The detergent powder manufacturing process is not complex. It involves simply mixing different ingredients in the right formula. Detergent powders are also known as synthetic detergent and these are surfactants. One can start this project with a small startup capital investment.
The Detergent powder market is one of the segments of the FMCG market in most developing countries and has high growth potential. There are a number of varieties of detergent available in the market depending upon a different percentage of active ingredients and other components. An entrepreneur can initiate detergent powder manufacturing on a small-scale basis with substantial capital investment.
The per capita detergent consumption in India is around 2.7 kg per year, whereas in places like the Philippines and Malaysia, the per capita consumption is 3.7 kg, and in the USA it is around 10 kg. The detergent market in India is expected to have a growth rate of 7 % to 9 % per year in terms of volume.
According to the research firm, Euromonitor, “A laundry detergent as a whole is expected to reach a degree of saturation in terms of volume growth rates in the forecast period. Thus, the shift from bar to hand wash detergents and from hand wash to automatic detergents is pivotal to the category.”
10 Steps to Start Detergent Powder Manufacturing Business
1. Understand Market Demand
The demand for detergent powder is found in the market all through the year and it is increasing day by day. This is a consumer good and people use it daily basis. With the advancement of lifestyle, the demand for synthetic detergent powder is rapidly increasing and there exists a very good scope for setting up a unit for manufacturing detergent powder.
2. Create a Business Project Plan
Go for detailed market research before starting the project. Write a business plan including from you will procure the raw material, who will be your target customer, will be your marketing strategy, and also the total capital investment of the project.
Decide on the manufacturing process prior. Detergent powder normally falls into four major groups; 1. heavy-duty detergent, 2. light-duty detergent, 3. phosphate-free detergent powder, and 4. fabric soft detergent powder. Determine which one you will be manufacturing. Determine your business objective and mission.
Detail financial plan will help you in arranging finance also. It is always better to have a customized project report for your business. In this regard consult with the small business consultant professionals
3. Make Detergent Powder Manufacturing Business Legal
As a startup, you will need to decide the legal pattern of the organization under which you are going to run your business. Obtain licenses and permits required to run a detergent manufacturing business from the local authority. Protect the brand name by registering Trade Mark. If you want to initiate a distributor network, concentrate on the ‘Distributor Agreement Paper’.
4. Raw Materials/ Ingredients For Detergent Powder Manufacturing
Below mentioned are the basic raw materials required to manufacture detergent powder:
- Acid Slurry
- Soda Ash
- Caustic Soda
- Trisodium Phosphate
- Sodium Tripolyphosphate
- Carboxymethyl Cellouse
- Glauber’s salt
- Perfume and Brightner
- Packing Materials
5. Machine/ Equipment for Manufacturing Detergent Powder
For running a small-scale detergent manufacturing, you will need the following machine and equipment:
- Stainless steel/MS Ribbon
- SS Trays/Plastic Trays/ Enameled Trays
- Weighing Balance
- Plastic Buckets, Storage drums, etc., and plastic heat bending mc/(H.O)
- Office equipment like chairs, tables, etc.
6. Detergent Powder Manufacturing Process
Detergent powder manufacturing includes the steps of spray drying, agglomeration, dry mixing, or combinations of these methods.
- In the sulfhate drying process, dry and liquid ingredients are first combined into a slurry, or thick suspension, in a tank called a Crutcher.
- The slurry is heated and then pumped to the top of a tower where it is sprayed through nozzles under high pressure to produce small droplets. The droplets fall through a current of hot air, forming hollow granules as they dry.
- The dried granules are collected from the bottom of the spray tower where they are screened to achieve a relatively uniform size.
- After the granules have been cooled, heat-sensitive ingredients that are not compatible with the spray drying temperatures (such as bleach, enzymes, and fragrance) are added.
- Traditional spray drying produces relatively low-density powders.
New technology has enabled the soap and detergent industry to reduce the air inside the granules during spray drying to achieve higher densities. The higher-density powders can be packed in much smaller packages than were needed previously.
Agglomeration, which leads to higher-density powders, consists of blending dry raw materials with liquid ingredients. Helped by the presence of a liquid binder, rolling or shear mixing causes the ingredients to collide and adhere to each other, forming larger particles.
Dry mixing of dry blending is used to blend dry raw materials. Small quantities of liquids may also be added.
7. Cost of Detergent Manufacturing Plant
The cost will largely depend on the production output. However, it can be estimated that starting a small-scale detergent manufacturing business will require an investment of Rs. 5 to 10 Lacs in Indian rupees. For a medium-scale plant, the cost will be in the range of Rs 10 lacs to 25 lacs.
8. Select Location
It is advised to choose a location that is easily accessible and strategically located near your target market or distribution channels. You must ensure that basic infrastructure like electricity, water supply, and transportation facilities is available.
In addition, consider factors like proximity to raw material suppliers, ease of shipping, and cost-effectiveness.
9. Hire Manpower
It is without saying, you will need skilled and non-skilled personnel to run a detergent powder manufacturing unit. First, determine the number of employees required based on the scale of your operations and production capacity. Next, hire skilled and experienced staff members who have knowledge of detergent powder manufacturing processes. Also, ensure to establish standard operating procedures (SOPs) and guidelines for employees to follow during the manufacturing process.
10. Detergent Powder Manufacturing Promotion & Packaging
As it is a consumer goods company, huge media promotion is required to establish the brand. You can start this business first to target your local market and then gradually you can expand your area.
Attractive durable packaging and a memorable catchy name for your product will add extra value to your marketing efforts.
Ensure that your product is available at all the retail counters within the area you are catering to. Establish a strong distributor-dealer network. Do some outdoor media activity. A detailed company website is important. It speaks a lot about your organization and products. Try to offer a lucrative business offer to your distributors.
Frequently Asked Questions
Is the detergent powder-making business profitable in India?
The detergent powder-making business can be profitable due to the high demand for cleaning products in India. However, success depends on various factors, such as market competition, product quality, pricing, and effective marketing strategies.
How much investment is required to start a detergent powder-making business in India?
The investment required can vary depending on several factors. It includes the scale of operations, production capacity, and equipment used. The startup investment typically ranges from Rs. 5 Lacs to Rs. 25 Lacs to launch a small-scale detergent powder manufacturing unit. It is advisable to conduct a detailed cost analysis considering raw materials, equipment, packaging, and marketing expenses to determine the exact investment required.
What is the profit margin?
The profit margin in a detergent powder-making business can vary depending on various factors. It includes production costs, pricing strategy, market demand, competition, and distribution channels. On average, the profit margin in the detergent manufacturing industry in India ranges from 10% to 30%. However, it is important to note that these figures are approximate and can vary based on the specific circumstances of your business.
Are there any specific licenses or permits needed to start a detergent powder-making business in India?
Yes, you need to obtain licenses and permits from the concerned authorities to manufacture and sell detergent powder. This may include registering your business, obtaining a GST (Goods and Services Tax) registration, and complying with local health and safety regulations. It is advisable to consult with local authorities or a business consultant to ensure compliance with all legal requirements.
Where can I source raw materials for detergent powder making?
Raw materials for detergent powder making can be sourced from chemical suppliers or wholesalers. Conduct research to find reliable suppliers who offer quality ingredients at competitive prices. You may also consider attending trade shows or industry-specific exhibitions to connect with potential suppliers.
How can I market my detergent powder effectively?
Implement a comprehensive marketing strategy that includes a mix of online and offline channels. Utilize social media platforms, create a website, and leverage online marketplaces to reach a wider audience. Additionally, collaborate with local retailers, offer attractive discounts, and conduct promotional activities to generate brand awareness and attract customers.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.