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SISI to develop cosmetic, herbal cosmetic cluster in Mumbai under 3 year project
Gireesh Babu, Mumbai | Tuesday, June 19, 2007, 08:00 Hrs  [IST]

After completing the Bulk Drug Cluster project with the support of the local industry association, the Small Industries Service Institute (SISI) under the central Ministry of Small Scale Industry is coming up with a three-year project to develop a cosmetic and herbal cosmetic cluster at Mumbai.

The institute has submitted the project, estimated to complete with an investment of Rs 10 crore, to the Ministry of Micro, Small and Medium Enterprises and is expected to receive official consent from the ministry within one month, according to officials. The institute, in collaboration with All India Small Scale Cosmetic Manufacturers Association (AISSCMA), will create a special purpose vehicle (SPV) to initiate the cluster project in an existing cosmetic industrial area of 75 km including Vasai and Western Suburbs, Mumbai.

"The cosmetic industry, especially the herbal industry has a tremendous market potential, which is yet not covered by the current supply. India continues to be the second largest exporter of the herbal cosmetics to the world market after China. Our effort is to enable the small scale companies to grab the opportunity including exports market," said G M Ambhore, director, SISI. The institute prepared the project report with the help of Maharashtra Food and Drug Administration (FDA) and Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil).

The growth of cosmetic market globally is currently recorded as 8.2 per cent while the cosmetic and toiletries market in India is Rs 26,000 crore with an annual growth rate of 15.20 per cent. Herbal cosmetics, which are growing in a faster pace, would be a major focus area in the new cluster, he added.

The SPV will help the manufacturing units to collect raw materials, make necessary technology up-gradation, support in financial matters, skill development, improving storage conditions, test facilities and packaging quality. The government will facilitate 80 per cent of the total investment required for the cluster to be developed in the area, which already have 90 cosmetic and herbal cosmetic units. Currently, the units have a cumulative turnover of Rs 175 crore including Rs 20 crore from export business.

"The emerging demand of naturo therapy in modern period and the need of personal healthcare in day to day life are the major growth factors of cosmetic and herbal cosmetic industry. With our project, we are aiming to carry these micro, small and medium scale units to grow better and the cluster is estimated to record a 300 percent growth in next three years," Ambhore averred.

The support will be provided to the cluster, under the Small Industries Cluster Development Programme (SICDP) initiated by Ministry of SSI. Export promotion activities will be carried out through organized buyer-seller meet and trade delegate visit to international exhibition in potential countries, with the help of Chemexcil. The cluster will also utilize the services of the Bulk Drug Service providers under the scheme.

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