NSIC Project Profiles

WASHING SOAP AND DETERGENT

1. 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 nters the surface much faster. This is
the reason why the cleaning process is fast.

2. MARKET
The market for washing soap is encouraging even in tribal areas. People can now
willing to use washing soap as they are recognising importance of cleaning.

3. MANUFACTURING PROCESS
The mixed oils are taken in a pan and heated to approximately 70 degrees centigrade.
Caustic soda solution is added for sapomofication reaction. Soap is formed, builders
like sodium silicate soap stone, talc, etc are added when the sapomofication is over.
Though mixing of the material is made colour all perfumes are added. Finally, the
soap is transferred to rames at all levels to settle down. The wet soap is taken out of
the frames, cut into bars, stamped and packed.

4. PRODUCTION CAPACITY PER ANNUM

Capacity 330 MT
Selling Price Rs. 2500 per MT

5. PROJECT COST/CAPITAL INVESTMENT

S.No Description Amount Rs.
1 Fixed Capital 73000
2 Working Capital for 1 month(s) 61800
3 Preliminary & Preoperative Expns 10000
Total Project Cost 144800

6. MEANS OF FINANCE
S.No Description %age Amount Rs.
1 Promoter Contribution 15% 21720
2 Subsidy /Soft Loan 20% 28960
3 Term Loan 65% 94120
Total 144800
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7. FINANCIAL ASPECTS

A. FIXED CAPITAL
i. Land and Buildings Rented Rs. 1200 per month

ii. Machinery and Equipment

S.No Description Qty. Rate Amount Rs.
1 Boiling kettle hemispherical - 200 kg cap. 1 20000 20000
2 Stirrer/ladder 2 2500 5000
3 Soap cooling frame 12 1000 12000
4 Soap cutting machine 1 2000 3000
5 Soap stagging machine 1 3000 3000
6 Chemical laboratory LS 20000
7 Electrification and installation LS 3000
8 Furniture and fixtures LS 5000
9 Miscellaneous expenses LS 2000
Total 73000

B. WORKING CAPITAL

i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.
1 Supervisor cum chemist/Entrepreneur 1 2500 2500
2 Skilled worker 1 2000 2000
3 unskilled worker 1 1500 1500
Total 6000

ii. Raw Material (per month)

S.No Description Unit Qty. Rate Amount Rs.
1 Oils, fats, fatty acids, rice bran, kgs 1100 25 27500
oil, rosin, tobacco seed oil, etc
2 Caustic soda kgs 170 20 3400
3 Sodium silicate and miscellaneous kgs 1100 15 16500
chemicals
Total 2370 47400

iii. Utilities (per month)

S.No Description Unit Amount Rs.
1 Power LS 1500
2 Water LS 700
Total 2200
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iv. Other Expenses (per month)

S.No Description Amount Rs.
1 Postage & Stationery Expenses 500
2 Transportation Expenses 1000
3 Advertisement Expenses 1000
4 Consumeble Stores 500
5 Repairs and mainteannce 1000
6 Miscellaneous Expenses 1000
Total 5000

v. Total Working Capital (per month)

S.No Description Amount Rs.
1 Rent 1200
2 Salaries and Wages 6000
3 Raw Material 47400
4 Utilities 2200
5 Other Expenses 5000
Total 61800

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.
1 Total Working Capital 741600
2 Depreciation @ 15% 10950
3 Interest @ 12% 11294
Total 763844

9. TURNOVER (PER YEAR)

S.No Description Unit Qty. Rate Rs. Amount Rs.
1 Washing Soap MT 330 2500 825000
Total 825000

10. FIXED COST (PER YEAR)

S.No Description Amount Rs.
1 Depreciation 10950
2 Interest 11294
3 Rent 14400
4 Salaries & Wages @ 40% 28800
5 Other Expenses incl. Utilities @ 40% 34560
Total 100004

11. PROFIT ANALYSIS & RATIOS

1 Net Profit Rs. 61156

2 Percentage of Profit on Sales 7%
3 Percentage of Return on Investment 42%
4 Break Even Point 62%
NSIC Project Profiles

WASHING SOAP AND DETERGENT

NSIC Project Profiles

WASHING SOAP AND DETERGENT