DETERGENT CAKES

INTRODUCTION

         This is detergent in cake form, which can be used with hand as well as in soft water.

         In our country, village people are accustomed to washing clothes near rivers and ponds using cakes by scrubbing and applying mild force. Detergent cakes or bars are suitable for this purpose and are becoming popular both in the villages and urban areas.

MARKET POTENTIAL

         It is a common consumer product demand for which is increasing day by day. Therefore marketing this product may not be a problem.

BASIS AND PRESUMPTIONS

        1.         Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed. Efficient machines and                     workers are also presumed.
        2.         Minimum 6 month period is considered for achieving full capacity utilisation
        3.         Labour rates are as per the prevailing rates.
        4.         An average interest rate of 18% is considered.
        5.         The estimates are drawn for a production capacity generally considered techno-economically viable for model                     type of manufacturing activity.
        6.         The information supplied is based on a standard type of manufacturing activity viable for model type of                     manufacturing activity.
        7.         The information supplied is based on a standard type of manufacturing activity utilising conventional techniques                     of production at optimum level of performance.
        8.         Costs in respect of land and building, machinery and equipment, raw materials and the selling prices of the                     finished products etc., are generally prevailing at the time of preparation of the project profiles and may vary                     depending upon various factors.
        9.         Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated                     at the end of the profile, those are by no means exclusive or exhaustive.

IMPLEMENTATION SCHEDULE

         Normally six months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc.

TECHNICAL ASPECTS

         There are two methods for the manufacturing of Detergent Powder, viz. spray dried detergent powder and just mixing of Detergent Powder, raw materials. Spray drying involves a lot of investment and hence the other simple mixing method is adopted by a number of small units. In this project profile, simple mixing method is followed.

FINANCIAL ASPECTS

FIXED CAPITAL
Rs.
Land and Building
2,500

MACHINERY AND EQUIPMENT

1
Detergent plodder with 5 HP Motor
1
50,000
2
Sigma blender (50 Kgs. capacity)
1
20,000
3
Stamping machine
1
5,000
4
Platform weighing scale
1
5,000
5
Miscellaneous expenditure
 
3,000
6
Furniture and fixture
 
5,000
Total
88,000

WORKING CAPITAL PER MONTH

PERSONNEL

Sl.No.
Description
Nos.
 
1
Supervisor
1
3,000
2
Semiskilled Worker
2
3,500
3
Unskilled Worker
1
1,200
4
Watchman
1
1,000
Total
 
8,700

RAW MATERIALS

Sl.No.
Particulars
Qty.(Kg.)
Rate(Rs./Kg.)
Value (Rs.)
1
Acid Slurry (all are indigenous)
375
42
16,875
2
Soda Ash
550
12
6,600
3
S.T.P.P.
250
20
5,000
4
Glaubers salt
375
7
2,625
5
Talc
375
3
1,125
6
Starch
250
5
1,000
7
Color
7
300
2,100
8
Paraffin Wax
50
35
1,750
9
Packing
L.S.
5000
10
Perfume
5
150
750
Total
42,825

UTILITIES

1
Power
1,500
2
Water
200
Total
1,700

OTHER EXPENSES (Per Month)

1
Postage and Stationery
200
2
Consumable Stores
200
3
Repairs and Maintenance
400
Total
800

TOTAL CAPITAL INVESTMENT

1
Fixed Capital
88,000
2
Working Capital on Three months
1,62,100
Total
2,50,100

COST OF PRODUCTION (Per Annum)

        1.         Total Recuring Expenditure --------------------------------------6,48,300
        2.         Depreciation on machinery @ 10%on 88,000 -------------------8,000
        3.         Depreciation on Office Equipments @ 25% on 5,000 -----------1,250
        4 .         Interest on total capital @ 12% on 2,50,100 -------------------30,000
                     Total                                                                                        6,87,550

XVI. TOTAL SALES (Per Annum)

        By sale of 2,49,000 Cakes                                 7,80,000
        @ Rs. 3.25/- per Cake

XVII. PROFITABILITY (Per Annum)

        Profit 7,80,000 – 6,87,550 92,450

        Net Profit Ratio : Net profit x 100 / Turnover

        92,450 x 100 / 78,000

        = 11.85%

        Rate of Return : Net profit x 100 / Total Investment

        92,450 x 100 / 2,50,100

        = 36.96%

        Break Even Point : Fixed Cost x 100 / Fixed Cost + Profit

FIXED COST

        Depreciation -----------------------------------9,250
        Interest on total investment ---------------------30,000
        Rent -------------------------------------------30,000
        40% on salary and wages ----------------------41,760
        40% of Other expenditure ----------------------3,840
        Total                                                                1,14,850

        B.E.P. = Fixed Cost x 100 / Fixed Cost + Profit

        1,14,850 X 100 / 1,14,850+ 92,450

        = 55.40%

ADDRESSES OF MACHINERY MANUFACTURERS

        1.         M/s Prototype Development and Training Centre, P.O. Okhla Industrial Estate, New Delhi – 110 020.
        2.         M/s Precision Machinists, Plot No. 356(D), Kandivli, Industrial Estate, Kandivli, Bombay – 400 067
        3.         M/s Steel & Brass Trading Corporation, Nirman Nagar, Kesar Baugh, Plot No. 116/17,
                    Bhavanagar – 364 001.
        4.         M/s Oriental Machinery Supplying Co. Ltd., Mission road Extension, Calcutta.

ADDRESSES OF RAW MATERIAL SUPPLIERS

        1.         M/s S.P. Chemical, Plot No. 4, Kengeri, Mysore Road, Bangalore.
        2.         M/s Surcoats (India), C-29. Royal Industrial Estate, 5-B Naigaum Cross Road, Wadala, Bombay – 400 031
        3.         M/s Supertex (India) Corporation, 132, Dr.A.B. Road, Bombay – 53.
        4.         M/s Saibaba Sugandh Bhandar, 53, Santhusapet, Bangalore – 53
        5.         M/s M.M. Chemicals, A.S. Char Street, Bangalore – 53
        6.         M/s Prakash Chemical Agency, Purnaseshachar Street, Behind Chickpet Post, Bangalore – 53.