Project Report for Manufacturing Detergent Cakes

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.