Project Profiles - Chemical Industry
LIQUID DETERGENT
- PRODUCT: ITS FRATURES AND BIS REFERENCE
1.1 INTRODUCTION:
Liquid detergents are used for washing clothes and cleaning.
Edible oils are used for manufacturing normal soap. Detergent is superior to washing soap in that it can be used even with hard water and has a stronger cleaning action. Due to this the liquid detergents manufactured from synthetic chemicals are expected to gradually replace soap in the years to come.
1.2 RELEVANT SPECIFICATIONS:
IS:4956:1997 |
Synthetic detergent for industrial purposes |
IS:9458:1980 |
Synthetic detergent for washing woolen and other delicate fabrics |
IS:11601:1986 |
Methods of safety evaluation for synthetic detergents |
- MARKET OUTLINE:
The washing of cloths and toilets is a daily activity at all households and industries throughout the year. With oil-based soaps becoming dearer, demand now exists for a new item available at affordable price.
The requirement of washing detergents per household can be estimated at 2 kg. Per month. This indicates that the demand for this product can enable a unit to be established at any location where consumption of the item is of the order of 500 kg. Per day.
However, owing to stiff competition from existing manufactures of detergents, the prospective entrepreneurs may study the local market before setting up the unit.
- PLANT CAPACITY:
A plant capacity of 21 tons per annum is considered on the following basis.
No. of shifts |
1 |
Machine Capacity |
70 kg per day |
Working Days per year |
300 |
Annual production capacity |
21 tons |
Annual output at 70% capacity |
14.7 tons |
- MANUFACTURING PROCESS:
The manufacturing process involves the following steps:
a) Mix alkyl benzene with concentrated sulphuric acid
b) Allow the reaction to take place
c) Transfer the mixture to a lead lined vessel.
d) Allow the mixture to cool for 12 hours, during which the acid gets sedimented at the bottom.
e) The remaining alkyl benzene sulphonic acid solution is used as a liquid detergent.
f) Mix water and caustic soda into sulphonic acid solution
g) Pack the product in 5 ltr tins and 20 ltr barrels.
- FINANCIAL ANALYSIS:
5.1 LAND AND BUILDING:
| |
(Rs. Lakh) |
Land 1000 sq. ft. @ Rs. 40 per sq. ft. |
0.40 |
Site development |
0.05 |
Factory Building 500 sq.ft. @ Rs. 300 per sq.ft. |
1.50 |
Architect’s fees |
0.05 |
| |
2.00 |
5.2 PLANT AND MACHINERY:
The following equipments are required for the proposed unit:
No. |
Particulars |
Qty |
Total cost (Rs. Lakh)
|
1 |
Reactor |
1 |
0.35 |
2 |
Agitator |
1 |
0.10 |
3 |
Condensor |
1 |
0.20 |
4 |
Vacuum Pump |
1 |
0.20 |
5 |
Water Cooler |
1 |
0.25 |
6 |
Analytical Instruments |
1 |
0.25 |
| |
|
|
1.35 |
5.3 OTHER FIXED ASSETS:
| |
(Rs. Lakh) |
Office furniture |
0.10 |
Work Furniture |
0.05 |
Electrification charges |
0.05 |
Effluent treatment charges |
0.05 |
| |
0.25 |
5.4 PRELIMINARY AND PRE-OPERATIVE EXPENSES:
| |
(Rs. Lakh) |
Preparation of Project Report and start-up expenses |
0.05 |
Interest during construction period and up-front fee |
0.05 |
| |
0.10 |
5.5 RAW MATERIAL REQUIRED: (ANNUAL)
Only 70% capacity utilization has been considered:
No |
Particulars |
Qty |
Rate (Rs/ton) |
Amount (Rs.Lakh) |
1 |
Alkyl benzene |
7 |
45000 |
3.15 |
2 |
Sulphuric Acid |
7 |
10000 |
0.70 |
3 |
Caustic Soda |
2 |
17500 |
0.35 |
| |
|
|
|
4.20 |
5.6 UTILITIES:
| |
(Rs. Lakh) |
Electricity – 3000 units |
0.08 |
Water – 100 kltrs. |
0.05 |
| |
0.13 |
5.7 WORKING CAPITAL REQUIREMENT:
Project Annual Sales |
11.02 |
Gross Working Capital
(25% of projected annual sales) |
02.75 |
Assessment of Working Capital Requirement
Gross working capital |
02.75 |
Less: Promoters margin (NWC)
(1/5th of GWC) |
00.55 |
Working Capital Finance |
02.20 |
5.8 PROJECT COST:
| |
(Rs. Lakh) |
Land and Building |
2.00 |
Plant and Machinery |
1.35 |
Other assets |
0.25 |
Preliminary & pre-operative expenses |
0.10 |
Margin money for working capital |
0.55 |
Contingencies |
0.40 |
| |
4.65 |
5.9 MEANS OF FINANCE:
| |
(Rs. Lakh) |
Promoter’s contribution |
1.95 |
Term Loan |
2.70 |
| |
4.65 |
Note: See remarks given under Means of Finance in General Notes
5.10 MANPOWER REQUIREMENT:
No. |
Particualrs |
Nos |
Total Salary Per Annum (Rs. Lakh) |
1 |
Q.C Technician |
1 |
0.60 |
2 |
Skilled Workers |
1 |
0.48 |
3 |
Semiskilled Workers |
2 |
0.72 |
| |
|
|
1.80 |
5.11 SALES REALISATION:
Current market price |
Rs. 80 per ltr. |
Selling Price assumed |
Rs. 75 per ltr |
Total realisation |
Rs. 11.02 lakh |
5.12 PRODUCTION PROFITABILITY:
CAPACITY UTILISATION |
70% |
| |
(Rs. Lakh) |
A. SALES PER ANNUM
|
|
14.7 TONS @ Rs. 75000 per ton |
11.02 |
B. COST OF PRODUCTION:
|
|
Raw Material |
04.20 |
Utilities |
00.13 |
Salary and Wages |
01.80 |
Overhead expenses |
00.80 |
| |
06.93 |
C. PROFIT BEFORE INTEREST, DEPRECIATION AND TAX (A-B) |
4.09 |
D. INTEREST AND DEPRECIATION
|
|
Interest on term loan @ 16% P.A. |
0.43 |
Interest on bank finance for w/c |
0.40 |
Depreciation |
0.28 |
| |
1.11 |
E. PROFIT BEFORE TAX (C-D) |
3.21 |
- HIGHLIGHTS:
The major highlights of the project are as follows:
Total project cost |
Rs 04.65 lakh |
Promoter’s contribution |
Rs. 01.95 lakh |
Annual sales realization |
Rs. 11.02 lakh |
Annual operating expenses |
Rs. 08.04 lakh |
Annual profit (pre-tax) |
Rs. 02.98 lakh |
Return on capital employed |
64.41% |
Pre-tax return on sales |
27.04% |
Break-even point |
36.84% |
No. of persons employed |
04 |
- PLANT AND MACHINERY SUPPLIER:
CEMIDA INDIA LTD
MASOONLAL NAGAR
GRANT ROAD
MUMBAI – 400 007
- RAW MATERIAL SUPPLIER:
AMRITLAL,
BHORABHAI & CO.
ANAND BHUVANPRINCES STREET
MUMBAI – 400 002
Thinner
Product
|
:
|
Thinner
|
Annual Capacity
|
:
|
6500 ltrs
|
Applications & Uses
|
:
|
Thinners are solvents, which are generally used to reduce the viscosity of paints and polish thereby helping in uniform application on any surface.
|
Land
|
:
|
5 Cents
|
Building
|
:
|
500 Sq. ft.
|
Manufacturing Process
|
:
|
Various ingredients in the formulation are mixed in the mixing barrel, which is stirred well. It is then packed in the containers.
|
Plant & Machinery
|
:
|
Mixing barrels, stirrer, weighing scale, drums, etc.
|
Power
|
:
|
2 kW
|
Water
|
:
|
1000 ltrs/day
|
No of Workers
|
:
|
4
|
Suppliers of Plant & Machinery
|
:
|
1) Prince Engineering Company, Valanjablam,
Cochin – 682 016.
2) & | | 
