1. Product Description: Cosmetic products encompass a wide range of products from perfumes and lipsticks to Para-pharmaceuticals like hair creams and oils and face creams, tooth pastes and shampoo oils. As their variety, cosmetics do have different applications. Perfumes and lipsticks are used for aesthetic reason i.e. to impart fragrance and to beantify parts of the body. On the other hand, the Para-pharmaceuticals are applied to preserve the healthy conditions of parts of the body where they are applied.
About 50 percent of Ethiopia's 75 million people are female. If we assume that at least 10 percent of them use hair cream, there are about 3.75 million consumers of hair cream. Again if we assume that one consumer uses 0.3 kg per year, annual consumption of hair cream is 1,125 tons. This estimated consumption will grow very year as the number of consumers increase through further urbanization and population growth. The projected demand for hair cream in 2008 will be about 1200 tons per year. Limited quantities (with questionable quality) of hair cream are being produced locally. But the bulk of hair cream consumed in the country is imported. This can be replaced by additional domestic production.
2. Sources of raw materials: The main raw materials required is petrolatum white (Vaseline) for hair cream. In addition, aromatic essence is added to give attractive fragrance. The main raw a material will be imported.
3. Process and Technology: Production of hair cream requires simple manufacturing processes. The processes include bathing of ingredients, thorough mixing, emulsifying, filling and packing. At the initial stage, raw materials both ingredients and fillers as well as solvents will be weighed and prepared according to desired proportions.
The prepared batch is thoroughly mixed in a mixing vessel to get a homogenized mix. The mix is then introduced into the filling machine where it would be discharged into suitable containers within limited dosages. The main pieces of equipment needed are weighing balance, mixing vessel, filling machine and inspection and labeling tables.
4. Estimated Investment: For a plant which can produce 400 tons per year working 250 days operating eight hour a day, the estimated investment will be:-
§ Building/shade 1000 m2 at 2000/m2 = Birr 2,000,000
§ Machinery .................................. = Birr 1,400,000
§ Working Capital ........................... = Birr 400,000
Total ... = Birr 3,800,000
5. Benefits: Similar to other projects.
6. Location: Any urban area preferred by the investor.