REP PROJECT PRESENTATION

TO MANUFACTURE DETERGENT POWDER AND CAKE

Presented By:-

Praveen and Team

ObjectiveThe basic idea of the Rural Engineering Project is to come up with a project idea with the aim to set up a small scale industry that fulfills the following objectives:

• The customer of the manufactured product should be the common man.

• The product should be an item that is used in everyday life.

• The product should be not too expensive.

• The manufacturing process should provide livelihood to as many people as possible

• including skilled and unskilled labor.

• The initial setup to manufacture it should not be too high.

• Should be able to compete with in the market with the currently existing counterparts.

• Should have a market.

• It should desirably be in sync with nature and not pollute the environment.

• It should be safe and not pose any danger to the consumer.

• Raw material required should be preferably available locally or nearby .

• It should not require too complex technical knowledge.

• End product should be simple to use by the consumer.

• Maintenance should desirably be available once handed over to the consumer.

• Maintenance should not be too costly or infeasible.

• It is desirable that it is better and more efficient than the currently existing counterparts.

• Access to local industry where a similar product is already being manufactured is required to study the process.

• It is desirable that the local people can be trained with ease with the methodology required in the manufacturing process.

• The product should be of good quality.

• Profit margin should be sufficient to sustain its continued production.

• It is desirable to have a scope for extension/ improvement/ to meet future demands/needs.

Brainstorming Following project ideas were explored during brainstorming:-1. Robust footwear2. Chalk3. Biogas4. Solar water heater5. Artificial jewelry6. Detergent/soaps7. Multi-utility furniture8. Wax candle9. Oil10. Paper

Selection of Idea• After doing survey through questionnaires and on

internet, we narrowed on detergent powder and cake manufacturing due to the following reasons:

1. Detergent powder and cake has an ever increasing demand.

2. It is unaffected by recession or market ups and downs.3. Returns are quite high on large scale.4. Not much training and skill required for workers.5. It can be done on a large scale.6. It can give employment to large number of people.7. Rural people can be easily employed in this industry.8. The product is required by every class and section of

society.

Survey regarding detergents

OBJECTIVES:-

• To know different taste and preferences of different consumer of washing powder

• To determine the consumer behavior towards washing powder.

• To know about the market of washing powder in India.

• To observe the most preferred washing powder of different company.

• To analyze the weakest brand among all brands in India.

METHODOLOGY

To analyze the market of washing powder, we have used primary as well as secondary data as it is the part and parcel of any research.

• PRIMARY DATA like preparing Questionnaire (Hard Copy and Soft Copy i.e. E-Questionnaire)

• SECONDARY DATA for collecting the data regarding the industry of washing powder in India.

Detail findings

0%

5%

35%

60%

Frequency of buyingDaily Alternate days Weekly Monthly

Interpretation:By this we can interpret that most of the consumer buy monthly their washingpowder and nobody is buying it daily.

5%

20%

10%

5%

60%

BrandSurf Excel Ariel Tide Henko ghari detergent & others

Interpretation:We can analyze that most of the consumer buy ariel, ghari and others as their detergent and less no of people buy surf excel and other expensive brand.

55%

21%

9%

8%

7%

Quantity1 Kg 500gm 5Kg 250 gm sachet

Interpretation:In we are able to analyze that most of the people buy 1 kg packing than the 500gm, 5kg, 250gm, sachet packing.

Interpretation:Thus, we can observe that Retail Store is in highest position.

1 2 3 4 5

7.00%

70.00%

13.00%10%

Hyper Market

Retail Store in S.M.

Kirana StoreHome Delivery

3%

96%

1%

Usage of washing machine powderSurf Excel Ariel No

Interpretation:We can interpret that 96% of the consumer prefer to buy arieland tide for their washing machine. Only 4% prefer to buy the surf excel and 1% use to wash their clothes in any detergent.

60%

40%

Satisfaction levelYes No

Interpretation:60% of the consumer is satisfied with their washing powder and 40% are not

satisfied.

Series3, 10

0

10

20

30

40

50

60

70

80

yes, but not withquality

yes,but not with price yes, both Not at all with priceand quality

NU

MB

ER O

F C

UST

OM

ERS

Interpretation: 70 of the consumer are satisfied with product quality and with its price. 20 are satisfied

with the price only and 10 people are satisfied with its quality and 10 people are not with both.

31%

13%31%

25%

Liking of their brandAttractive packaging My faviourate star endrose it

Promotonal discount Others

Interpretation:We can interpret that 31% each are like their brand due to attractive packing and promotional discount. 25% like it for other reason and 13% like because their favorite celebrity endorsed it.

Target consumers

• Initially, we are targeting rural people as ourcustomers in order to capitalize theopportunity of selling cheap and qualityproduct to them.

• Along with them, lower middle class andmiddle class people are also on our radar.

Site selection

Attributes for site selection

• Labour

• Land Rate

• Water Availability

• Electricity Availability

• Raw Material

• Transportation

• Socially Acceptable

SELECTION OF SITE MATRIX

RESULTS: The matrix highlights the following sites: 1. Dayalbagh.2. Nunhai/ Sikandra

Material and equipment required

RAW MATERIALS

1. Acid slurry

2. Soda ash

3. Trisodium Phosphate

4. Sodium tri polyphosphate

5. Carboxy methyl cellulose

6. Glauber’s salt

7. Color

8. Perfume and Brightener

9. Packing

EQUIPMENTS

1. Stainless steel/MS Ribbon Blender 50 Kg capacity (2 HP)

2. SS Trays/Plastic Trays/ Enameled Trays

3. Weighing Balance ( 15 Kgs capacity)

4. Misc. equipment like Plastic Buckets, Storage drums etc., and plastic heat bending machine.

5. Office equipment like Chair, table etc.

6. conveyors

Cost estimatesFIXED CAPITAL

Land and Building: Rented per month Rs. 25,000

MACHINERY AND EQUIPMENTS (ALL ITEMS ARE INDIGENOUS)

1. Stainless steel/MS Ribbon Blender 50 Kg capacity (2 HP) 1 Rs.6,00,000

2. SS Trays/Plastic Trays/ Enameled Trays 5 Rs.50,000

3. Weighing Balance ( 15 Kgs. capacity) 1 Rs.1,50,000

4. Misc. equipment like Plastic Buckets, Storage drums etc., and plastic heat bending machine.

Rs.2,50,000

5. Office equipment like Chair, table etc. Rs.1,50,000

TOTAL Rs. 12,00,000

Total Fixed Capital ………..Rs. 12,60,000

Equipments rupees

Electrification and installation charges at 10% of cost of machinery and equipment

Rs. 60,000

Total cost of machinery and equipment Rs. 12,60,000

PERSONNEL SALARIES (IN Rs.)

Chemist-cum-Manager 1 50,000

Unskilled Workers 2 30,000

Salesman 1 15,000

Watchman 1 12,000

Perquisites at 15% of salaries

16,000

TOTAL 1,23,000

WORKING CAPITAL PER MONTH: -

s

Raw material kgs Cost/ kg cost

1 Acid slurry 225 800 1,80,000

2 Soda Ash 573 180 1,03,150

3 Trisodium Phosphate 125 250 31,250

4 Sodium tri polyphosphate 100 460 46,000

5 Carboxy methyl cellulose 6.25 450 2,820

6 Glauber’s salt 245 120 29,400

7 Color 12.5 350 4,380

8 Perfume and Brightner 12.5 150 1,880

9 Packing 1300 10 / Cover 13,000

Total 4,11,880

Say 4,20,000

COST OF PRODUCTION PER YEAR

Total recurring cost/year Rs.67, 60, 500

Depreciation on machinery @ 10% on 105000/- Rs.10,500

Int. on total capital investment @ 12% on 30,15,000 Rs.3,61,800

Total Rs.71,32,800

Say Rs.71,33,000

TOTAL SALES (Per Annum)

By sale of 22,000 kgs of Detergent powder = 79,20,000

@ Rs. 36/- per kg

PROFITABILITY (Per Annum)

Profit = 7920000 – 7133000 =Rs. 7,87,000

Major competitors in market

• Ghari detergent (17.3%)

• Wheel (16.9%)

• Tide (13.5%)

• Nirma (<6%)

Local suppliers

• Vaishno detergent

• Lakshmi soaps

Government aid

• For SSI (investment < 3 crores), Extending the loan limit under Credit Guarantee Scheme from Rs. 50 lakh to Rs. 1 crore with a guarantee cover of 50%.

• IDBI finance the projects whose cost exceeds Rs. 30 million, indirectly it also involved in the projects costing less than Rs. 30 million.

• Increasing the guarantee cover under Credit Guarantee Scheme from 80 per cent to 85 per cent of credit facility up to Rs. 5 lakh.

• Reduction in interest rates for borrowing by micro enterprises by 1 % and in respect of SMEs by 0.5%.

Testing of quality

• The Micro, Small & Medium Enterprises (MSME) - Testing Centre, Kolkata functioning under the Ministry of MSME, Govt. of India has been providing Test and calibration Services to MSMEs as well as Inspection agencies of eastern and north-eastern part of the country since 1974 through its different laboratories namely, Chemical, Electrical, Mechanical and Metallurgy including Non-Destructive Testing.

Chemical Division

Areas Under Scope of NABL AccreditationMetal and alloys e.g. steel copper, Aluminium, Tin, Zinc,

Magnesium, Lead, Synthetic Detergents, Metallic Coatings Cement Water, Acid, Soda Ash & Paints.

*NABL: National Accreditation Board for Testing and Calibration Laboratories