A

FEASIBILITY STUDY REPORT

ON
FEASIBILITY REPORT FOR THE ESTABLISHMENT OF DEMOL SOAP
PRODUCTION FACTORY,AKURE.
BY

ADEMOLA SUNDAY EMMANUEL

(CHE/20/6866)

SUBMITTED TO

THE DEPARTMENT OF ENTREPRENEURSHIP,

SCHOOL OF PHYSICAL SCIENCE,

FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE.

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD

OF BACHELOR OF TECHNOLOGY DEGREE IN CHEMISTRY(B.Tech.)

MARCH 23RD, 2024.

Chapter one: Introduction and background Information.

Project Name:Demo Liquid Soap Production Factory.

Project Location: The location is to be at Akure city. Akure is situated in Ondo

State, a region abundant in natural resources such as palm oil, coconut oil, and other
essential ingredients used in liquid soap production. Locating your factory in Akure
ensures easy access to these raw materials, reducing transportation costs and ensuring
a steady supply chain.Akure's population is rapidly growing, driven by urbanization
and economic development. This presents a growing consumer market for household
products such as liquid soap. By establishing your factory in Akure, you can tap into
this expanding market demand and establish a strong presence in the region.The Ondo
State Government in Akure actively encourages business growth by simplifying
registration, offering tax benefits, and building industrial parks to support industries.

Description of the project:liquid soap production plays a crucial role in promoting

economic development by creating economic opportunities by generating
employment, supporting local suppliers of raw materials and packaging, and
contributing to the growth of downstream industries such as manufacturing and retail.
This stimulates economic activity and fosters development within
communities.Liquid soap is an essential product for maintaining personal and
environmental hygiene. Its formulation allows for effective removal of dirt, grease,
and germs from hands, surfaces, and fabrics, contributing to overall cleanliness and
sanitation.Liquid soap Production project is a long-term investment that can last for
twenty or more years.

The Industrial Revolution marked a significant turning point in the history of soap
making. With the advent of mechanization and mass production techniques, soap
became more accessible and affordable to the general population.In the 19th and 20th
centuries, soap making transitioned from small-scale artisanal production to large-
scale industrial manufacturing. Advances in chemistry and technology enabled the
development of synthetic detergents, which offered improved cleansing properties and
paved the way for modern liquid soaps and detergent products. .Today, soap making
remains a thriving industry, encompassing a wide range of products tailored to
various consumer needs and preferences. While traditional soap making methods
persist, modern manufacturing processes and formulations continue to evolve, driven
by advances in science, technology, and consumer demand.

Project Objectives: The settig up of liquid soap production factory develop high
quality liquid soap products tailored to consumer needs. To also achieve profitability
while managing costs effectively and also contribute positively to the community and
local economy. The end goal is that Demol Nigeria limited commisioned a feasibility
study into the establishment of new liquid soap production factory.
Chapter Two: The Market Feasibility

The Market:Comprehensive market research was conducted to gauge the demand

and receptiveness towards liquid soap products. Surveys were distributed among
various demographics, with a specific focus on hostel residents due to their
heightened usage of hygiene products. The findings revealed a significant preference
for liquid soap, driven by factors such as ease of use, perceived effectiveness, and
skin-friendliness. Respondents expressed a desire for alternatives to conventional
detergents and solid soap bars, citing concerns over skin irritation and harsh chemical
formulations. These insights underscore the market opportunity for liquid soap
production and validate the need for tailored solutions to meet evolving consumer

preferences.The marketing strategy is designed to position the liquid soap brand as a

premium yet accessible choice in the marketplace. Leveraging targeted messaging and
omni-channel engagement, it seeks to capture the attention of discerning consumers
seeking superior hygiene solutions. Key tactics include digital advertising, influencer
partnerships, and strategic alliances with retailers and distributors. Additionally, the
implementation of a robust referral program incentivizes customer advocacy and
word-of-mouth promotion, driving organic growth and brand loyalty. By cultivating a
distinct brand identity centered on quality, sustainability, and innovation, the
marketing strategy aims to carve out a competitive niche in the competitive personal
care market.
Chapter Three: Technical Feasibility Study

Technical Process (Production Methodology)

The technical process of liquid soap production involves several sequential steps to
create a homogeneous liquid product suitable for cleaning purposes. Here's a detailed
overview of the typical process:

1. Raw Material Preparation:

Gather all necessary raw materials, including surfactants (such as sodium laureth
sulfate or potassium hydroxide), oils or fats (such as coconut oil or palm oil), water,
fragrances, colorants, and preservatives.

Measure and weigh the raw materials according to the formulation recipe, ensuring
accuracy to achieve desired product characteristics.

2. Mixing and Heating:

Combine the measured water and selected surfactants in a mixing vessel or reactor.

Heat the mixture to a specified temperature, typically between 60-80°C (140-176°F),

to facilitate dissolution and homogenization of the ingredients.

Add oils or fats to the heated surfactant solution and continue mixing until all
components are fully incorporated.

3. Neutralization (Optional):

If using potassium hydroxide as a surfactant, neutralize the mixture with an acid (such
as citric acid or acetic acid) to adjust the pH level and stabilize the formulation. This
step is optional for formulations using sodium-based surfactants.

4. Addition of Additives:

Once the surfactant and oil mixture is homogenized, add any desired additives such as
fragrances, colorants, moisturizers (e.g., glycerin), or antimicrobial agents.

Continue mixing to ensure uniform distribution of additives throughout the liquid

soap formulation.

5. Cooling and Thickening:

Allow the liquid soap mixture to cool gradually to room temperature, typically around
25°C (77°F).
As the mixture cools, it may thicken naturally due to the presence of oils or fats.
Alternatively, thickeners or viscosity modifiers may be added to achieve the desired
consistency.

6. Quality Control and Testing:

Conduct quality control tests to assess the stability, pH level, viscosity, and overall
performance of the liquid soap formulation.

Adjust the formulation as necessary to meet quality standards and specifications,

ensuring consistency and efficacy.

7. Packaging and Storage:

Transfer the finished liquid soap product into appropriate packaging containers, such
as bottles, jars, or dispensers.

Label each container with product information, including ingredients, usage

instructions, and safety precautions.

Store the packaged liquid soap in a cool, dry place away from direct sunlight, and
ensure proper labeling and inventory management.

By following these technical steps meticulously, liquid soap producers can create
high-quality products that meet consumer expectations for effectiveness, safety, and
usability. Regular monitoring and adjustments to the production process can help
maintain product consistency and quality over time.

Manpower and it’s availability:

The labour requirements include a manager, two production operator , A
chemist/formulator, One quality control personnel,One maintenace technician,A
driver, Two packaging and labelling staff and one night guard.offering competitive
wages and benefits can help attract and retain skilled personnel in the liquid soap
production industry.

Infrastructure and availability

The infrastructure and availability needed for liquid soap production encompass
various elements to support the manufacturing process effectively. Here's a
breakdown of key aspects:

 Land and it’s Development: A suitable production facility is essential for liquid
soap manufacturing. This facility should include dedicated areas for different
stages of production, such as mixing, heating, cooling, packaging, and storage.
 The facility should comply with regulatory requirements and safety standards and
be equipped with adequate utilities such as water, electricity, and ventilation.

 Machinery and Equipment: Various types of equipment are required for liquid
soap production, including mixing tanks, heating systems (e.g., steam jackets or
electric heaters), cooling systems (e.g., chillers or cooling towers), filling
machines, labeling machines, and packaging equipment. The availability and
condition of this equipment are crucial for ensuring smooth and efficient
production operations.

 Raw Materials: Access to raw materials is essential for liquid soap production.
These include surfactants (e.g., sodium laureth sulfate), oils or fats (e.g., coconut
oil or palm oil), fragrances, colorants, preservatives, and other additives. Ensuring
a reliable supply chain for these raw materials is necessary to prevent production
delays or interruptions.

 Utilities: Reliable access to utilities such as water, electricity, and steam is

necessary for operating production equipment and conducting various
manufacturing processes. The availability of these utilities should be assessed to
ensure they meet the requirements of liquid soap production.

 Quality Control Laboratory: A quality control laboratory is essential for testing

and analyzing raw materials, intermediate products, and finished goods to ensure
compliance with quality standards and specifications. The laboratory should be
equipped with necessary instruments and equipment for conducting tests such as
pH measurement, viscosity analysis, microbial testing, and stability testing.

 Storage and Warehousing: Adequate storage space is needed for storing raw
materials, packaging materials, intermediate products, and finished goods. Proper
storage conditions should be maintained to preserve the quality and integrity of
materials and products. Additionally, warehousing facilities should be organized
and managed efficiently to facilitate inventory management and logistics.

 Safety and Environmental Considerations: Safety measures should be in place

to ensure the well-being of workers and compliance with occupational health and
safety regulations. Environmental considerations, such as waste management
practices and pollution prevention measures, should also be addressed to
minimize the environmental impact of liquid soap production.

Overall, the availability and infrastructure required for liquid soap production involve
a comprehensive assessment of facilities, equipment, raw materials, utilities, quality
control capabilities, storage facilities, and safety measures. By ensuring these
elements are in place and adequately managed, manufacturers can support efficient
and sustainable production operations.
Chapter Four: Financial/Economic Study

Financial Assumptions and Financial Arrangements