Introduction to how to make money from detergent powder making business
If you are willing to start a profitable home-based low investment business, then here is the idea where you can start detergent powder making where it is a great choice to start with. In India, detergent powder is required by every family as it is an essential and basic daily need, and hence the growth rate of detergent-making businesses increased around 8% to 10% per year in terms of volume. Now, let’s get into the details to make money from the manufacturing of the detergent powder business.
A guide to how to make money from detergent powder making
The detergent powder is the most essential item used for washing and cleaning purposes, therefore, the demand in the market for detergent powder is growing high. In this article, we have mentioned all the details regarding how to start the business which might help you to get through the idea of making detergent powder.
Detergent powder business plan – market potential
As everyone knows that there is a huge demand for detergent powder in the market throughout the year and most probably every consumer uses it daily. The detergent powder-making business is having a huge consumer base so there is an excellent opportunity to invest in this business that gives you high returns.
Due to urbanization, there is a high demand for this product which is increasing day by day. This is because most people prefer to use detergent powder other than detergent cakes with regard to health awareness. Below are the steps involved to start the detergent powder making business in India:
Licenses and permission required for detergent powder manufacturing business
If you are willing to start a detergent powder-making business then these are the different registration and licenses required to complete before starting this business.
Registration of firm: You have to register your firm as either a proprietorship or partnership firm even though it is a small to medium-scale detergent powder business.
GST registration: Additionally, you need to get registered for the GST number.
Trade license: You also need to register for the Trade License from your local authorities.
Pollution certificate: As detergent or washing powder making business deals with a chemical that may create pollution to the environment so for safety purposes, it is better to take pollution control certificates from the pollution control board.
MSME/SSI registration: MSME Udyog Aadhaar Online Registration should be acquired and is compulsory for every business to start this will allow you to avail of all the government schemes related to your business.
Trademark: You need to protect your brand then you must apply for trademark registration from the municipal authority in your area where you have decided to start the business.
IS 4955-1968: Along with all these the BIS registration and IS 4955-1968 registration has to be done for the household use of detergent powder and it is also required to initiate a distribution network for your business then you have to get a ‘distribution agreement paper’.
SSI unit registration: You also have to apply for SSI unit registration which helps you to avail of the government subsidy and other benefits. For this, you need to open a current account in the bank in the name of your business.
Detergent powder making plant- area required
You can start a small-scale detergent powder manufacturing unit within a 500 sq. ft. area, so you can place the machinery and store the raw material as well as the finished product.
The area should be provided with an electronic power supply, water source, and transportation so it will be easily available for manufacturing the washing or detergent powder.
Detergent powder making raw material
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Detergent powder making is a very easy process it is just mixing the different ingredients in the right proportion. Every company has its formula for preparing detergent powder. 60% of capital has to be spent on raw material for purchasing, so first, you need to get good contacts with the chemical provider.
The most common ingredient used in preparing the detergent powder is bleach and other compounds like enzymes, optical brightener, fabric softener, surfactants, and synthetic perfume.
Raw materials required for soap powder making
These are the list of raw materials required for soap powder making – alkaline sodium silicate, alkylbenzene sulphonate, bleaches and compounds, carboxymethylcellulose, caustic soda, color, detergent builders, enzymes, fabric softeners, Glauber’s salt, labsa, optical brighteners, perfumes, phthalocyanine blue color or oil-soluble yellow color, polythene bags for packaging, soda ash light, sodium bicarbonate, sodium carboxymethyl cellulose, sodium metasilicate, sodium silicate, sodium tripolyphosphate, surfactants, synthetic perfumes and fragrances, trisodium phosphate, and water. You can choose a raw material ingredient for detergent powder manufacturing according to your production.
Detergent powder making machine
Detergent powder manufacturing needs average modernized tools along with a few types of equipment to initiate the manufacturing process in India.
List of washing powder making machine and equipment: These include – blender, blowers, conveyors sieve, cyclone, furnace, gas or electric stove, high-pressure tanks and reactors, mixing vessels, neutralizer, perfumer, pulverizer, reactors, spray dryer, waste disposal baggies, and plastic bags, weighing scale, etc.
Packaging machine: After the completion of making the washing powder or detergent, you need to pack it on different weights and to transport and for selling purposes you need a packaging machine to pack your product.
Commonly, the detergent powder is packed in polythene bags with a quantity of 125gm, 200gm, 500gm, 1kg, 2kg, and 5kg packets based on the market demand. The packaging is an important aspect of marketing as you can print complete details like ingredients used, company details, quantity, expiry date, customer care number, email, etc. You can also design differently on the packets to attract customers.
The process of making detergent powder to make good money
If you want to know how to make detergent powder to start your business, then here are the different types of detergent making ideas which are discussed below:
There are three different types of detergent powder-making processes. These include –
Step 1 Mixing: In this step, the ingredients like builders, surfactants, and perfumes are kept in a large blender. You can use two types of blenders, where one is a tumbling blender which is rectangular while the other is a ribbon blender and is cylindrical.
Step 2 Scraping: Blender allows mixing the ingredients thoroughly with each other.
Step 3 Slurry tanks: In this slurry tank, the ingredients like solid phosphates, sodium silicate, additives, and linear alkylbenzene paste are mixed thoroughly.
Step 4 Fed on conveyer: After mixing all the ingredients well with each other, the mixture will be placed on the conveyor belt which goes for further process.
Step 5 Packaging: Now the conveyer belt shifts the detergent powder to a rotary sealing machine and later the detergent powder is finally packed with the help of the sealing machine.
The process includes agglomeration, and the process of slurry preparation is the other type of preparation process.
Detergent powder making formula
Every company has its formula for detergent-making business in India. In this process, you have to create a formula based on your target market. You can even get the source of the formula from the council of scientific and industrial research for your business.
Here are the basic ingredients for your reference. You may also check How to Start a Biscuit Making Business for Profit.
Ingredients required for detergent powder making business
85% active LAB acid slurry, sodium carbonate (soda ash), sodium metasilicate, alkaline sodium silicate, sodium bicarbonate, sodium sulfate (anhydrous), sodium tripolyphosphate, sodium carboxymethyl cellulose, phthalocyanine blue color or oil-soluble yellow color, optical whitener, perfume, and water.
The budget needed or cost to start a detergent powder making business
Below is the budget required to start the detergent powder-making business in India.
Land preparation and building rent = Rs. 1,00,000
Amount needed to purchase the raw materials = Rs. 50,000
Salaries of the employees = Rs. 2,00,000
Machinery and equipment cost = Rs. 1,00,000
The cost spent on advertising your product is Rs. 5,000
Costs involved for licensing and registration = Rs. 10,000
The total cost involved is Rs. 4,50,000.
Loans for detergent powder making business
The government provides many loans and schemes for starting the business. The banks provide 75% of the project cost but you need to invest 25% of the cost.
Marketing strategies for promoting your detergent powder
After packing the detergent for the final product, you have to start promoting your detergent brand in the market so you have to use lots of strategies to capture the market.
Sell detergent powder locally
You need to start promoting your detergent business in your local market and then gradually you can expand your area.
Washing powder sellers marketing strategy
Advertisement of detergent business: You can sell the powder by focusing on the B2B channels which require establishing a strong dealer network that boosts your sale. Also, you can offer a retailer that helps to sell your product, or at least it might help to introduce your product to a large number of customers. Promotion of your is an important role to play to make your business successful as there are so many media available where you can reach the maximum number of customers. For this, you can target the local media that would speak about your product.
Wholesale market for detergent powder
You can sell your detergent powder in the wholesale market of your city.
How to sell detergent online
B2B websites: You may register your detergent powder-making business on B2B websites like – Alibaba, Indiamart, Tradeindia, Exportersindia, etc. you can sell your product on bulk orders.
B2C websites: You can also register on B2C websites like – Amazon, Flipkart, Snapdeal, where you can sell your product directly to the customers online.
An online market for detergent
Social media is one of the largest and best effective methods to promote your brand online and it reaches the maximum number of customers. You can post a brief story along with the video that attracts more customers and helps to gain more clients.
The conclusion to make money from detergent powder making in India
With a proper business plan and marketing skills, one can earn good money from a detergent powder manufacturing business.
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