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Liquid Detergent Manufacturing Project Report

This document is a mini project report on establishing a liquid detergent manufacturing business called FeeL It. The report outlines the mission, vision and values of promoting hygiene and making laundry affordable. It identifies a gap in the market for affordable high-quality liquid detergents. The report evaluates the product feasibility, organizational feasibility, financial feasibility, marketing plan and concludes that the business has potential given the growing demand for laundry detergents in India.

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0% found this document useful (0 votes)
100 views26 pages

Liquid Detergent Manufacturing Project Report

This document is a mini project report on establishing a liquid detergent manufacturing business called FeeL It. The report outlines the mission, vision and values of promoting hygiene and making laundry affordable. It identifies a gap in the market for affordable high-quality liquid detergents. The report evaluates the product feasibility, organizational feasibility, financial feasibility, marketing plan and concludes that the business has potential given the growing demand for laundry detergents in India.

Uploaded by

singhsaurabhh91
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A

MINI PROJECT REPORT

ON

Liquid Detergent Manufacturing

Submitted to

Dr. A P J Abdul Kalam Technical University, Lucknow

In the partial fulfillment of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
(2023-2024)

Under the guidance of: Submitted By:


[Link] Mittal Ayush Kumar
Designation of Internal Guide M.B. A- Ist Sem.
Roll No.–

Raj Kumar Goel Institute of Technology


2015 Certified)
5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD (U.P)-201003
Department of Management Studies

1
Raj Kumar Goel Institute of Technology
2015 Certified)
5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD (U.P)-201003
Department of Management Studies

Date: ……………….

TO WHOM SOEVER IT MAY CONCER

This is to certify that Mr. Ayush Kumar is a bonafide student of MBA 1 st year of this institute
for the session 2023-2024 and he prepared Mini Project Report titled Liquid Detergent
Manufacturing Feel It , for partial fulfillment of Master of Business Administration (MBA)
affiliated to Dr A P J Abdul Kalam Technical University, Lucknow.

I wish him all the best for his future endeavors.

[Link] Mittal Dr. Vibhuti tYAGI


Designation of Internal Guide Professor and Head
(Department of Management Studies)

2
Declaration

I Ayush Kumar S/o Sanjay Kumar am pursuing Master of Business


Administration (MBA) 1st year from Raj Kumar Goel Institute of Technology,
Ghaziabad in the session 2023-24 I hereby declare that this Mini project report
titled “Liquid Detergent Manufacturing FeeL It” is the outcome of my own
effort under the guidance of Dr. Shikha Mittal , designation. The entire project is
my original creation. In case of any discrepancy, I will be solely responsible for it
and institute has the right to cancel my project.

Date: ………………… Sign with Full Name Place: RKGIT, Ghaziabad


Roll. No:

3
ACKNOWLEDGEMENT

Mini project is a bridge connecting the educational qualification and professional use. It

is the path leading to success by innovative ideas and experienced practical knowledge without

fear and failure.

It gives me immense pleasure to take the opportunity to remember and thanks the

personalities who have involved with this project work. I express my sincere thanks and deep

gratitude who are directly and indirectly associated in completion of this project.

I would like to thank to [Link] Mittal, designation

………….………………. of ……………………………. organization for assigning an

extremely challenging project thereby giving unique opportunity to meaningful contribution of

such growing and vibrant organization, guiding throughout the project, without his/her help the

project would have not added enough value. I am extremely grateful for the time she spent from

her busy schedule.

Ayush Kumar

4
INDEX

PAGE NO.

The Detergent Manufacturing Business (FeeL It)


 Mission 5
 Vision 5
 Values 5
 Objective 6
 Gap Identification 6
 Industry Trends 6
 Business Ownership 7

Product Feasibility
 Features 8
 USP 8
 Market Potential Of The Idea 8

Permissions and Licenses Required 9

Organizational Feasibility
5 M’s 10-11

Technical Aspect 12

Manpower Requirement 13

Financial Feasibility
 Capital Required 13-17
 Cost of Production 18
 Estimated Turnover 18
 Estimated Net Profit 19

Technical Feasibility
 Competitors 20
 SWOT Analysis 20-21

5
Marketing Plan
 STP(Segmentation, Targeting and Positioning) 22
 Product 22
 Price 23
 Promotion 23
 Place 23

Conclusion 24

MISSION
6
• The Mission of the organization is to provide the best-in-class product to the
customers at the cheapest price possible.
• And to gain the trust of our customers by satisfying their needs through innovation.
• We also promote hygiene as the cloths are the primary medium of spreading bacteria
which may also cause health problems, FeeL It liquid detergent kills the bacteria and
make the cloths clean, soft and fresh

VISION

The vision of the organization is just not to produce and sell only Liquid Detergent, we want
to expand ourself in various verticals like-

• Detergent Powder
• Dish Wash
• Soaps and body wash
• Hand Wash

And to build a soap production business thatwill be listed amongst the top 10 soap and
detergent brands in INDIA want to build a household brand name.

Value

• Promote Hygiene
• Making laundry economical
• Quality and service.
• Client and employee centered.
• Commitment to nature by using less water during laundry

• Professionalism.

Objective

7
The main objective of our organization is to provide satisfaction to our customers and
keep on improving our product on the basis of feedback of the customers.

We do not stop here we keep on innovating ourself so that we can tackle laundry
challenges. Now our customers have more time to spend on what’s important to them
– their life, family and goals.

All this can’t be achieved until the organization survives in this competitive market
which means that we should also reach our breakeven point for survival and earn
sufficient profits for the growth of the organization.

GAP IDENTIFICATION

Now a days in every house in urban area we have washing machines most of the middle-class
people try to buy the automatic and semi-automatic washing machine. These machines use
the high-quality detergent but many company provide the detergent at very high price, so we
came up with FeeL It Liquid Detergent is the new liquid laundry detergent and softener with
intense cleaning power. We provide the this at the very affordable price to our customers.

Industry Trends

The trend in the detergent production industry is such that, any product that has been proven
to be reliable in terms of cloths cleaning and healthy tends to sell more and determine the
direction of the market for such industry. Currently there are many soap and detergent brands
out there in the market from which FeeL It liquid detergent may have to compete with. One
of the things that need to done to get the own fair market share is to come out with a creative
packaging of the soap and detergent and also come up with different fragrance and sizes. If
budget allows might just have to consult a brand expert to truly make it big as an detergent
making company.

8
Product Feasibility

Features of the product

• It's simple to use


• Liquid detergents dissolve immediately and are less foaming.
• Liquid detergent aids in the removal of stains.
• Delicate fabrics can be laundered using liquid detergent.

9
USP of the Product

• Very pocket friendly – FeeL It will be very economical in nature cost per wash will
be similar to powder detergent.
• Use less water - Liquid detergents aid in water conservation.
• Liquid laundry detergent and fabric softener with intense cleaning power all this in
one product.
• Can be served as both hand wash detergent and machine detergent.

Market Potential of the Idea and Demand

The India laundry detergent market is anticipated to expand at a compound annual growth
rate (CAGR) of ~5% during the 2018-2023 period, owing to rising consumer demand. Based
on type, hand wash detergents constitute ~82% of the market share, while machine wash
detergents hold the remaining of it. The demand for hand wash detergents is high, since only
~33% of the population use washing machines and require machine-wash detergents, and the
rest of the population use hand-wash detergents for washing clothes.

FeeL It being an economical product can also be served as both hand wash detergent and
machine detergent.

Permissions and Licenses required

Understanding the Importance and Permissions of Project is required to establish a business


unit in India. Government and MSME Permissions can help our organization in complying
with the standards and regulations defined by the government and may also helps in getting
financial aid. For starting a liquid detergent business, following licenses and permissions are
required:

• Registered business name as Sole Proprietor.


• Bank account
• Consent to Establish’ and ‘Consent to Operate’ – issued by Pollution Control Board
10
• BIS (Bureau of Indian Standards) registration
• Trademark registration
• Trade license – issued by the local municipal authority
• MSME Udyog Aadhaar online registration
• GST registration

11
ORGANIZATIONAL FEASIBILITY

The Five M’s: -

[Link] Power: -

• Workers
• Managers
• Market Experts
• Designers

[Link]

[Link]:-
Cost of Production will be Rs. 57,97,206

[Link] And Resources Required

Although the we don’t need automated and modern equipment initially, to manufacture in
large quantities machinery is required as mixing and blending huge quantities manually is
ineffective. Following are the machinery and equipment required for liquid detergent
business:

• Packing Machine
• Wooden or plastic ladle
• Storage Vessel
• Medium-sized basin
• Weighing scale
Gas
• 10
• Measuring spoons and cups
• Packaging bottles
• Stainless steel container
• Electric mixer
• Stirrer
• Mixing bowls or containers
• PH Paper

[Link] Materials for Detergent Manufacturing

The raw materials required for making liquid detergents are easily available at most of the
chemical stores. Following are the raw materials needed to make a liquid detergent:

• Sodium Lauryl Ether Sulphate (SLES) – the base ingredient


• Coconut Diathonol Amide (CDA) – an additive for lather
• Table salt
• De-ionized or distilled water
• Fragrance / Perfume
• Water-soluble dye / Color
• Acid Slurry 80%
• Caustic Soda
• Packaging Bottle and Caps

11

TECHNICAL ASPECTS :

Production Capacity :
Capacity Installed 75% Capacity Utilization(I Yr.)
a) Quantity 1,35,000 Kg 1,01,250 Kg
b) Value ( Rs.) 82,83,000 62,12,250
Power Requirement :
Connected Load 5 KWH

Pollution Control :

Though there is no discharge of effluent during manufacturing of Liquid detergent but care
should be taken to avoid the chemicals in washings.

Energy Conservation :

The adequate measures for energy conservation and illumination will reduce the wastage of
energy.

12
MAN POWER REQUIREMENT:

The enterprise requires 6 employees as detailed below:


Details Qty/No. Price (inRs.)

1. [Link] with 1 50,000 stirrer, low speed Cap. 200 kg

Sr. No. Designation of Employees Monthly


Number of employees required
Salary₹
Year-1 Year-2 Year-3 Year-4 Year-5

1 Machine Operators 20,000 1 1 1 1 1


2 Helpers 9,000 1 1 1 1 1
3 Production supervisor 13,500 1 1 1 1 1
4 Accounts/Sales Asset 13,500 2 2 3 3 3
5 Office Boy 9,000 1 1 1 1 2
Total 6 6 7 7 7

FINANCIAL ASPECTS:

Fixed Capital:
1. Land & Building: (Value in
Rs.)
Land 200 sq. meter @ 200/- sq.m. 40,000
3,30,000
Covered Area – 150 sq.m. @ 2200/- sq.m.
Rs. 3,70,000
2. Machinery & Equipment’s:
2. Bottle filling machine 1 35,000
.Semi automatic
3. Storage Tanks , SS, 2 30,000 Cap. 200 Liters
4. Tools & Misc. equipment LS 5,000
8. Testing & laboratory LS 20,000 equipments
7. Installation & Electrification - 13,500
13 charges @ 10% of
machinery
8. Office furniture, equipment & LS 20,000 fixtures.
Rs. 1,73,500

[Link] & license Expenses:- Rs10000

Total Fixed Capital:

Rs.3,70,00 + 1,73,500 + 10,000 = 5,53,500

Working Capital:

1. Personnel :
16
Designation No. Salary (PM) Total (in Rs.)

1. Manager/ Chemist 1 20000/ - 20000

2. Skilled Worker 1 13500/ - 13,500

3. Semiskilled Worker 2 9000/- 18000

4. Sales man 2 13500/- 27000

78,500
Perquisites @ 15% of salaries 11775
90275

[Link] Material (PM):

Particulars Qty/k Rate(Rs) Value(Rs.)


1. Acid Slurry–80% 2115 85 1,79,775
2. Caustic Soda 220 30 6,600
[Link] 175 46 8,050
4. CDA 1270 20 25,400
5. Color 35 400 14,000
6. Perfume 8 600 4,800
7. Plastic bottles &Caps 8100 8 64800
TOTAL 303425

[Link] (PM):

PowerandElectricity 1000 units@6/- 6000

17
Water 1000

TOTAL 7000

[Link] Contingent Expenses (PM):

[Link] & Telephone 2,000

[Link] Store 2,000

[Link] & Maintenance 2,000

[Link] charges 7,000

[Link] & Publicity 17,000

[Link] 1000

[Link] Expenses 7,000

[Link] 2,000
40,000

5. TOTAL RECURRING EXPENSES (PM):

[Link] 90,275
2. Raw material 3,03,425
18
[Link] 7,000
4. Other contingent expenses 40,000
4,40,700
:

6. TOTAL WORKING CAPITAL FOR 1 MONTH = RS 380325

TOTAL CAPITAL INVESTMENT

TOTAL FIXED CAPITAL 553500


TOTAL WORKING CAPITAL 440700
TOTAL CAPITAL REQUIRED 994200

FINANCIAL ANALYSIS

A. Cost of Production (Per Annum) :

1. Total recurring cost/ Working Capital 52,88,400


2. Depreciation on building @ 5% per annum 18,500

19
3. Depreciation on machinery & equipment @ 10% 10,350
per annum
4. Depreciation on furniture & fixtures @ 20% 1,000
per annum
5. Interest on total capital investment @ 18% 1,78,956
per annum
57,97,206
Approx 54,97,206

B. Turnover (Per Annum) :

Item Qty.(No) Wholesale Value(in Rs.)


Rate(Rs.)
Liquid Detergent

1.1000 ml 48,030 75.00 36,02,250


2.5Liter 10,644 295.00 31,39,980
67,42,230

C. Net Profit (Per Annum) :

(Before Income-Tax)
Rs. 67,42,230–54,97,206 12,45,024
Approx. 12,45,024

20
Technical Feasibility

India Fabric Detergent Market Major Players:

• Proctor & Gamble.


• Unilever.
• Godrej Group.
21
• RSPL Group.
• Niram Limited.

[Link] Analysis

STRENGTHS

Aside from quality and variety of detergents that we make, part of what is going to count as
positives for FeeL It is the vast experience of our partner in this field.

the location of the business makes it have easy access to targeted customers because we are
situated near capital which is just 60km away from here.

The quality, packaging and distribution of products is consistent as to meet customers’


demands. FeeL It production has good plans to contain expansion to other parts of the city to
aid in equal dissemination of her products.

WEAKNESS

A major weakness that may count against us is the fact that we are a new detergent
production company and we don’t have the enough financial capacity to engage in the kind of
publicity that we intend giving the business. Inadequate power supply which will delay the
rate of production and quantity of output.

22
OPPORTUNITIES

The opportunities for detergent production companies are enormous. This is due to the fact
that detergent is a universal product that can be found in all homes, canteen, laundries, hotels
and toilets et al. As a result of that, we were able to conduct a thorough market survey and
feasibility studies so as to position our business to take advantage of the existing market for
soaps and detergents and also to create our own new market. We know that it is going to
requires hard work, and we are ready to give all it will take to achieve it.

THREATS

We are quite aware that just like any other business, one of the major threats that we are
likely going to face is economic downturn and unfavorable government policies. It is a fact
that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new detergent production
company in same location where ours is located. Low initial demand for products increased
competition due to more detergent producers springing up.

MARKETING PLAN

Segmentation, Targeting and Positioning (STP)

Segmentation-

23
The first step is segmentation in which the whole big markets are divided into parts according
to the nature of the brand.

Normally women are the main customers aged 18-65 who are housewives or the maids. The
middle-class consumers are the customers of our organization basically produces the products
for premium customers who prefer quality at very affordable prices.

Targeting-

The segmentation of whole market has been done and then targets the markets where
customers are ready to pay prices for the quality and prefer liquid detergent over powder
once. The need of the product is in rural markets too with the urban markets, so rural markets
are targeted as they are still untapped and the women are targeted who uses detergent the
most.

Positioning-

Positioning refers to the creation of the image in the minds of people/ customers. Our
organization will try to convince that our product is most value for money currently in the
market with no compromises with quality. Also use technology which is innovative and best
in removing the stains from the clothes which can satisfy the customers and they like to
repurchase the products.

Price:

Price is against which the product is exchanged from the customers. This is important to be
considered to fix the price of the product which is comparable to the competitors in the
market. We has to keep low prices in order to be competitive and to achieve higher market
share because many other brands are providing same quality at lower prices. People need cost
effective product which provides value for money they are paying. The prices of the products
include the cost of raw materials, production, packaging, distribution and marketing costs.
We want to keep the MRP of the Product below Rs.150.

24
Place:

Place is where the exchange of goods and services takes place between the buyer and seller.
The products of FeeL It are sold to the customers through retail channels. They are sold
through local retailer shops, and on online platforms too. For proper distribution of the
products, we needs to have smooth relationships with its suppliers and the distributors. FeeL
It has to take care of the availability of its products in the markets so that it can have higher
sales volume.

Promotion and distribution strategy:

We would like to adopts many promotional tools for the purpose of promotion of our product.
It is very important to promote the products to aware customers about new products, new
features of the products or any offer on the product. Then only, customers will be attracted
towards the product and make sales. We can use promotional campaigns like emotional
advertisements related to mothers of India how they used to wash cloths from hands etc.,
extra 20% liquid detergent, 10% off, free goodies like giving an 20 liter bucket with every 5
liter of FeeL It and many more offers to attract customers and to boost its sales in the market
where there are lots of competitors.

The marketing strategy is the delivery and sales agents who will be trained to market the
products with best approach and develop customer strategy. They will be given authority for
discounts at sales point. For promotion of products, the media – Newspapers, internet ads on
Facebook and Instagram, and market women will be used. Also, there will be 3% price
discount for a given quantity of Detergent purchased. Distribution in the detergent industry is
provided by regional providers.

CONCLUSION
After conducting research on liquid detergent, it can be concluded that it is a popular
and effective cleaning agent used in households and industries.

Some key findings about liquid detergent include:


1. Liquid detergent is more effective at removing oily stains than powdered detergent.
25
2. Liquid detergent is more convenient to use as it dissolves easily in water and can be used
for both hand washing and machine washing.
3. Liquid detergent is more expensive than powdered detergent, but it is worth the
investment as it provides superior cleaning results.
4. Liquid detergent is available in a variety of fragrances and formulations, including those
that are hypoallergenic and eco-friendly.
5. Liquid detergent should be stored in a cool, dry place to prevent degradation of its active
ingredients.
Overall, liquid detergent is a versatile and effective cleaning agent that offers a range of
benefits for users. Its popularity is likely to continue in the future as more consumers
prioritize convenience and performance in their cleaning products.

26

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