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Product Code	:	N.A.
Quality and Standards	:	IS 4955:1993 and IS 8180:1982
Production Capacity	:	Powder – 480 MT, Cake – 400 MT
Uploaded on	:	January 2008

Introduction

Synthetic detergents have developed in the beginning of 20th Century and started making in-roads into the area earlier served by washing compounds i.e. soaps made traditionally from oils/fats and caustic soda. Since soaps have comparatively lesser washing characteristics in hard water than synthetic detergents, synthetic washing compounds have been able to occupy a significant market which was enjoyed by washing soaps earlier. The term detergent originated from the latin word detergine (i.e. wipe off), is now-a-days applied to all synthetic washing compounds. Synthetic detergent is not only used as household cleaning material but also have industrial applications in textiles, pesticide industry as carriers, etc.

Market Potential

Marketing is an important area of management in an industrial enterprise. It is a comprehensive term and includes all resources and economic activities necessary to direct the flow of manufactured goods from producers to consumers. The old concept of marketing was product-oriented whereas the new concept is customer-oriented. Customers are the hampions whose needs, tastes, purchasing power, etc. are the guiding factors for products sale.

Synthetic detergent being a mass consumption item has shown a dramatic growth since its inception in 1957. Presently, detergents are available to the consumers in the form of powders and cake/bars. Bulk of the production of these items is done in the small scale sector. The per capita consumption of both soaps and detergents in India is much lower than that of some of the developing countries. The trend is likely to change with the changing habits of the consumers. There is, therefore, a tremendous scope for detergents in the near future. The demand of detergents is likely to be 26 lakhs MT by the end of 2005.

Presently, the low priced detergents are becoming more popular on the market scene. These detergents have now penetrated in the rural areas substantially and are available in every nook and corner of the country. Synthetic detergents are more efficient washing material than the conventional oil based soaps. With the rise in the standards of living and changing market structure for detergent cakes as well as powders, and with the entry of low priced detergent cakes demand explosion in the fabric washing product is quite likely. The increased demand of synthetic detergent is likely to be shared by both organised and small scale sector. Synthetic detergents (both powder and cake) cover about 50% of total production of washing products. During the last decade and a half, the demand of synthetic detergents has been growing at the rate of 15%. The growth is mainly attributed to the increase in the per capita income and rise in the standards of living. Synthetic detergents which were earlier used in the urban areas have now entered almost in all the rural areas. This impact has been perhaps due to wide publicity through TV network, radio, press, cinema, etc. since these play a vital role in creating consumer awareness for a particular product.

The present strategy employed for introducing a detergent in the market comprises:

(i)	Appointment of distributors in various regions.
(ii)	Selection of wholesellers/retailers/agents in the various cities/towns.
(iii)	Publishing through advertisements, press media, like radio, television, cinema, etc.
(iv)	Introduction of sales promotion scheme etc.

Basis and Presumptions

The profile is drawn on the basis of following presumptions:

Working hours/shift	8 hours
No. of Shift/day	2
Working days	300
Total No. of Working hours	2400
Working efficiency	70%
Time period for achieving Max. cap. Utilisation	3rd year from the date on which production will be started.
Labour charges	As per the Minimum Wages Act of State Govt.
Margin Money investment	25% of capital
Rate of Interest on fixed and working capital	14%
Operative period of the project	10 years

The value of machinery and equipment is estimated on the basis of prevailing cost of the market.

Implementation Schedule

Project implementation will take a period of 8 months from the date of approval of the Scheme. Break-up of activities with relative time for each activity is shown below:

	Nature of activity	Period in month (Estimated)
1.	Scheme preparation and approval	0-1
2.	SSI provisional registration	1-2
3.	Sanction of Loan	2-5
4.	Clearance from Pollution Control Board	3-4
5.	Placement of order for delivery of m/c	4-5
6.	Installation of m/c	6
7.	Power connection	6-7
8.	Trial run	7-8
9.	Commencement of production	9 onwards

Technical Aspects
Process of Manufacture

Main steps involved in the manufacture of detergent powders are:

(a) Neutralisation of acid slurry followed by its absorption with dry powders builders and finally drying of the mixture.

(b) Neutralisation of acid slurry followed by dissolving the Neutralised slurry and builders in water and spray drying(the same).

(d) Manufacture of formulated products by dry mixing of concentrated active detergent powder and the builders.

The process more common among the small scale and even more medium scale industry is as follows:

The required soda ash (usually more than 60%) as per the formulation is heaped on the floor itself. The required dosage of acid slurry is added on top of this heap and mixing is done.

Colour is added in the slurry itself. This is followed by addition of optical brightner and perfume. The above mixed material is then sieved on sieves made of G.I. wire mesh placed at 3' height over stands made of wooden construction. The material is put on sieves and spread on the entire surface of the mesh.

The sieved material is then packed in polythene bags (usually ½ kg. of 1 kg. Pack) by sealing or stapling. These packed polythene bags are put in gunny bags to make 50kg. Pack.

In the power operated process for making high density detergent powder, the required soda ash and sodium carbonate, as per formulation, is added in the blender and mixing is started by switching on the motor.

Linear Alkyl Benzene Sulphoric Acid, commonly known as Acid Slurry is slowly added through the opening of the lid of the blender. As the neutralisation of the slurry and soda ash progresses, the mass becomes brownish in colour and subsequently yellowish. At this point, slight water is sprinkled so that the mass becomes nearly white.

Alternatively, sodium hypochlorite solution as a bleaching agent may also be added, which will help in making the product whiter and brighter. Required colour is then added, followed by other ingredients such as sodium tripolyphosphate, borax trisodium phosphate, caboxymethyl cellulose, sodium sulphate, optical brightener etc. Finally, the perfume is added, and the mass transferred on to a vibrating screen, where the mass is sieved. As the powder comes out from the vibrating screen, the
same is collected on G.I. tray, wherein the mass is spread and kept for ageing (drying). After ageing, the powder is packed in ploythene bags.

Formulation of Detergent Bars/Cakes

Formulation of cake is different from that of cake in powder form. To give grit to the cake and firmness of solids, clay and starch-like fillers are added and sodium sulphate content is reduced.

The production of detergent bar is a more expensive proposition compared to handmade detergent powder, from the point of capital cost. However, small scale manufacturers do produce and market detergent bars successfully.

Process Description

Various steps involved in the manufacture of synthetic detergent bars/ cakes are as under:

(i) Proportioning of acid slurry, soda ash and other ingredients.

(ii) Mixing in a sigma mixer.

(iii) Passing through a tripple roll mill.

(iv) Extrusion through plodder.

(v) Cutting and conditioning

(vi) Finally, stamping and wrapping.

Quality Control and Standards

Indian Standard Specifications for detergent powder and cake are given below.

Requirement for Synthetic Detergent Powders for Household use as per IS 4955:1982.

Sl. No.	Characteristics Grade-1	Requirement for
		Grade-1	Grade-2
1.	Active ingredient, percent by mass, minimum(Acid Slurry)	16.0	10.0
2.	Moisture and volatile matter, per cent by mass maximum	15.0	15.0
3.	Total phosphates expressed as Sodium Tripolyphosphate, Calculated from P.O. content, Percent by mass, min. 25	15.0	9.0
4.	Sodium Tripolyphosphate STPPP, per cent by mass, min.	7.5	4.5
5.	Sum of STPP, Pyrophosphate and trimethophosphate, all expressed as STPP, per cent by mass, min.	12.5	7.5
6.	pH of 1 per cent solution at 27OC	9 to 11.0	9 to 11.0
7.	Matter insoluble in water, per cent by mass, max.	1.0	2.0

Table for requirements for laundry detergents bars as per IS 8180:1982.

Sl. No.	Characteristic	Requirements
		Gr.1	Gr.2	Gr.3	Gr.4
1.	Active detergent (as sodium salt of alkyl benzene sulphuric acid) percent by mass min.	18.0	15.0	10.0	12.0
2.	Total phosphates as STPP Calculated from P2 p5. Percent by pass, min.	17.0	10.0	6.0	-
3.	pH of 1 percent solution at 27C	9.0 to 11.0	9.0 to 11.0	9.0 to 11.0	9.0 to 11.0

Production Capacity

Detergent Powder	20 MT
Detergent Cake	16.7 MT

Financial Aspects
A. Fixed Capital

(i) Land and Building	Area sq. mtrs.	Rate Rs/ sq. mtrs.	Value (Rs.)
Land	500	4000	2000000
Working shed	250	5000	1250000
Office and Stores	100	7000	700000
Total			3950000

ii) Machinery

	Description (For Detergent Powder)	(Rs.)
(a)	Ribbon blender MS Botton discharging arrangement cap - 150 kgs/Batch- 2 number	75000
(b)	Tank for slurry feeding Ms Cap 1MT	40000
(c)	Vibrating screen with motor	30000
(d)	Misc. equipment viz. weighing machine, Lab breaker, motor, etc., bag sealing and stitching machine.	45000
	Total	190000

	Description (For Detergent Cakes)	(Rs.)
(a)	Mixer machine-sigma blade mixture M.S. 150 Kg/hour	50000
(b)	Milling Machine 125 Kg/Hour	45000
(c)	Extruder- plodder M.S. with motor	85000
(d)	Misc. equipment viz. lump breaker, weighing	45000
	Machine, motors gun metal embossing stamps, cutting machine, etc.	25000
	Installation/Electrification	40000
	Pre-operative expenses	20000
	Furniture/Fixture	100000
	Laboratory Equipment	40000
	Total	450000
	Powder and Cake Total	640000

B. Working Capital (per month)

(i)	Personnel	No.	Rate	(Rs.)
(a)	Manager/ Chemist	2	12000	24000
(b)	Supervisor	2	7000	14000
(c)	Skilled workers	10	6000	60000
(d)	Unskilled workers	8	4000	32000
(e)	Accountant/Clerk	1	7000	7000
(f)	Sale/Purchase Officer	2	10000	20000
(g)	Watchman/Peon- 2	2	3000	6000
	Total			163000
	Perquisites		22%	35860
	Total			198860

(ii) Raw Material (per month)

	Particulars [For Detergent Powder (20 MT)]	Qty. Req. (MT)	Rate (Rs/MT)	(Rs.)
(a)	Acid Slurry	8	60000	480000
(b)	Soda Ash	16	25000	400000
(c)	Sodium Bicarbonate	2	17000	34000
(d)	Sodium Tripolyphosphate	6	50000	300000
(e)	Trisodium phosphate .	1	25000	25000
(f)	Sodim Sulphate	2	10000	20000
(g)	Sodium Metasilicate	2	5000	10000
(h)	Carboxy methylcelulose	.08	50000	4000
(i)	Colour .	0.1	300000	30000
(j)	Perfume	0.06	250000	15000
(k)	Optical whitener	0.08	200000	16000
(l)	Water1.9 MT
	Total			1334000

	Particulars [For Detergent Cakes (16.7 MT)]	Qty. Req. (MT)	Rate (Rs/MT)	(Rs.)
(a)	Acid Slurry 1.5 Mt	3	60000	180000
(b)	Soda ash 750 MT	1.5	25000	37500
(c)	Starch 600 Kg.	1.2	30000	36000
(d)	Talc 4.5 MT	9	16000	144000
(e)	Sodium Silicate 4.25 MT	8.5	12000	102000
(f)	Sodium tripoly phosphate 1 MT	2	50000	100000
(g)	Colour			4000
(h)	Optical Whitener			10000
(i)	Perfume			6000
(j)	Water 150 Kg			.
	Total			619500

(iii)	Other Contingent Expenses (per month)	(Rs.)
(ii)	Postage/Stationery	2000
(iii)	Telephone	3000
(iv)	Repair/Maintenance	10000
(v)	Advertisement and publicity	50000
(vi)	Insurance	1000
(vii)	Transport/Conveyance	20000
(viii)	Packing Charges	30000
	Total	116000

(iv) Utilities

12000

	Total Working Capital (per month)	(Rs.)
(i)	Personnel	198860
(ii)	Raw Material(both)	1953500
(iii)	Other Contingent Expenses	116000
(iv)	Utilities	12000
	Total	2280360

C. Total Capital Investment

(i)	Fixed capital	4590000
(ii)	Working capital for 2 months	4560720
	Total	9150720

Financial Analysis

(1)	Cost of production (per year)	(Rs.)
(i)	Working Capital	27364320
(ii)	Depreciation on Buidling 5 %	197500
(ii)	Depreciation on furniture @ 20%	20000
(iii)	Depreciation on plant/machinery @ 10%	54000
(iv)	Interest on total capital investment @ 14%	1281100.8
	Total	28916920.8
	or Say	28916921

(2)	Sales Turnover (per year)	(Rs.)
(i)	By sale of detergent powder 480MT @ Rs. 43000 PMT	20640000
(ii)	By sale of detergent cake 400 MT @ Rs. 27000 PMT	10800000
	Total	31440000

(3) Net Profit	2523079

(4) Profit on Turnover
	Net Profit per year × 100
	———————————
	Total Turnover per year
	8.03

(5) Rate of Return on Total Capital Investment
	Net Profit per year × 100
	———————————
	Total Capital Investment

	27.57

(6) Break-even Point

(i)	Fixed Cost	(Rs.)
(a)	Depreciation on machinery/equipment	54000
(b)	Dep. on furniture	20000
(c)	Depreciation on Building	197500
(d)	Interest on total capital investment @ 14% per annum	1281100.8
(e)	Insurance	12000
(f)	40% of salary and wages	954528
(g)	40% of other expenses ( excluding insurance )	552000
	Total	3071128.8
	or Say	3071129

(ii) B.E.P.
		Fixed cost × 100
	=	—————————
		Fixed cost + Net profit

		307112900
	=	———————
		5594208

	=	54.9%

Addresses of Machinery and Equipment Suppliers

1. M/s. K.S. Krishnan Associates Pvt. Ltd.
15 Community Centre,
East of Kailash,
New Delhi-110024.

2. M/s. Atlas Engg. Works
Diwan Hall, Chandni Chowk,
Delhi-110006

3. M/s. Chemical and Metallurigical Design Co. Pvt. Ltd.
A-660 Greater Kailash,
New Delhi-110048

4. M/s. Kay Iron Works Pvt. Ltd.
Yamunanagar
(Haryana)

5. M/s. A.P.V. Engg. Co.
Jessore Road,
Kolkata

M/s. Metal Engineers Ltd.
Balanagar,
Hyderabad

Addresses of Raw Material Suppliers/Dealers

1. M/s. Sunbeam Industries
Samual St.
Mumbai-3

2. M/s. Sarla Chemicals
Peonya Industrial Estate,
Bangalore

3. M/s. Chawla Sales Co.
Sadar Bazar, Karnal
(Haryana)

4. M/s. Silvasa Syndnet Pvt. Ltd.
Silvasa (Daman)

Soda Ash

1. M/s. Ramnath and Co.
Tilak Bazar,
Delhi-110006

2. M/s. Ram Chemical Co.
Tilak Bazar,
Delhi-110006.

3. M/s. Aggarwal Chemicals
95/1, GIDC Estate,
Odhav PS, Ahmedabad.

4. M/s. Tata Chemicals
Mithapur, Gujarat.

5 M/s. Saurashtra Chemicals
Gujarat.

6 M/s. Dharangdhra Chemicals
Gujarat.

CMC

1. M/s. Cellulose Products of India Ltd.
Kathwada Maize Products,
Ahemdabad.

2. M/s.. Kalpana Chemicals
Macharam I.F.,
Hyderabad.

Phosphate Builders

1. M/s. Star Chemicals Bombay Pvt. Ltd.
21, Noble Chambers,
Parsi Bazar, Fort,
Mumbai-1.

2. M/s Ashok Chemicals Company
49, New Banra Lane,
Vadagadi, Mumbai-43.

3. M/s D.C.M. Chemicals Works
P.B.No. 1211,
Najafgarh Road,
New Delhi.

4. M/s Everest Chemicals Industries
265, Samuel St.,
Mumbai