DETERGENT CAKES
INTRODUCTION
This is detergent in cake form, which can be used with hand as well as in soft water.
In our country, village people are accustomed to washing clothes near rivers and ponds using cakes by scrubbing and applying mild force. Detergent cakes or bars are suitable for this purpose and are becoming popular both in the villages and urban areas.
MARKET POTENTIAL
It is a common consumer product demand for which is increasing day by day. Therefore marketing this product may not be a problem.
BASIS AND PRESUMPTIONS
1. Single shift of 8 hours a day, 25 days a month and 300 days in an year is presumed. Efficient machines and workers are also presumed.
2. Minimum 6 month period is considered for achieving full capacity utilisation
3. Labour rates are as per the prevailing rates.
4. An average interest rate of 18% is considered.
5. The estimates are drawn for a production capacity generally considered techno-economically viable for model type of manufacturing activity.
6. The information supplied is based on a standard type of manufacturing activity viable for model type of manufacturing activity.
7. The information supplied is based on a standard type of manufacturing activity utilising conventional techniques of production at optimum level of performance.
8. Costs in respect of land and building, machinery and equipment, raw materials and the selling prices of the finished products etc., are generally prevailing at the time of preparation of the project profiles and may vary depending upon various factors.
9. Whereas some names of manufacturers, suppliers of machinery and equipment, raw materials etc. are indicated at the end of the profile, those are by no means exclusive or exhaustive.
IMPLEMENTATION SCHEDULE
Normally six months are required for the complete implementation of the project, including machinery erection, raw materials procurement etc.
TECHNICAL ASPECTS
There are two methods for the manufacturing of Detergent Powder, viz. spray dried detergent powder and just mixing of Detergent Powder, raw materials. Spray drying involves a lot of investment and hence the other simple mixing method is adopted by a number of small units. In this project profile, simple mixing method is followed.
FINANCIAL ASPECTS
| FIXED CAPITAL | Rs. |
| Land and Building | 2,500 |
MACHINERY AND EQUIPMENT
1 | Detergent plodder with 5 HP Motor | 1 | 50,000 |
2 | Sigma blender (50 Kgs. capacity) | 1 | 20,000 |
3 | Stamping machine | 1 | 5,000 |
4 | Platform weighing scale | 1 | 5,000 |
5 | Miscellaneous expenditure | | 3,000 |
6 | Furniture and fixture | | 5,000 |
Total | 88,000 |
WORKING CAPITAL PER MONTH
PERSONNEL
Sl.No. | Description | Nos. | |
1 | Supervisor | 1 | 3,000 |
2 | Semiskilled Worker | 2 | 3,500 |
3 | Unskilled Worker | 1 | 1,200 |
4 | Watchman | 1 | 1,000 |
Total | | 8,700 |
RAW MATERIALS
Sl.No. | Particulars | Qty.(Kg.) | Rate(Rs./Kg.) | Value (Rs.) |
1 | Acid Slurry (all are indigenous) | 375 | 42 | 16,875 |
2 | Soda Ash | 550 | 12 | 6,600 |
3 | S.T.P.P. | 250 | 20 | 5,000 |
4 | Glaubers salt | 375 | 7 | 2,625 |
5 | Talc | 375 | 3 | 1,125 |
6 | Starch | 250 | 5 | 1,000 |
7 | Color | 7 | 300 | 2,100 |
8 | Paraffin Wax | 50 | 35 | 1,750 |
9 | Packing |
| L.S. | 5000 |
10 | Perfume | 5 | 150 | 750 |
Total | 42,825 |
UTILITIES
1 | Power | 1,500 |
2 | Water | 200 |
Total | 1,700 |
OTHER EXPENSES (Per Month)
1 | Postage and Stationery | 200 |
2 | Consumable Stores | 200 |
3 | Repairs and Maintenance | 400 |
Total | 800 |
TOTAL CAPITAL INVESTMENT
1 | Fixed Capital | 88,000 |
2 | Working Capital on Three months | 1,62,100 |
| Total | 2,50,100 |
COST OF PRODUCTION (Per Annum)
1. Total Recuring Expenditure --------------------------------------6,48,300
2. Depreciation on machinery @ 10%on 88,000 -------------------8,000
3. Depreciation on Office Equipments @ 25% on 5,000 -----------1,250
4 . Interest on total capital @ 12% on 2,50,100 -------------------30,000
Total 6,87,550
XVI. TOTAL SALES (Per Annum)
By sale of 2,49,000 Cakes 7,80,000
@ Rs. 3.25/- per Cake
XVII. PROFITABILITY (Per Annum)
Profit 7,80,000 – 6,87,550 92,450
Net Profit Ratio : Net profit x 100 / Turnover
92,450 x 100 / 78,000
=
11.85%
Rate of Return : Net profit x 100 / Total Investment
92,450 x 100 / 2,50,100
=
36.96%
Break Even Point : Fixed Cost x 100 / Fixed Cost + Profit
FIXED COST
Depreciation -----------------------------------9,250
Interest on total investment ---------------------30,000
Rent -------------------------------------------30,000
40% on salary and wages ----------------------41,760
40% of Other expenditure ----------------------3,840
Total 1,14,850
B.E.P. = Fixed Cost x 100 / Fixed Cost + Profit
1,14,850 X 100 / 1,14,850+ 92,450
=
55.40%
ADDRESSES OF MACHINERY MANUFACTURERS
1. M/s Prototype Development and Training Centre, P.O. Okhla Industrial Estate, New Delhi – 110 020.
2. M/s Precision Machinists, Plot No. 356(D), Kandivli, Industrial Estate, Kandivli, Bombay – 400 067
3. M/s Steel & Brass Trading Corporation, Nirman Nagar, Kesar Baugh, Plot No. 116/17,
Bhavanagar – 364 001.
4. M/s Oriental Machinery Supplying Co. Ltd., Mission road Extension, Calcutta.
ADDRESSES OF RAW MATERIAL SUPPLIERS
1. M/s S.P. Chemical, Plot No. 4, Kengeri, Mysore Road, Bangalore.
2. M/s Surcoats (India), C-29. Royal Industrial Estate, 5-B Naigaum Cross Road, Wadala, Bombay – 400 031
3. M/s Supertex (India) Corporation, 132, Dr.A.B. Road, Bombay – 53.
4. M/s Saibaba Sugandh Bhandar, 53, Santhusapet, Bangalore – 53
5. M/s M.M. Chemicals, A.S. Char Street, Bangalore – 53
6. M/s Prakash Chemical Agency, Purnaseshachar Street, Behind Chickpet Post, Bangalore – 53.
