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Soap is one of the cosmetic product that is used all over the world by billions of people on daily basis for cleansing process. Now a days cold pressed hand made soaps are preferred by most of the people. Soap being a FMCG product, there is a tremendous growth of soap industries world wide. This is the first time, we got a new query from one of our customer and this blog is a new aspect regarding setting up of a soap factory. For a small factory set up(500 square feet),

· How much will be the total investment

· Framing up of the project plan

· Equipment purchase

· Labor

· Legal formalities

· What is process for getting license

All the answer are uploaded for the first time in our YouTube channel. Click on this below link to have a look at

View this project in video format


As like that we can’t open a soap factory and manufacture soaps for sale. We have to get proper license from the drugs and cosmetic department to set up a soap factory. For this purpose, the first and the foremost parameter is that the factory area should be minimum 100 square meter that is 1000-1100 square feet. The photograph of the factory, machinery along with the purchased bills has to be submitted to the department and apply for the license.


The minimum machinery needed for a small factory includes mixing machine, soap mixing kettle, cutting machine and stamping machine. Get the quotation for all the equipment from various company and before purchasing you can compare and then pay.



Initial investment should be made for the area that we chose for the factory. If it is our own area then there will be no property investment. If the property is going to be rental, then initially we have to the pay the advance.

The advance depends upon the location and area we are selecting. Approximately the advance amount ranges from 50,000-1.5 lakhs.


All the equipment’s that are needed for soap making costs around 2 to 2.5 lakhs. So, overall the machinery purchase costs 2.5 lakhs. Initially, we have to manufacture 1000-1500 soap on daily basis.

For this raw materials are essential and proper stock has to be maintained. The total raw material costs around 3-3.5 lakh. On the whole the major investment comes around 6-6.5 lakhs.


For getting license, there are some specifications in appointing persons. Maximum 5 persons are enough. One full time chemist should be appointed.

Two persons are need to run the machine and their graduation should be 12th pass with chemistry knowledge. One more B.Sc., or M.Sc., chemistry graduate or B.Pharm graduate should be appointed. Finally two more persons are required for wrapping and packaging the soap in the box.


Logo has to be designed wherein the designing charges will add on. Then trade mark has to be obtained for the soap. Apart from this, box printing charges will also come.

Finally after knowing everything, we are going to see how the factory has to be set in. let us see step by step:

1. Pay the advance for the factory property and prepare the factory.

2. Project plan (i.e) the building plan approval has to be acquired from a government authorized surveyor.

3. Pay the amount for the machinery and purchase the equipment.

4. Place all the machinery and arrange it in a sequential order in the factory.

5. All the machinery bills, building approval, all the raw material testing reports, the formulation and test report for the products that are going to be prepared has to be got from NABL [National Accreditation Board for Testing and calibration Laboratories]. For this accreditation, a sample piece has to be kept aside.

6. A very important document that plays a vital role in giving the license is the “Flowchart” of the whole process.





Processing plant




Cutting machine




Curing racks




Stamping machine




Wrapping(Packing station)




Dispatch section(Arrange the soap boxes)




Lab Set-up

Flowchart should be in the correct order which will be inspected accurately by the license authority. The lab set-up at the end of the flowchart is highly essential for testing the quality of the sample. For this lab equipment, Rs.50,000 will be needed.

Once for all when everything is ready, confirm your order and start your business. I hope this blog might have given you a rough overall idea about setting up a new soap factory. Still if you have any doubts or help, our team members are ready to help you in all the aspects. Just make a call to 8825414769 and our team members will guide you.

Login into and place your order. We are ready to supply your needs.


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