Detergents are used to remove dust, grease and dirt from soiled clothes. None of us can imagine doing our laundry without detergents. Detergents are used for both hand wash and machine wash. Liquid detergent is the liquefied form of detergent. Detergents commonly available in powder and bar forms have been ruling the detergent market since ages but lately liquid detergents have made entry into the detergent markets with good sales and profits. It is one of the best small business ideas that can be launched right from your doorstep and sold from your home.
Powder and bar detergents leave a residue on the clothes after washing and are harsh on the skin as well. Liquid detergents when compared to detergent powder and bar dissolve quickly in water, generate very little dust and leave almost no residue on the clothes washed. Due to the comfort and convenience of using liquid detergents, more people have started preferring them for their laundry. Liquid detergents are perfect for washing clothes in washing machines. They are suitable and very gentle on super fine and delicate clothes. For the manufacturers, liquid detergents can be manufactured at a very cheap price and can be sold for greater profit margins. Most of the liquid detergents do not act as surfactants but rather act as foam depressants. They give better brightness to the clothes, add good fragrance and soften the fabric. The process of manufacturing liquid detergent is not complicated. To manufacture liquid detergent, continuous blending of ingredients in the correct proportions is required. Every company has its own formula and thrives on it. So develop and experiment with the formula and finalise it based on its performance.
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Raw Materials for Detergent Manufacturing
The raw materials required for making liquid detergents are easily available at most of the chemical stores. Following are the raw materials needed to make a liquid detergent:
- Sodium Lauryl Ether Sulfate (SLES) – the base ingredient
- Coconut Diathonol Amide (CDA) – an additive for lather
- Sodium Tripoloyphosphate (STPP) – a cleansing agent
- Table salt
- De-ionized or distilled water
- Water-soluble dye
- Benzalkonium chloride
Budget Needed for Liquid Detergent Business
Budget for liquid detergent business depends on the scale on which you would like to manufacture. To manufacture it for your family and friends, you will not need much capital but to manufacture it on large scale and to take it to the commercial market, you will have to invest hugely on the raw material and machinery.
Business Plan for Liquid Detergent Business by StartupYo:
- Draft a business plan with the following sections:
- Target Market and Market Potential
- Capacity of the plant
- Raw Material Cost and Source
- Machinery and Machinery cost
- Marketing strategy
- Manufacturing process
- Financial plan
A well written business plan helps in keeping a check on the expenditure.
What are the permissions and licenses required for detergent plant?
Understanding the Importance and Permissions of Project is required to establish a business unit in any country. Government and MSME Permissions help you in complying with the standards and regulations defined by the government and may also help you getting financial aid. For starting a liquid detergent business you will require the following:
- Registered business name as Pvt. Ltd, LLP, or Ltd Co., partnership or sole proprietor.
- Registering your business as SSI unit
- Bank account
- Consent to Establish’ and ‘Consent to Operate’ – issued by Pollution Control Board
- BIS registration and ISO registration
- Trademark registration
- Trade license – issued by the local municipal authority
- MSME Udyog Aadhaar online registration
- GST registration
An area of 1000 Sq. Ft. is suitable to set up a manufacturing plant. You can initially begin mixing and packaging manually at home. Make your friends, family and neighbours your immediate customers and also seek feedback from them on the performance of your liquid detergent. This helps you in getting real and first-hand feedback. You can understand where your product stands when compared with the existing brands in the market. Once you feel that your product quality is on par with market standards, start planning to expand production and move the manufacturing activity to a hired space. Ensure that the location you choose has a good supply of water and electricity and is connected well to the market. Selected location must also adhere to the industrial zoning norms set by Government of India for Public Sectors.
Although you don’t need automated and modern equipment initially, to manufacture in large quantities machinery is required as mixing and blending huge quantities manually is ineffective. Following are the machinery and equipment required for liquid detergent business:
- Packing Maching
- Wooden or plastic ladle
- Storage Vessel
- Medium-sized basin
- Weighing scale
- Measuring spoons and cups
- Packaging bottles
- Stainless steel container
- Electric mixer
- Mixing bowls or containers
Think of a unique name that is easy to remember and recognize. Use bright and striking colours for the logo and brand name.
Estimate the total cost of production in an year. Include the raw material cost, utility bills, labour payment and maintenance bills. Analyse your target market and the products in it. Do remember that the cost of raw materials may increase over a period of time. Liquid detergent can be manufactured at a very low price compared to the selling price of the popular brands in the market. So price your product to get reasonable profits and not to compete with the pricing of the existing brands.
Promotion plays a very important in determining the success of your business. Detergent is an essential item in the consumer goods section so it is obvious that every person buys it. The key to success is to reach the customers. Huge number of detergent companies offer stiff competition. Therefore, rigorous advertising and promotions are necessary. Start focussing on your local market first and then expand to nearby localities. Pay attention to quality of your product and seek genuine feedback from your local customers. Use traditional printing, television and social media advertising.
Liquid detergent making business in India still has a lot of scope for growth as its sales have so far have been limited to the working and well-off families. To take liquid detergents to the rural population, intensive advertisement and very affordable prices are required. For entrepreneurs looking for small business ideas, liquid detergent is a feasible one worth trying. Stay tuned to StartupYo for more info on liquid detergent business.