MAKING UTENSIL CLEANING POWDER
Introduction
This business idea is for the production and marketing of utensil cleaning
powder. Detergent powder is a special formula that imparts pleasant fragrance
to the utensils thus masking the stale odors. Unlike other detergents, it
contains special detergent actives along with abrasive material. Gentle
scrubbing removes stubborn stains. .Detergents are cleaning products that have
become an essential part in our daily lives. Cleaning products play an
essential role by safely and effectively removing dirt, germs and other
contaminants, and thus promote a hygienic lifestyle. The production capacity is
estimated at producing 1,000 packets of utensil washing powder per day with a
total investment estimated at US$ 515,273 per year and revenue of US$ 500 per
year.
Production process
The process is called Spray Drying. Dry and liquid ingredients are first
combined into a thick suspension, in a tank called crutches. The thick
suspension (slurry is heated and then pumped to the top of a tower where it is
sprayed through nozzles under high pressure to produce small droplets. The
droplets fall through a current of hot air, forming hollow granules as they
dry. The dried granules are collected from the bottom of the spray tower where
they are screened to achieve a relatively uniform size After the granules have
been cooled, heat sensitive ingredients that are not compatible with the spray
drying temperatures (such as bleach, enzymes and fragrance) are added then the
detergent is ready for packaging.
Market Analysis
The market for powdered detergent is spread all over the country because this
is a household item. Mukwano Group of Companies is among the key players in
this industry.
Capital Investment Requirements in US$
|
item |
Units |
Qty |
Unit |
Amount |
|
Beaker |
No. |
1 |
299 |
299 |
|
Graduated cylinder |
No. |
1 |
8 |
8 |
|
Stainless steel |
No. |
1 |
293 |
293 |
|
Electric mixer |
No. |
1 |
297 |
297 |
|
Mixing bowl |
No. |
1 |
45 |
45 |
|
Packing materials |
No. |
1,000 |
0.1 |
100 |
|
Weighing scale |
No. |
1 |
129 |
129 |
|
Total cost on machinery |
1,171 |
Production and Operating costs in US$
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
||
|
ltrs |
1 |
30 |
38 |
975 |
11,700 |
|||
|
Sodium |
kgs |
13 |
70 |
875 |
22,750 |
273,000 |
||
|
Caustic soda |
kgs |
1 |
500 |
500 |
13,000 |
156,000 |
||
|
Fatty acids |
ltrs |
2.0 |
90 |
180 |
4,680 |
56,160 |
||
|
Sub-total |
690 |
1,593 |
40,430 |
496,860 |
||||
|
General costs (overheads) |
||||||||
|
Utilities(water and power) |
150 |
1,800 |
||||||
|
Labour |
750 |
9,000 |
||||||
|
Rent |
100 |
1,200 |
||||||
|
Miscellaneous costs |
250 |
3,000 |
||||||
|
Distribution costs |
260 |
3,120 |
||||||
|
Depreciation (Asset write off)Expenses) |
24 |
293 |
||||||
|
Sub -total |
1,534 |
18,413 |
||||||
|
Total Operating Costs |
41,964 |
515,273 |
||||||
Production costs assumed
are for 312 days per year with a daily capacity of 1,000 packets of washing
utensils.
Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets
Direct costs include: materials, supplies and other costs that directly go into
production of the product.
Project product Costs and Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod
cost |
Unit |
Total |
|
Utensil |
1,000 |
312,000 |
1.65 |
515,273 |
1.8 |
546,000 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
1,750 |
45,500 |
546,000 |
|
Less production and operating Costs |
1,652 |
42,939 |
515,273 |
|
Profit |
98 |
2,561 |
30,727 |