Introduction

Synthetic detergents had developed in the beginning of 20th century and started making inroads 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 detergents which originated from the Latin word detergine (i.e. to wipe off), is now a days applied to all synthetic washing compounds. Synthetic detergents are not only used as cleaning materials 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 where as the new concept is customer oriented. Customers are the champions whose needs, tastes, purchasing power, etc. are the guiding factors for the sale of products.

Synthetic detergents, being a mass consumption item have shown a dramatic growth since its inception in 1957. Presently, detergents are available to the consumers in the form of powders and cakes/bars. Bulk of the production of these items is done in the small scale sector.

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

i) Appointment of distributors in various regions

ii) Selection of whole sellers/ retailers/agents in the various cities/towns

iii) Publicizing through the 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 the following presumptions:

Working hours/shift	8 hours
No. of shift/day	2
Working days	300
Total no. of working hours	4800
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 minimum wages act of State Govt.
Margin money	25% of capital investment
Rate of Interest on fixed and working Capital	14%
Operative period of the project	10 years

Value of machinery and equipment is estimated on the basis of the prevailing costs in the market.

Implementation Schedule

Project implementation will take a period of 8 months from the date of the approval of the scheme. Break-up of activities with relative time for 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 of 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 Acid Slurry

Acid slurry or alkyl benzene sulphonate is prepared by sulphonation of Linear Slkyl Benzene (LAB) with a suitable sulphonating agent.

Sulphonation can be done by the following processes:

(i) Batch sulphonation with either diluted SO₂ gas or concentrated sulphuric acid or a mixture of 20% oleum and 98% sulphuric acid or oleum alone.

(ii) Continuous sulphonation with 20% oleum.

(iii) Continuous sulphonation with SO₃ (sulphor trioxide gas may be derived either from liquid So3 or from 65% oleum or from burning sulphur and converting SO₂ to SO₃ ).

Raw material consumption per tonne of 85-88% acid slurry is given below:

(a) Linear alkyl benzene 700-750 Kg.

(b) Sulphonating agent 20% oleum- 800- 900 Kg. 98% sulphuric acid - 1100–1200 Kg.

Quality Control and Standards

As bulk of the detergent formulations consist mainly of acid slurry, soda ash, sodium tripoly phosphate, etc. to start with, it would be sufficient if testing facilities are installed for determining the purity of these ingredients. So far as finished formulation are concerned a list of the tests as prescribed in the respective standards of the BIS are given below:

Acid Slurry (IS 8401:1987)

1. Determination of alkyl benzene sulphonic acid
2. Free alkyl benzene content
3. Free sulphuric acid
4. Colour

Production Capacity

Acid slurry - ½ MT per day/shift or 150 TPA.

Financial Aspects

A. Fixed Capital

(i) Capital Requirements	(Rs.)
(a) Land and building Land 2000 sq.m.	600000
(b) Factory shed including laboratory/water arrangements Boundry wall, gates, store, godown etc. 1000 sq mtr 5000/- sqmtr	5000000
c) Store/Godown
d) Office
Total	5600000
(ii) Plant and Machinery for Acid Slurry	(Rs.)
1. Sulphonator: Stainless steel verticle and cylindrical vessel fitted within agitator with MS jacket and complete with motor, Cap 1 m3	800000
2. Chilling plant	500000
3. Settling tank- MS vertical dished bottom, Lead line with agitator and motor Cap 3.5m3	600000
4. LAB feed tank: vertical cylindrical tank, MS Cap 1.0 m3	100000
5. Oleum/Acid slurry feed tank vertical cylindrical Tank Cap 2.5m3	200000
6. LAB main storage tank horizontal cylindrical Tank Cap 12m3	1000000
7. Oleum/acid storage tank ms-horizontal Cylindrical tank cap 5m3	1000000
8. Pumps with motor	500000
9. Misc. equipment including valvers pipelines, exhaust, weighing machines etc. and laboratory Equipment.	2000000
10. Finished product stocks	1000000
11. Furniture/fixtures	300000
12. Installation/electrification	600000
Total	8600000
Fixed Capital
Rs. 5600000 + Rs. 8600000 = Recurring Expenditure/Month	Rs. 14200000
(iii) Raw Material/Month (for Acid Slurry 25 MT)	(Rs.)
(i) Linear alkyl benzene 18MT @ Rs. 80,000 PMT	1440000
(ii) Sulphuric acid 98% and oleum 28 MT @ Rs. 12000 PMT	336000
Total	1776000

B. Working Capital

(i) Salary/Wages (per month)	(Rs.)
1. Manager/Chemist-1	15000
2. Plant operator- 4	30000
3. Unskilled workers- 4	50000
Salary/Wages (per month)	(Rs.)
4. Clerk/typist-1	5000
5. Watchman/peon-3	12000
Toal	112000
Perquisites 22%	24640
Total	136640
(ii) Other Expenditure (per month)	(Rs.)
1. Transport	10000
2. Postage/stationery	3000
3. Insurance	10000
4. Repair maintenance	15000
5. Packing	7000
6. Miscellaneous expenses	15000
Total	60000
(iii) Utilities	(Rs.)
Power/Water	30000
Total Recurring Expenditure (per month) Rs. 1776000+136640+60000+30000	2002640
say	2003000

C. Total Capital Investment

(i) Fixed Capital	14200000
(ii) Working capital for 3 months	4209000
Total	18409000

Financial Analysis

1. Cost of Production (per year)	(Rs.)
Total recurring expenditure	24036000
Depreciation on building @ 5%	28000
Depreciation on furniture @ 20%	60000
Depreciation on plant and machinery @ 10%	83000
Interest on total capital investment @ 12%	2221080
Total	26428080
or Say	26428100

2. Turnover (per year)

Item	Qty.	Rate (Rs.)	Value (Rs.)
Acid slurry	300MT	110000/MT	33000000

3. Net Profit (per year)

4. Turnover	Cost of Production	Profit
33000000	26428100	6571900

5. Net Profit Ratio

=	Net profit per year × 100 ------------------------------
	Turnover

=	6571900 x 100 -------------------
	33000000
=	19.9%

6. Rate of Return

=	Net profit × 100 -------------------
	Total investment

=	6571900 x 100 -------------------
	18509000
=	35.5%

7. Break-even Point (% of Total Production Envisaged)

(i) Fixed Cost	(Rs.)
a. Depreciation on machinery and equipment	83000
b. Depreciation on office equipment	60000
c. Depreciation on building	28000
d. Interest on total capital investment @ 12%	2221080
e. Insurance	120000
f. 40% of salary and wages	655872
g. 40% of other contingent expenses	298000
Total	3465952
or say	3466000

(ii) Net Profit (per year)

=	B.E.P. = F.C. x 100 ----------------------
	F.C. + Profit
	3465000 x 100 ---------------------
	3465000 + 6571900
	3465000 x 100 --------------------
	10036900
=	34.5%

Addresses of Machinery and Equipment Suppliers

1. M/s. Mazzindia (P) Ltd.
C/o. K.S.Krishanan and Associates,
15,Community Centre,
East of Kailash,
New Delhi-110024

2. M/s. Pioneer Engg. Co.
57, Bombay Samachar Marg,
Fort, Mumbai-23

3. M/s. Precision Machanist
36 (D) Kandivli Indl. Estate,
Kandivli (W),
Mumbai-67

4. M/s. Sethi Engg. Works
31-A G.T. Road, Indl. Area,
Delhi-110033 

5. M/s. Mechanico Engineers
15, Okhla Indl. Area,
New Delhi-110020

6. M/s .Precision Tanks and Vessels (Pvt.) Ltd.
1311, Padma Towers,
Rajendra Place,
New Delhi-110008

7. M/s. Dolphen Engg. Enterprises
4311, GIDC Estate,
Ankleshwar- 393002
Dt. Bharuch, Gujarat

Addresses of Raw Material Suppliers

1. M/s. Indian Petrochemicals Corpn. Ltd.
P.O. Petrochemicals,
Distt. Vadodara
Gujarat - 391346

2. M/s. Tamilnadu Petro Products Ltd.
Manali, Tamilnadu

3. M/s. Reliance Industries Ltd.
Patalganga,
Maharashtra

4. M/s. Dharamsi Morarji Chemical Limited
317/21, Dr. D. N. Road,
Fort, Mumbai-1.

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com