Clean Body and Mind with Healing Soaps

Thursday, January 19, 2006

Possible models for making soap business in India

Below is a list of permutations of what I understand to be possible:

1. I set up a manufacturing unit - in partnership with some trusted Indians - I front the money - draw a salary etc- but have only 26% stake in the shares of the company (that is if we are selling handmade soap products and if soaps is indeed an SSI).

1. (a) if handmade soap is not an SSI - I set up another company - with a manufacturing unit and maintain total share control.

2. I set up as an agent for soap designed to my formula with a local soap company and draw up an exclusive contract for sales and marketing of said soap products.

3. I approach a large scale (industrial) soap manufacuter - such as one I know in Bangalore - and pay them to produce a soap to my requirements - I then collect those soaps and manage the marketing and sales end. This would not be a handmade product of course -but then the quality - could be good if we insist on certain ingredients. I would likely need to set up an exclusive contract for that brand of soap - in a way this could be like we were the manufacturer and have all the rights to that particular soap - but we would just not have to be labored with factory costs etc- we just subcontract out the production of the soap.

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