Liquid Soap Project Report, Manufacturing

Introduction to Liquid Soap Project Report, Manufacturing Business Plan

Liquid soap comprises a wide variety of soaps for instance liquid detergent, body wash, car wash, liquids, baby soap, hand wash, dish wash, etc. Every type has different demands and they also must get permission from diverse government establishments. An entrepreneur who has an idea regarding the chemical consumable industry or having practical knowledge in this section can initiate this scheme with substantial investment.

A guide to Liquid Soap Project Report, Manufacturing Business Plan

Starting Liquid Soap Business — Liquid Soap (Pic credit: pixabay)

Business plan for starting Liquid Soap Manufacturing Business: It is vital to have a thorough business plan for this soap-making business. Decide the type of liquid soap that you have in your mind. While starting any manufacturing business it is recommended to have a sample plan as a backbone. Estimate the start-up financial necessities with fixed and working capital conditions.

Consider the expenses connected to legal agreements. Plan your advertising and promotion tactic and prices. Check the water pH balance in your location where you are in preparation for setting up the unit. Plan for a trendy and good-looking name for your produce.

First you need to craft a perfect business plan for starting Liquid Soap Manufacturing Business, or any other kind of business units which includes the following points:

Market potential of Liquid Soap Manufacturing Business
Basis and presumptions for Liquid Soap Manufacturing Business
Implementation schedule of Liquid Soap Manufacturing Business
List of approvals required for starting Liquid Soap Manufacturing Business
Area required to start Liquid Soap Manufacturing Business
Raw materials required for starting Liquid Soap Manufacturing Business
List of machinery required to start Liquid Soap Manufacturing Business
Manufacturing process of Liquid Soap
Project economics of Liquid Soap Manufacturing Business in India
Profitability in Liquid Soap Manufacturing Business
Marketing strategies to promote and sell your Liquid Soap product

Market potential of Liquid Soap Manufacturing Business

The liquid soap-making business includes a wide range of packaging, processing, marketing steps. The business also needs widespread market analysis and marketing ideas. Liquid soap is a replaceable item and its request is increasing in the rural as well as in urban areas. Total annual soap sale by trademarked companies is about of tones, while an entire soap market is measured to be almost 126000 tones.

Basic and presumptions of Liquid Soap Manufacturing Business

Working hours/shift: 8 hrs.
No. of shift/day:1
Working days: 300
Labor expenses: as per the State Government’s Minimum Wages Act.
Rate of interest: 15% per annum
Costs of machinery and equipment: Taken based on a particular dealer
Value of raw material: As per local market Packing material/others rate (on wholesale rate)
Land: owned
Building Construction
Break-even point will be estimated on a full capacity utilization basis
Pay-back time is 5 – 7 years

Implementation schedule of Liquid Soap Manufacturing Business

Market analysis and demand, applying for loan 0 – 1 month
Preparation of business plan 1 – 2 months
Financial support or investment 2– 4 months
Selection of location and establishment of unit 3 – 4 months
Power and water connection facility: 4 – 5 months
Building construction and shed development 5 – 6 months
Machinery and equipment purchase 6 – 7 months
Procuring raw materials and recruiting of manpower 8 – 9 months
Trial operations 10th month

License, registrations and permissions required to start Liquid Soap Manufacturing Business in India

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License for Liquid Soap manufacturing Business in India — Liquid Soap (pic source: pixabay)

To start a small-scale Liquid Soap Manufacturing business unit, you need to apply for the below list of registrations and licenses. It is suggested to verify the regulations of your state and do the registrations accordingly.

Register your organization
Trade License from your local municipal authority
MSME Udyog Aadhaar Registration for the business
GST
NOC from State Pollution Control Board
Trade License
Shop License
VAT registration
IEC number
BIS Certification
Trade Mark registration
ISO certification

It is better to contact the local authorities and check with the rules and regulations to start with the business. So, that you can proceed with the business legally which will be always valid.

Area required for establishing Liquid Soap Manufacturing Plant Unit

Around 500 sq. ft. area is appropriate for establishing a small-scale Liquid Soap manufacturing unit. It should be enough to accommodate the machinery and place the raw material and the end product. The area must get the power connection, water source, and must have transportation provision to send the manufactured Liquid Soap to market.

Machinery required for the Liquid Soap Manufacturing business

It is suggested to start the business as a small unit. When your business expands, you may plan to large-scale production. Select and purchase the machinery as per the essential production output. It is recommended to start using semi-automatic operations in the beginning. You should get a mixing unit with having stirrer and a certain rpm. The filling and sealing unit have to be perfect for packaging works. You should accommodate even a water treatment plant that aids to treat the hard water into soft water.

Raw materials required to start the Liquid Soap manufacturing business

As per your process, it is very important to obtain quality raw materials from trustworthy suppliers. It is rightly said that Quality product is the result of quality raw materials. Concentrate on packaging materials that have good quality and are easy to use. Attractive leak-proof bottles will improve the value of your end products.

Packaging of Liquid Soap

After the Liquid Soap making is done, it has to be packed using packaging machines of various weights for selling in the market. Generally, the Liquid Soap is packed within polythene bags or bottles of 500 ml, 1 liter, 2 liters, 5 liters, etc. depending on market demand. Packaging is an essential factor while marketing since it is easy to print entire information such as ingredients used, company information, quantity, expiry date, customer care contact, email, etc. You may even try with a range of attractive packets to appealing customers.

Project economics of Liquid Soap Manufacturing Business in India

Fixed Cost

Plant and Machinery = Rs. 1,87,200

Miscellaneous fixed assets = Rs. 82,500

Preliminary & Preoperative Expenses = Rs. 4,950

Total Fixed Cost = Rs. 2,74,650.

Working Capital Cost

Salary and Wages: Rs. 27,500

Administrative expenses: Rs. 13,666

Selling expenses: Rs. 3,300

Raw Materials: Rs. 2,20,000

Utilities: Rs. 3,880

Total Working Capital Cost: Rs. 2,68,316

Total Cost of the Project: Rs. 5,42,966

Sale price of Liquid Soap: Rs. 8,75,000 per year

Profitability in Liquid Soap Manufacturing Business

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Profit in Liquid Soap Manufacturing Business (pic source: pixabay)

Profit = Rs. 8,75,000 – Rs. 5,42,966 = Rs. 3,32,034.

Different marketing strategies to promote and sell your Liquid Soap product

To sell your Liquid Soap product you need to register it online on B2B websites and B2C websites. You can even distribute some samples in the nearby supermarkets, shops, stores, laundry shops, or in the wholesale markets where your product goes well for purchasing in the market.

B2B websites: You need to register in the B2B websites like –

Alibaba,
Indiamart,
Tradeindia,
ExportsIndia will take the bulk orders for your Liquid Soap product.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

Amazon,
Snapdeal,
Flipkart, etc.

Conclusion of Liquid Soap Project Report, Manufacturing Plan

The Liquid Soap-Manufacturing Business is a money-spinning business for people who have properly planned it. As a young businessman, if you are thinking to initiate a small-scale business in the chemical sector, the liquid soap manufacturing business is a perfect option.