§1What this business is

Water-phase ingredients (aloe water, rose water, glycerine), oils, emulsifying wax and stearic acid are measured into a jacketed mixing vessel, mixed at a set temperature, then pumped to a filling machine, filled, sealed and cartoned. The report uses a 100 kg GMP ointment plant and plans 500 ml bottles. Body lotion softens and moisturises dry skin, especially in winter.

Capacity: 100 kg a day — 30,000 kg or 60,000 bottles of 500 ml a year at full capacity (8 hours, 300 days); 50% in year 1.

§2Is it right for you?

Who it is for

Someone with a chemistry or cosmetics background, or a seller with a ready retail or online channel.

Who it is not for

Someone hoping to sell without spending on brand building.

Advantages

  • Everyday personal-care product with wide demand
  • One compact plant does mixing for many recipes
  • Raw materials are easy to buy
  • Margin improves as volume grows (5.9% to 14.9%)

Drawbacks

  • Needs a cosmetics manufacturing licence and lab testing
  • Big brands spend heavily on advertising
  • Shelf life and preservative choice must be right
  • Retail shelf space is hard to win

Skills you need

  • Cosmetic formulation and emulsions
  • Good manufacturing practice and hygiene
  • Packaging and label rules
  • Brand building and distribution

Why difficulty 3/5: Making is simple; licensing, quality and brand selling are the hard parts.

§3Market

Who buys

  • Households
  • Salons, spas and hotels
  • Private-label buyers and online sellers

How it sells

  • Chemists, cosmetic shops and supermarkets
  • Online marketplaces
  • Distributors in small towns

Good to know

  • The report says the body lotion segment had only 16% penetration in India in 2011 and was growing fast.
  • The report prices a 500 ml bottle at ₹200 in year 1 rising to ₹240 in year 5.

§4Raw material & machinery

ItemQtyCost
Ointment manufacturing plant, 100 kg, GMP model1₹18,50,000
Other machines and equipment (filling, sealing, handling)—₹1,50,000

From: PMEGP sample project report — Body Lotion (prepared by Udyami/Samadhan)

  • Water phase: aloe water, rose water, glycerine
  • Oils: sweet almond, mineral, olive, sunflower or palm oil, aloe butter
  • Emulsifying wax and stearic acidmake the lotion stable
  • Preservatives and fragranceaverage raw material ₹120–150 per 500 ml bottle in the report
  • Bottles, tubes and cartonsfor filling and packing

From: PMEGP sample project report — Body Lotion (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Cosmetics manufacturing licence from the State Drugs Control (Licensing) Authority
  2. State Pollution Control Board NOC
  3. Udyam registration
  4. GST
  5. Legal Metrology registration for packed goods
  6. Trademark for the brand (if needed)

We can do this registration for you

§6Schemes & subsidies

The report is a PMEGP sample. CGTMSE can back the loan; Stand-Up India suits SC/ST and women founders.

§7Money

How the investment is worked out: Plant & machinery ₹20.00 lakh + furniture ₹1.00 lakh + working capital ₹3.33 lakh = ₹24.33 lakh. Land own or rented (not in the cost).

Working capital: Working capital ₹3.33 lakh, of which a bank loan of ₹3.00 lakh; 10 days of raw material and 15 days of finished stock.

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

3304.99Other beauty, make-up and skin-care preparations

Export council / board: CHEMEXCIL

  • Importing countries have their own cosmetic rules (for example ingredient lists and safety files); check them before each market.

§9Risks — where people fail

  • Product spoiling or separating on shelf
  • Skin reactions and complaints
  • Licence compliance lapses
  • Heavy competition

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working body lotion manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Cosmetics manufacturing licence from the State Drugs Control (Licensing) Authority, State Pollution Control Board NOC), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Body Lotion Manufacturing?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Body Lotion (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.