Benefits of Indigo Powder on Hair Indigo powder is made by soaking the leaves of the plant in water overnight, which turns the water into a dull blue mixture. This mixture is then dried in the sun until all the leaves are completely dry and crisp. 1.Prevents Hair Fall:Indigo powder works amazingly well for people suffering from hair fall. Indigo powder mixed with hair oil and massaged gently on the scalp strengthens the hair follicles and prevents hair fall. Regular use of Indigo Hair Pack also treats baldness and restores hair volume and growth.