Friday 28 December 2012

Start a Liquid Detergent Manufacturing Business



  

Start a Liquid Detergent Manufacturing Business
Liquid detergent is a type of detergent i.e. cleaning agent. Its popular use is to
wash woolen cloth but it is also used for washing of utensils specially glass and crockery,
and for automobile wash.  Now a days it is widely used in washing machines, laboratories
etc.

MARKET :
There are few brands are available in the market which is for woolen cloth
washing. But few MSME units are also having good marketing their products. Considering
the fact that it does not contain any filler material which deposited on the cloth surface,  its
popularity is increasing in  conscious people. There is good potential of this product of good
quality and economical prices.


BASIS & PRESUMPTIONS :
1. The basis of calculation of production capacity is on single shift basis and
working of 25 days per month.
2. Rate of interest has been taken @  18% per annum on an  average on working
capital and total capital investment.
3. Whereas some names of manufacturers  and suppliers of raw materials,
machinery & equipments are at the end of the profile are by no means exclusive
or exhaustive.
4. The cost of machinery & equipments indicated in the profile are approximate
those prevailing at the time of preparation of the profile.
5. Non-refundable deposits of  preparation of project report may be considered
under pre-operative expenses.
6. The provision made in raw materials, utilities, overhead etc. is drawn on the
basis of local market  conditions/ observations and in approximate. The
entrepreneur may find out the exact cost from the concerned sources.
7. License is required under Drug & Cosmetic Act from state drug controller.


IMPLIMENTATION SCHEDULE
         1.   Registration of the unit with DIC    10 days
           2.   Procurement of finance through Bank or    45 days
        other financial institutions.
           3.   Procurement of machines     30 days
           4.   Commercialization of the unit/ Trial production.   10 days


Process of manufacture :
      It is a neutralization process of Acid slurry by Caustic Soda keeping pH 7 to 9. Acid
slurry and water is mixed slowly in the mixer, after that it is neutralized by the aq. Solution of
caustic soda to get the required pH. AOS is used as foam booster while urea is a buffering agent
and also create transparency. Lastly colour and perfume is added.
                Quality Specification :
     It may be manufactured as per customer’s specification
 Production Capacity :
          Capacity                  75% Capacity  
            Installed                Utilization(I Yr.)
       a)  Quantity                  1,35,000 Kg                           1,01,250 Kg                    
     
      b)  Value (in Rs.)          82,83,000                                 62,12,250


. Power Requirement :
  Connected Load   : 5 KWH

 Pollution Control  :
 Though there is no discharge of effluent during manufacturing of Liquid detergent but care
should be taken to avoid the chemicals in washings.

 Energy Conservation  :
 The adequate measures for energy conservation and illumination will reduce the wastage of
energy




FINANCIAL  ASPECTS  : 
  I. Fixed Capital  :

1. Land & Building :                                                      (value in Rs.)
Land  200 sq. meter @ 200/- sq.m.                                   40,000
Covered  Area – 150 sq.m. @ 2200/- sq.m.                   3,30,000
                                                                              Rs.     3,70,000   
2.  Machinery & Equipments :
a) Production unit    
 
Details                                              Qty/No.                          Price (in Rs.)
       
  1. S.S. Vessel with                                   1                                    50,000
      stirrer, low speed
     Cap. 200 kg
  2. Bottle  filling machine                          1                                     35,000
      .Semi automatic
 3.  Storage Tanks , SS,                              2                                     30,000
      Cap. 200 Liters  
 4.  Tools & Misc. equipments                  LS                                      5,000
  8.  Testing & laboratory equipments        LS                                    20,000
  7.  Installation & Electrification                -                                       13,500
      charges @ 10% of machinery
  8. Office furniture, equipment &             LS                                    20,000
             fixtures.                                                                                  __________
                                                                                      Rs.             1,73,500 

  3.   Pre-operative Expenses                                                              10,000                  

Total Fixed Capital  :
       Rs. 3,70,000    + 1,73,500  + 10,000                                           5,53,500
       
 II. Working Capital  :
         1.   Personnel :
         Designation                     No.               Salary (PM)                Total (in Rs.)
1. Manager/ Chemist         1                    8000/ -                            8,000
 2. Skilled Worker              1                     5000/ -                              5,000
 3. Semiskilled Worker       2                    3000/-                                6,000
 4. Sales man                       2                    3500/-                                7,000
         26,000
 Perquisites @ 15% of salaries                                                             3,900
                                                                                                          29,900 

2.Raw Material : (PM)
 
 Particulars                                      Qty/kg             Rate(Rs)                 Value(Rs.)
1. Acid Slurry –                               80%                 2115  85            1,79,775
2. Caustic Soda                              220                         30                 6,600
3. AOS                                          175                           46               8,050
4. Urea                                         1270                           20             25,400
5. Colour                                       35                         400                 14,000
6. Perfume                                    8                           600                    4,800
7. Plastic bottles & Canes
500  ml cap.                               8100 No.                   8                             64,800
5 litre cap 890 No.                           25                   22,250
8. Corrugated boxes                     LS                             -                        10,000
                                                                                                             3,35,675 


  3. Utilities (PM)  :
Power and Electricity          1000 KWH @ 6/-           6,000
Water                                                                         1,000
                                                                                 7,000 
               
4. Other Contingent Expenses (PM)  :
 
 1.Postage & Telephone             2,000
 2.Consumable Store                  2,000
 3.Repair & Maintenance                  2,000
 4.Transport charges                  7,000
 5.Advertisement & Publicity               17,000
 6.Insurance                                    1000
 7.Sales Expenses                  7,000
 8.Misc.Expenditure                  2,000
                                              40,000 
  5. Total Recurring Expenditure (P.M.) :
1. Personnel                                            29,900
2. Raw material                                      3,35,675
3. Utilities                                               7,000
4. Other contingent expenses                  40,000
                                          4,12,575 
 6. Total Working Capital ( For 3 months)  :
 
 Rs. 4,12,575 X 3                                     12,37,725
   
  7. Total Capital Investment  :
1. Fixed Capital                                                              5,53,500
2.   Working Capital (3 months)                                     12,37,725
                                                                                     17,91,225
                     Say                                                           17,91,000
    8. Financial Analysis :
A. Cost of Production (Per Annum) :
1.   Total recurring cost                                     49,50,900
2. Depreciation on building @ 5% per annum    16,500
3. Depreciation on machinery & equipment @ 10%     14,850
per annum
4.   Depreciation on furniture & fixtures @ 20%      5,000
      per annum
  5.   Interest on total capital investment @ 18%                 3,22,380
     per annum        __________
                                   53,09,630
               Say                  53,10,000
                             
B. Turnover (Per Annum)  :    
Item            Qty.(No)       Rate(Rs.)  Value(in Rs.)
Liquid Detergent        
1. 500 ml   96,000                        32.00   30,72,000
2. 5 Litre   10,644       295.00   31,39,980
                                                                                            62,11,980   C.  Net Profit(Per Annum) :
      (Before Income-Tax)
       Rs. 62,11,980 – 53,10,000               9,01,980
               Say                9,02,000
 
 D.  Net Profit Ratio  :          14.50 %
 E.  Rate of Return    :          50.00 %
 F.  B.E.P.                   :          43.00 %

 Address of machinery manufacturers & suppliers :
1. M/s Singhasini Engg. Works, B- 4/25 , Factory Area, Fazalganj, Kanpur.
2. M/s Golden Engg., A-13, Vishal Enclave, Najafgarh Road, New Delhi.
3. M/s K.S.Krishna & Assocaiates, 15, Community Centre, East of Kailash,                      
New  Delhi
4. M/s Corporated Engg., 7, Chitranjan Avenue, Kolkata

Address of raw material suppliers  : 
  Available with local dealers.            
12.Resource Centre of Technology :
 
 Hercourt Butler Technological Institute, Kanpur.
 Technical Consultants.





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