Toothpaste production with allied products like tooth powder and toothpaste in gel form requires a wide activity of sourcing inventory, manufacturing, marketing, and distribution. Toothpaste is a household consumable good and generally comes as either white abrasive pastes or clear gels.
The global toothpaste market is on the threshold of a new phase with the advent of new biotechnologies that help curb problems of sensitivity and enable the re-growth of teeth. Oral care is undergoing significant changes with innovative and fresh products motivating people to alter their oral hygiene habits. The world toothpaste industry was valued at USD 15,061.4 million in 2017. Industry experts predict 4.80% CAGR can go up to USD 21,642 million during the forecast period (2018-2025).
8 Steps to Start a Toothpaste Manufacturing Company
The toothpaste market is not price-sensitive and brand loyalty plays an important role in the majority of the customers. The product has a good scope and opportunity for the entrepreneurs who really want to establish a profitable business in the household consumable goods industry.
1. Toothpaste Production Business Plan
In starting the toothpaste production business a detailed comprehensive plan is the utmost necessity. There are different varieties of toothpaste that can be made. Selecting the right category is important. Different varieties are white toothpaste, gel toothpaste, ayurvedic toothpaste, and tooth powder; white or colored.
You must select the variety and accordingly plan for marketing strategy. According to the product you will need to focus on the target niche. Determine your business objective, mission statement, and goals. By having a customized project report you will find the financial aspects also. Calculate the startup budget with the working capital needed.
2. Toothpaste Production Business Compliance
Several different types of permits and licenses are required for toothpaste production. It hugely depends on your location and local state laws. Registration of business according to your ownership pattern is a must.
Business compliances vary from state to state and country to country. In India, you will need to obtain a Trade License, Factory License, and GST Registration. Apply for ‘Consent to Establish’ and ‘Consent to Operate’ both from the Pollution Control Board. Also, you will need to have EPF & ESI registration. According to your product specification apply for an ISI mark from BIS Certification Authority.
3. Machinery & Raw Materials For Toothpaste Production
According to the desired specific product you will need to choose the right machinery. Taking the proper expert advice is always recommended. Commonly required machinery is a shear mixer machine, injection shoulder, weighing scale, filling, and sealing machine. A small laboratory setup is also important for research & development purposes.
In manufacturing different types of toothpaste different raw material is used. It also depends according to the formula. The most common raw materials required are Allantoin, Aluminium Lactate, Bronopol, Calcium Carbonate, Sorbitol 70%, Sodium mono fluorophosphate, Ethylvanillin, etc. Procure all the raw materials from reliable chemical manufacturers or suppliers.
As toothpaste is a consumer durable item you have to pay attention to packaging. Different small and big retail packaging should be launched. Toothpaste normally comes in tube form. You will need to gather required packaging consumables like a tube, cardboard box, and outer carton for wholesale delivery.
4. Setup Your Toothpaste Production Business
Selecting the right location for the toothpaste production company is important. It is advisable to establish the toothpaste manufacturing operation within an Industrial Zone. By doing this you will get some certain advantages such as commercial electric connection, sufficient water supply, availability of labor with uniform wages, smooth transport facility, and many more.
You may establish your admin and marketing office at other places. For smooth accounting, administration, and production operation you may need to have ERP (Enterprise Resource Planning) Software.
5. What are the types of Equipment Required to Start Manufacturing Toothpaste
Procuring of machinery will largely depend on the scale of output you are looking for. However, most general machinery you need includes a homogenizing paste-making machine, a filling and sealing machine, an inkjet machine, etc.
In addition, you will also need cartoning machines for packaging.
6. Calculate the Cost of Starting Toothpaste Manufacturing Unit
The bulk of your startup investment in starting a toothpaste manufacturing company will go into buying machinery and equipment. Other than equipment, other costs will include space rent, business licenses, manpower hiring, and marketing expenses.
If you are interested to start this business in India on small scale, the startup cost will be a minimum of in the range of Rs. 20 lacs to Rs. 50 Lacs.
7. Human Resource For Toothpaste Production
The toothpaste production business involves the wide activity of factory operation, marketing, sales, accounting, and admin operation. It is advisable to craft an HR Manual in the initiation stage of the organization. According to the demand you will need to recruit the specific experienced and skilled manpower.
In factory operation, recruitment of a ‘Chemist’ is beneficial and sometimes mandatory. Apart from this identifying the proper and effective position and recruitment of right and capable manpower is an important factor in getting overall success.
8. Promote Your Toothpaste Production Business
Rightly planned brand promotion and media promotion are required. Electronics media like television and radio are the most effective medium to promote this type of product. Do some outdoor advertising activities too.
Online promotion is also important. Create your own organization’s website with every detail information about the product and the company. Focusing on a targeted niche and doing sales promotion according to that is the only effective way to get success.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.