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 |
|
|
|
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
|
|
|
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.
