Entrepreneurship

development & project

management

Project profile on
Perfumes

bY,

suraj Varma k
contents
Particulars Pg no.

Introduction

Market Potential

Competitors

Technical aspects

Financial aspects
Introduction
In present ages, all people want to appear smart and
elegant in his personality. They need to appear fresh
infront of others. Perfumes help in making a person
fresh by giving them a good fragrance and can appear
infront of people. Perfumes have been used by people
since the late 19th century. It is being bought by lot of
people all around the people just keep fragrance fresh.
These are made by mixing several essential oils and
aroma compounds, fixatives and solvents. They would
add several aromas of flowers, fruits etc for giving it a
variety of scent. These are sold in the markets for a
price which is decided by the marketers for earning
profits since it is brought by everyone. There are
several technical aspects and financial aspects for this
product. These are available in different markets in
different brands and in different prices.
Market potential
Increasing usage of perfumes among the young
population, increasing online retail penetration,
product push strategy by key global players,
availability of perfumes in different price ranges,
and increasing consumer spending on personal
and beauty care products are major factors
expected to drive the growth of the global
perfumes market over the forecast period. The
global perfumes market is witnessing a growing
trend of customised perfumes and the use of
renewable ingredients in perfume manufacturing.
Global perfume manufacturers are also venturing
into the production of microbial based natural
perfumes to cater to the increasing health
awareness among consumers.
Competitors

 Chanel: Chanel S.A. is a French privately held

company owned by Alain Wertheimer and Gérard
Wertheimer, grandsons of Pierre Wertheimer,
who was an early business partner of
the couturière Coco Chanel. Chanel S.A. is a high
fashion house that specializes in haute
couture and ready-to-wear clothes, luxury goods,
and fashion accessories. Perfumes have been
there most profitable business division. The
perfumes that they sell is given as below:

1. Allure EDP
2. Allure EDT
3. Allure Eau Sensuelle EDP
4. Allure Eau Sensuelle EDT
5. Chance

 Estée Lauder: The Estée Lauder Companies

Inc. is a multinational manufacturer and marketer
of prestige skincare, makeup, fragrance and hair
care products, based in Midtown Manhattan, New
York City. They first introduced their womens
perfumes Youth Dew Estee Lauder perfume, in
 1950. ... These men's Estee Lauder
fragrances were accompaniments to their more
popular Estee Lauder perfumes, such as Beyond
Paradise for Men, Pleasures for Men, and Intuition
for Men. There perfume sector has been the most
famous and profitable sector.

 Gucci: Gucci is an Italian luxury brand

of fashion and leather goods. Gucci was founded
by Guccio Gucci in Florence, Tuscany, in 1921. Like
other two companies above, this company is also
famous for its perfumes. They earning more profits
by selling there perfumes. Few of there perfumes
are Eau de Gucci, Eau de Gucci
Concentree, Gucci Accenti etc.

 Hermes: Hermes International S.A., or

simply Hermes is a French high fashion luxury
goods manufacturer established in 1837. It
specializes in leather, lifestyle accessories, home
furnishings, perfumery, jewellery, watches
and ready-to-wear. This company had been selling
 the perfumes. Some of there perfumes products
were Caleche and Terre d’Hermes etc.

Ralf Lauren: Ralph Lauren Corporation is an

American corporation producing mid-range to luxury
fashion products. They are known for the clothing,
marketing and distribution of products in four
categories: apparel, home, accessories, and fragrances.
There fragrance products have been growing bigger
worldwide. Some of there products are World of Polo
(Polo, Polo Blue, Polo Black, Polo Red), Ralph Lauren
Romance, Midnight Romance and the Big Pony
Collections For Women and For Men.
Technical aspects
The raw material used in making perfumes are given as
below:
Natural raw materials: flowers, grasses, spices, fruit,
wood, roots, resins, balsams, leaves, gums, and animal
secretions. There are several other animal ingredients
like castor comes from beavers, musk from male deer,
and ambergris from the sperm whale.

Other raw materials: Resources such as alcohol,

petrochemicals, coal and coal tars are also used in the
manufacturing of perfumes.

Process: The process for making perfume is given as

below:

Collection
1. Before the manufacturing process begins, the
initial raw material must be brought to the
manufacturing center. Plant substances are
harvested from around the world, often hand-
picked for their fragrance. Animal products are
obtained by extracting the fatty substances
directly from the animal. Aromatic chemicals used
 in synthetic perfumes are created in the laboratory
by perfume chemists.
Extraction
Oils are extracted from plant substances by several
methods: steam distillation, solvent extraction,
enfleurage, maceration, and expression.
2. In steam distillation, steam is passed through
plant material held in a still, whereby the essential
oil turns to gas. This gas is then passed through
tubes, cooled, and liquified. Oils can also be
extracted by boiling plant substances like flower
petals in water instead of steaming them.
3. Under solvent extraction, flowers are put into
large rotating tanks or drums and benzene or a
petroleum ether is poured over the flowers,
extracting the essential oils. The flower parts
dissolve in the solvents and leave a waxy material
that contains the oil, which is then placed in ethyl
alcohol. The oil dissolves in the alcohol and rises.
Heat is used to evaporate the alcohol, which once
fully burned off, leaves a higher concentration of
the perfume oil on the bottom.
4. During enfleurage, flowers are spread on glass
sheets coated with grease. The glass sheets are
placed between wooden frames in tiers. Then the
 flowers are removed by hand and changed until
the grease has absorbed their fragrance.
5. Maceration is similar to enfleurage except that
warmed fats are used to soak up the flower smell.
As in solvent extraction, the grease and fats are
dissolved in alcohol to obtain the essential oils.

6. Expression is the oldest and least complex

method of extraction. By this process, now used in
obtaining citrus oils from the rind, the fruit or plant is
manually or mechanically pressed until all the oil is
squeezed out.
Blending

7. Once the perfume oils are collected, they are

ready to be blended together according to a
formula determined by a master in the field,
known as a "nose." It may take as many as 800
different ingredients and several years to develop
the special formula for a scent.
After the scent has been created, it is mixed with
alcohol. The amount of alcohol in a scent can vary
greatly. Most full perfumes are made of about 10-
20% perfume oils dissolved in alcohol and a trace
of water. Colognes contain approximately 3-5% oil
diluted in 80-90% alcohol, with water making up
 about 10%. Toilet water has the least amount—2%
oil in 60-80% alcohol and 20% water.
Aging
8. Fine perfume is often aged for several months
or even years after it is blended. Following this, a
"nose" will once again test the perfume to ensure
that the correct scent has been achieved. Each
essential oil and perfume has three notes: "Notes
de tete," or top notes, "notes de coeur," central or
heart notes, and "notes de fond," base notes. Top
notes have tangy or citrus-like smells; central
notes (aromatic flowers like rose and jasmine)
provide body, and base notes (woody fragrances)
provide an enduring fragrance. More "notes," of
various smells, may be further blended.

Presumptions:
Production will be spanning for 6 hours a day. In
two years full capacity will be utilized. Mimnimum
wages will be paid to the labourers. Rate of loan
will be 25% per annum. Margin money by the
promoters will be 50%.
 Financial aspects
1. Fixed Assets
 Land and building- 150 square/meter area feet
rented
Amount:Rs15000 per month
 Plant and Machinery
SI.no Items Quantity Amount(Rs)
1. Disposable pipettes 100 50000
2. Funnels and measuring 50 80000
equipment
3. Scripettor 70 110000
4. Buchner flasks and 60 150000
ceramic funnel
5. Crimper 50 90000
6. Digital scales 50 150000
7. Magnetic Stirrer 30 170000
8. Containers 90 100000
Total 900000
Working capital

SI.no Items Amount(Rs)

1. Raw materials 50000
2. Wages 35000
3. Electricity 43000
Total 128000

Total Project Cost

SI.no Items Amount(Rs)
1. Land and Building 15000
2. Plant and Machinery 900000
3. Working capital 128000
Total 1043000

Means of finance
Particular Amount(Rs)
Promoter’s 8,18,000
contribution
Bank loan 2,25,000
Total 1043000

Sales Turnover
Expected Sales Turnover per month- 250000
Loan repayment:Rs18750 per month
Monthly expenditure
SI.no Particular Amount(Rs)
Working Capital 128000
Loan Repayment 18750
Total 146750

Profit per month

Sales-250000
Expenditure-146750
Profit-103250
Chanel

Estee Lauder
Hermes

Gucci

Ralph Lauren