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DETERGENT POWDER AND CAKE

PRODUCT CODE : N.A.
QUALITY AND STANDARDS : IS 4955:1993 and IS 8180:1982
PRODUCTION CAPACITY : Powder – 240 MT, Cake – 200 MT
MONTH AND YEAR : March 2011
OFPREPARATION PREPARED BY : Br-MSME-Development Institute
APIDFC Building “C” Sector
Itanagar (Arunachal Pradesh)

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 champions 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.

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 about 10%. 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 whole sellers/ 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 1,Working days 300 , Working efficiency 70%, Time period for achieving max. cap. utilization 3rd year from the date of production started. Margin Money 25% of capital investment, Rate of Interest 14% on fixed and working capital, Operative period 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.Filing of memoranda ( registration)                 1-2
3.Sanction of Loan                                              2-3
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
7.Power connection                                             6-7
8.Trial run                                                           7-8
9.Commencement of production                         9 onwards

TECHNICAL ASPECTS

DETERGENT POWDER
Process of Manufacture Main steps involved in the manufacture
of detergent powders are:
(a) Neutralization of acid slurry followed by its absorption with dry powders builders and finally drying of the mixture.
(b) Neutralization of acid slurry followed by dissolving the Neutralized slurry and builders in water and spray drying (the same).

(c) Simultaneous Neutralization of acid slurry by soda ash and absorption by builders followed by drying.
(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 brightener and perfume. The above mixed material is then sieved on sieves made of G.I. wire mesh placed at 3 feet height over stands made of wooden. 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. and 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 Sulphonate commonly known as Acid Slurry is slowly added through the opening of the lid of the blender. As the neutralization 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 tri-poly-phosphate, borax tri-sodium phosphate, carboxy methyl 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, where in the mass is spread and kept for ageing(drying). After ageing, the powder is
packed in ploythene bags.

DETERGENT BAR AND CAKE

Formulation of Detergent Bars/Cakes is different from that of 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.

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 triple 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 are as per                        IS 4955:1993.
Requirements for laundry detergents bars/cakes are per IS 8180:1982.
PRODUCTION CAPICITY (PM)
Detergent Powder 20 MT
Detergent Cake 16.7 MT
FINANCIAL ASPECTS
A. Fixed Capital                                                                          (Rs)
i) Land and Building (500 sq. mt.)                                                                 15,000,00/-
ii) Machinery for Detergent Powder

(a) Ribbon blender MS Bottom discharging arrangement                80,000/-
capacity 150 kgs/Batch- 2 number
(b) Tank for slurry feeding Ms Cap 1MT                                          35,000/-
(c) Vibrating screen with motor                                                         30,000/-
(d)Misc. equipment viz. weighing machine Lab equipment              60,000/-
etc.,
iii) Machinery for Detergent Cakes
(a) Mixer machine-sigma blade mixture M.S. 150 Kg/hour            45,000/-
(b) Milling Machine 125 Kg/Hour cap.                                            50,000/-
(c)Extruder-plodder M.S. with motor                                                70,000/-                             (d)Misc. equipment viz. lump breaker, etc                                         40,000/-
(e)Motorised gun metal embossing stamps, cutting                            25,000/-
machine, etc.
(iv)Installation/Electrification                                                              40000/-
(v)Pre-operative expenses                                                                    15,000/-
(vi)Furniture/Fixture                                                                             30,000/-
-----------
Total     5,20,000/-
B. Working Capital (per month)
(i) Personnel
(a) Manager/ Chemist- 1                                                                      17,000/-
(b) Supervisor- 1                                                                                    8,000/-
(c) Skilled workers- 5                                                                           25,000/-
(d) Unskilled workers- 4                                                                      16,000/-
(e) Accountant/Clerk- 1                                                                          6,000/-
(f) Sale/Purchase Officer 1                                                                   11,000/-
(g) Watchman/Peon- 2                                                                            8,000/-
______________
91,000/-
Perquisites @ 15%                                                                               13,650/-
Total =              1,04,650/-
-4-

(ii) Raw Material (per month)                                                                         ( Rs.)
For Detergent Powder (20 MT)
(a) Acid Slurry 4 MT @ Rs 70,000 PMT                                                           2,80,000
(b) Soda Ash 8 MT @ Rs14,000 PMT                                                               1,12,000
(c) Sodium Bicarbonate 1 MT @ 17,000 PMT                                                     17,000
(d) Sodium Tripolyphosphate 3 MT @ 45,000 PMT                                        1,35,000
(e) Trisodium phosphate 500 Kg. @ 17,000 PMT                                                 8,500
(f) Sodim Sulphate 1 Mt @ Rs 12,000 PMT                                                        12, 000
(g) Sodium Metasilicate 1MT @ Rs 5000 PMT                                                     5,000
(h) Carboxy methyl celulose 400 Kg. @ 50,000 PMT                                           20,000
(i) Colour.                                                                                                              13,000
(J) Perfume.                                                                                                              8,000
(k) Optical whitener                                                                                                 9,000
_________
Total 6,19,500

For Detergent Cakes (16.7 MT)
(a) Acid Slurry 1.5 Mt @Rs 70,000PMT                                                       1,05,000
(b) Soda ash 0.75 MT @Rs14000 PMT                                                            10,500
(c) Starch 600 Kg. @Rs 15,000 PMT                                                                  9,000
(d) Talc 4.5 MT @ Rs11000 PMT                                                                     49,500
(e) Sodium Silicate 4.25 MT @10,000 PMT                                                    42,500
(f) Sodium tripoly phosphate 1 MT @ 45,000                                                  45,000
(g) Colour                                                                                                             4,000
(h) Optical Whitener                                                                                            8,000
(i) Perfume                                                                                                           6,000
__________                                                                                               Total 2,79,500
(iii) Other Contingent Expenses (per month)
(a) Packing charges                                                                                           30,000
(b) Postage/Stationery                                                                                         2,000
(c) Telephone                                                                                                      3,000
(d) Repair/Maintenance                                                                                      1,500
(e) Advertisement and publicity                                                                         8,000
(f) Insurance                                                                                                        2,000
(g) Transport/Conveyance                                                                                 10,000
____________
Total 56,500
(iv) Utilities                                                                                                     15,000

Total Working Capital (per month) = Rs. 10,75,150
Rs 1,04,650+ Rs. 6,19,500 + Rs. 2,79,500+
Rs 56,500+ Rs. 15,000 Say Rs. 10,75,000
-5-

C. Total Capital Investment
(i) Fixed capital Rs. 15,00,000 +5,20,000            =                            20,20,000
(ii) Working capital for 3 months 3x1075000      =                           32,25,000
-----------------
Total        52,45,000
FINANCIAL ANALYSIS
(1) Cost of production (per year)
(i) Working Capital       1075000x12                    =                         1,29,00,000
(ii) Depreciation on furniture @ 20%                  =                                    6,000
(iii) Depreciation on plant/machinery @ 10%     =                                  52,000
(iv) Interest on total capital investment @ 14%   =                            7,34,300
________________
Total 1,36,92,300
Say 1,36,92,000
(2) Sales Turnover (per year) (Rs.)
(i) By sale of detergent powder 240MT @ Rs. 40,000 PMT             96,00,000
(ii) By sale of detergent cake 200 MT @ Rs. 30,000 PMT                60,00,000
_____________
Total            1,56,00,000
(3) Net Profit per year
   Net Sales - Cost of production
Rs. 1,56,00,000 – Rs. 1,36,92,000               =                           Rs: 19,08,000
(4) Profit on Turnover
Net Profit per year × 100              19,08,000 x 100
____________________ =       ______________          =   12.23%
Total Turnover per year                 1,56,00,000
(5) Rate of Return on Total Capital Investment
= Net Profit per year × 100                  19,08,000 x100
______________________      =          _____________        = 36.38%
Total Capital Investment                    52,45,000

(6) Break-even Point

(i) Fixed Cost (Rs.)
(a) Depreciation on machinery/equipment                                   52,000
(b) Dep. on furniture                                                                      6,000
(c) Interest on total capital investment                                      7,34,300
(d) Insurance                                                                               24,000
(e) 40% of salary and wages                                                     5,02,320
(f) 40% of other contingent expenses and utilities                 3,33,600
(excluding insurance)                                                           ___________
Total    16,52,220

-6-

                  Fixed cost × 100                           16,52,220 x100
B.E.P. =    ___________________   =         _____________     = 46.41 %
Fixed cost + Net profit                 1652220 +1908000

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
6. M/s. Metal Engineers Ltd.
Balanagar, Hyderabad

Addresses of Raw Material Suppliers/Dealers

1. M/s. Sunbeam Industries
Samuel 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.
-7-

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 Everest Chemicals Industries
265, Samuel St.,Mumbai

NEIIP, 2007