WASHING SOAP INTRODUCTION Soap is the traditional ... - smallB
WASHING SOAP INTRODUCTION Soap is the traditional ... - smallB
WASHING SOAP INTRODUCTION Soap is the traditional ... - smallB
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<strong>WASHING</strong> <strong>SOAP</strong><br />
<strong>INTRODUCTION</strong><br />
<strong>Soap</strong> <strong>is</strong> <strong>the</strong> <strong>traditional</strong> washing compound made from oil fats and caustic alkali. One can say<br />
a detergent <strong>is</strong> <strong>the</strong> one that cleans any surface. Syn<strong>the</strong>tic detergent <strong>is</strong> quite different from<br />
o<strong>the</strong>r kinds of detergent. More foam <strong>is</strong> produced with such kind of detergents, moreover,<br />
<strong>the</strong>re <strong>is</strong> less tension created on <strong>the</strong> dirty surface yet emulsification takes places and <strong>the</strong><br />
detergent niters <strong>the</strong> surface much faster. Th<strong>is</strong> <strong>is</strong> <strong>the</strong> reason why <strong>the</strong> cleaning process <strong>is</strong> fast.<br />
<strong>Soap</strong> <strong>is</strong> surfactant used in conjunction with water for washing and cleaning that h<strong>is</strong>torically<br />
comes in solid bars but also in <strong>the</strong> form of a thick liquid, especially from soap d<strong>is</strong>pensers in<br />
public washrooms. <strong>Soap</strong> are useful for cleaning because soap molecules.<br />
Hand made soap differs from industrial soap in that, usually, an excess of fat <strong>is</strong> used to<br />
consume <strong>the</strong> alkali (super fatting), and in that <strong>the</strong> glycerin <strong>is</strong> not removed.<br />
ABOUT THE PRODUCT<br />
<strong>Soap</strong> <strong>is</strong> an item of daily necessity as cleaning agent. It <strong>is</strong> mass consumer item in both rural<br />
and urban areas. <strong>Soap</strong> may be divided into toilet soap and washing soap. In <strong>the</strong> toilet soap<br />
market, new product innovation such as liquid soap, soap-free syn<strong>the</strong>tic detergents and nowash<br />
soap have taken an increasing share of <strong>the</strong> market from <strong>traditional</strong> soap bars. While<br />
<strong>the</strong>re are large companies manufacturing soap including toilet and washing soap, it <strong>is</strong> an<br />
ideal product to manufacture in SSI sector.<br />
MARKET POTENTIAL<br />
The soap market <strong>is</strong> divided into true soaps (a combination of fat and caustic materials) and<br />
non-soapy detergents (largely petroleum by-products). The market for soap products largely<br />
mature in developed markets and d<strong>is</strong>play stagnant growth. The growth potential in<br />
developing countries <strong>is</strong> huge. The per capita consumption of soap in India <strong>is</strong> about 1.75 kg.<br />
per year On th<strong>is</strong> bas<strong>is</strong>, <strong>the</strong> demand for laundry washing soap in north-eastern region <strong>is</strong><br />
estimated at 6825 tonne per year. Keeping in view <strong>the</strong> demand potential and a number of<br />
establ<strong>is</strong>hed brand, as well as local manufacturer in <strong>the</strong> market, <strong>the</strong>re <strong>is</strong> still shortfall in <strong>the</strong><br />
ex<strong>is</strong>ting market. The market for washing soap <strong>is</strong> encouraging even in remote areas People<br />
can now willing to use washing soap as <strong>the</strong>y are recognizing importance of cleaning. A<br />
number of soap making unit may come up to meet <strong>the</strong> shortage in <strong>the</strong> regional market.<br />
SUGGESTED CAPACITY<br />
To assessing <strong>the</strong> proposed plant capacity due consideration <strong>is</strong> given on availability of raw<br />
materials, availability of electricity and market. The annual production of 330 MT <strong>is</strong><br />
suggested, <strong>the</strong> production at different capacity utilization per annum will be as follows:<br />
Installed Capacity<br />
1 st yr. production<br />
@80%<br />
2 nd yr. onwards<br />
production @90%<br />
Production Capacity 330 Kg per day 880 kg per day 990 kg per day<br />
Production Capacity 330 MT per yr. 264 MT per year 297 MT per year<br />
Bas<strong>is</strong>:-<br />
No. of working days = 25 days per month<br />
= 300 days per year<br />
No. of shifts = 1 per day.<br />
One shift = 8 hours<br />
Effective working hours/day = 6 hours<br />
84
INFRASTRUCTURE REQUIREMENT<br />
The main Infrastructural facilities required are:<br />
Covered shed area (processing hall/storages/office)<br />
Power requirement<br />
Water Requirement<br />
700 sq. ft.<br />
5 kw.<br />
1500 ltrs/day<br />
RAW MATERIALS<br />
The main raw materials required are hard or non-edible oils/fats, caustic soda and sodium<br />
silicate. Packing materials/paper wrappers/cartoons are required for packaging. Hard oils<br />
includes unrefined rice bran oil, neem oil, cotton seed oil, castor oil, sal seed oil, niger seed oil<br />
and minor oils of tree origin. There <strong>is</strong> some production of sal seed, niger seed and cotton seed in<br />
north-east but <strong>the</strong>re <strong>is</strong> no significant production of <strong>the</strong>ir oils. However <strong>the</strong> hard oils caustic soda,<br />
sodium silicates and o<strong>the</strong>r consumables are easily available from <strong>the</strong> local dealer.<br />
SUGGESTED LOCATION<br />
Washing soap projects should be located near urban or semi urban areas of NEr including sikkim<br />
surrounded by available market for raw materials, skilled manpower and as well as market for<br />
end product, location for setting up of washing soap making unit should be based on well<br />
developed road connectivity.<br />
RODUCTION PROCESS (STEP WISE)<br />
The major process steps for manufacture of washing soap are:<br />
Heating of oil/fat in a pan at approximately 70 0 C.<br />
Adding of caustic soda solution of required concentration in oil in small quantities at a Time<br />
Saponification of <strong>the</strong> mixture for 1 to 2 hours under hours under controlled heat by gradually<br />
thickening and finally assuming <strong>the</strong> shiny translucent surface, free from froth.<br />
Completion of saponification and boiling.<br />
Addition of builders and fillers like sodium silicate, soap stone, colours and perfumes etc.<br />
Cooling of soap charge and transferring to <strong>the</strong> cooling frames for setting.<br />
Cutting <strong>the</strong> bars, stamping and packing.<br />
PROJECT ECONOMICS<br />
Total Capital Requirement;<br />
The total capital requirement including fixed capital and working capital <strong>is</strong> estimated at Rs 14.02<br />
lakhs as follows. Of th<strong>is</strong>, <strong>the</strong> project cost compr<strong>is</strong>ing fixed capital and margin money on working<br />
capital <strong>is</strong> Rs.10.92 lakhs.<br />
A. Fixed Capital (Rs. in lakhs)<br />
Land<br />
on rent<br />
Land Development Cost 1.00<br />
Building /Civil works:<br />
i) Work shed 400 sq.ft 2.40<br />
ii) Office/Store 300 sq.ft. 1.80<br />
iii) Toilet/Bathroom/Cemented<br />
open space, Drainage facilities<br />
etc. 0.80<br />
Plant & Machinery 1.50<br />
M<strong>is</strong>c. Fixed Assets 1.00<br />
(Water arrangement/Overhead<br />
reservoir/pump set/power<br />
line connection/water & electrical<br />
fittings/office equipment)<br />
Preliminary & Pre-operative Expenses 0.50<br />
Contingency prov<strong>is</strong>ion 0.40<br />
Total 9.40<br />
85
B. Working Capital:<br />
Raw materials/consumables & 15 days 1.60<br />
Packing materialls<br />
Working expenses 1 month 0.50<br />
Fin<strong>is</strong>hed goods 10 days 1.35<br />
Receivable 7 days 1.17<br />
4.62<br />
Note: Working capital to be financed as –<br />
Margin Money : 1.52<br />
Bank Finance : 3.10<br />
4.62<br />
Means of Finance:<br />
The project cost of Rs.10.92 lakhs may be financed as under:<br />
Promoter’s Equity(25%) : 2.72 Lakhs<br />
Term Loan(75%) : 8.20 Lakhs<br />
10.92 Lakhs<br />
Operating Expenses<br />
The annual operating expenses are estimated as under:<br />
(Rs. in Lakhs)<br />
Raw materials/consumables 32.00<br />
Packing materials & Printed levels<br />
Wages & Salaries 5.41<br />
Utilities 0.40<br />
Repair & Maintenance 0.10<br />
Admin<strong>is</strong>trative Overhead 0.20<br />
Selling expenses 10% on sales 5.28<br />
Depreciation 0.45<br />
Interest 1.48<br />
-------------<br />
45.32<br />
------------<br />
Sales Turn Over<br />
The average ex-factory selling price of washing soap <strong>is</strong> in range of Rs. 20,000 to 21,000 per<br />
tonne. Assuming a net ex-factory price of Rs. 20,000 per tonne, <strong>the</strong> annual sales realization for<br />
264 MT of soap <strong>is</strong> estimated to be Rs.52.80.<br />
Profitability:<br />
Based on <strong>the</strong> sales realization and <strong>the</strong> operating expenses, <strong>the</strong> profit would be Rs. 7.48 lakhs per<br />
year. Th<strong>is</strong> works out to a return on capital investment of 53 %. The unit would break-even at<br />
about 40% of <strong>the</strong> capacity.<br />
Break Even Analys<strong>is</strong><br />
A. Variable Cost: (Rs. in Lakhs)<br />
Raw Materials/Consumables & 32.00<br />
Packing Materials<br />
Utilities 0.40<br />
Selling Expenses 5.28<br />
-------<br />
37.68<br />
-------<br />
B. Semi-Variable Cost: (Rs. in Lakhs)<br />
Wages & Salaries 5.41<br />
Repair & Maintenance 0.10<br />
Admin<strong>is</strong>trative Overhead 0.20<br />
Depreciation 0.45<br />
Interest 1.48<br />
7.64<br />
86
C. Sales Real<strong>is</strong>ation: Rs. 52.80 Lakhs<br />
D. Contribution Rs. 15.12 Lakhs<br />
E. Break Even Point (B/D X 80% (capacity Utilization) 40%<br />
Machinery & Equipment:<br />
The main equipment required are –<br />
i) <strong>Soap</strong> making pan : 2 Nos.<br />
ii) <strong>Soap</strong> cooling frames : 4 Nos.<br />
iii) Cutting machine with table : 1 No.<br />
iv) Stamping press with one set block : 1 No.<br />
v) Stirrer : 4 Nos.<br />
vi) Storage drums, buckets,<br />
weighing scales etc. : set.<br />
Raw Materials/Consumable/Packaging materials (Annually):<br />
Manpower:<br />
Highlights:<br />
Category<br />
Item Quantity Rates Annual (Rs in lakh)<br />
1. Rice Brand Oil 100 MT 19,000/MT 19.00<br />
2. Caustic Soda 50 MT 15,000/MT 7.50<br />
3. Sodium Silicate 100 MT 4,000/MT 4.00<br />
4. Packing materials/ L.S. -- 1.50<br />
O<strong>the</strong>r consumables<br />
TOTAL 32.00<br />
No.of<br />
person<br />
Salary per<br />
person per<br />
month(Rs)<br />
Monthly Requirement<br />
(Rs )<br />
Superv<strong>is</strong>or/Accountant 1 6000 6000<br />
Skilled worker 1 6000 6000<br />
Semi-Skilled workers 2 5000 10000<br />
Unskilled workers 3 3000 9000<br />
Sales personnel 2 5000 10000<br />
Total Manpower Cost 41,000<br />
Salary Bill Rs 4.92 Lakhs + Benefits @ 10% annually i.e. Rs 0.49<br />
Total Annual Salary Bill : Rs 5.41 Lakh.<br />
The major highlights of <strong>the</strong> project are as follows:<br />
Total Capital requirement Rs. 14.02 lakhs<br />
Promoter’s contribution Rs. 2.72 lakhs<br />
Annual Sales realization Rs. 52.80 lakhs<br />
Annual Operating Expenses Rs. 45.32 lakhs<br />
Annual Profit Rs. 7.48 lakhs<br />
Return on sales 14%<br />
Break-even point 40%<br />
No. of person employed 9<br />
87
Address of Plant of Machineries suppliers<br />
M/S Corporated Engineers,<br />
7, Chittaranjan Avenue,<br />
Kolkata<br />
M/S Jai Bharat Engineering works,<br />
Lal Kuan,<br />
Delhi.<br />
M/S Munshi & Co Pvt. Ltd.<br />
181-183 Bapu Khote Street,<br />
Pydhonie,<br />
Mumbai-400003<br />
Supplier of chemicals/consumables<br />
M/S Assam Essence Supply & Co.<br />
Lalsing Mansion (2 nd Floor)<br />
A.T. Road,<br />
Guwahati-781 001<br />
88