How to Start Detergent Powder Making Business?
Detergent Powders are commonly used by many people as it is a part of the FMCG industry. FMCG industry includes those products that are Fast Moving in nature and are consumable goods. Since Detergent Powder is a fast-moving product, used widely at homes for washing clothes, and so on, it has a repetitive demand from people, thus having a great market potential for business.
Overview
The potential of the Detergent Powder Making Business is wide, even on a global scale. The total consumption or use of Detergent Powder in Indian households goes about 2.7kg per year, and that’s a very huge number if you consider the big picture and multiply that same number with the total number of households in India.
The detergent powder market can be broadly categorized to cater to the following market types: lower, middle, and higher-end. India alone boasts of Rs. 5,000 crore market and is amongst the biggest categories in the FMCG industry, following edible oils and biscuits. Rapid urbanization, emergence of small packs and sachets, wide range of choices, health awareness, and urge for good living are some of the reasons that are attributed to the growing demand for detergent powder all over the world, both for commercial and residential purposes.
Even if we consider some Global numbers of different countries, the potential still remains the same. If we take the examples of countries like the Philippines and Malaysia, the consumption of detergent powder at each household goes to 3.7 kgs. The surprising number of usages is at the USA, that goes around 10 kgs, this speculates major use on a global scale as well.
The best advantage of the Detergent Powder Making business is that the manufacturing process of the same is very simple. You just have to learn the formula once, mixing the right ingredients, and so on. Once you are used to the process of manufacturing, it becomes very easy for you to carry out this business.
Already sounds like a very simple business for you? This is just the beginning, let us understand about this business at a deeper level.
Here is a list of categories of detergent powder:
- Heavy-duty detergent
- Phosphate-free detergent powder
- Light duty detergent
- Fabric soft detergent powder.
Moreover, there are 2 broad categories for a detergent based segment: Oil-based laundry soaps and synthetic detergents. These detergents are available in a wide variety of options in the market depending upon a different percentage of active ingredients and other components. These forms include:
- Powder
- Bars
- Liquid
Formula of Washing Powder and Detergent Making
The manufacturing of detergent powder is not so complicated and involves mixing of different ingredients in the right proportions. Each detergent making company has its own customized formula that can be crafted keeping in mind your target market. Here is a list of basic ingredients that are needed in a detergent powder manufacturing process:
- 85% active LAB acid slurry
- Sodium Carbonate
- Sodium metasilicate
- Alkaline sodium silicate
- Sodium bicarbonate
- Sodium sulphate
- Sodium tripolyphosphate
- Sodium carboxymethyl cellulose
- Phthalocyanine blue color or oil-soluble yellow color
- Optical whitener
- Perfume
- Water
Machine and Equipment Needed in Detergent Making
An average detergent powder manufacturing plant needs a few modernized tools and equipment and ample space to work in the manufacturing facility to initiate the manufacturing process. Below is the list of equipment needed:
- Mixing vessels
- High-pressure tanks and reactors
- Reactors
- Neutraliser
- Pulveriser
- Cyclone
- Blender
- Weighing scale
- Storage and raw materials tanks
- Furnace
- Blowers
- Conveyors sieve
- Spray dryer
- Perfumer
- Packaging machine
- Waste disposal baggies and plastic bags
- Anti-pollution unit
- Gas or electric stove
- Blenders, hand gloves, and basins
Raw Materials Required in Washing Powder Manufacturing
The next important step is to look for the most ideal and cost-effective supplier of raw materials who can ship these to you at your manufacturing facility warehouse. Purchasing raw materials consumes about 60% of the detergent business’s working capital. One can also purchase these raw materials yourself from the wholesale market, however, doing this can be cost-effective and very time-consuming in the long run.
Detergent powder manufacturing formulations essentially consist of active ingredients, STPP, Filler such as sodium sulphate and silicate. Here is a list of raw materials needed to initiate a detergent making process:
- Trisodium Phosphate
- Sodium sulphate
- Soda ash light
- Labsa
- Surfactants
- Sodium Tri Polyphosphate (STTP)
- Sodium Meta Silicate
- Carboxy Methyl Cellouse
- Glauber’s salt
- Colour
- Fabric softeners
- Enzymes
- Detergent builders
- Bleaches and compounds
- Caustic soda
- Sodium silicate
- Synthetic perfumes and fragrances
- Alkylbenzene sulphonate
- Polythene bags for packaging
License Required for Detergent Powder Making Business
A. SSI Unit License
B. Firm Registration
C. Consent to Establish
D. Consent to Operate
E. Current Bank Account
F. Trade Mark
G. GST Registration
H. Trade License
Investment required in Washing Powder Making Business
The total investment that would be required for starting your Detergent Powder Making Business in India is as follows.
| CONTENT | AMOUNT |
| Small Scale | 1 to 2 lakhs |
| Medium and Large Scale | 1 to 5 lakhs |
Expected Profits that can be Made in Detergent Industries
An average amount of Profit that can be earned by individuals doing Detergent Powder making business on a monthly basis would go around INR 30000 to 1.2 lakh per month. This would depend on the amount of demand you can generate, as the manufacturing formula of Detergent Powders is very easy and repetitive in nature, it can get you a huge number of profits if done correctly.
In a medium-sized Detergent Powder Making business, you can even earn more than 2 lakhs per month.
Target Consumers
A. Local shops: Local shops are your first and foremost targets, even if your business is on a small scale or a larger scale, you should always start with local shops
B. Retailers: Some Retailers focus on only a few lines of product, however, most of them focus on Detergent Powders too, you can approach them.
C. Supermarkets: This is the source where you would have greater demand. As supermarkets usually have greater demand for products and huge stocks, you can definitely approach them.
D. Online Retail Stores: Many Online stores deal with a wide range of products, you can offer your Detergent Powder and target them for business.
E: Distributors: This is another effective way of reaching more retailers and a good audience, you can approach Distributors to expand your reach.
F. Wholesale Market: Aside from supermarkets, you can also enter into the Wholesale market and sell your detergent powder in huge stocks with wholesalers.
Manpower Required
It is not possible for a single person to handle all the processes of the Detergent Powder Making Business by himself or herself. You would require manpower, and perhaps such people who have some knowledge or experience with the same.
A. The manpower required to set up a small scale-based Detergent Powder making business would be around; 4 to 5 skilled workers.
B. The manpower required for a large-scale Detergent Powder making business would be; 7 to 10 workers at the most.
Profit Margin in Washing Powder Manufacturing
In Detergent Powder Making Business, with efficient product quality and market price, you can expect to keep a profit margin between 6% to 15%.
Some Useful tips for starting your Surf Business.
1. Branding: Since the Detergent Powder Making business falls under the category of FMCG, it is always recommended to create branding for your business. This would help your customer to differentiate between your brand and the market brand. Branding is important, especially for small businesses as it becomes hard for them to compete with well-established brands.
2. Waste Disposal. As most of the formula for making Detergent powder is related to Phosphate, you should always be careful as to how you dispose of them. Your waste disposal should be figured out carefully before you start your business, as it is also hazardous to the environment.
3. Location: If your business is on a medium or larger scale for Detergent Powder, then your manufacturing unit or your factory should be situated at a location where you would have easy access to all the raw materials that you require and the basic elements such as electricity, water, etc.
Manufacturing Process of Detergent Powder
There are predominantly 2 processes of detergent manufacturing:
- The Raw Material Mixing process (suitable for small-scale production), and
- The Spray Dried Process (for large-scale industrial production).
Let us take a look at both of these processes in detail:
Raw Materials Mixing Process/Blending Process
In the blending or mixing process, first ingredients like surfactants, builders, and perfumes are fed to a large blender. This process involves 2 types of blenders with varying capacity. One blender is a rectangular shaped blending type while the other one is a cylindrical ribbon blender. The latter one comprises of built-in blades that allow scraping and mixing of all the ingredients. Solid phosphates, additives, sodium silicate, and linear alkylbenzene paste are mixed in a slurry tank. Once all the ingredients are mixed together, the mixture is fed to a conveyor belt through a doorway at the bottom of the blender. The belt then shifts the detergent to a rotary sealing machine and the product is then finally packed and sealed for selling purpose.
Spray dried Process
First, all the dry, as well as liquid ingredients, are mixed together in a slurry or thick suspension in a tank known as a Crutcher. The slurry is then heated and pumped into the top of a tower, and eventually sprayed through nozzles under high pressure until small droplets are formed. 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 or dry blending is used to blend dry raw materials. Small quantities of liquids may also be added.
Branding
Understanding your target market makes it easier to adopt branding strategies for your product. Some consumers differentiate between various brands by looking at various ingredients while others focus primarily on the packaging. Besides, a single brand is often available in various forms: liquid, powder form, or single-dose, calling for different techniques for each one of them.
Also, think of some catchy and unique business names that would be most suited for your detergent making business. Eventually, it is your brand and you would want it to be a reflection of your visions and values. Create a unique brand logo that is enticing and appealing to the masses and underlines your core values.
Consider, for example, the premium detergent brand ‘Tide’ that has a trademark that is easily recognizable in striking colors of orange and yellow, superimposed by the name ‘Tide’ in blue. It was one of the first brands to be packaged in Day-Glo colors that are known to be strikingly eye-catching. The coloring scheme was meant to convey an aggressive impression of the ‘rugged strength’ of the brand.