Laundry soap is a basic necessity in every household, used for cleaning clothes and fabrics. The consistent demand for laundry soap ensures a stable market. This report examines the feasibility of establishing a laundry soap manufacturing plant.

Market Potential

The demand for laundry soap is steady, driven by the need for hygiene and cleanliness in households, institutions, and commercial establishments. As the population grows and urbanizes, the market for laundry soap is expected to expand.

Technical Feasibility

Raw Materials

• Fatty Acids, Alkali, and Fragrances: Primary raw materials for laundry soap production.

Production Process

• Saponification: Reacting fatty acids with alkali to produce soap.
• Moulding and Cutting: Moulding the mixture into bars and cutting them to size.
• Finishing and Packaging: Adding fragrances and finishing touches, and packaging the soap.

Plant Layout and Machinery A typical plant layout includes:

• Saponification Unit
• Molding and Cutting Unit
• Finishing and Packaging Unit

Financial Analysis

Total Project Cost

• Land and Site Development: ₹1 crore
• Plant and Machinery: ₹5 crore
• Installation and Erection: ₹1 crore
• Preliminary and Pre-operative Expenses: ₹1 crore
• Working Capital: ₹1 crore
• Total Estimated Cost: ₹9 crore

Revenue Generation Revenue from the sale is estimated based on market rates.

Cost of Production

• Raw Material Cost: ₹2 crore per annum
• Operating Expenses: ₹1 crore per annum
• Maintenance and Utilities: ₹0.5 crore per annum

Profitability Analysis

• Total Annual Revenue: ₹20 crore
• Annual Expenses: ₹3.5 crore
• Net Profit: ₹16.5 crore
• Rate of Return: 20%
• DSCR: 1.9

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