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
cost

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
operated

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
cost
/day

Qty
/day

Prod
cost/
day

Prod
cost/
month

Prod
cost/
year

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
/day

Qty/yr

Unit
Cost

Prod
cost /yr

Unit
Price

Total
Revenue

Toothpaste
( 100 ML)

200

62,400

0.72

45,102

1.4

87,360

 

Profitability Analysis in US$

Profitability Item

Per
day

Per month

Per Year

Revenue

280

7,280

87,360

Less production
and operating
Costs

145

3,759

45,102

Profit

135

3,522

42,258