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oleochemical industry in Malaysia, palm based unsaturated fatty acids (especially oleic acid) are easily available and provide an easy source of raw materials for this invention. However, this invention is also applicable to oleic acids derived from other types of oils and/or fats. The said dihydroxystearic acid (DHSA) is a specialty chemical, derived from epoxidation of oleic acid with either peracetic or performic acid followed by hydrolysis with hydrogen donors such as water. Currently, palm oil based crude DHSA is prepared in a pilot plant located in the premises of the Malaysian Palm Oil Board, at the rate of 500kg DHSA per batch run. DHSA is used as primary and secondary emulsifiers, coating agent for pigments and gelling agent for oils and/or fats in coloured cosmetics formulations and research.