MAKING HERBAL TOOTHPASTE
Introduction
This business idea is for production and marketing of herbal toothpaste.
Toothpaste is the most important type of dentifrice. Teeth care has turned into
an established custom in all families. With the increasing awareness on dental
hygiene, the use of dentifrices is increasing every day. Dentists regard
toothpaste as a sophisticated dentifrice material for effective dental care.
The total cost is estimated at US$ 45,102 per year, with production capacity
estimated at 200 tubes per day and revenue is estimated at US$360 per year.
Production process
Pour the Baking Soda and Bentonite clay powder into a medium size mixing bowl.
Add table salt, including the Myrrh powder to the Baking Soda, mix well with a
wire whisk. Add Tea Tree oil, again
mixing well. Place a clean cover over the bowl, covering it completely. Let it
settle overnight. The next morning, mix well again and package in a
wide-mouthed jar. Then package it in plastic container to avoid drying out.
Market Analysis
Herbal toothpaste is a fast moving consumable item. Herbal toothpaste is
favored compared to usual toothpaste. It is used in our daily life irrespective
of age group. As a result, it has good growing market. It can be supplied to
supermarket chains and retail/grocery shops.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Distillation unit |
No. |
1 |
600 |
600 |
|
Toothpaste filling machine |
No. |
1 |
1,250 |
1,250 |
|
Baby boiler |
No. |
1 |
2,250 |
2,250 |
|
Grinder |
No. |
1 |
100 |
100 |
|
Crimping machine with hand |
No. |
1 |
900 |
900 |
|
Van |
No. |
1 |
6,500 |
6,500 |
|
Stainless steel homogenize |
No. |
1 |
400 |
400 |
|
Total cost on machinery |
12,000 |
Production and Operating Costs in US$
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
||||
|
Baking soda |
kg |
1.3 |
35 |
44 |
1,138 |
13,650 |
||||
|
Table salt |
kg |
0.6 |
10 |
6 |
156 |
1,872 |
||||
|
Tea tree oil |
ltrs |
2 |
15 |
30 |
780 |
9,360 |
||||
|
Sub-total |
60 |
80 |
2,074 |
24,882 |
||||||
|
General costs(overheads) |
||||||||||
|
Utilities(water and power) |
150 |
1,800 |
||||||||
|
Labour |
850 |
10,200 |
||||||||
|
Rent |
100 |
1,200 |
||||||||
|
Miscellaneous costs |
75 |
900 |
||||||||
|
Distribution costs |
260 |
3,120 |
||||||||
|
Depreciation(Asset write off)Expenses) |
250 |
3,000 |
||||||||
|
Sub -total |
1,685 |
20,220 |
||||||||
|
Total Operating Costs |
3,759 |
45,102 |
||||||||
1 Production costs
assumed 312 days per year with a daily capacity of 200 tubes of herbal
toothpaste of 100 ml
2 Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets
3 Direct costs include materials, supplies and other costs that directly go
into production of the product.
Project Product Costs and Price in US$
|
Item |
Qty |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Toothpaste |
200 |
62,400 |
0.72 |
45,102 |
1.4 |
87,360 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per month |
Per Year |
|
Revenue |
280 |
7,280 |
87,360 |
|
Less production |
145 |
3,759 |
45,102 |
|
Profit |
135 |
3,522 |
42,258 |