§1What this business is
Waxes, oils and pigments are heated, ground on a triple-roller mill, poured into moulds, chilled and filled into lipstick cases and kajal pencils. Products go to cosmetic shops, general stores, beauty parlours and wholesalers, or to bigger brands as a contract maker. A cosmetics licence and steady quality are essential.
Capacity: 1,00,000 pieces a year (cost of production ₹86.65 L at full capacity).
§2Is it right for you?
Who it is for
Someone with a chemistry or cosmetics background who can build a brand or win contract orders.
Who it is not for
Someone without technical staff or the money to market a brand.
Advantages
- Colour cosmetics demand is growing with urban buyers
- High value per piece
- Can also make for other brands on contract
- Machines are compact
Drawbacks
- Big brands dominate shelf space and advertising
- Needs a cosmetics manufacturing licence and a qualified person
- Shade trends change fast
- Raw material is costly and partly imported
Skills you need
- Cosmetic formulation and shade matching
- Quality testing and hygiene
- Packaging design
- Retail and distributor selling
Why difficulty 4/5: Licensing, quality control and brand-building make it harder than a simple workshop.
§3Market
Who buys
- Cosmetic and general stores
- Beauty parlours
- Wholesalers and distributors
- Other brands (contract manufacturing)
How it sells
- Distributor and retailer network
- Online marketplaces
- Contract manufacturing orders
Good to know
- The profile links demand to urbanisation, beauty awareness and TV and print advertising.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| SS triple roller mill 12" × 6" | as per profile | — |
| SS mixing tank, 100 kg | as per profile | — |
| Lipstick and kajal filling machine | as per profile | — |
| Heating apparatus, wax heating vessel, chilling plant and jacketed vessel | as per profile | — |
| Moulds for lipstick and kajal, testing equipment | as per profile | — |
| Total equipment incl. office furniture and fixtures | 1 lot | ₹9.78 lakh |
From: KVIC Project Profile — Lipstick and Kajal Pencil (PMEGP)
- Waxes, oils, pigments and other cosmetic ingredientsraw material ₹72.00 lakh a year at full capacity in the profile
- Lipstick cases, kajal pencil bodies, labels and cartonslabels and packing ₹75,000 a year in the profile
From: KVIC Project Profile — Lipstick and Kajal Pencil (PMEGP)
§5Licences & registration
- Cosmetics manufacturing licence from the State Drugs Controller (Cosmetics Rules, 2020)
- Udyam registration
- GST
- Trademark for your brand
- Pollution board consent if your state requires it
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (KVIC profile); CGTMSE for a collateral-free loan; Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: KVIC profile: equipment ₹9.78 L (SS triple roller 12"×6", 100 kg SS mixing tank, lipstick and kajal filling machine, heating apparatus, chilling plant and jacketed vessel, wax heating vessel, moulds, testing equipment, office furniture) + working capital ₹14.20 L = ₹23.98 L. Land own, work shed rented (no cost in the project).
Working capital: Working capital is ₹14.20 L — raw material costs ₹72.00 L a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Licence or labelling non-compliance
- Product rejection for poor quality
- Heavy marketing spend
- Unsold shades
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working lipstick and kajal pencil unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Cosmetics manufacturing licence from the State Drugs Controller (Cosmetics Rules, 2020), Udyam registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
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 Lipstick and Kajal Pencil?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.