Project Profile - DETERGENT POWDER

INTRODUCTION

         Detergents are also known as Synthetic Detergents. They are different from oil-based soap though both soaps and detergents are surfactants. Their important application is cleaning. Because of a number of advantages Detergents are popular than soaps and its demand is always there if the product possesses both quality and price effectiveness. There are a number of varieties of detergents varying in percentages of active matter present in them and also different colours. Manufacturing process is very simple and only mixing is involved. Hence, this product is best suited for manufacturing in small-scale sector.

MARKET POTENTIAL

         Indeed, marketing is not a simple task. In the country, a number of public sectors, Govt. sectors are making Detergent powder, besides many small manufacturers. Detergent is a consumer item. Hence, there is a scope for this item, if production and marketing is done effectively.

BASIS AND PRESUMPTIONS

        1.         Single shift of eight hours a day, 25 days a month and 300 days in a year is presumed. Efficient Machines and                     workers are also presumed.
        2.         Minimum six months period is considered for achieving full capacity utilization.
        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 utilizing conventional techniques                     of production at optimum levels of performance.

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 manufacture of Detergent powder, viz. Spray dried detergent powder and just mixing of Detergent Powder, raw materials etc. 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, simple mixing method is followed.

PROCESS OF MANUFACTURE

         Acid slurry is first neutralized with soda ash and mixture is kept for one hour for completion of reaction. Other ingredients such as STEP,TSP, Glauber’s salt, CMC, Colours, Perfume etc. are then blended to the neutralized acid slurry with continuous mixing. The mixture is then dried, slaved and packed in suitable pickings.

QUALITY CONTROL

         IS: 4955-1968: Specification for Synthetic Detergents for household use.
         Power Requirement: 2 HP

FINANCIAL ASPECTS

FIXED CAPITAL

Land and Building: Rented per month
2,500

MACHINERY AND EQUIPMENTS (ALL ITEMS ARE INDIGENOUS)

1
Stainless steel/MS Ribbon Blender 50 Kg capacity (2 HP)
1
60,000
2
SS Trays/Plastic Trays/ Enameled Trays
2
5,000
3
Weighing Balance ( 15 Kgs.cap.)
1
15,000
4
Misc. equipment like Plastic Buckets, Storage drums etc., and plastic heat bending mc/(H.O)
 
25,000
5
Office equipment like Chair, table etc.
 
15,000
Total
 
1,20,000

TESTING EQUIPMENT

         For SSI unit, investment on testing equipment becomes costlier. Therefore, availing other laboratory services can make testing of products.

  Rs.
Electrification and installation charges at 10% of cost of machinery and equipment 6,000
Total cost of machinery and equipment 1,26,000

PRE-OPERATIVE EXPENSES, IF ANY ---------------------------------------------------------Nil

TOTAL FIXED CAPITAL -------------------------------------------------------------------------1,26,000

WORKING CAPITAL PER MONTH: -

PERSONNEL

Chemist-cum-Manager
1
5,000
Unskilled Workers
2
3,000
Salesman
1
1,500
Watchman
1
1,200
Perquisites at 15% of salaries
 
1,600
 
 
12,300

RAW MATERIALS

Sl.No.
Name of Items
Kgs.
Rs./Kgs.
Rs.
1
Acid slurry
225
80
18,000
2
Soda Ash
573
18
10,315
3
Trisodium Phosphate
125
25
3,125
4
Sodium tri polyphosphate
100
40
4,600
5
Corboxy methyl cellouse
6.25
45
282
6
Guauber’s salt
245
12
2,940
7
Color
1.25
350
438
8
Perfume and Brightner
1.25
150
188
9
Packing
1300
50 / Cover
1,300
Total
41,188
Say
42,000

UTILITIES PER MONTH

Power
Rs. 400
Water
Rs. 650
Total
Rs. 1050

OTHER EXPENDITURE

        1.         Postage and Stationer              500
        2.         Consumable Stores                 500
        3.         Repairs & Maintenance           500
                                                                  1,500

TOTAL RECURRING EXPENDITURE ------------------------------------------------------58,500

TOTAL CAPITAL INVESTMENT

Fixed Cost
Rs.1, 26,000
Working Capital in Three Months
Rs.1, 75,500
Total
Rs.3, 01,500

FINANCIAL ANALYSIS: -

COST OF PRODUCTION PER YEAR

Total recurring cost/year
Rs.6, 66, 600
Depreciation on machinery @ 10% on 10,500/-
Rs.10, 500
Int. on total capital investment @ 12% on 3,01,500
Rs.36, 180
Total
Rs.7, 13, 280
Say
Rs.7, 13, 300

TOTAL SALES (Per Annum)

         By sale of 22,000 kgs of Detergent powder -----------------------------7,92,000
         @ Rs. 36/- per pair

XVII. PROFITABILITY (Per Annum)

        Profit = 7, 92, 000 – 7,13,300

        = 78,700

        Net Profit Ratio: Net profit x 100 / Turnover

        78,700 x 100 / 7,92,000

        = 9.94%

        Rate of Return: Net profit x 100 / Total Investment

        78,700 x 100 / 3,01,500

        = 26.10%

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

FIXED COST

        Depreciation of Machinery ------------------------------------------10,500/-
        Interest on total investment ------------------------------------------35,100/-
        Rent ----------------------------------------------------------------30,000/-
        40% on salary and wages -------------------------------------------59,000/-
        40% of other expenditure--------------------------------------------7,200/-
                                                                                                                1,41,800

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

        1,41,800 x 100 / 1,41,800+ 78,700

        = 64.31%

ADDRESSES OF MACHINERY SUPPLIERS

        1.         M/s Almech Fabs (P) Ltd., 728, Industrial Town, Bangalore – 44
        2.         M/s Ess Ess Engineers, 50/16. 4th Main, 5th Cross, Industrial Town,
                    Bangalore – 44
        3.         M/s Perpetual Industries, 16/1, Okalipuram, Next to HAL Bus Depot, Bangalore.
        4.         M/s Kailas Engineering Co., 53, 71st Cross, 5th Block, Rajajinagar, Bangalore –10.
        5.         M/s Leo Products, 83/3, Saitpalya, Hennier Road, Bangalore – 84
        6.         M/s Radha Krishna Engineering and Chemical Works (P) Ltd., 135, Shiva Farms, Kamakshipalya, II Stage,                     Magadi Main Road, Bangalore-79.

ADDRESSES OF CHEMICAL SUPPLIERS

        1.         M/s SP Chemicals, 170/H, Sarakki, Bangalore – 78
        2.         M/s Meenaxi Chemicals, 63, Laxman Rao Road, BVK Iyengar Road, Bangalore – 53
        3.         M/s Padam Shree, 66/2, Lakshman Rao Road, BVK Iyengar Road Cross, Bangalore – 53
        4.         M/s Sai Baba Sugana Bandar, 53 Sultanpet, Nea, Chickpet Post Office, Bangalore – 53

Acid Slurry

        Global Chem.
        Contact Person : Mr. C.L. Muthaiah
        Address : W-11, Anna Nagar East
        Chennai, Tamil Nadu, 600 040 India
        Tel : +(91)-(044)-26262339
        Fax :+(91)-(044)-26262339
        E-mail :muthaiah2000@hotmail.com

        Kiran Group Private Limited
        Sellers of sodium silicare and acid slurry.
        Address: #81, New avadi road, Kilpauk, Chennai - 600 010, India
        Phone: +(91)-(98400)-94595

Soda Ash:

        Pure Chemicals Co.
        Mr. A. Niranjan
        No-32, H-Block, 15th Main Road, Anna Nagar
        Chennai,Tamil Nadu 600 040(INDIA)
        + (91) - (44) - 26161822
        + (91) - (44) - 26161813

        E-mail:exports@pure-chemical.com
        E-mail:business@pure-chemical.com

Sodium tri polyphosphate

        Contact Person: Mr. Amit Shah
        Flora Chemicals
        Address: 621, Reena Complex, Nathani Lane, Vidya Vihar (West)
        Mumbai - 400 086 - Maharashtra, India.
        Tel : + (91) - (22) - 55554189
        Fax : + (91) - (22) - 55554190
        Mobile : 9322402737 / 9223433436
        E-mail : florachem@vsnl.com

Tri sodium phosphate

        Precious Organics Private Limited
        Address: Chandra Chhaya Chs.14/2, 114-keshavji Naik Road,
        Chinch Bunder,masjid, Mumbai - 400 009, India
        Phone: +(91)-(22)-23730073 Fax: +(91)-(22)-23737022