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How to Start a Phenyl Manufacturing Business in India – Complete Guide

Liquid phenyl is a very good cleaner having disinfected and deodorizing properties. It is used to kill germs as well as to remove foul smells. Liquid phenyl is usually of two types, white phenyl, and black or brown phenyl. Here in this article, you will learn how to start a small-scale phenyl manufacturing business with costs, machinery, profit margin, and more.

Places, where phenyl is used utmost, are homes, hospitals, nursing homes, offices, hotels, restaurants, schools and colleges, railway stations, and other such places of human inhabitation. Liquid phenyl is an emulsion of light creosote oil and water with soap.

Apart from possessing the correct germicidal strength, phenyl should stand without separation for any length, whether exposed or not. When poured into water it should readily disperse without stirring. It should form a thick milky white emulsion when sufficiently diluted. This is how an ordinary buyer would generally judge the quality of this disinfectant.

Phenyl Manufacturing Business Plan Guide

1. Understand the Demand

Liquid phenyl is used in the cleaning of various floor and toilet accessories. This is required for each household, office, and the agencies involved in the cleaning of the city, hospital, and other public areas like Railway stations, Bus Stands, etc.

Its demand depends upon the status of the city and the households. It is observed the demand is more in the cities in comparison to the rural areas. With the increasing awareness about health and cleanliness, the demand for phenyl is also increasing. Another major reason is the increase in population.

2. Liquid Phenyl Manufacturing License & Registration 

For a legally compliant liquid phenyl manufacturing business, the first thing you will need to do is register your company with ROC.

Furthermore, you will need to obtain a Trade License and GST Registration. ‘Consent to Establish’ and ‘Consent to Operate’ both are required from the Pollution Control Board. Liquid phenyl is notified as a “Drug” under the Drug Act. Prior permission and a License from the Drug Control Authority are necessary for its production.

3. Finance For Liquid Phenyl Manufacturing 

As with any manufacturing business, you will need to arrange two types of finance. They are fixed capital and working Capital. You can apply for a combined project loan to any bank or financial institution. In any case, you must invest your capital. Collateral security is also needed in many types of loans.

Read: How to Get a Business Loan in India

4. Liquid Phenyl Manufacturing Setup 

Before initiating the business you must have a detailed project report with financials. Selecting a proper location, figuring out the required area, and layout planning. These are the steps that you need to be careful of while establishing the unit. Additionally, you will need to arrange the major utilities like electricity and water in liquid phenyl production.

5. Liquid Phenyl Manufacturing Machinery

You need to buy a wide range of equipment to make liquid phenyl. Some of the essential types of machinery needed are listed below:

  • MS Tank
  • Mixing Vessels
  • Storage Vessels
  • Planetary mixture
  • Furnace (with the platform and Diesel pump)
  • Balance and measuring equipment
  • Hydrometer
  • Liquid filling machine
  • Cap sealing machine

Generally, you will need to procure this basic machinery for phenyl manufacturing. According to the specific product and desired production output, you will need to select the right machines properly.

6. Raw Material For Liquid Phenyl Production 

Raw materials required for phenyl production are as follows:

  • Rosin
  • Castor Oil
  • Creosote Oil
  • Sodium Hydroxide
  • Monochloro Phenyl
  • Carbolic acid perfumes etc.
  • Pine oil

Apart from these, you will need to arrange packaging consumables like bottles, caps, and cartoons.

Related: Profitable Small-Scale Manufacturing Business Ideas

7. Liquid Phenyl Manufacturing Process

Since Rogene of Biroza is available in markets in the form of hard lumps. First of all, heat this in a pan. And when it completely melts, mix the solution of caustic soda (caustic soda mixed in water) in liquid Rogene. Additionally, with the help of either a mixer or stirrer, mix these solutions thoroughly.

When these materials are properly mixed, then creosote oil is mixed in it, and water is added in such a quantity so that the whole mixture is properly mixed. Well-mixed and the stirred solution is then left to cool. Later, pour it into bottles and jars. Finally, you must maintain the quality standard according to the BIS Specification of liquid phenyl.

Cost of a Phenyl Manufacturing Plant in India

The cost of setting up a phenyl manufacturing plant in India can vary widely depending on various factors. It includes the scale of operations, the quality of machinery and equipment, the location of the plant, and other factors. Here is a rough breakdown of the potential costs involved in setting up a small, medium, and large-scale phenyl manufacturing unit in India:

Small-Scale Phenyl Manufacturing Plant

  • Machinery and Equipment: ₹2,00,000 – ₹5,00,000
  • Raw Materials (initial stock): ₹50,000 – ₹1,00,000
  • Packaging Materials: ₹30,000 – ₹50,000
  • Working Capital: ₹1,00,000 – ₹2,00,000
  • Miscellaneous Costs: ₹50,000 – ₹1,00,000

Total Estimated Cost of establishing a small scale phenyl manufacturing plant in India: ₹4,30,000 – ₹9,00,000

Additional Costs to Consider

Land and Building

The cost of land and building can vary significantly based on the location. Renting or purchasing a suitable location that complies with industrial norms and pollution control regulations is essential.

Operational Costs

  • Utilities: Regular expenses for electricity, water, and other utilities.
  • Labour: Salaries for skilled and unskilled workers.
  • Maintenance: Regular maintenance of machinery and equipment.

Marketing and Distribution

  • Marketing: Costs for advertising, promotional activities, and branding.
  • Distribution: Transportation and logistics expenses to distribute the products to retailers and wholesalers.

Licensing and Compliance

  • Licenses: Costs for obtaining necessary licenses and permits.
  • Compliance: Expenses for adhering to environmental and industrial regulations.

Contingency Fund

Always keep a contingency fund to handle unexpected expenses or emergencies.

Profit Margin in Phenyl Manufacturing Business

The profit margin in the phenyl manufacturing business can vary widely depending on several factors, including production scale, cost control, pricing strategy, market demand, and competition. However, here are the key factors to consider in estimating the profit margin for a phenyl manufacturing business:

Key Factors Affecting Profit Margin

  • Cost of Production: This includes the cost of raw materials, labour, utilities, packaging, and overheads. Efficient management of these costs can significantly impact the profit margin.
  • Pricing Strategy: Setting a competitive yet profitable price for your phenyl products is crucial. This price should cover all costs and provide a reasonable profit margin.
  • Market Demand: High demand for your product can lead to increased sales volume, which can help in achieving economies of scale and higher profit margins.
  • Quality and Brand Positioning: Offering high-quality products and building a strong brand can justify a higher price point, thereby improving profit margins.
  • Distribution and Marketing Costs: Efficient distribution and effective marketing can reduce costs and increase sales, positively impacting the profit margin.

The profit margin in the phenyl manufacturing business is influenced by multiple factors, including production efficiency, cost management, and market demand. By focusing on optimizing production processes, managing costs effectively, and implementing strategic pricing, a phenyl manufacturing business can achieve healthy profit margins. While small-scale operations might see profit margins in the range of 20% to 30%, larger operations can potentially enjoy margins upwards of 30%.