How to Set Up a Cosmetics Manufacturing Factory in India?

Written by Sudhriti M

10 July 2024

India has witnessed a consistent growth in the cosmetics market. Furthermore, the Indian beauty and cosmetics market is considered one of the fastest-growing sectors in the world. The passion for skincare and beauty is consistently increasing. With increasing access to social media, the demand for high quality skincare products is increasing. In the near future, the Indian cosmetics market will be within the top five global markets in terms of revenue. Moreover, the Indian cosmetics consumer landscape is dynamic, which is fuelling the demand for manufacturing cosmetics in India. Thus, with the current scenario in mind, setting up a cosmetics manufacturing factory in India will be highly profitable. Hence, we have curated this guide on how to set up a cosmetics manufacturing factory in India.

The Indian cosmetics market: A booming industry

With increase in beauty trends and influence of social media, the Indian cosmetics market is a booming industry. The Indian cosmetics market value is expected to attain USD 20 billion by the year 2025. Notably, it is growing at a compound Annual Growth Rate (CAGR) of 25%. A population of over a billion, increase in disposable income, and urbanisation, are the factors driving the growth of this industry. People of all ages are becoming increasingly beauty conscious. Furthermore, by introducing new beauty trends, social media influencers are adding to the demand for cosmetic products.

The Indian consumer is becoming increasingly aware and is preferring high quality natural, organic, and herbal products. Specialised skin care, hair care, and makeup are fuelling the demand for cosmetics in India. Additionally, colour cosmetics, perfumes, and ayurvedic products are also in demand. Furthermore, nowadays, Indians are including cosmetics in their daily routine.

This industry has a bright future in India. The landscape of this rapidly growing sector is constantly changing due to the varying demands of the consumers. Moreover, Indians are becoming quality conscious with the increase in awareness. This is driving the demand for various kinds of cosmetics. Additionally, e-commerce has provided access to various cosmetics products even to individuals living in tier 2 and 3 cities.

Therefore, setting up a cosmetics manufacturing factory in India is a very lucrative option. The major Indian cosmetics sectors are skin care, hair care, fragrances, oral care, and colour cosmetics. Furthermore, businesses manufacturing cosmetics in India have a high potential, as demand for high-quality affordable cosmetics in India is increasing. 

How to start a cosmetics manufacturing factory in India?

So, has the Indian cosmetics market potential got you interested in setting up a cosmetics manufacturing factory? We have curated this guide just for you. Notably, the cosmetics industry in India is highly regulated for the safety of Indian consumers. Additionally, there are certain regulatory requirements for setting a cosmetics manufacturing plant.

The cosmetics market in India can be divided into the following 11 major categories:

  1. Skin care products, lotions, soap-based/synthetic-detergent based shampoos, Kum Kum powder, hair oils, cleansing milk, pomade, shaving creams, etc
  2. Hair dyes, such as henna powder, powder and liquid hair dyes
  3. Makeup products for eyes, such as mascara, eye liner, etc.
  4. Lipsticks, cosmetic pencils & lip gloss etc
  5. Cosmetic products for nails, such as nail polishes, nail enamel, and nail lacquers
  6. Toilet soaps, such as liquid soaps, baby, soaps etc
  7. Skin powders (adult and baby powder)
  8. Tooth pastes and powders etc
  9. Depilatories chemicals
  10. Aerosol
  11. Alcoholic fragrance solutions

All these above-mentioned categories of cosmetic products are in high demand in India. Every category type has a different set of requirements for machinery, raw materials, equipment, and manufacturing facility. So, at the very outset, choosing the cosmetics category of your business is important. Then, you can plan and set up your business accordingly.  

Indian cosmetics regulations

For setting up a cosmetics manufacturing factory in India, you need to strictly abide by the Indian cosmetics regulations. All cosmetic products in India are stringently regulated under the Drugs & Cosmetics Act, 1940. Moreover, the Act and the Bureau of Indian Standards have laid down specific requirements for manufacturing cosmetics in India. Certain criteria stating the standards and acceptable limits have to be fulfilled for the cosmetic to be approved in India. Securing a cosmetics manufacturing license is mandatory for manufacturing cosmetics in India.

Indian cosmetics manufacturers can apply for two kinds of licenses:

  • The cosmetics manufacturing license to manufacture cosmetics in India. The application for cosmetics manufacturing license in India is filed under COS-5. The license to manufacture, sell, and distribute cosmetics in India is granted under COS-8.
  • The cosmetics manufacturing loan license is granted to manufacture cosmetics without having a manufacturing facility. The manufacturer can use the facility of another manufacturer producing the same cosmetics products. The application for cosmetics manufacturing loan license in India is filed under COS-5A. The loan license to manufacture, sell, and distribute cosmetics without having a manufacturing facility is granted under COS-8A.

Licensing and registration of cosmetics manufactured in India are monitored by state licensing authorities (SLA) under the Drugs & Cosmetics Act, 1940. Furthermore, SLA is responsible for renewing licenses for manufacturing cosmetics in India. This is applicable for all states and union territories in India.

Requirements for setting up a cosmetics manufacturing factory

Manufacturing facility premise requirements:

A clean and hygienic location with proper sanitary conditions preferably away from residential area is required. Furthermore, the facility should have proper waste disposal and water supply system. Additionally, the rooms should have smooth and waterproof walls that can be easily cleaned. Furthermore, they should have smooth flooring and should not have wooden doors. There are specific regulations for setting up a cosmetics manufacturing facility, its layout, and machinery.

We at Pharmadocx Consultants provide an all-encompassing service for setting up a cosmetics manufacturing factory. Avail our factory site selection and factory layout designing services. Additionally, we will also provide a list of machinery and equipment required. By availing our service, you can rest assured your cosmetics factory will be set up per applicable regulatory guidelines.

Supporting documents required for obtaining a cosmetics manufacturing license

  • Blue print of approved layout plan for factory premises
  • NOC from municipality or panchayat for factory set up
  • Ownership papers or rental agreement for factory premise
  • Partnership deed, if applicable
  • Details of technical staff personnel
  • Purchase bills for machinery, equipment, tools
  • Plant master file
  • State pollution control board permission

We have provided an overview of the necessary documents for cosmetics licensing and registration. For a detailed list of document requirements, feel free to get in touch with us.

Technical staff requirements:

Adequately trained technical personnel will be required to operate the machinery and run your factory. The minimum educational qualification should be Higher School Certificate (HSC) qualified. Diploma in pharmacy or chemistry would be an added advantage. However, the staff should be properly trained on how to handle equipment.

Step by step guide for setting up a cosmetics manufacturing factory in India

  1. Choose an appropriate location for setting up your factory, which should be established per Indian cosmetics regulations.
  2. Obtain a company registration as required
  3. Secure a GST registration number
  4. Ensure your factory and cosmetics manufacturing process complies with the Indian regulations.
  5. Procure raw materials and necessary machinery depending on the cosmetics you are going to manufacture
  6. Assemble a team of competent technical staff
  7. Collate all the necessary documents required for applying for a manufacturing license. Obtain a cosmetics manufacturing license.

If you are planning to manufacture cosmetics in India, you have landed in the right place. We will provide all the support required to set up a cosmetics manufacturing factory in India. Our team of experts will provide all the necessary regulatory support. We are just a call/Whatsapp or email away.

Let's Talk!

We'd love to hear from you! Whether you have questions about our pharmaceutical plant setup consultation services or want to discuss a potential project, our team is here to help. Simply fill out the form below, and we'll get back to you as soon as possible. Alternatively, you can reach out to us directly using the phone number or email address listed on this page. We look forward to connecting with you!

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