PROJECT PROFILE

Product : Detergent Powder

NICcode : 20233

QualityStandard : IS: 4956

(2002)

Quantity : 14,994 Kg.

Value : Rs.19,49,000/-

Month and yearofPreparation : June, 2020

PreparedBy Br. MSME- Development Institute

Katras road, Matkuria, Dhanbad
Jharkhand - 826001
Phone No. (0326) 2980189
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 colors. 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.

Cont..2
 -2-

QUALITY CONTROL:

IS: 4955-1968: Specification for Synthetic Detergents for household use.

Power Requirement: 2 HP

FINANCIAL ASPECTS:
FIXED CAPITAL

A. Land and Building: Rented per month : 5,000/-

B. MACHINERY AND EQUIPMENTS (ALL ITEMS ARE INDIGENOUS)

Sl. Particulars Qty. Rate Amount (Rs.)

No.
1 Stainless steel/MS Ribbon Blender 50 Kg 1 75,000/- 75,000/-
capacity (2 HP)
2 SS Trays/Plastic Trays/ Enameled Trays 4 1,500/- 6,000/-
3 Weighing Balance ( 15 Kgs.cap) 1 15,000/- 15,000/-
4 Weighing Balance ( 50 Kgs.cap) 1 20,000/- 20,000/-
4 Misc. equipment like Plastic Buckets, L.S. 50,000/-
Storage drums etc., and plastic heat
bending mc/(H.O)
5 Office equipment like Chair, table etc. L.S. 50,000/-
6 Electrification and installation charges at 10% of cost of machinery 16,600/-
and equipment
Total 1,82.600/-

C. TESTING EQUIPMENT
For MSME unit, investment on testing equipment becomes costlier. Therefore, availing other
laboratory services can make testing of products.

D. PRE-OPERATIVE EXPENSES : Rs. 25,000/-

TOTAL FIXED CAPITAL : Rs. 2,07,600/- or say Rs. 2,08,000/-

WORKING CAPITAL PER MONTH: -

A. PERSONNEL:

Sl. No. Designation Nos. Rate (Rs.) Amount (Rs.)

1 Chemist-cum-Manager 1 10,000/- 10,000/-
2 Unskilled Workers 2 6,000/- 12,000/-
3 Salesman 1 7,500/- 7,500/-
4 Watchman 1 5,000/- 5,000/-
5 Perquisites at 15% of salaries 5,175/-
Total 39,675/-
Cont..3
 -3-

B. RAW MATERIALS:

Sl.No.Name of Items Qty. (Kgs.) Rate (Rs./Kgs.) Amount (Rs.)

1 Acid slurry 225 104/- 23,400/-
2 Soda Ash 573 25/- 14,325/-
3 Trisodium Phosphate 125 40/- 5,000/-
4 Sodium tri polyphosphate 100 55/- 5,500/-
5 Corboxy methyl cellouse 6.25 60/- 375/-
6 Guauber’s salt 245 18/- 4,410/-
7 Color 1.25 650/- 812/50
8 Perfume and Brightner 1.25 800/- 1,000/-
9 Packing L.S. 15,000/-
Total 69,822.50
Or Say 69,800/-

C. UTILITIES :

Power Rs. 3,000/-

Water Rs. 750/-
Total Rs. 3,750/-

D. OTHER EXPENDITURE:

1. Rent : Rs. 5,000/-

2. Maintenance & repair : Rs. 3,000/-
3. Postage and Stationer : Rs. 1,500/-
4. Cartage/ transportation charges : Rs. 5,000/-
5. Selling/ publicity : Rs. 2,000/-
6. Telephone : Rs. 1,500/-
7. Insurance : Rs. 3,000/-
GGGGGGGGGG
Total : Rs. 21,000/-

TOTAL RECURRING EXPENDITURE :

A + B + C + D = 39,675 + 69,800 + 3,750 + 21,000 = Rs. 1,34,225/-

TOTAL CAPITAL INVESTMENT:

Fixed Cost Rs. 2,08,000/-

Working Capital in Three Months Rs. 4,02,675/-
Total Rs.6,10,675/-

Cont..4
 -4-

FINANCIAL ANALYSIS: -

COST OF PRODUCTION PER YEAR:

Total recurring cost/year 16,10,700/-

Depreciation on machinery @ 10% on 1,16,000/- 11,600/-
Depreciation on Furniture @ 15% on 50,000/- 7,500/-
Int. on total capital investment @ 15% on 6,10,675/- 91,601
Total Rs.17,21,401/-
Or Say Rs.17,21,000/-

TOTAL SALES (Per Annum):

Total capacity of project : 15,300 Kg.

Wastage 2% : 306 Kg.
Net production : 14,994 Kg.

By sale of 14,994kgs of Detergent powder :Rs. 19,49,220/- or say Rs. 19,49,000/-

@ Rs. 130/- per kg.

PROFITABILITY (Per Annum):

Profit = Total Sale – Cost of Production
= Rs. 19,49,000 – 17,21,000
= Rs. 2,28,000/-
Net Profit Ratio:
Net profit x 100 / Turnover
2,28,000 x 100 / 19,49,000
= 11.69%
Rate of Return:
Net profit x 100 / Total Investment
2,28,000 x 100 / 6,10,675
= 37.33%

Break Even Analysis :

FIXED COST
Total Depreciationon Machinery& Furniture : Rs. 19,100/-
Interest on total investment : Rs. 91,601/-
40% on salary and wages : Rs.1,90,440/-
40% of other expenditure : Rs. 1,00,800/-
GGGGGG..
Total : Rs.4,01,941/-
Or say : Rs. 4,02,000/-

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

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

4,02,000 x 100 / 4,02,000 + 2,28,000
= 63.8 %
Cont..5
 -5-

ADDRESSES OF MACHINERY SUPPLIERS

1. M/s AlmechFabs (P) Ltd., 728, Industrial Town, Bangalore – 44
2. M/s EssEss 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, LaxmanRao Road, BVK Iyengar Road, Bangalore – 53
3. M/s Padam Shree, 66/2, LakshmanRao Road, BVK Iyengar Road Cross, Bangalore
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, VidyaVihar (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