Soap Industry 1e695d
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report l4457
Overview 6h3y3j
& View Soap Industry as PDF for free.
More details h6z72
- Words: 3,105
- Pages: 22
DETERGENT SOAP INDUSTRY
COMPANY SUMMARY The company is to be co founded at Patrapada, Bhubaneswar. Harmony Soaps Pvt Ltd is an enterprise company engaged in manufacturing detergent soaps. In our country, people in villages 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. This is detergent in cake form, which can be used with hand as well as in soft water.
START UP SUMMARY Start up of the company will require a capital of Rs. 16,80,000 of which Rs. 10,00,000 will come as loan from Syndicate Bank and the rest Rs. 6,80,000 will be provided by the founders. Approximately Rs. 80,000 will be allocated to equipments.
COMPANY LOCATION AND FACILITIES The plant is to be located at Patrapada, Bhubaneswar, Orissa for now. Upon expansion, plants will move to different locations within the state as well outside it.
DETERGENT SOAP INDUSTRY
SERVICE DESCRIPTIONS The aim of the company is to provide this product throughout the state and country by widening of distribution channels.
INTRODUCTION TO ENTREPRENEURSHIP The word ‘entrepreneur’ has its origin in the French language. It refers to the ORGANISER OF MUSICAL or OTHER ENTERTAINMENTS. ENTREPRENURSHIP can be described as a creative &innovative response to the environment. Such responses can takes place in any field of social Endeavour-business, agriculture, education, social work the like. An ENTREPRENEUR is one who organizes, manages & assumes the risks of an enterprise. An entrepreneur visualizes a business, takes bold steps to establish under taking, co-ordinates the various factors of production gives it a start.
DETERGENT SOAP INDUSTRY
ENTREPRENEURS are the owners of the business who contribute the capital & bear the risk of uncertainties in business life. ENTREPRENEUR is action-orient & highly motivated person who has the ability to evaluate business opportunities, to gather the necessary resources to take advantage of them &to intimate appropriate action to ensure success. ENTREPRENEUR takes decision regarding what to produce, where to produce & whom to produce. He mobilizes other factors of production namely; land, labour, capital, organization & initiates production process. He is responsible for either profit or the loss. ENTREPRENEUR is associated with innovations. He is the main factor of production.
DETERGENT SOAP INDUSTRY
ENTREPRENEURIAL PHILOSOPHY ✔ To take calculated risk. ✔ Willingness to accept responsibility for one’s own work ✔ Failure must be accepted as a learning experience. ✔ Goal orientedness. ✔ Acceptable results are more important than perfect results. ✔ Personal growth.
EXPECTATIONS OF ENTREPRENEURSHIP It is expected from the entrepreneurs that they will help:✔ Increase number of industries. ✔ Increase production. ✔ Increase employment opportunities. ✔ Earn foreign exchange through exports. ✔ Develop the underdeveloped parts of the country. ✔ Economical development.
CHARACTERSTICS OF ENTREPRENEUR ✔ Self confidence ✔ Task-result oriented ✔ Risk-taker ✔ Leadership ✔ Originality ✔ Future oriented
DETERGENT SOAP INDUSTRY
ROLE OF FIs & BANKS IN SSI FINANCING The credit needs of entrepreneurs could be divided in three parts: • Short term • Medium term • Long term finance Accordingly, the conventional mechanism for financing of SSIs in India stressed provision of loans and working capital. The public and private sector banks, Small Industries Development Bank of India (SIDBI), Regional Rural Banks (RRBs), Urban Cooperative Banks (UCBs) and foreign loans for setting up of new industries or modernization of the existing ones, Khadi and Village Industries Commission (KVIC) and Khadi and Village Industries Boards (KVIBs) assist in financing khadi and village industry sector. National Small Industries Corporation (NSIC) and State Small Industries Corporations (SSICs) in their own way, also attempt to develop the cottage and small scale sector by supplying machinery on a hire-purchase basis to small-scale and ancillary industries, inclusion of the value of machinery and equipment already installed. SFCs are one of the oldest credit institutions in the country which mainly cater to the long term credit needs of small & medium enterprises. At present, there are 18 SFCs covering the entire country & they have been in existence for 5 decades now. The cumulative sanctions & disbursements of SFCs aggregated Rs
DETERGENT SOAP INDUSTRY
33000 crore & Rs 27000 crore respectively. It needs to be high lighted that almost 75% of SFCs assistance flows to the SSI sector. Over the years the financial health of SFCs has become a cause of concerns. Some of the reasons for the poor financial health of SFCs are poor recovery performance increase in non performing assets. Govt. of India had amended the SFCs act 1951 in the year 2000 so as to give them more operational flexibility & freedom so that they can improve their performance & play their role more effectively.
DETERGENT SOAP INDUSTRY
CHALLENGES FOR ENTREPRENEURSHIP PROJECT:-
1.
Technology up gradation:It is found that our small scale sector is not able to compete
because of outdated technology. We must appreciate that small scale industry has to keep itself updated and then only it can sell goods. In the post WTO era, the best thing would be available anywhere in the world as there is no restriction for goods to move. People will purchase only if the goods are of good quality. We must that we may or may not need imported technology
for
up
gradation.
Our
small
industries
have
the
advantage of developing in import substitution period. Many SSI can therefore become world class with only small modifications or improvement.
2.
Testing facilities: Because our small scale industries are situated in far flung
areas there for it is not possible to service by one or two central laboratory. We suggest that educational institution even in small towns should be equipped to provide testing facilities to small scale industries.
DETERGENT SOAP INDUSTRY
3.
Exports: We find that small scale industries engaged in exports do not
have any benefits, although they count for bulk export. We strongly advocate special concessions for small scale industries, which are engaged in exports.
4.
Involvement of Industrial Associations:We feel that many problems of small sector can be taken care
of if industrial associations are involved in a big way.
5.
Infrastructure Development: Small scale industries suffer maximum from lack of
infrastructure development. The quality of power is bad and the power available is at very high cost. This must be corrected. Roads are bad. Communication facilities are not up to mark etc.
6.
Credit: The credit is still not available to small scale industries. The
credit Guarantee Fund created by SIDBI is not being exploited as there are still short coming in the scheme.
7.
Skill Up gradation: -
DETERGENT SOAP INDUSTRY
Small scale Industries are known for providing on job training. But in the post WTO era when cost cutting is order of the day, the people are running small scale industries must be skilled and these skills must be up graded continuously so that they are in the job & no unemployment results.
8.
Marketing:The present market assistance scheme is most welcome.
More such schemes are required .Small Scale Industries are being bundled out of the market by aggressive ment done by large scale& multinationals. The small sector must be protected from this, if the small sector has to survive.
9.
Changing the Labour Laws:The present labour laws must be changed to have more
flexibility & suitability for running of small scale sector.
Products Applications, Market Potential
DETERGENT SOAP INDUSTRY
Basis and Presumptions Traditionally, soap has been manufactured from alkali (lye) and animal fats (tallow), although vegetable products such as palm oil and coconut oil can be substituted for tallow. American colonists had both major ingredients of soap in abundance and so soap making began in America during the earliest colonial days. Tallow came as a by-product of slaughtering animals for meat, or from whaling. Farmers produced alkali as a by-product of clearing their land; until the nineteenth century wood ashes served as the major source of lye. The soap manufacturing process was simple, and most farmers could thus make their own soap at home. The major uses for soap were in the household, for washing clothes and for toilet soap, and in textile manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because colonial America was rural, soap making remained widely dispersed, and no large producers emerged. By the eve of the American Revolution, however, the colonies had developed a minor export market; in 1770 they sent more than 86,000 pounds of soap worth £2,165 to the West Indies. The Revolution interrupted this trade, and it never recovered. The growth of cities and the textile industry in the early nineteenth century increased soap usage and stimulated the rise of soapmaking firms. By 1840, Cincinnati, then the largest meatpacking center in the United States, had become the leading soap-making city as well. The city boasted at least seventeen soap factories,
DETERGENT SOAP INDUSTRY
including Procter and Gamble (established 1837), which was destined to become the nation's dominant firm. A major change in soap making occurred in the 1840s when manufacturers began to replace lye made from wood ashes with soda ash, a lye made through a chemical process. Almost all soap makers also produced tallow candles, which for many was their major business. The firms made soap in enormous slabs, and these were sold to grocers, who sliced the product like cheese for individual consumers. There were no brands, no advertising was directed at consumers, and most soap factories remained small before the Civil War. The period between the end of the Civil War and 1900 brought major changes to the soap industry. The market for candles diminished sharply, and soap makers discontinued that business. At the same time, competition rose. Many soap makers began to brand their products and to introduce new varieties of toilet soap made with such exotic ingredients as palm oil and coconut oil. Advertising, at first modest but constantly increasing, became the major innovation. In 1893 Procter and Gamble spent $125,000 to promote Ivory soap, and by 1905 the sales budget for that product alone exceeded $400,000. Advertising proved amazingly effective. In 1900 soap makers concentrated their advertising in newspapers but also d in streetcars and trains. Quick to recognize the communications revolution, the soap industry pioneered in radio advertising, particularly by developing daytime serial dramas. Procter and Gamble originated Ma Perkins, one of the earliest, most successful, and most long-lived of the genre that came to be known as Soap Operas, to its Oxydol soap in 1933. By 1962 major
DETERGENT SOAP INDUSTRY
soap firms spent approximately $250 million per year for advertising, of which 90 percent was television advertising. In 1966, three out of the top five television rs were soap makers, and Procter and Gamble was television's biggest sponsor, spending $161 million. Advertising put large soap makers at a competitive advantage, and by the late 1920s three firms had come to dominate the industry: (1) Colgate-Palmolive-Peet, incorporated as such in 1928 in New York State, although originally founded by William Colgate in 1807; (2) Lever Brothers, an English company that developed a full line of heavily d soaps in the nineteenth century and in 1897 and 1899 purchased factories in Boston and Philadelphia; and (3) Procter and Gamble. Synthetic detergent, which was not a soap, but was made through a chemical synthesis that substituted fatty alcohols for animal fats, had been developed in during World War I to alleviate a tallow shortage. Detergents are superior to soap in certain industrial processes, such as the making of textile finishes. They work better in hard water, and they eliminate the soap curd responsible for "bathtub rings." In 1933 Procter and Gamble introduced a pioneer detergent, Dreft, which targeted the dishwashing market because it was too light for laundering clothes. It succeeded, especially in hard-water regions, until World War II interrupted detergent marketing.
DETERGENT SOAP INDUSTRY
In 1940 the "big three"—Colgate, Lever, and Procter and Gamble— controlled about 75 percent of the soap and detergent market. They produced a wide variety of products, such as shampoos, dishwashing detergents, liquid cleaners, and toilet soap, but the most important part of their business was heavy-duty laundry soap, which ed for about two-thirds of sales. Procter and Gamble had about 34 percent of the market. Lever was a close second with 30 percent, and Colgate trailed with 11 percent. In 1946 Procter and Gamble radically shifted the balance in its favor when it introduced Tide, the first heavy-duty laundry detergent. By 1949, Tide had captured 25 percent of the laundry-detergent market. By 1956, even though Lever and Colgate had developed detergents of their own, Procter and Gamble held 57 percent of the market, as compared with 17 percent for Lever and 11 percent for Colgate. Despite Procter and Gamble's triumph, the big three still competed fiercely. By 1972, detergents had almost eliminated soap from the laundry market, although toilet soap remained unchallenged by detergents. In the 1970s, bans on detergents by some local governments, which feared contamination of their water supplies, had little impact on the composition or sales of laundry products. In the early 2000s, the smaller firms within the industry still produced a multitude of specialized cleansers for home and industry, although in the highly important fields of toilet soaps, laundry soaps, and detergents, the big three remained dominant, controlling about 80 percent of the total market.
DETERGENT SOAP INDUSTRY
The following ingredients are often used in hand dishwashing soaps and detergents; not all products contain all ingredients. INGREDIENTS • Cleaning Agents/Surfactants lift dirt and soil and produce good grease-cutting capability. • Stability and Dispensing Aids keep the product consistent under varying storage conditions and provide desirable dispensing characteristics. • Mildness Additives may include moisturizing agents, certain oils and emollients, certain protein compounds, or other neutralizing or beneficial ingredients. • Fragrance is added to produce a pleasant or distinctive scent. • Preservatives help prevent any microbiological growth in the product that could cause color or odor change, poor performance and/or separation of the ingredients. • Colorants are added to lend individuality and an appealing appearance to the product. • Enzymes help break down tough stains and burned-on soils. • Encapsulates deliver stability for special materials/additives (e.g., moisturizer or fragrance).
DETERGENT SOAP INDUSTRY
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. The quantity of products produced are sold in the market. 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.
DETERGENT SOAP INDUSTRY
FINANCIAL ASPECTS FIXED CAPITAL MACHINERY AND EQUIPMENT Sl. No. Details 1 Detergent plodder with 5 HP Motor 2 Sigma blender (350 Kgs. capacity) 3 Stamping machine 4
Platform weighing scale
5 6
Miscellaneous expenditure Furniture and fixture Total
1 2 3 4
Land Godown Loan Machinery And Equipment Total
Qty 1 1 1
Value (in Rs.) 47,000 15,000 5,000
1
5,000 3,000 5,000 80,000
5000sqft 3000sqft 12% of 10lakhs
500000 1100000 120000 80000 18,00,000
Total FIXED COST per kg of production of soap: Rs. 18,00,000
DETERGENT SOAP INDUSTRY
WORKING CAPITAL PER MONTH PERSONNEL Sl. No. Description 1 2 3
Value per kg
Nos.
Skilled Worker Semiskilled Worker Watchman Total
production 1.5 1.25 0.3 3.05
2 2 1
RAW MATERIALS Sl. No. Particulars 1 Oil 2 Soda Ash 3 Water 4 Sodium silicate (binder) 5 Filler powder 6 Foam booster 7 Color 8 Perfume Total
Qty.(Kg.) 100 16 50 100 50 2 0.5 0.2 318.7 ≈ 315
Rate(Rs./Kg.) 32 38
Value (Rs.) 3200 608
9 3.25 120 500 200
900 162.5 240 250 40 5400
Cost of raw materials to produce 1kg of soap: Rs.17.14
DETERGENT SOAP INDUSTRY
UTILITIES Sl.
Particulars
Cost per month
No. 1 Power 2 Water
Total
5000 200 1,700
Cost per kg of production 0.5 0.02 0.52
OTHER EXPENSES 1 2
Postage and Stationery Repairs and Maintenance Total
400 400 800
DEPRICIATION 10% of Rs.12000 per month: Rs.0.06 per kg of production of soaps
Total VARIABLE COST per kg of production of soap: 3.05+17.14+.52+0.08+0.06 = Rs.20.85
0.04 0.04 0.08
DETERGENT SOAP INDUSTRY
TOTAL SALES (Per Annum) By sale of 1,20,000 kg @ Rs. 30 per kg
Rs. 36,00,000
PROFITABILITY (Per Annum) Profit =36,00,000 – 20,56,800 – 1,20,000(interest on loan)= Rs. 14,23,200 Net Profit Ratio : Net profit x 100 / Turnover 14,23,200 * 100 / 36,00,000 = 39.53% Rate of Return : Net profit x 100 / Total Investment 14,23,200x 100 / 18,00,000 = 79.06%
DETERGENT SOAP INDUSTRY
BREAK EVEN ANALYSIS Sales price = Rs. 30 per kg Variable cost = Rs. 20.85 per kg Fixed cost = Rs. 18,00,000 Break Even Quantity = X Fixed Cost + X * Variable Cost = X * Sales Price 18,00,000 + X * 20.85 = X * 30 X = 196721 kg Taking 10,000 kg per month production capacity, No. of months required to achieve Break-Even Quantity = 196721/10000 = 19.67 ≈ 20 months
DETERGENT SOAP INDUSTRY
Address of Suppliers NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS 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.
NAMES AND 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.
DETERGENT SOAP INDUSTRY
REFERENCES ✔ Bhalla Industries, Mancheswar, Bhubaneswar ✔ www.smallindustryindia.com ✔ www.wikipedia.org ✔ www.codissa.com ✔ www.books-directory-projectreports.com/small-scaleindustries.html
COMPANY SUMMARY The company is to be co founded at Patrapada, Bhubaneswar. Harmony Soaps Pvt Ltd is an enterprise company engaged in manufacturing detergent soaps. In our country, people in villages 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. This is detergent in cake form, which can be used with hand as well as in soft water.
START UP SUMMARY Start up of the company will require a capital of Rs. 16,80,000 of which Rs. 10,00,000 will come as loan from Syndicate Bank and the rest Rs. 6,80,000 will be provided by the founders. Approximately Rs. 80,000 will be allocated to equipments.
COMPANY LOCATION AND FACILITIES The plant is to be located at Patrapada, Bhubaneswar, Orissa for now. Upon expansion, plants will move to different locations within the state as well outside it.
DETERGENT SOAP INDUSTRY
SERVICE DESCRIPTIONS The aim of the company is to provide this product throughout the state and country by widening of distribution channels.
INTRODUCTION TO ENTREPRENEURSHIP The word ‘entrepreneur’ has its origin in the French language. It refers to the ORGANISER OF MUSICAL or OTHER ENTERTAINMENTS. ENTREPRENURSHIP can be described as a creative &innovative response to the environment. Such responses can takes place in any field of social Endeavour-business, agriculture, education, social work the like. An ENTREPRENEUR is one who organizes, manages & assumes the risks of an enterprise. An entrepreneur visualizes a business, takes bold steps to establish under taking, co-ordinates the various factors of production gives it a start.
DETERGENT SOAP INDUSTRY
ENTREPRENEURS are the owners of the business who contribute the capital & bear the risk of uncertainties in business life. ENTREPRENEUR is action-orient & highly motivated person who has the ability to evaluate business opportunities, to gather the necessary resources to take advantage of them &to intimate appropriate action to ensure success. ENTREPRENEUR takes decision regarding what to produce, where to produce & whom to produce. He mobilizes other factors of production namely; land, labour, capital, organization & initiates production process. He is responsible for either profit or the loss. ENTREPRENEUR is associated with innovations. He is the main factor of production.
DETERGENT SOAP INDUSTRY
ENTREPRENEURIAL PHILOSOPHY ✔ To take calculated risk. ✔ Willingness to accept responsibility for one’s own work ✔ Failure must be accepted as a learning experience. ✔ Goal orientedness. ✔ Acceptable results are more important than perfect results. ✔ Personal growth.
EXPECTATIONS OF ENTREPRENEURSHIP It is expected from the entrepreneurs that they will help:✔ Increase number of industries. ✔ Increase production. ✔ Increase employment opportunities. ✔ Earn foreign exchange through exports. ✔ Develop the underdeveloped parts of the country. ✔ Economical development.
CHARACTERSTICS OF ENTREPRENEUR ✔ Self confidence ✔ Task-result oriented ✔ Risk-taker ✔ Leadership ✔ Originality ✔ Future oriented
DETERGENT SOAP INDUSTRY
ROLE OF FIs & BANKS IN SSI FINANCING The credit needs of entrepreneurs could be divided in three parts: • Short term • Medium term • Long term finance Accordingly, the conventional mechanism for financing of SSIs in India stressed provision of loans and working capital. The public and private sector banks, Small Industries Development Bank of India (SIDBI), Regional Rural Banks (RRBs), Urban Cooperative Banks (UCBs) and foreign loans for setting up of new industries or modernization of the existing ones, Khadi and Village Industries Commission (KVIC) and Khadi and Village Industries Boards (KVIBs) assist in financing khadi and village industry sector. National Small Industries Corporation (NSIC) and State Small Industries Corporations (SSICs) in their own way, also attempt to develop the cottage and small scale sector by supplying machinery on a hire-purchase basis to small-scale and ancillary industries, inclusion of the value of machinery and equipment already installed. SFCs are one of the oldest credit institutions in the country which mainly cater to the long term credit needs of small & medium enterprises. At present, there are 18 SFCs covering the entire country & they have been in existence for 5 decades now. The cumulative sanctions & disbursements of SFCs aggregated Rs
DETERGENT SOAP INDUSTRY
33000 crore & Rs 27000 crore respectively. It needs to be high lighted that almost 75% of SFCs assistance flows to the SSI sector. Over the years the financial health of SFCs has become a cause of concerns. Some of the reasons for the poor financial health of SFCs are poor recovery performance increase in non performing assets. Govt. of India had amended the SFCs act 1951 in the year 2000 so as to give them more operational flexibility & freedom so that they can improve their performance & play their role more effectively.
DETERGENT SOAP INDUSTRY
CHALLENGES FOR ENTREPRENEURSHIP PROJECT:-
1.
Technology up gradation:It is found that our small scale sector is not able to compete
because of outdated technology. We must appreciate that small scale industry has to keep itself updated and then only it can sell goods. In the post WTO era, the best thing would be available anywhere in the world as there is no restriction for goods to move. People will purchase only if the goods are of good quality. We must that we may or may not need imported technology
for
up
gradation.
Our
small
industries
have
the
advantage of developing in import substitution period. Many SSI can therefore become world class with only small modifications or improvement.
2.
Testing facilities: Because our small scale industries are situated in far flung
areas there for it is not possible to service by one or two central laboratory. We suggest that educational institution even in small towns should be equipped to provide testing facilities to small scale industries.
DETERGENT SOAP INDUSTRY
3.
Exports: We find that small scale industries engaged in exports do not
have any benefits, although they count for bulk export. We strongly advocate special concessions for small scale industries, which are engaged in exports.
4.
Involvement of Industrial Associations:We feel that many problems of small sector can be taken care
of if industrial associations are involved in a big way.
5.
Infrastructure Development: Small scale industries suffer maximum from lack of
infrastructure development. The quality of power is bad and the power available is at very high cost. This must be corrected. Roads are bad. Communication facilities are not up to mark etc.
6.
Credit: The credit is still not available to small scale industries. The
credit Guarantee Fund created by SIDBI is not being exploited as there are still short coming in the scheme.
7.
Skill Up gradation: -
DETERGENT SOAP INDUSTRY
Small scale Industries are known for providing on job training. But in the post WTO era when cost cutting is order of the day, the people are running small scale industries must be skilled and these skills must be up graded continuously so that they are in the job & no unemployment results.
8.
Marketing:The present market assistance scheme is most welcome.
More such schemes are required .Small Scale Industries are being bundled out of the market by aggressive ment done by large scale& multinationals. The small sector must be protected from this, if the small sector has to survive.
9.
Changing the Labour Laws:The present labour laws must be changed to have more
flexibility & suitability for running of small scale sector.
Products Applications, Market Potential
DETERGENT SOAP INDUSTRY
Basis and Presumptions Traditionally, soap has been manufactured from alkali (lye) and animal fats (tallow), although vegetable products such as palm oil and coconut oil can be substituted for tallow. American colonists had both major ingredients of soap in abundance and so soap making began in America during the earliest colonial days. Tallow came as a by-product of slaughtering animals for meat, or from whaling. Farmers produced alkali as a by-product of clearing their land; until the nineteenth century wood ashes served as the major source of lye. The soap manufacturing process was simple, and most farmers could thus make their own soap at home. The major uses for soap were in the household, for washing clothes and for toilet soap, and in textile manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because colonial America was rural, soap making remained widely dispersed, and no large producers emerged. By the eve of the American Revolution, however, the colonies had developed a minor export market; in 1770 they sent more than 86,000 pounds of soap worth £2,165 to the West Indies. The Revolution interrupted this trade, and it never recovered. The growth of cities and the textile industry in the early nineteenth century increased soap usage and stimulated the rise of soapmaking firms. By 1840, Cincinnati, then the largest meatpacking center in the United States, had become the leading soap-making city as well. The city boasted at least seventeen soap factories,
DETERGENT SOAP INDUSTRY
including Procter and Gamble (established 1837), which was destined to become the nation's dominant firm. A major change in soap making occurred in the 1840s when manufacturers began to replace lye made from wood ashes with soda ash, a lye made through a chemical process. Almost all soap makers also produced tallow candles, which for many was their major business. The firms made soap in enormous slabs, and these were sold to grocers, who sliced the product like cheese for individual consumers. There were no brands, no advertising was directed at consumers, and most soap factories remained small before the Civil War. The period between the end of the Civil War and 1900 brought major changes to the soap industry. The market for candles diminished sharply, and soap makers discontinued that business. At the same time, competition rose. Many soap makers began to brand their products and to introduce new varieties of toilet soap made with such exotic ingredients as palm oil and coconut oil. Advertising, at first modest but constantly increasing, became the major innovation. In 1893 Procter and Gamble spent $125,000 to promote Ivory soap, and by 1905 the sales budget for that product alone exceeded $400,000. Advertising proved amazingly effective. In 1900 soap makers concentrated their advertising in newspapers but also d in streetcars and trains. Quick to recognize the communications revolution, the soap industry pioneered in radio advertising, particularly by developing daytime serial dramas. Procter and Gamble originated Ma Perkins, one of the earliest, most successful, and most long-lived of the genre that came to be known as Soap Operas, to its Oxydol soap in 1933. By 1962 major
DETERGENT SOAP INDUSTRY
soap firms spent approximately $250 million per year for advertising, of which 90 percent was television advertising. In 1966, three out of the top five television rs were soap makers, and Procter and Gamble was television's biggest sponsor, spending $161 million. Advertising put large soap makers at a competitive advantage, and by the late 1920s three firms had come to dominate the industry: (1) Colgate-Palmolive-Peet, incorporated as such in 1928 in New York State, although originally founded by William Colgate in 1807; (2) Lever Brothers, an English company that developed a full line of heavily d soaps in the nineteenth century and in 1897 and 1899 purchased factories in Boston and Philadelphia; and (3) Procter and Gamble. Synthetic detergent, which was not a soap, but was made through a chemical synthesis that substituted fatty alcohols for animal fats, had been developed in during World War I to alleviate a tallow shortage. Detergents are superior to soap in certain industrial processes, such as the making of textile finishes. They work better in hard water, and they eliminate the soap curd responsible for "bathtub rings." In 1933 Procter and Gamble introduced a pioneer detergent, Dreft, which targeted the dishwashing market because it was too light for laundering clothes. It succeeded, especially in hard-water regions, until World War II interrupted detergent marketing.
DETERGENT SOAP INDUSTRY
In 1940 the "big three"—Colgate, Lever, and Procter and Gamble— controlled about 75 percent of the soap and detergent market. They produced a wide variety of products, such as shampoos, dishwashing detergents, liquid cleaners, and toilet soap, but the most important part of their business was heavy-duty laundry soap, which ed for about two-thirds of sales. Procter and Gamble had about 34 percent of the market. Lever was a close second with 30 percent, and Colgate trailed with 11 percent. In 1946 Procter and Gamble radically shifted the balance in its favor when it introduced Tide, the first heavy-duty laundry detergent. By 1949, Tide had captured 25 percent of the laundry-detergent market. By 1956, even though Lever and Colgate had developed detergents of their own, Procter and Gamble held 57 percent of the market, as compared with 17 percent for Lever and 11 percent for Colgate. Despite Procter and Gamble's triumph, the big three still competed fiercely. By 1972, detergents had almost eliminated soap from the laundry market, although toilet soap remained unchallenged by detergents. In the 1970s, bans on detergents by some local governments, which feared contamination of their water supplies, had little impact on the composition or sales of laundry products. In the early 2000s, the smaller firms within the industry still produced a multitude of specialized cleansers for home and industry, although in the highly important fields of toilet soaps, laundry soaps, and detergents, the big three remained dominant, controlling about 80 percent of the total market.
DETERGENT SOAP INDUSTRY
The following ingredients are often used in hand dishwashing soaps and detergents; not all products contain all ingredients. INGREDIENTS • Cleaning Agents/Surfactants lift dirt and soil and produce good grease-cutting capability. • Stability and Dispensing Aids keep the product consistent under varying storage conditions and provide desirable dispensing characteristics. • Mildness Additives may include moisturizing agents, certain oils and emollients, certain protein compounds, or other neutralizing or beneficial ingredients. • Fragrance is added to produce a pleasant or distinctive scent. • Preservatives help prevent any microbiological growth in the product that could cause color or odor change, poor performance and/or separation of the ingredients. • Colorants are added to lend individuality and an appealing appearance to the product. • Enzymes help break down tough stains and burned-on soils. • Encapsulates deliver stability for special materials/additives (e.g., moisturizer or fragrance).
DETERGENT SOAP INDUSTRY
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. The quantity of products produced are sold in the market. 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.
DETERGENT SOAP INDUSTRY
FINANCIAL ASPECTS FIXED CAPITAL MACHINERY AND EQUIPMENT Sl. No. Details 1 Detergent plodder with 5 HP Motor 2 Sigma blender (350 Kgs. capacity) 3 Stamping machine 4
Platform weighing scale
5 6
Miscellaneous expenditure Furniture and fixture Total
1 2 3 4
Land Godown Loan Machinery And Equipment Total
Qty 1 1 1
Value (in Rs.) 47,000 15,000 5,000
1
5,000 3,000 5,000 80,000
5000sqft 3000sqft 12% of 10lakhs
500000 1100000 120000 80000 18,00,000
Total FIXED COST per kg of production of soap: Rs. 18,00,000
DETERGENT SOAP INDUSTRY
WORKING CAPITAL PER MONTH PERSONNEL Sl. No. Description 1 2 3
Value per kg
Nos.
Skilled Worker Semiskilled Worker Watchman Total
production 1.5 1.25 0.3 3.05
2 2 1
RAW MATERIALS Sl. No. Particulars 1 Oil 2 Soda Ash 3 Water 4 Sodium silicate (binder) 5 Filler powder 6 Foam booster 7 Color 8 Perfume Total
Qty.(Kg.) 100 16 50 100 50 2 0.5 0.2 318.7 ≈ 315
Rate(Rs./Kg.) 32 38
Value (Rs.) 3200 608
9 3.25 120 500 200
900 162.5 240 250 40 5400
Cost of raw materials to produce 1kg of soap: Rs.17.14
DETERGENT SOAP INDUSTRY
UTILITIES Sl.
Particulars
Cost per month
No. 1 Power 2 Water
Total
5000 200 1,700
Cost per kg of production 0.5 0.02 0.52
OTHER EXPENSES 1 2
Postage and Stationery Repairs and Maintenance Total
400 400 800
DEPRICIATION 10% of Rs.12000 per month: Rs.0.06 per kg of production of soaps
Total VARIABLE COST per kg of production of soap: 3.05+17.14+.52+0.08+0.06 = Rs.20.85
0.04 0.04 0.08
DETERGENT SOAP INDUSTRY
TOTAL SALES (Per Annum) By sale of 1,20,000 kg @ Rs. 30 per kg
Rs. 36,00,000
PROFITABILITY (Per Annum) Profit =36,00,000 – 20,56,800 – 1,20,000(interest on loan)= Rs. 14,23,200 Net Profit Ratio : Net profit x 100 / Turnover 14,23,200 * 100 / 36,00,000 = 39.53% Rate of Return : Net profit x 100 / Total Investment 14,23,200x 100 / 18,00,000 = 79.06%
DETERGENT SOAP INDUSTRY
BREAK EVEN ANALYSIS Sales price = Rs. 30 per kg Variable cost = Rs. 20.85 per kg Fixed cost = Rs. 18,00,000 Break Even Quantity = X Fixed Cost + X * Variable Cost = X * Sales Price 18,00,000 + X * 20.85 = X * 30 X = 196721 kg Taking 10,000 kg per month production capacity, No. of months required to achieve Break-Even Quantity = 196721/10000 = 19.67 ≈ 20 months
DETERGENT SOAP INDUSTRY
Address of Suppliers NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS 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.
NAMES AND 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.
DETERGENT SOAP INDUSTRY
REFERENCES ✔ Bhalla Industries, Mancheswar, Bhubaneswar ✔ www.smallindustryindia.com ✔ www.wikipedia.org ✔ www.codissa.com ✔ www.books-directory-projectreports.com/small-scaleindustries.html
Related Documents 543cg
Soap Industry 1e695d
December 2019 27
Soap h2b4m
August 2021 0
Present Scenario Of Indian Soap Industry 3o446j
November 2019 55
April 2022 0
Final Report On Soap Industry Of Bangladesh 1n1a6x
November 2021 0