Investors interested in starting a detergent making
business need to understand the manufacturing process. The powder is a popular
brand of washing soap used for cloths, hand wash and kitchen utensils.
The detergent is effective in cleaning dirty surfaces and
has many industrial and home applications. The consumer based product is highly competitive and profitable.
Small business owners could start small and slowly
increase capacity as demand increases. Here are a few ideas on how to start a
detergent manufacturing business.
Before starting a detergent manufacturing business you
need a clear description of your product. Conduct a marketing study on plant
capacity, utilities and raw materials.
Other considerations are equipment, auxiliary materials, training
and manpower. To succeed conduct a full financial analysis that covers total
initial investment, production cost, financial evaluation including economic
and social benefits.
Write
a Detergent Powder Manufacturing Business Plan
Startup investors need to write a business plan and carry
out feasibility study. The business plan should have a mission statement,
budgeting and target market.
Focus on cost of equipment, management structure,
product, plant capacity and marketing strategy. Get a professional to write the
plan or hire a qualified freelancer. A good marketing strategy is essential to
the success of your enterprise.
Product
Description
Detergents are suitable for washing cloths, hands,
utensils and dishes. The powder is soluble in water and has compounds identical
to soap.
The powder is a mixture of surfactants used for cleaning
purposes. The part hydrophilic polar and non polar compound provides the
proficiency of the reactive agents in the detergent.
The product is active against dirt, grease and oil. Detergents
are generally categorized into soda products, light detergents, soap powders
and heavy duty detergents.
Plant
Capacity
Determining the plant capacity provides a template for
the manufacturer. If you have a three shift eight hour daily schedule your
plant could produce 1,000 tons of detergent powder in one year. The efficiency
of the production system gradually increases with time.
Sourcing
Raw Materials
There are a few raw materials that go into the
manufacturing of detergents. Some important ingredients are sodium sulphate, caustic soda and sodium silicate.
Others are sodium tri polyphosphate and alkyl benzene
sulfonates. The manufacturer needs to find credible sources of raw material in
your locality.
Raw materials consume about 60% of working capital. Other
raw materials are auxiliary materials used in the production process including
packaging.
A List
of Raw Material used to Manufacture Detergents
Sodium sulphate
Caustic soda
Sodium silicate
Alkyl benzene sulphonate
Sodium tri polyphosphate
Polythene bags used for packaging
Pricing
The business of manufacturing detergents is highly
profitable. However there is stiff competition from established brands.
You need to price your product accordingly taking into
consideration production cost, labor and cost of raw materials. Other things
that impact on pricing are marketing cost and packaging, import duty.
The cost of utility such as electricity, diesel for generators
and water affects the cost of production.
A
list of Utility
Water
Electricity
Diesel
Oil
Machinery
and Equipment
An average detergent powder manufacturing plant needs the
following equipment. Purchase mixing vessels, pumps, high pressure tanks, storage
tanks, furnace and blowers.
You need cyclone, conveyors sieve, raw material tanks,
spray dryer and perfumer. Others are packaging machine, baggies including waste
disposal and anti pollution unit.
List
of Machines and Equipment
Packaging machine
Perfumer
Conveyors
Tanks
High pressure tanks
Blowers
Spry dryers
Cyclone
Furnace
Pumps
Sieve
Mixing vessel
Production
Process
The production process starts from receiving the raw
materials, mixing, drying and packaging. Solid phosphates, additives, sodium
silicate and linear alkyl benzene paste are mixed in a slurry tank.
The properly blended mixture passes through different
filters. The mixture is dry sprayed up to 400C then goes through sieving. The
detergent is then cooled and more additives are added before packaging.
Flow
Chart for Detergent Manufacture
Raw materials – mixing unit- drying unit – cooling –
packaging
Locating
the Factory
The factory needs to comply with state and government
zoning requirements. Lease property suitable for your equipment, administrative
building and ample parking.
Locate the business in an industrial zone or central
marketing district. Make sure there is easy access to the factory though land
transportation.
Hire
Staff
An average detergent production plant has a plant
manager, accountant, purchase officer, clerk and quality control manager. They
also hire technical, administrative and commercial managers including chemist
and mechanics.
Hire machine
operators and casual labor. Other staffs are cleaners, security guards,
electrician and drivers.
Annual
Production Cost
Base your annual production cost on raw materials,
utilities, direct labor and maintenance. Other parameters are lease cost, overheads,
marketing and distribution.
All the cost considerations should arrive at a workable
operational cost. To arrive at a total production costs include cost of finance
and depreciation.
Funding
Funding is required for fixed and working capital. Funds
are used for land lease, civil work, machinery and equipment.
Others are office equipment, pre and post operational
costs, utilities and staff wages. You could approach financial institutions in
your area for bank loans. Provide collateral, a business plan and guarantors.
Marketing
the Detergent Powder
Every product is guided by supply and demand. Make sure
your product is high quality and has competitive pricing.
Apply different marketing strategies such as traditional
printing and television advertisement. Create a website for your business and employ
commission based sales representatives.
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