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