Detergent powder or laundry washing powder is a promising industry in India. In addition, any individual can initiate a detergent powder making business with moderate capital investment. Here in this article, we intend to explore how to start a small-scale detergent powder manufacturing business.
Detergent and washing powder are surfactants. And washing powder is an important ingredient for cleaning and washing purpose.
Generally, there two different types of manufacturing technologies are available. One is spray dried and another is mixing the raw materials. However, the first option is only perfect for a large-scale operation. Also, it demands a huge capital investment. The second option (mixing formula) is the easier option and you can start the manufacturing with a small capital investment.
8 Steps to Start Detergent Manufacturing Business
1. Detergent Powder Market Potential
The Indian detergent industry is growing at a CAGR of 13.06% over the last five years. Generally, the detergent powder segment caters to three categories, lower, middle, and higher-end markets. In terms of value, the Rs.5,000 crore detergents market is among the largest FMCG categories in India, next only to edible oils and biscuits. In addition, the Indian market for detergents is among the largest in the world
Due to rapid urbanization, the emergence of small pack sizes and sachets, the demand for this product is flourishing. In addition, an increasing per capita income helps to boost the purchasing capacity of the population. Furthermore, a wide range of available choices, health awareness, and hunger for good living are other reasons for the growing demand for detergent powder.
In addition, the rural population has replaced detergent cake with washing powder in massive quantities. Apart from domestic consumption, the product has a different usage in the industrial sectors. The detergent industry represents a good investment opportunity in the small and medium sectors. Therefore, washing powder manufacturing is a lucrative business opportunity for new entrepreneurs.
2. Detergent Powder Manufacturing License & Registration
You will need to apply for ‘Consent to Establish’ and ‘Consent to Operate’ both from the Pollution Control Board. For quality control, you need to have BIS registration and IS: 4955-1968: specification is required for synthetic detergent powder for household use.
If you want to start the manufacturing with the mixing process, you need to obtain different registrations and licenses. However, it depends on the location where you are establishing the plant. It is advisable to check the local state laws. Here we put some of the basic considerations.
- First of all, determine the form of your business. And accordingly, register the business.
- Apply for the Trade License from the Municipal Authority.
- Additionally, apply for MSME Udyog Aadhaar online registration.
- Apply for the ‘Consent to Establish’ from the Pollution Control Board
- Obtain the GST registration.
- Apply for BIS certification.
- Choose a catchy brand name of the product and secure the name with Trademark
3. Detergent Powder Making Plant Setup & Machinery
You can initiate a small-scale detergent powder manufacturing unit with a 1000 Sq Ft area. However, the area requirement hugely depends on the desired quantity output.
In addition, you have to secure the factory location carefully. the location must have the availability of water, electricity, and transportation.
4. Detergent Powder Making Machine & Cost of Plant
The basic detergent powder manufacturing types of equipment needed are listed below:
- Weighing scale etc.
The approximate cost to establish a detergent plant is Rs. 5 – 10 Lacs on a small scale and Rs. 30 lacs to Rs. 50 Lacs on a medium scale.
5. Detergent Powder Making Formula
Different companies have their own customized formula. In addition, you have to craft the formula according to your target market demographic. You can source the manufacturing technology from Central Salt and Marine Chemicals Research Institute. Council of Scientific & Industrial Research. Gijubhai Badeka Marg, Waghawadi Road. Bhavnagar -364 002 However, here we put a basic formula with the ingredients in percentage for your ready reference.
|Ingredients||Premium grade (Wt, %)||Popular grade (Wt, %)|
|85% active LAB acid slurry||18||15|
|Sodium carbonate (soda ash)||35||32|
|Alkaline sodium silicate||No||7|
|Sodium Sulphate (anhydrous)||20||25|
|Sodium carboxymethyl cellulose||1.5||1|
|Phthalocyanine blue color or oil-soluble yellow colour||0.1||0.1|
6. Detergent Powder Manufacturing Process
First of all, you have to neutralize the acid slurry with soda ash. Then keep the mixture for one hour for completion of the reaction. Then mix the other ingredients such as STEP, TSP, Glauber’s salt, CMC, Colours, Perfume, etc., and blend to the neutralized acid slurry with continuous mixing. After this, you have to dry this mixture. Then pack the finished product in suitable packing.
7. Detergent Powder Packaging
Apart from the above-mentioned raw materials, you have to procure packaging materials. Generally, the detergent powder comes in the poly pack. The most popular packaging quantities are 200 gm, 1 Kg, and 5 Kg. In addition, packaging has important aspects of marketing.
You must design the packets carefully. Furthermore, you have to put the basic details in packets. These are quantity, MRP, manufacturing date, company address, customer care number, etc. In addition, you have to arrange the outer cartons for bulk packaging and transportation.
8. Learning Resources For Detergent Powder Manufacturing
Starting commercial detergent powder production requires some basic knowledge. And a book is the best guide for this. If you seriously want to start this business, we’d recommend you to buy this book.
The term detergent by itself refers specifically to laundry detergent or dish detergent, as opposed to hand soap or other types of cleaning agents. Some of the fundamentals of the book are the technology of soap making and the washing of saponified soap.
Also, it includes a plant for total soap making operation, construction materials for soap making plants, earth bleaching of oils, chemical bleaching, fatty acids, manufacturing of framed soaps, manufacture of chips and flakes, manufacture of milled bars, the Mazzoni process, floating soap bars, mixing of soap, chemicals used in soaps & detergents, disinfectants, and antiseptics, dry cleaning agents, etc.
Additionally, the book contains formulae, processes of different types of soaps, detergents, and disinfectants. These products have good demand in domestic as well as in the international market. So there is a very good scope for new entrepreneurs to venture into this field. This book is an invaluable resource for entrepreneurs, technocrats, and those who want to diversify into this field.
From a detergent powder manufacturing unit, you can also produce the detergent cake and liquid detergent.
Detergent Powder Project Cost Synopsis:
|Plant capacity: 1000 Kgs. / day||T.C.I: Rs. 22 Lakhs|
|Plant & machinery: Rs. 6 Lakhs||Breakeven: 46%|
The actual cost of a detergent manufacturing project may deviate on a change of any of the assumptions. You can modify the project capacity and project cost as per your requirement.
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Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.