Are you looking for a hassle-free manufacturing business idea that can be initiated with little capital? You may think about starting a detergent powder manufacturing business. It is simple and straightforward and yields high returns against low capital investment. Washing powder or detergent is a necessity of every household. You couldn’t find a single residence where it is not used on a regular basis. It is quite obvious that the demand of detergent powder is always staying on the top, even growing rapidly in recent times. It is categorised under the FMCG (Fast Moving Consumer Goods) market.
If you are really interested to know more about detergent powder manufacturing business, I request you to go through this article. I have tried to gather all the necessary information so that you can set up your own business.
Synthetic detergent, popularly known as detergent powder is a mixture of surfactants used for cleaning dirty surfaces like cloths, utensils etc. It is effective in cleaning dirt, grease and oil. The hydrophilic polar and non-polar components play the main role in removing dirt particles from the cloth surface.
Raw Materials Required for Detergent powder manufacturing
The following is the list of important raw materials required to make detergent powder.
- Soda Ash Light
- Trisodium Phosphate
- Sodium Tri Polyphosphate (STTP)
- Sodium Meta Silicate
- Carboxy Methyl Cellouse
- Guauber’s salt
- Optical Brightners
About 60% of your working capital will be spent on buying raw materials. So, before starting the production plant, you need to find some reliable source of chemical suppliers near to you.
Detergent Powder Manufacturing Process
Though there are three different process of manufacturing detergent powder, most of the small businesses prefer to choose the blending process. It’s an easy process where all the ingredients are blended together in a mixture machine. Since you want to concentrate on a small-scale business, I am describing the simplest manufacturing process.
In blending method, at first ingredients like surfactant, builders, perfumes etc are filled into a large vat0like machine called blender. A blender is of two types with varying capacity. The one is rectangular shaped tumbling blender and the other is cylindrical ribbon blender. The later has built-in blades to scrape and mix all the elements. When all the ingredients are mixed together, the mixture is allowed to come onto a conveyor belt through the doorway positioned at the bottom of the blender. Thereafter, the belt shifts the detergent to a rotary sealing machine where the product is finally packed and sealed. Now it’s ready for distribution. Small packets are filled up into large cartons for wholesale.
Important Points to consider in Detergent Powder Manufacturing Business
Before starting this business, it is very important that you do proper research about this trade and also gets familiar with few following things:
It is quite significant that you do proper market research before diving into the detergent powder manufacturing business. A detergent powder is one of the mandatory things that you will find in the very household. Its demand is also getting increased at a rate of 10-11% every year. It has been seen that urban people are mostly inclined in using detergent powders whereas rural consumers prefer detergent bars or cakes. Over the last five years, the rural India has been shifting towards detergent powders. It is quite obvious that the demand for this product can never fall down in future. Hence, you can be confident about starting the detergent powder manufacturing business.
Make a plan
You should prepare a solid business plan of detergent powder manufacturing business. The plan must be comprised of all the vital information such as the target market, category of the target buyer, list of raw materials and their total cost, machineries involved, from where you will get the raw material, different forms of marketing strategies as well as the aggregate capital investment of the business. After this, you can decide the procedure which needs to be followed for manufacturing detergent powder.
Category of detergent powder
- There are basically four categories of detergent powder:
- Heavy duty detergent
- Phosphate-free detergent powder
- Light duty detergent
- Fabric soft detergent powder.
So, you have to choose that which category of powder you will be manufacturing. Whatever category you choose, you must keep in mind your plan and the capital investment also. You can also consult an expert or advisor in this concern.
In every business, it is very significant that the businessman must follow all the compliances related to a particular trade and same is in this case. So, below are the few formalities that you need to complete for starting the business: –
- Firstly you need to select a form of your organisation. If you go with sole proprietorship, you will enjoy the full control of the business as well as the profit generated, but then you will be the liable for the risk of loss involved in this business.
- Secondly, you should register your business as per the norms of the entity. Being a small-scale business, you can apply for SSI registration. Though it is mandatory for all small businesses, if registered, your business will avail the benefits and incentives provided by the Central and State Governments. You can get online SSI registration from the Ministry of Micro, Small and Medium Enterprise.
- Thirdly, you will have a requirement of bank account for financial transactions. So it is advisable to open a current account on your registered business name.
- Next, you should obtain your trade license from the local municipal authority.
- Thereafter, you should fill up an application form of “Consent to Establish” (NOC) with an online payment. You will be issued NOC certificate by the State Pollution Control Board. Now to start manufacturing, you should apply for “Consent to Operate” from the same authority.
- Now it is time to get BIS registration and IS: 4955-1968. It is specified for synthetic detergent powder for household use. Finally, you need to apply for the Trademark Registration. It is essential for the protection of your brand identity in the market.
Arrangement of Capital: –
The requirement of the capital will depend on the scale of business you want to start. The maximum proportion of the capital will be required for the purchase of equipment and raw materials. But as the detergent powder manufacturing business has a great potentiality in the market, thus it will give a great return to the amount invested in the same.
If it becomes difficult for you to arrange the capital by yourself, then you can take a loan from the banks. A well-crafted business plan will help you to get a loan from different financial institutions. A business plan must consist of the detailed information about where you are going to invest the money and what are the different plans to get a proper return from the business.
With the new government policies to boost small scale business, you can easily get a loan facility from banks even without submitting any kind of collateral. You just need to prepare a perfect business plan.
Promotion of Business
Promotion of the product plays an essential role in the success or failure of a business. Now there are so many mediums through which you can advertise or promote your washing or detergent powder and can reach a maximum number of people. A consumer good always requires massive media promotion to launch the brand and stay in top of the competition. You can also build your company’s website in which you can list your products along with the price tags.
Every business requires some effort in the beginning and same is in the case of detergent powder manufacturing business. If you are well-focussed and determined towards your goal, then the success will reach you in very short span of time. You may go through the project profile of detergent powder under the Ministry of Micro, Small and Medium Enterprises