Resources
 Provides
good service
 loyalty
 mass market
 workers
 youths
 Employees
 Quality testing
location,
youth,
gender
Key actions
Value
proposition
Cost structure




Channels
Reserve streams
 Margin in sales
 Good relationship
customers
 Regular customers
Initial Investment = 66,80,500
Assets = Land, Shed
Fixed cost = Maintenance
Variable cost = Raw materials
1
with
EXECUTIVE SUMMARY
Castor seed is the source of castor oil, which has a wide variety of uses. The seeds contain between 40% and 60%
oil that is rich in triglycerides, mainly ricinolein. The seed also contains ricin, which is also present in lower
concentrations throughout the plant. The fruit of this spiny, greenish (to reddish-purple) capsule containing large,
oval, shiny, bean-like, highly poisonous seeds with variable brownish mottling. Castor seeds are obtained from
the ripe fruits.
There are diverse Castor Oil applications in various personal care & cosmetics industries as it carries many
essential benefits for the body (primarily skin &hair). Castor Oil has supreme cleansing, moisturizing, dispersant,
anti-viral, anti-bacterial, anti-inflammatory, anti-acne attributes as well as vitamin E and other assorted properties.
There are diverse Castor Oil applications in various personal care & cosmetics industries as it carries many
essential benefits for the body (primarily skin &hair). Castor Oil has supreme cleansing, moisturizing, dispersant,
anti-viral, anti-bacterial, anti-inflammatory, anti-acne attributes as well as vitamin E and other assorted properties.
The powder can be mixed with other ingredients such as hibiscus powder, rose petals powder, amla and neem
powder can be mixed with it for better results by mixing these ingredients with castor powder the strong smell of
castor seed can be avoided and by using this powder by mixing it with rose water or normal water and applying
it to the roots and hair lengths will make the hairs strong from the roots and the hairs shiny and silky, the consistent
use of this product will give great result and helps for the growth and to have healthy hair.
The castor seed powder has long shelf life as it can be stored for 1-2 years in a dry and cool place this powder
can be used by both male and female as people nowadays are facing a lot of hair fall this product can be a great
hair care product to include in one’s hair care routine
2
INTRODUCTION
Castor plant belongs to Euphorbiaceae family. Castor is an important non-edible oilseed crop and is grown
especially in arid and semi-arid region. It is reported to have originated in the tropical belt of both India and
Africa. Its seed is the castor bean, which, despite its name, is not a bean (that is, the seed of many Fabaceae).
Castor is indigenous to the south eastern Mediterranean Basin, Eastern Africa, and India, but is widespread
throughout tropical regions (and widely grown elsewhere as an ornamental plant)
Castor seed is the source of castor oil, which has a wide variety of uses. The seeds contain between 40% and 60%
oil that is rich in triglycerides, mainly ricinolein. The seed also contains ricin, which is also present in lower
concentrations throughout the plant. The fruit of this spiny, greenish (to reddish-purple) capsule containing large,
oval, shiny, bean-like, highly poisonous seeds with variable brownish mottling. Castor seeds are obtained from
the ripe fruits.
There are diverse Castor Oil applications in various personal care & cosmetics industries as it carries many
essential benefits for the body (primarily skin &hair). Castor Oil has supreme cleansing, moisturizing, dispersant,
anti-viral, anti-bacterial, anti-inflammatory, anti-acne attributes as well as vitamin E and other assorted properties.
There are diverse Castor Oil applications in various personal care & cosmetics industries as it carries many
essential benefits for the body (primarily skin &hair). Castor Oil has supreme cleansing, moisturizing, dispersant,
anti-viral, anti-bacterial, anti-inflammatory, anti-acne attributes as well as vitamin E and other assorted properties.
Other Castor Oil applications in cosmetics and personal care are to formulate products like creams, shampoos, lip
gels, lipsticks, hair oils, deodorants, perfumes, lubricants, sunscreens, and other personal hygiene.
As castor seeds are widely used in cosmetics especially for hair treatments the castor seed powder can be used
for the growth and other hair care treatments the smell of castor oil can be very strong for some consumers so it
3
will be difficult for them to use such products in that case these castor seeds can be converted into powder and to
avoid the strong smell of the castor seeds.
The powder can be mixed with other ingredients such as hibiscus powder, rose petals powder, amla and neem
powder can be mixed with it for better results by mixing these ingredients with castor powder the strong smell of
castor seed can be avoided and by using this powder by mixing it with rose water or normal water and applying
it to the roots and hair lengths will make the hairs strong from the roots and the hairs shiny and silky, the consistent
use of this product will give great result and helps for the growth and to have healthy hair.
The castor seed powder has long shelf life as it can be stored for 1-2 years in a dry and cool place this powder can
be used by both male and female as people nowadays are facing a lot of hair fall this product can be a great hair
care product to include in one’s hair care routine.
INDUSTRY ANALYSIS
The cosmetic industry describes the industry that manufactures and distributes cosmetic products. These include
color cosmetics, like foundation and mascara, skincare and hair care such as moisturizers and cleansers, hair care
such as shampoos, conditioners and hair colors, and toiletries such as bubble bath and soap. The manufacturing
industry is dominated by a small number of multinational corporations that originated in the early 20th century,
but the distribution and sale of cosmetics is spread among a wide range of different businesses.
The cosmetics industry has been segmented on the basis of category, gender, and region. On the basis of category,
the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup &
4
color cosmetics. By gender, it is divided into men, women, and unisex. On the basis of distribution channel, it is
categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others.
Region wise, the market is studied across North America, Europe, Asia - Pacific.
On the basis of category, the skin and sun care products segment constituted a major cosmetics market share in
2022; however, the deodorants & fragrances segment is projected to experience growth at the highest CAGR
during the forecast period. Skin care products and hair care products play a major role in daily healthcare regimen
of individuals. Presently, rise in awareness about beauty and consciousness are the prominent factors that drive
demand for skin care products.
On the basis of gender, the women segment led, in terms of the cosmetics market size is expected to continue to
grow robust during the cosmetics market forecast period. Convergence of advancements, beauty, and lifestyle
propels growth of the market. Moreover, the cosmetics market across the globe has witnessed continues and
sustained growth over years, owing to rise in beauty-conscious female population.
Cosmetic Industry at Global market level:
The global cosmetics market size was valued at $380.2 billion in 2022, and is projected to reach $463.5 billion
by 2027, registering a CAGR of 5.3% from 2021 to 2027. Presently, cosmetics have become an indispensable
feature of modern lifestyle of individuals. In addition, growth in consciousness about external beauty along with
individual’s internal intellect has become one of the major driving factors for use of cosmetics in the global
market. Presently, along with women, there is a rise in use of cosmetics among men in their daily routine, which
complements growth of the global cosmetics market demand. Hence, such changing lifestyles, have led to growth
of the global cosmetics market.
Manufacturers are changing their product branding and advertising strategies to accelerate their sales across
various countries. Innovative strategies such as new product launches with natural ingredients and appealing
packaging have been adopted by manufacturing companies to increase sales of their cosmetics products. As
cosmetics have become an integral part of individual’s lives, consumers, especially women, prefer to use
cosmetics products, which are handy and easy to use while travelling or attending social meetings. Moreover, use
of natural ingredients for manufacturing of cosmetics products, which does not have any adverse effect on skin
is an advantage, and also it is a popular strategy of manufacturers to attract more customers. This also helps in
increasing revenue of companies operating in this industry. Collectively, all strategies adopted by manufacturers
drive the global cosmetics market. However, chemicals used in manufacturing of cosmetic products can harm an
5
individual’s skin or other parts of the body. In addition, application of cosmetic products on a daily basis could
be dangerous for skin. Chemicals used as ingredients in cosmetic products can have many adverse side effects on
skin. Long-term and extensive use of chemical rich shampoos, serums, and conditioners lead to heavy hair fall
problems. Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases
and consequential health hazards. Therefore, increase in awareness of probable side effects of cosmetics and skin
concerns among customers is an important factor that limits growth of the market as a whole.
On the basis of distribution channel, the hypermarkets/supermarkets segment held a major share in the market in
2019, and is projected to remain dominant during the forecast period. Hypermarkets/supermarkets are gaining
popularity, owing to availability of a broad range of consumer goods under a single roof, ample parking space,
and convenient operation timings. Moreover, increase in urbanization, rise in working class population, and
competitive pricing boosts popularity of hypermarkets in developed and the developing region.
Cosmetic Industry at National level:
India's cosmetics market is segmented by product type, category, and distribution channel. On the basis of product
type, the market is segmented into color cosmetics and hair styling and coloring products. On the basis of the
distribution channels, the market is segmented into hypermarkets and supermarkets, specialty stores, pharmacies
and drugstores, online retail stores, and other distribution channels. For each segment, the market sizing and
forecasts have been done on the basis of value. Cosmetics are designed to enhance one's appearance (makeup),
conceal blemishes, enhance one's natural features (such as the eyebrows and eyelashes), add color to a person's
face, and can be used to change the appearance of the face entirely to resemble a different person, creature, or
object.
Due to increasing standard of living and changing lifestyle, the demand for cosmetic products such as skin care,
hair care and fragrance are increasing rapidly, thereby providing high impetus to the Indian cosmetic industry.
According to India Cosmetic Market Overview, 2022-28”, cosmetic market in India was growing with a CAGR
of more than 9% from last few years.
The India cosmetic market consists of five segments viz. Skin Care, Hair Care, Fragrance, Color Cosmetics and
Oral Care. Hair Care accounts for majority of the market share, followed by oral care, skin care, fragrance and
color cosmetic.
6
Hindustan Unilever is a prominent player in the cosmetic industry due to its vast product portfolio in every
segment. Hair care market is considered to be one of the mature markets in India. However, the availability of
counterfeit hair care products is one of the major challenges in the market. HUL, P&G, Dabur, Marico and Godrej
are players operating in the organized hair care category. Hair care market is segmented into four categories such
as hair oil, hair shampoo, hair colors and hair styling products. Hair oil dominates the market followed by hair
shampoo. Skin care has become an exciting legroom for new product development and manufacturers are trying
to convince consumers that they should adopt a skin care regimen by various product launches and aggressive
marketing strategies.
Skin care market is segmented into five categories such as facial care, body care, sun care, and hand care and
other makeup removal & depilatory products. Facial care products dominate the market due to its various variants.
On the other hand, India oral care market is segmented into five categories such as toothpaste, toothbrush,
toothpowder, mouthwash and other oral care products that include dental floss, oral care chewing gum, etc.
Toothpaste segment dominates the oral care category. Colgate-Palmolive India, HUL, and Dabur are the major
players operating in the oral care market.
Fragrance industry's rapid growth is attributed primarily to the advent of functional products such as perfumes
and deodorants. India fragrance market is divided into two segments viz. Perfume and Deodorant. Deodorants
dominate the market while perfume along with its innovations is growing fast. The fragrance market in India is
one of the largest in terms of production, consumption, import and is in process of taking off as more youngsters
are wearing a fragrance in the form of perfumes and deodorants. Fogg is leading in the deodorant category
followed by a host of other brands. Color cosmetics market consists of four broad categories viz. Eye Makeup,
Facial Makeup, Lip Products and Nail Products. The market registered a strong growth in the last few years. Color
cosmetic was mainly driven by the growth of mascara, eye liner/pencil, blusher and eye shadow, amongst others.
Lakme, Revlon and L'Oreal are known to be the big three brands in the category, followed by scores of
unorganized players.
7
Future growth prospect of Cosmetic Industry:
India's cosmetics products market is projected to register a CAGR of 4.23% over the next five years. For many
years, the Indian beauty industry has been one of the fastest-growing markets in the world. With over a billion
people and rising disposable income, India is considered one of the most promising markets for global
companies looking to expand their reach. However, despite this growth, there are still challenges facing Indian
companies seeking to enter this market. For example, there has been a significant amount of consolidation in
the Indian beauty industry over recent years as large multinational corporations have attempted to take
advantage of the lucrative market. This has resulted in an increasingly competitive landscape where many
smaller players struggle to remain competitive and continue to grow their businesses.
To help navigate this increasingly competitive landscape, this article will outline some key recommendations
for newcomers looking to enter or expand their presence within the Indian beauty industry. The future of
Indian cosmetics industry is bright, but it’s up to new entrants to make sure they get a fair shot at success.
A few years ago, the Indian beauty market was dominated by multinationals, but that’s changing. The Indian
cosmetics industry is growing at an alarming rate, thanks to the country’s growing middle class. However,
this growth has come with a price: the industry is plagued by problems that include low production value,
poor product quality, and a lack of transparency.
As a result of these problems, many newcomers have been put off from entering the industry. But as we see
with other industries in India—such as software or engineering—there are ways for new players to make an
impact on the market without investing significant amounts of money. In this article, we’ll give you some
recommendations for newcomers interested in entering the Indian cosmetics industry. Focus on local brands:
8
India is not like other countries where most people are used to Western brands and don’t know how to find
local ones.
The Indian cosmetics industry is going to be one of the most exciting industries to watch over the next few
years. With a rapidly growing population and a growing middle class, India’s cosmetics market will continue
to grow at an astounding rate. But this growth comes with challenges as well. There is a lot of competition
out there, and it’s difficult for new entrants to make their mark on this market. That’s where we come in—
we’ve got some recommendations for what you can do if you’re interested in getting involved in the Indian
makeup industry.
India is one of the largest markets for cosmetics. The industry is expected to grow at a CAGR of 6.7% over
the next five years, according to Euromonitor International. This growth has been driven by increasing
consumer spending power, rising disposable income levels and growing awareness about skin care products.
In fact, the cosmetics industry in India is expected to show strong signs of expansion during the next five
years. The market size is expected to reach $1 billion by 2024.
The cosmetics market in India is currently dominated by foreign brands but due to its huge population base;
it has also attracted domestic brands.
Market Analysis:
In India, the color cosmetics market is among the fastest growing due to the acceptance of western culture.
The penetration of color cosmetics in the Indian market is rising as the aesthetic appeal of the younger
generation grows. In the Asian region, India is considered one of the fastest-growing countries in the cosmetics
products market. Furthermore, the color cosmetics industry (including the eye, facial, and lip makeup
categories) is the most prosperous industry in India. Local companies, such as the Shahnaz Husain Group, are
exclusively providing herbal and ayurvedic cosmetic products due to the prolonged health benefits they offer
the skin.
With the increasing penetration of the internet, the online market for the purchase of cosmetics products has
seen rapid growth in the last 3–4 years in India. This category has attracted a few vertical specialists, like
Nykaa, Purplle, Nnnow, etc., who are riding on the increasing e-tail growth and vying for a significant piece
of the online cosmetics pie. Nykaa offers more than 600 brands in both offline and online stores in India.
Color cosmetics, which deal with the eye, facial, and lip makeup categories, are the most prosperous industry
in India. Local companies, such as Soul tree, Herbal Hills, Himalaya, and The Shahnaz Husain Group, among
others, are exclusively providing herbal or ayurvedic cosmetic products due to the prolonged health benefits
they offer the skin. Most cosmetics companies rely on a multi-level distribution strategy, which includes
9
placing products with department stores, specialty retailers, pharmacies, salons, spas, freestanding stores,
travel retail outlets, websites and mobile applications. However, some companies, like Avon Products, Inc.
(AVP) and Mary Kay, use a door--to--door selling method to directly reach customers.
Competitors:
The Indian cosmetics market is highly fragmented owing to the presence of various domestic as well as
international players operating in the market. Leading companies are partnering with international exhibition
organizers to launch their cosmetic products at several international beauty community events, such as
Cosmoprof, Canton Fair, and Fashion Fest. Additionally, the players in the market use other strategies like
endorsements by popular celebrities, discounts, other offers, and other such strategies for positioning their
brands in the minds of the consumers and increasing the sales of the cosmetic products offered by them. Some
of the major players in the market studied are L’Oreal, The Estée Lauder Companies, Vellvette Lifestyle
Private Limited (Sugar Cosmetics), and Natura & Co. (The Body Shop International Limited), Wow, Biotique,
Mama Earth, Plum among others.
4P’S of Marketing:
Product:
Creating a marketing campaign starts with an understanding of the product itself. Who needs it, and why?
What does it do that no competitor's product can do? Perhaps it's a new thing altogether and is so compelling
in its design or function that consumers will have to have it when they see it.
The product is castor seed powder which is new to the industry which helps in hair growth and to maintain
healthy hair when used as a hair mask.
Price:
Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to the
product's real and perceived value, while also considering supply costs, seasonal discounts, competitors'
prices, and retail markup.
Price of the product will depend on the size of the product and the ingredients of the product approximately
between 100-150rs per 50gm product.
10
Place:
Place is the consideration of where the product should be available—in brick-and-mortar stores and online—
and how it will be displayed.
Mainly focused on the urban areas and the locations where there will be no availability of natural products
which can increase the sales
Promotion:
The goal of promotion is to communicate to consumers that they need this product and that it is priced
appropriately. Promotion encompasses advertising, public relations, and the overall media strategy for
introducing a product.
Promoting through social media and through digital marketing as it required less cost and effort and also by
selling the product in online platforms which makes easy for marketing as most of the consumers are now
depending on the online shopping this is great way to gain sales and profit.
STP:
Segmentation:
The main goal here is to create various customer segments based on specific criteria and traits
Geographic segmentation: Diving your audience based on country, region, state, province, etc.
Demographic segmentation: Dividing your audience based on age, gender, education level, occupation,
gender, etc.
Behavioral segmentation: Dividing your audience based on how they interact with your business: What they
buy, how often they buy, what they browse, etc.
Psychographic segmentation: Dividing your audience based on “who” your potential customer is: Lifestyle,
hobbies, activities, opinions, etc.
Females and Males who are between 18 to around 26 years as they are more focused and by surveying what
they are expecting from the product.
11
Targeting:
To look at the segments that have created before and determine which of those segments are most likely to
generate desired conversions (depending on the marketing campaign, those can range from product sales to
micro conversions like email signups).
Targeting people of urban areas who try to depend more on natural resources rather than the chemicals
available in market.
Positioning:
Positioning, which allows to set the product or services apart from the competition in the minds of the target
audience. There are a lot of businesses that do something similar, so need to find what it is that makes you
stand out.
Creating a page/website for the product to show the manufacturing process so the customers will not have any
doubts regarding the product whether it is natural or mixed with chemicals most of the products will not
provide this information so it will make the product trustworthy for the customers.
ORGANISATION PLAN:
The organization is small and consist of 3 levels
TOP LEVEL
President or the founder of the organization
MIDDLE LEVEL
The managers of production and marketing department will come under the middle level management
LOW LEVEL
The cleaning staff of the organization who help to keep the organization clean such as cleaning staff
12
ORGANISATION STRUCTURE:
President
Marketing
Production
manger
manager
Workers/
Workers/
Cleaning staff
Cleaning
staff
ABOUT THE PRODUCT:
It is a powder made of natural castor seeds to treat hair fall problems and to strengthen the hair roots to make
the hair grow stronger and healthy.
The castor seed powder when mixed with some other natural ingredients such as rose powder, amla powder,
neem powder, hibiscus powder it will smell good and the customers need not to worry about the strong smell
of castor seeds.
The powder can benefit in many ways to the hair problems such as:

Makes hair strong from the roots

Helps to control the hair fall

By continuous use of the product the hair which has been lost due to hair fall problem will regrow

Makes the hair length shiny and soft
13
VISION:
To become noticeable for crafting healthy and effective hair care product designed to nourish and rebalance
the hair.
MISSION:
To satisfy the diverse hair care needs of the customers, which can satisfy and provide highest level of
nourishment.
ORGANISTIONAL CHART:
Role
President
Responsibility
Responsible for business strategic planning and company vision
To lead and direct team. Taking high level decisions that impact the company’s
financial status or functional processes.
Leads, guides, directs and evaluates all other officers, managers and
employees, and ensures they are carrying out the daily operations of the
company.
Production manager
Oversees the production process and make sure to have enough resources on
hand.
Planning worker’s schedules, estimate costs and prepare budgets to ensure
workflow meets required deadlines, assists in optimal usage of resources such
as machines, workforce, raw materials.
Aims to minimize production costs while maximizing profits.
14
Marketing manager
Responsible for advertising and rise awareness of the product.
Gathers and analyses information to identify new markets and customers,
demand for products and services, and efficacy of existing marketing
campaigns and strategies.
Conducts market research, sales forecasting, and strategic planning to assess
and ensure the sale and profitability of products.
Workers/Cleaning
Cleaning and maintaining the organization and making sure they are hygiene.
staff
Maintaining all facilities by keeping the company premises clean and wellorganized.
Monitoring materials stored in their area and respond to visitor’s inquiries
about where they can get certain things done.
PERSONNEL PLAN:
Employee
Numbers
Designation
Salary per
Total cost per month
month(INR)
(INR)
Production manager
1
15000
15000
Marketing manager
1
20000
20000
Workers
6
10000
60000
TOTAL
8
95000
15
OPERATIONAL ANALYSIS:
RAW MATERIALS:
Castor seeds
Roses
Neem leaves
Amla
Hibiscus flowers
MACHINERIES:
Boiler
Grinding machines: 1 big, 4small
Sieving machine
Containers
Weighing machine
Name and logo printing machine on bags
MATERIALS:
Compostable bags of 50gm and 100gm.
Cardboard boxes
PROCUREMENT OF RAW MATERIALS:
Castors seeds and are procured directly from the farm which we will cultivate in 4-5 acres of land and store
throughout the year in the warehouse
Roses are purchased through the local farmers directly from the farm.
Neem trees and Hibiscus plants are harvested in 2 -3 acres of land.
Amla is purchased from the harvesters dried and stored.
16
MANUFACTURING PROCESS:
MANUFACTURING FLOW CHART
Boiling seeds
Drying seeds and other
ingredients in the
sunlight
Grinding
Mixing the powders
Packing

Collecting the Castor seeds from the farm and removing the outer shell of the seeds and boiling them in
the boiler above 80 degree Celsius.

Collecting seeds from the boiler and drying them in the sunlight for more than 3 days to dry the oil and
storing them in the warehouse for the future use during rainy days.

Drying the Roses, Amla, Neem leaves and Hibiscus in the meantime and storing them separately in the
warehouse.

Getting the dried Castor seeds from the warehouse and grinding them in the grinder into a fine powder.

Sieving the powder to separate the fine powder and granules collecting the granules and adding them again
to grinder to make into fine powder.
17

Collecting the powder into a big container in the meantime grinding the other ingredients in small grinders
and collecting the powder into small containers.

Filling the Powder’s into a compostable bags in 7:3 proportion each and packing and storing them in
separate cardboard boxes to differentiate based on the required ingredient.
ESTIMATION OF THE PROJECT:
PARTICULARS
INVESTMENT
Castor seeds cultivation at 5 acres
6,50,500
Other ingredients
9,50,000
Boiler
9,50,000
Grinding machines
7,50,000
Name printing machine
5,50,000
Containers
8,30,000
Maintenance expenses
10,00,000
Miscellaneous expenses
10,00,000
TOTAL
66,80,500
18
FINANCIAL ANALYSIS
FINANCIAL STATEMENTS: COST OF PROJECT AND MEANS OF FINANCE
COST OF PROJECT
Fixed assets
43,70,000
Current assets
20,10,500
Other initial
3,00,000
expenses
66,80,500
Total
MEANS OF FINANCE
Own
fund
Debt
Total
LIST OF FIXED ASSETS
Land
30,00,000
Building
10,00,000
Machinery
Total
43,70,000
LIST OF CURRENT ASSETS
20,10,500
Total
20,10,500
23,10,500
66,84,500
OWN FUND
Land
30,00,000
Building
10,00,000
Machiner
3,70,000
y
43,70,000
Total
3,70,000
Cash
43,70,000
OTHER EXPENSES
Preliminary
1,00,000
expenses
Pre-operative
2,00,000
expenses
3,00,000
Total
19
FIXED EXPENSE CALCULATION
CALCULATION OF FIXED EXPENSES
Total
Fixed Expenses
1
2
3
4
5
Maintenance
3,000
3,000
3,000
3,000
3,000
Water
10,000
10,000
10,000
10,000
10,000
Telephone
2,000
2,000
2,000
2,000
2,000
Electricity
15,000
15,000
15,000
15,000
15,000
2,00 2,00 2,00 2,00 2,00 2,00 2,00
0
0
0
0
0
0
0
15,0 15,0 15,0 15,0 15,0 15,0 15,0
00
00
00
00
00
00
00
40,000
40,0 40,0 40,0 40,0 40,0 40,0 40,0
00
00
00
00
00
00
00
Transportation
40,000
40,000
40,000
40,000
20
6
7
8
9
10
11
12
3,00 3,00 3,00 3,00 3,00 3,00 3,00
0
0
0
0
0
0
0
10,0 10,0 10,0 10,0 10,0 10,0 10,0
00
00
00
00
00
00
00
36 ,
00 0
1
,20,
000
24 ,
00 0
1
,80,
000
4
,80,
000
DEPRECIATION CALCULATION
CALCULATION OF DEPRECIATION
Fixed Assets
%
1
2
Depreciation
Schedule
3
0.10
0.10
37,000
1,00,000
33,300
90,000
29,970
81,000
26,973
72,900
24,276
65,610
2,18,481
5,90,490
Annual
Depreciation
1,37,000
1,23,300
1,10,970
99,873
89,886
8,08,971
Monthly
Depreciation
11,417
10,275
9,248
8,323
7,490
Land
Machinery
Building
Value
30,00,000
3,70,000
10,00,000
Useful
Life
Yrs
5
5
5
Depreciation
REVENUE CALCULATION
21
Residual
Value
4
5
Revenue Calculations
SELLING
PRICE
22
Areca plate
per unit
price
Total
Revenue
Annual
Turnover
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
4.2
3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88 3,62,88
0
0
0
0
0
0
0
0
0
0
0
43 ,54,
5 60
23
4.2
3
,62,
88 0
24
CASHFLOW ESTIMATION
EBIT
1st
Year
Revenue
s
Cost of
Goods
Gross
Profit
1
2
3
4
5
6
7
8
9
10
11
12
Annua
l
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
2,16,0
00
28,80
0
1,87,2
00
25 ,92,
00 0
3,45,60
0
22 ,46,
40 0
25
Employee
Salary
Advertisin
g
Maintenan
ce &
Repairs
Telephone
Depreciati
on
Electricity
Total
Operating
Expenses
EBIT
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
Operating Expenses
97,85 97,85 97,85
0
0
0
3,000 3,000 3,000
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
1,20,00
0
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,39,2
67
2,000
11,41
7
15,00
0
1,74,2
67
2,000
11,41
7
15,00
0
1,39,2
67
24,000
1,37,00
0
1,80,00
0
17 ,06,
20 0
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
47,93
3
12,93
3
47,93
3
5,40,20
0
26
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
1,32,8
50
3,000
97,85
0
3,000
12 ,09,
20 0
36,000
EBIT
2nd
Year
Revenues
Cost of
Goods
Gross
Profit
Employee
Salary
Advertisin
g
Maintenan
ce &
Repairs
Telephone
Depreciati
on
Electricity
Total
Operating
Expenses
EBIT
1
2
3
4
5
6
7
8
9
10
11
12
Annual
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
3,62,88
0
34,560
43 ,54,
56 0
4,14,720
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
3,28,32
0
39 ,39,
84 0
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
Operating Expenses
97,85 97,85 97,85
0
0
0
3,000 3,000 3,000
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
1,20,00
0
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,38,1
25
2,000
10,27
5
15,00
0
1,73,1
25
2,000
10,27
5
15,00
0
1,38,1
25
24,000
1,23,30
0
1,80,00
0
16 ,92,
50 0
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,90,1
95
1,55,1
95
1,90,1
95
22 ,47,
34 0
27
97,85
0
3,000
97,85
0
3,000
97,85
0
3,000
1,32,8
50
3,000
97,85
0
3,000
12 ,09,
20 0
36,000
EBIT 3rd Year
Revenues
Cost of Goods
Gross Profit
Employee
Salary
Advertisin
g
Maintenan
ce &
Repairs
Telephone
Depreciati
on
Electricity
Total
Operating
Expenses
EBIT
1
5,04,00
0
48,720
4,55,28
0
2
5,04,00
0
48,720
4,55,28
0
3
5,04,00
0
48,720
4,55,28
0
4
5,04,00
0
48,720
4,55,28
0
5
5,04,00
0
48,720
4,55,28
0
6
5,04,00
0
48,720
4,55,28
0
7
5,04,00
0
48,720
4,55,28
0
8
5,04,00
0
48,720
4,55,28
0
9
5,04,00
0
48,720
4,55,28
0
10
5,04,00
0
48,720
4,55,28
0
11
5,04,00
0
48,720
4,55,28
0
12
5,04,00
0
48,720
4,55,28
0
1,12,5
28
3,000
1,12,5
28
3,000
1,12,5
28
3,000
1,12,5
28
3,000
Operating Expenses
1,12,5 1,12,5 1,12,5
28
28
28
3,000 3,000 3,000
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
10,00
0
1,20,00
0
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
2,000
9,248
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,51,7
75
15,00
0
1,89,7
75
15,00
0
1,51,7
75
24,000
1,10,97
0
1,80,00
0
18,59,3
00
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
3,03,5
05
2,65,5
05
3,03,5
05
36 ,04,
06 0
28
1,12,5
28
3,000
1,12,5
28
3,000
1,12,5
28
3,000
1,50,5
28
3,000
1,12,5
28
3,000
13,88,3
30
36,000
Annual
60 ,48, 00
0
5,84,640
54 ,63, 36
0
EBIT
4th
Year
Revenu
es
Cost of
Goods
Gross
Profit
Employee
Salary
Advertisin
g
Maintenan
ce &
Repairs
Telephone
Depreciati
on
Electricity
1
2
3
4
5
6
7
8
9
10
11
12
Annu
al
7,76,44 7,76,4
8
48
34,374 34,374
7,76,4
48
34,374
7,76,4
48
34,374
7,76,4
48
34,374
7,76,4
48
34,374
7,76,4
48
34,374
7,76,4
48
34,374
7,42,07 7,42,0
4
74
7,42,0
74
7,42,0
74
7,42,0
74
7,42,0
74
7,42,0
74
7,42,0
74
7,76,4
48
34,37
4
7,42,0
74
7,76,4
48
34,37
4
7,42,0
74
7,76,4
48
34,37
4
7,42,0
74
7,76,4
48
34,37
4
7,42,0
74
93 ,17,
37 6
4,12,4
88
89 ,04,
88 8
1,12,5
28
3,000
1,12,5
28
3,000
1,12,5
28
3,000
1,12,5
28
3,000
Operating Expenses
1,12,5 1,12,5 1,12,5
28
28
28
3,000
3,000
3,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,00
0
10,00
0
10,00
0
10,00
0
1,20,0
00
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
2,000
8,323
24,000
99,873
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,00
0
15,00
0
15,00
0
15,00
0
1,80,0
00
29
1,12,5
28
3,000
1,12,5 1,12,5 1,50,5 1,12,5
28
28
28
28
3,000 3,000 3,000 3,000
13 ,88,
33 0
36,000
Total
Operating
Expenses
1,50,8
50
1,50,8
50
1,50,8
50
1,50,8
50
1,50,8
50
1,50,8
50
1,50,8
50
1,50,8
50
EBIT
5,91,2
24
5,91,2
24
5,91,2
24
5,91,2
24
5,91,2
24
5,91,2
24
5,91,2
24
5,91,2
24
7
8
EBIT
5th
Year
Revenu
es
Cost of
Goods
Gross
Profit
1
2
3
4
5
6
10,36,8
00
38,880
10,36,8
00
38,880
10,36,8
00
38,880
10,36,8
00
38,880
10,36,8
00
38,880
10,36,8
00
38,880
9,97,92
0
9,97,92
0
9,97,92
0
9,97,92
0
9,97,92
0
9,97,92
0
30
1,50,8 1,50,8 1,88,8 1,50,8
50
50
50
50
18 ,48,
20 3
5,91,2 5,91,2 5,53,2 5,91,2
24
24
24
24
70 ,56,
68 5
9
10
11
12
Annua
l
10,36,8 10,36,8
00
00
38,880 38,880
30,72
0
38,88
0
30,72
0
38,88
0
30,72
0
38,88
0
9,97,92
0
8,160
8,160
8,160
28,80
0
38,88
0
10,08
0
84 ,15,
36 0
4,66,56
0
79 ,48,
80 0
9,97,92
0
INTEREST CALCULATION
Loan Structure
Value
Ratio
Loan
Amount
Land
Total Project Value
Working capital
Total investment
Cost
30,00,000
13,70,000
10,00,000
53,70,000
0.85
0.85
11,64,500
8,50,000
20,14,500
Injection
33,55,500
31
Capital
Structure
Debt
Equity
Total
D/E
Funds
Ratio
0.60
1
20,14,500
33,55,500
53,70,000
38%
62%
100%
Cost of
Equity
RFR
6.74
%
10.8
0%
Equity
Risk
Premium
Beta
1.21
Cost of
19.8
Equity
1%
Corporate
15%
Tax
32
WACC
D/E
Debt
0.60
Equity
1
Ratio
0.375
1
0.624
9
Pre-Tax
0.1190
0.19808
Risk
Premium for
new company
After
Tax
0.101 0.037
1381
9
0.198 0.123
08
8
0.161
7
0.108
0
WAC 26.97
C
1%
33
PAYBACK PERIOD CALCULATION
Payback period for Equity
Discounted Cash Flow
Cumulative Discounted Cash
Flow
Year
Cash Flow
0
(53,70,000)
1
1,71,496
1,43,142.51
(52,26,857)
2
15,29,446
10,65,522.14
(41,61,335)
3
26,63,644
15,48,883.24
(26,12,452)
4
55,79,561
27,08,050.49
95,598
5
45,79,093
18,55,027.77
19,50,626.14
34
Year
3
Months
11.00
Year
Cash Flow
Discounted Cash Flow
0
(53,70,000)
1
1,71,496
1,43,142.51
(52,26,857)
2
15,29,446
10,65,522.14
(41,61,335)
3
26,63,644
15,48,883.24
(26,12,452)
4
55,79,561
27,08,050.49
95,598
5
45,79,093
18,55,027.77
19,50,626.14
Payback period
Payback period for Equity
Payback period
Year
3
Months
11.00
35
Cumulative Discounted Cash
Flow
6.9 NPV IRR CALCULATION
Cash Flow from operation
Revenue
Variable Expense
Other Operating Exp (exclude
interest)
Interest Expense
Profit or loss before taxation
Accumulated loss
1
(53,70,000)
2
3
Profit after tax
5
25,92,000
43,54,560
60,48,000
93,17,376
84,15,360
2,59,200
4,14,720
5,84,640
4,12,488
4,66,560
17,06,200
16,92,500
18,59,300
18,48,203
20,47,759
2,23,270
1,84,514
1,40,887
91,775
36,489
4,03,330
20,62,826
34,63,173
69,64,910
58,64,552
-
Taxes
4
-
-
-
60,539.82
3,09,630.11
5,19,822.28
10,45,433.00
8,80,269.23
3,42,790
17,53,195
29,43,351
59,19,477
49,84,283
7,63,600
23,70,640
37,15,030
71,56,558
59,90,927
2,23,270
1,84,514
1,40,887
91,775
36,489
Cash Flow Summary
EBITDA
Less
Interest
36
Principal Payment
CAPEX
3,08,294
3,47,050
3,90,677
-
-
4,39,789
-
4,95,075
-
Taxes
60,540
37
3,09,630
5,19,822
10,45,433
8,80,269
38
Calculate NPV
Total investment
FCF
(53,70,000)
-
-
-
-
-
(53,70,000)
1,71,496
15,29,446
26,63,644
55,79,561
45,79,093
1,53,258
12,21,445
19,01,016
35,58,604
26,09,931
PV of FCF
PV of Forecast Flows
94,44,255
NPV
Terminal Value (To Calculate Terminal
Value)
Take FCF for 9th year with 0 % increase
(Growth)
Growth in percentage
WACC-GROWTH (r-g) this will be
denominator
Take numerator as 9th yr FCF
Terminal Value (Numerator /
Denominator)
PV of terminal value
Total Value
NPV @ WACC
IRR
40,74,255
0.00%
26.97%
94,44,255
40,74,255
30%
39
0
1
From Equity Point of View
40
2
3
4
5
CONCLUSION
41
CONCLUSION
The castor seed powder when mixed with some other natural ingredients such as rose powder,
amla powder, neem powder, hibiscus powder it will smell good and the customers need not to
worry about the strong smell of castor seeds
As castor seeds are widely used in cosmetics especially for hair treatments the castor seed powder
can be used for the growth and other hair care treatments the smell of castor oil can be very strong
for some consumers so it will be difficult for them to use such products in that case these castor
seeds can be converted into powder and to avoid the strong smell of the castor seeds.
Makes hair strong from the roots helps to control the hair fall by continuous use of the product the
hair which has been lost due to hair fall problem will regrow makes the hair length shiny and soft.
The powder can be mixed with other ingredients such as hibiscus powder, rose petals powder,
amla and neem powder can be mixed with it for better results by mixing these ingredients with
castor powder the strong smell of castor seed can be avoided and by using this powder by mixing
it with rose water or normal water and applying it to the roots and hair lengths will make the hairs
strong from the roots and the hairs shiny and silky, the consistent use of this product will give great
result and helps for the growth and to have healthy hair.
42
BIBLIOGRAPHY
https://kvk.icar.gov.in/API/Content/PPupload/k0447_29.pdf
https://www.webmd.com/vitamins/ai/ingredientmono-897/castor-bean
https://www.ajol.info/index.php/ijaaar/article/view/141516/131256
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