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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.
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.
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.
1. 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
2. Investment required
The total investment that would be required for starting your Detergent Powder Making Business in India is as follows.
|Small Scale||5 to 8 lakhs|
|Medium Scale||15 to 30 lakhs|
3. Expected Profits that can be Made.
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.
4. 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.
5. Raw Materials required
Just like any other business, you’d require some raw materials, that would act as a base for your product quality. The following are the various types of raw materials that are required for the Detergent Powder Making business.
A. Caustic Soda
B. Trisodium Phosphate
C. Sodium Sulphate
D. Soda Ash light
F. Fabric softeners
H. Bleaches and Compounds
I. Detergent Builders
L. Acid Slurry
6. Equipment Required
Along with raw materials, you would also require various equipment that would help you to process the Detergent Powders further at each stage. The Equipment ranges from various start to end processes.
E. Weighing scale
G. Spray Dryer
I. Gas or Electric Stove
K. Conveyors Sieve
7. 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.
8. Profit Margin
In Detergent Powder Making Business, with efficient product quality and market price, you can expect to keep a profit margin between 6% to 15%.
9. Some Useful tips for starting your 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.