DETERGENT POWDER AND CAKE

CONTENTS
SECTION

PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION

II

PRODUCT APPLICATIONS

SECTION

III

INDIAN DETERGENT INDUSTRY STATUS

SECTION

IV

INDIAN MANUFACTURERS

SECTION

IMPORT/EXPORT LEVEL

SECTION

VI

PRICE TRENDS

SECTION

VII

INDIAN DEMAND

SECTION

VIII

BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION

IX

RAW MATERIALS REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION

GLOBAL SCENARIO

SECTION

XI

DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION

XII

SWOT ANALYSIS

SECTION

XIII

FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

SECTION - I
PRODUCT CHARACTERISTICS AND SPECIFICATION
Formulation
Synthetic Detergents are formulations comprising surfactants like alkyl benzene
sulphonate, fatty acid soaps, fatty alcohol, ester and similar compounds, bleaching,
optical brighteners, phosphates and anti-redeposition agents, fabric softeners and
certain other chemicals to improve the detergent action.
Classification
Classified either based on the charge on the organic part of the detergent (like anionic,
cationic or non-ionic) or on the case with which they decompose into smaller units which
would no longer foam (bio degradable or soft detergents and non bio degradable or hard
detergents).
Use pattern
Anionics are the most commonly used detergents for washing and cleaning applications,
while cationic (with germicidical characteristics) and non-ionics (with low foaming
propertion) are mainly used for industrial applications.
The traditional heavy-duty laundry powder contains approximately 15% active surfactant,
often Acid slurry (Linear alkylbenzene sulphonate).
The builder has traditionally been Sodium tripoly phosphate (STPP) at an average level
of 20 to 25%.
This phosphate builder is added to help soften the water.

SECTION - II
2

PRODUCT APPLICATIONS

Household and industrial cleaning

Fabric washing powders, bars, liquids.

Dish washing powder or liquid.

General purpose cleaning powders or liquids.

Toilet cleaners- blocks or liquids.

SECTION III
3

INDIAN DETERGENT INDUSTRY STATUS

3.1.

Production trends for soaps and detergents

40
35.92

Soaps

35

37.72

Synthetic Detergents
31.79

30
24.89
21.83
15.75

14.25

Source : Indian Soaps and Toilet Manufacturer Association

Business Line
3.2.

Growth rate in demand

3.2.1. Soap
Weighted Average annual growth rate in demand

7 to 9% per annum

11 to 14% per annum

3.2.2. Detergents
Weighted Average annual growth rate in demand

2000

5.7

6.77

1999

1997

1996

Year

5.23

6.21

1998

4.8

4.5
1995

4.15

3.8

3.5

19.15

7.51

1993

3.3

1992

1987

2.78

1988

2.57

11.75

3
1989

10.5

9.15

1991

10

12.95

17.35

1994

15

7.89

2001

20

1990

in Lakh tonnes

28.13
25

3.3.

Market share of Major players

3.3.1. Toilet Soaps

Nirma
15%

Hindustan
Lever
65%

Godrej Soaps
8%
Colgate
Palmolive
Others
5%
7%

3.3.2. Detergents
Karnataka
Soaps

Unorganised
29%
sector

2%

Henkel SPIC

P&G
10%

2%

Nirma
29%
HindustanLe
ver

29%

3.4.

Fabric wash market structure

The estimated production of synthetic detergents including powders and bars is

approximately 36 lakh tonnes in 1999.
The ratio of powder to bar is 60 : 40.

Bars
40%

Powders
60%

The detergent powder segment caters to three categories, lower, middle and higher end
markets.

3.5.

Urban , Rural Market share

Detergent Bars

Detergent Powders

Rural
60%

Urban
60%
Rural
40%

Urban
40%

Laundry Soaps
Rural
70%

Urban
30%

Percapita Consumption of Synthetic detergents in India (average) 2.5 to 3 kg

3.6.

Characteristics of the Detergent market

More users opt for the convenience of detergent powders over bars.
Powder usage would improve as more users change their washing habit, in favour of
bucket wash.
Studies show that usage of synthetic detergents such as Surf, Ariel and Henko, has
increased, compared to the conventional detergent bars that were produced with
vegetable oils.
3.7.

Market initiatives

Industry majors have been kept busy evolving responses to the challenges of growth in
the detergent industry.
Faced with distinctly sluggish volume growth, Hindustan Lever launched a rural
initiative to enhance the penetration of its products. Procter and Gamble Home Products
took a very different approach of streamlining its distribution network and reducing the
number of stockist, in an effort to cut costs.
HLL also put through de-bottlenecking and cost-cutting measures at Vashisti Detergents,
in which it has a stale.
Nirma, in an effort to cut costs, launched a series of ambitious backward integration
projects; completed, it will manufacture practically every key input.
Henkel SPIC, a relatively recent entrant into the market, waited two years and spent
Rs.60 crores to acquire control over key brands of Shaw Wallace group companiesCalcutta Chemicals and Detergents India Ltd. The company, which made a rights offer
to fund the acquisition, hopes these brands will give it the critical mass when it comes to
competing with the heavyweights.
3.8.

Growth trends of the industry

In terms of value, the Rs.4,000 crore detergents market is among the largest FMCG
categories in India, next only to edible oils and biscuits.
The Indian market for detergents is among the largest in the world.
Volume growth can be impacted by a variety of factors. Plateauing of demand in the
urban market and a slowdown in the rural offtake due to a fall in disposable incomes are
factors which could have had an impact on volumes. Another is consumer resistance to
sharp increases in the selling price by most manufacturers in late 1990s.
3.9.

Resurgence in rural demand

8

For players such as Hindustan lever, the recovery in volume growth has been spurred by
a resurgence in rural demand in 1999 first half. According to CMIE statistics, agricultural
output in 1998-99 was higher by 6.8 percent after declining by 5.4 percent the previous
year. This is likely to have left consumers in rural areas with higher disposable incomes.
Mr.Arun Adhikari, Vice-President, Marketing (Soaps and Detergents)), Hindustan Lever
feels the recovery in 1999 can be attributed entirely to higher rural disposable incomes,
after the contraction in the rural economy over the past two years. :We can see this in
the kinds of brands, pack sizes and markets that the growth is coming from. The growth
in 1999 has come from the Northern and Eastern Markets which were depressed earlier,
where consumption has been low.
Higher sales growth has been one reason why the major players have been able to put up
a reasonable show in recent years. But what probably brought about the dramatic
turnaround in financial performance in 1999 is the sharp improvement in profit margins
in the business.
3.10.

Outlook

With the industry getting intensely competitive and with most players focussing on the
discount segment, the cost reduction has been an important pre-occupations for the major
players.
The companies have been trying to streamline their distribution systems, trying to bring
down inventories, margins and other wastages in the system. The introduction of IT
based systems, such as Enterprise Resource Planning, for production planning and
control also has the potential for substantial savings.
Apart from trying to squeeze out higher profit margins, players are also continuing their
efforts to pep up sales growth. The rural market, despite the high penetration levels, is
seen as one high growth area.

SECTION IV
INDIAN MANUFACTURERS OF SOAPS AND DETERGENTS

A number of soaps and detergent units are in the unorganised sector and distributed all
over the country.
The important soaps and detergents units include the following
*

Acme Synthetic Chemicals/Acme Soap Works,

308, Veer Savarkar Marg,
Dadar,Mumbai 400 028

Adnoc Chemicals,
II, G/F, Reddy Hostel Complex,
Tilak Road, Hyderabad - 500 001.

Anand Chemicals
7th Cross, PIPDIC Industrial Estate
Sedarapet-605 111

Bharani Chemical Industries,

41, Chairman Muthuramier Road,Madurai-625 009.

Belchem Industries India P.L.

69 A Poona Link Road
Chakki Naka-421 306
Kalyan East, Maharashtra

Colgate Palmolive (India) Ltd.,

3rd Floor, Vaswani Mansion,
Dinshaw Vachha Road,
Churchgate, Mumbai-400 020.

Detergents India Ltd.,

Kodur-516 101
Phone : (08566) 44018, 44038, 44048

Diverseylever, Hindustan Lever Ltd.,

Haji Bunder, Sewree, Mumbai-400 015.

Godrej Soaps Limited/Godrej & Boyce Mfg. Co. Ltd./

Godrej Hi Care Ltd.
Gate 1A, Godrej Soaps Complex, Plant 4
Pirojshanagar, Eastern Express Highway,
Vikhroli (East), Mumbai-400 079.
10

Girijan Cooperative Corporation Ltd.,

Opp. New VUDA Park, East Point Colony,
Visakhapatnam-530 017,

Hindustan Lever Limited,

Chemicals Division, ICT Link Road, B.D. Sawant Marg,
Chakala, Andheri (East), Mumbai-400 099.

Henkel SPIC India Ltd.,

(Formerly known as SPIC Fine Chemicals Ltd.)
Peralam Main Road,
Thirunallar, Karaikal-609 607.
Office :

Temple Tower, Third Floor,

476/6, Anna Salai, Nandanam,
Chennai-600 035.

Hipolin Limited
4th Floor, Madhuban,
Near Madalpur, Ellisbridge, Ahmedabad-380 006

Jindal Soaps and Detergents Pvt. Ltd.,

503/2, Gayatri Chambers
R.C.Dutt Road, Vadodara.

Jagdish Chemicals
Plot No. 4718, GIDC., Ankleshwar, Bharuch-393 002

Jocil Ltd.,
(A Subsidiary of The Andhra Sugars Ltd.,)
P.O. Box 216, Arundelpet, Guntur - 522 002 (A.P.)
Factory & Regd. Office

:
Dokkipudur,Gunthur 522 438
Andhra Pradesh.

Jaya Soaps
89/1-A, Pannithittu Road,
Ponvandu Complex, Kirumampakkam-607 402

Kalaivani Soap Works

A-10, Rural Industrial Estate,
Kattukuppam, Pondicherry-607 402

11

Karnataka Soaps and Detergents Limited

(A Government of Karnataka Undertaking)
Regd. Office & Factory:
P.B. No.5531, Bangalore-Pune Highway,
Rajajinagar,Bangalore-560 055.

Kerala State Detergents & Chemicals Ltd.,

(A Government of Kerala Enterprise),
Office & Factory: Kuttipuram-679 571,

Kerala Soaps & Oils Ltd.,

(Govt. of Kerala Enterprise)
West Hill,Calicut 673 005

Memba Chem Industries Pvt. Ltd.

19, M.J. Building, Ground Floor,
187 Princess Street, Mumbai-400 002

Muller & Phipps (India) Ltd.

Queen'
s Mansion, P.O. Box No.773
Amrit Keshav Naik Marg
Mumbai

Nirma Limited,
Nirma House, Ashram Road,Ahmedabad-380 009.
Factory Add: Block No. 16B,
Ahmedabad Mehsana Highway,
P.O. Mandali, Tal. Dist. Mehsana

Neemtal Products
48, Dhanalaxmi Avenue,
1st Floor, Kashuriba Nagar,
Adyar, Chennai-600 020

Nived Chemical Industries

Office: 6/1, Manjanakara St.,
Madurai 625 001.
Factory: 20-A, New Mahalipetti Road,
Madurai 625 001.

12

Procter & Gamble Hygiene and Health Care Ltd.,

(Formerly Procter and Gamble India Ltd.,)
Tiecicon House,Dr.E Moses Road, Mumbai-400 011.

Pond'
s (India) Ltd.,
GST Road, Chromepet, Madras 600 044.
C-60/69, PIPDIC Indl. Estate,
Mettuplayam, Pondicherry 605 010

Reckitt & Colman of India Ltd.

Factory : 176, Sipcot Indl. Complex,
Hosur-635 126.
Office : 41, Chowringhee Road, Calcutta-700 071.

Sun Chemicals
Office
Factory

6/1, Manjanakara St.,

Madurai 625 001
63/5, Viraganoor Village,
Madurai 625 009.

Sadhna Soaps
Sadhna Indl. Estate,
S.V. Road, Oshiwara,
Jogeshwari (W)
Mumbai-400 102

Swastik Surfactants Ltd.,

1st Floor, Industry Manor,
442 A Marathe Marg, Prabhadevi,Mumbai-400 025.

Sree Rayalaseema Alkalies & Allied Chemicals Ltd., AS10

Gondiparla,Kurnool -518 004.

Sri Chemicals,
A-5, Fishing Harbour,Visakhapatnam - 530 001.

13

Sree Krishna Chemical Industries

Arya Griha, Vadakkevila P.O.,
Kollam-691 010, Kerala

Soybean Detergents Pvt. Ltd.,

No.23/1, T.T.K.Road, 1st cross,
Sri Ram Nagar, Alwarpet, Madras-600 018.
Factory

No.9, G.K. Indl. Estate,

Arcot Road, Porur, Madras-600 116.

Trimen Hygiene Products

G-5/87, Teachers Colony
Namakkal-637 0001

Tata Chemicals Ltd.

Chemical Complex and Cement Plant:
Mithapur, Okhamadal -361 345, Dist.
Jamnagar.
Bombay House, 24,
Homi Mody Street, Mumbai 400 001
Detergent Plant: Pithampur Dist. Dhar, M.P.

Thirumala Soap Works

20, Rural Industrial Estate,
Kattukuppam, Pondicherry-607 402

Ultramarine & Pigments Ltd.,

Ultramarine Blue Division,
No.556, Vanagaram Road, Ambattur, Madras-600 053.
Detergents Division : Plot No.25-B,
SIPCOT Indl. Complex, Ranipet-632 403.
25-B, Sipcot Industrial Complex,
Ranipet-632 403, Vellore District,

Varuni Chemicals (P) Ltd.

Admn. Office : 6/1,Manjanakara Street,Madurai-625 001.

14

Office :
Factory

72, Medavakkam Tank Road,

Kilpauk, Chennai-600 010.
63/5, Viraganoor Village,
Madurai 625 009.

Vasu Chemical Industries,

Plot No.26-A & 41,Guindy Indl. Estate (North),
Ekkaduthangal, Madras-600 097.

Vashisti Detergents Ltd.,

Plot No.B-7, MIDC Lote Parshuram,
Tal. Khed, Dist. Ratnagiri, Maharashtra-415 722.

Victory Soap Works

A-115, PIPDIC Industrial Estate, Mettupalayam-605 009

15

SECTION - V
IMPORTS/EXPORT DETAILS
5.1.

Present Import level

Around 2200 tonnes per annum

Countrywise Imports of Other Washing Prpns & Cleaning Prpns Synthetic Detergents
Period April 2001 to March 2002
Country

Quantity in Kgs

Australia
Austria
Belgium
Brazil
Canada
Chinese Taipei
China P RP
Czech Republic
Denmark
France
German F REP
Hong Kong
Indonesia
Ireland
Israel
Italy
Japan
Korea RP
Malaysia
Mexico
Netherland
Nigeria
Norway
Oman
Philippines
Poland
Singapore
Spain
Sweden
Switzerland
Thailand
Turkey
U Arab Emts
UK
USA
Unspecified

5655
9810
57390
55
3900
9430
18890
10
1696
52764
600393
2129
3840
50
50
205850
177206
11825
9305
1000
136462
204
11110
1
322
1250
108718
34351
75264
131176
4859
300
2249
284234
181671
100
16

Sample of individual imports of Detergent

Period 2002
Name of the Importers

Value in Rs.

Country

Date

Port

Epcos India Ltd.,

Quantity in
tonnes
0.150

44607

Germany

Mumbai

Saf Yeast Co.Ltd.,

0.420

48258

Belgium

Lavino Kapur Cotton

Ltd.,
Dexo India Crome Prod.

2.880

205926

Germany

5.000

29170

Malaysia

0.310

44335

Germany

11.02.2002 to
19.02.2002
01.05.2002 to
05.04.2002
08.05.2002 to
14.05.2002
06.02.2002 to
10.06.2002
17.09.2002 to
24.09.2002

Lavino Kapur Cotton

P.Ltd.,
5.2.

Present Export level

Around 6500 tonnes per annum

Countrywise Exports of Other Washing Prpns & Cleaning Prpns Synthetic Detergents
Period April 2001 to March 2002
Country

Quantity in Kgs

Angola
Australia
Baharain IS
Bangladesh
Benin
Cameroon
Chad
Chinese Taipei
China P RP
Comoros
Congo P REP
Cyprus
Djibouti
Egypt A RP
Ethiopia
Fiji IS
Gabon
Gambia
German F REP
Ghana
Guam
Guniea
Guinea Bisu

1206
213000
10000
103055
70630
64600
229100
57600
4040
10000
18720
6000
39500
10000
55000
20000
25261
8495
480
101214
8600
19029
9736
17

Mumbai
Mumbai
Mumbai
Mumbai

Haiti
Hong Kong
Indonesia
Iran
Kanzakhstan
Kenya
Kuwait
Maceoernia
Malagasy RP
Malawi
Malaysia
Maldives
Mali
Malta
Mauritania
Mauritious
Morocco
Mozambique
Namibia
Nepal
Netherland
New Zeland
Nigeria
Oman
Papua N GNA
Philippines
Reunion
Saudi Arab
Seychelles
Singapore
South Africa
Sri Lanka
Tanzania REP
Thailand
Togo
Trinidad
Uganda
U Arab Emts
Ukraine
USA
Vietnam SOC REP
Yemen Republc
Zambia

26000
39100
17405
300
5000
450
52200
25725
71050
34000
640702
16000
29500
10000
38625
251777
18004
19200
15000
238510
6000
11800
93900
269500
24000
1978302
6026
13200
15810
15000
56182
129226
6000
10700
67000
8000
35381
686184
1300
145497
71100
86200
2720

18

Sample of individual exports of Detergent

Period 2002
Name of the Exporters

Value in Rs.

Country

Date

Port

Artek Surfin Chemicals

Quantity in
tonnes
1.500

49698

Dubai

Mumbai

SSA Impex

5.500

933625

Duabi

Sangam Organic Chemls

21.600

377325

Rashid

Henkel-Spic India Ltd.,

102.000

1317939

Muscat

01.0.2002 to
15.02.2002
01.03.2002 to
15.03.2002
11.07.2002 to
31.07.2002
01.08.2002 to
13.08.2002

19

Mumbai
Chennai
Chennai

SECTION - VI
PRICE DETAILS
Basic price for
Detergent
Cake

:
:

Rs.45 per kg.

Rs.32 per kg.

Taxes and duties

Extra as applicable

Price fluctuation
The selling prices of major detergent brands were hiked (much of it in the mid-priced to
medium segments) by between 9 percent and 25 percent in recent times, in response to
rising production costs. For instance, price increases in the case of brands such as Nirma
Popular and Wheel Green were around 8 percent.
Selling prices of products in the mid price segment, such as Ariel Supersoaker, were
hiked 20 to 25 percent, while that of those in the premium end, such as Surf Excel, Henko
Stain Champion were raised 10 to 12 percent.

20

SECTION -VII
INDIAN DEMAND

ISTMA (Indian Soaps and Toilet Manufacturer Association) has estimated the Indian
detergent bars and powders demand to be in the region of 3.5 million tonnes per annum
Per capita consumption of detergent on all India basis is around 2.5 to 3 Kg, which could
vary between different regions depending upon the prevailing economic and social
conditions.
Likely growth rate in demand

7 to 8% per annum

21

SECTION -VIII
BROAD OUTLINE OF MANUFACTURING PROCESS
1.

General details

1.1.

Liquid detergents

Liquid detergents can be manufactured in batches ranging from 5 to 100 kgs. A 5kg
batch can be conveniently prepared in stainless steel vessels or HDPE containers by
manual stirring. The required quantity of acid slurry is weighed in the container and an
equal quantity of water is added. 15% caustic soda solution is gradually added with
stirring till pH is brought to 7 as indicated by colour change, of a narrow range pH paper.
External cooling of the vessel is essential during neutralisation of the acid slurry.
Sodium sulphate is added and diluted by addition of water. Urea is added at this stage
along with perfume and stirring is continued for a further 10 minutes. The liquid
gradually clarifies after being allowed to settle for about 3 to 4 hours, after which the
contents of the vessel are filtered and bottled.
1.2.

Extruded cakes/bars

Acid slurry is neutralised with soda ash and mixed in a sigma mixer. The other
ingredients are added in the following sequence with continued mixing.
a)
b)
c)
d)
e)

Talc and kaolin

Sodium silicate and water
Paraffin wax
Starcgh, colour, optical whitener, perfume
STPP

The mixing is carried out for a further 10 minutes after which the plastic dough obtained
is milled through a triple roller mill and transferred to an extruder. The temperature of
extruder is maintained at 60 deg.C and the extruded bars are cut and stamped. The
stamped cakes are allowed to age under a current of coldair for nearly 8 hours, after
which the cakes/bars are wrapped.
1.3.

Mechanically pressed tablets

The ingredients are either mechanically mixed or hand mixed as detailed under extruded
cakes/bars. A dough soft enough for tableting is thus obtained. Homogeneity of the
dough is to be ensured at this stage and, if required,mixing should be continued.
Individual portions corresponding to the exact weight of the final tablet are fed to the
mechanically operated tableting machine and stamped. The stamped tablets are
allowed to age for at least 8 hours, after which the tablets are wrapped.

1.4.

Selected formulations for detergents

Listed below are some typical formulations based on Acid slurry, which can be readily adopted
for the manufacture of detergents even in manually operated units.
22

Detergent powders (household)

in Wt, %)

85% active LAB acid slurry

Sodium carbonate (soda ash)
Sodium meta silicate
Alkaline sodium silicate

Premium grade
18
35
2
-

Popular grade
15
32
7

10
20
10
1.5
0.1
0.3
0.1
3

10
25
7
1.0
0.1
0.2
0.1
2.6

Sodium bicarbonate
Sodium sulphate (anhydrous)
Sodium tripolyphosphate
Sodium carboxy methyl cellulose
Phthalocyanine blue colour or oil soluble yellow colour
Optical whitener
Perfume
Water

Liquid detergents
85% active LAB acid slurry
Caustic soda
Sodium sulphate
Urea
Perfume
Water

in Wt %
Light duty
20
Quantity required to bring pH
to 7
2
10
0.1
q.s

Detergent cakes/bars/tablets
85% active LAB acid slurry
Soda ash
Sodium silicate
STPP
Starch(tapioca/maize)
Talc
Kaolin
Paraffin wax
Opt., whitener
Colour
Perfume
Sodium sulphate
Water

Extruded bars/cakes
18
15
10
15
20
10
3
4
0.3
0.05
0.1
q.s

23

Heavy duty
25
quantity required to bring pH
to 7
2
15
0.1
q.s.

in Wt, %
Mechanically pressed tablets
16
20
10
10
15
12
0.3
0.1
0.1
10.0
q.s

Historical details
In India, the first detergent powder (spray dried) was produced by Swastik Oil Mills Ltd.,
Bombay, in the year 1957. The composition of the powder at that time was as follows:
Hard Sod.ABS
CMA
STPP
Silicate(100% basis)
CMC
Tinapol
Perfume
Sodium Sulphate
Water

20%
2%
35%
7%
1%
0.2%
0.2%
24%
8%

STPP :
The STPP content was quite high in this formulation. This practice of
using high STPP continued to prevail in the Western Countries until the recent years,
when restrictions were imposed on the use of STPP.
In India, the STPP content in the premium products was gradually reduced due to
economic reasons and now it has come down to 20%.
Soda Ash
:
Also, for a number of years, the premium detergent powders in
India did not contain Soda ash. In recent years, use of about 10% Soda ash has been
observed in the premium powders.
Silicate
content.

The silicate level has gone up consequent to the reduction in STPP

The average formulation of a present day premium spray dried detergent powder
LABS
STPP
Alkaline Silicate(100%)
Soda ash
CMC
Optical brightener
Perfume
Sodium sulphate
Water

20%
20%
15%
10%
1%
0.2%
0.2%
25%
10%

24

The average formulation of Hand mixed powder

The hand-mixed powder came into vogue only about 2 decades ago. The quality of this
powder has remained unchanged during this period. The general composition of handmixed powder, which is mostly yellow coloured is as follows:
Soda ash
Labs
Water

68 to 70%
12 to 13%
18 to 20%

CMC is normally absent in these products.

Recent trends in formulation :
The recent trend in India is to use a mixed active system in detergent powders for better
performance at a lower cost.
For example, in a dry mixed powder, instead of using 12% LABS, a mixture of 8%
LABS and 2% AOS can be used. Similarly, in premium spray dried powders, the
performance can be improved by using a mixture of 14% LABS and 3% AOS in the
place of 20% LABS.
Special Liquid detergent
The liquid detergent products in India are mostly of the dish washing type. Basically,
they consist of a solution of sodium alkyl benzene sulphonate in water, using urea as
solubilising agent.
There are a few special liquid detergents in the Indian market, which are recommended
for woollen, silk and other fire expensive garments. The detergent active used in such
formulations has to be of the rigid type.
S Toyoda of Lion Fat & Oil Co., Japan had worked on the suitability of various detergent
actives for washing woolen and acrylic fibre. This observations are reproduced below:

LAS
Alcohol sulphate
Alcohol Ether Sulphate
Secondary Alcohol Ethoxylate
Alpha Olefin Sulphonate

Wool

Acrylic

Not good
Excellent
Not good
Not good
Excellent

Fairly good
Not good
Not good
Not good
Excellent

The most suitable detergent active for wool and acrylic is AOS. A liquid detergent based
on AOS is already in the Indian market.
25

Concentrated detergents
During the past two years, a new trend has been seen in the Indian market. It is the
introduction of very expensive detergent powders.
These are highly concentrated
powders containing more than 25% detergent actives and more than 25% STPP. Some
powders contain a bleach along with a low temperature bleach activator. Most of them
contain enzymes. These are heavy powders manufactured by agglomeration technology.
Source of technology
*

Central Salt and Marine Chemicals Research Institute,

(Council of Scientific & Industrial Research)
Gijubhai Badeka Marg, Waghawadi Road
Bhavnagar -364 002

Major plant & machinery and suppliers

Name of the equipment
Reactors

Name of the supplier

Chemitherm Plants & Systems P. Ltd.,
30, Anandha Street
Alwarpet, Chennai-600 018
Texel Fabricators Pvt. Ltd.,
335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

Neutraliser

Sharplex Agro Process (I) Pvt. Ltd.,

302, Hill View Industrial Estate, LBS Marg
Ghatkopar (W), Bombay-400 086

Pulveriser

ACE Pack Machines

23, V.N. Industrial Estate
Bharathi Colony,Near Athiparasakthi Temple
Peelamedu, Coimbatore-641 004
Frigmaires Engineers
PO Box 16353, 8, Janata Industrial Estate
Senapati Bapat Marg
Opp Phoenix Mill, Lower Parel (W)
Mumbai-400 013

Blender

ACE Pack Machines

23, V.N. Industrial Estate
Bharathi Colony,Near Athiparasakthi Temple
Peelamedu, Coimbatore-641 004

26

SECTION IX
RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY
Raw material requirements
Detergent powder : 600 tonnes per year
Acid slurry
Soda ash
Sodium bicarbonate
Sodium tripolyphosphate
Trisodium phosphate
Sodium sulphate
Sodium meta silicate
CMC
Colour
Perfumes
Optical whitener

0.20 tonne
0.40 tonne
0.05 tonne
0.15 tonne
0.03 tonne
0.05 tonne
0.05 tonne
0.02 tonne
2.5 kg
1.5 kg
0.002 tonne

Detergent cakes : 300 tonnes per year

Acid slurry
Soda ash
Starch
Talc
Sodium silicate
STPP

0.12 tonne
0.06 tonne
0.048 tonne
0.36 tonne
0.36 tonne
0.08 tonne

Utilities
Power

70 HP for the project of capacity 600 tonnes per annum.

Raw material availability

Name of the raw material

Name of the supplier

Acid slurry

Bharani Chemical Industries,

Gee Gee Khay Chemical Industry,
Varuni Chemicals (P) Ltd

Soda ash

Atul Ltd., Gujarat

Birla VXL Ltd., Jamnagar
DCW Ltd, Mumbai
Gujarat Heavy Chemicals Ltd., Gujarat
Tata Chemicals Ltd., Jamnagar

27

Sodium bicarbonate

Birla VXL Ltd., Jamnagar

DCW Ltd, Mumbai
Tata Chemicals Ltd., Jamnagar

Talc

Mountain Microns and Minerals Ltd., Vadodara

Famous Minerals and Chemical Co., Mumbai
Kalpana Minerals Pvt. Ltd., Mumbai

Sodium tripoly phosphate

Albright and Wilson Chemicals Co. Ltd., Mumbai

Hindustan Lever Ltd., West Bengal

Trisodium phosphate

Albright and Wilson Chemicals Co. Ltd., Mumbai

AVA Chemicals Pvt. Ltd., Mumbai

Sodium sulphate

Jeyes Nitrochemical Pvt. Ltd., Chennai

Baroda Rayon Corporation Ltd., Surat

Sodium meta silicate

Ricasil Industries, Gujarat

Sapana Industries, Gujarat
Aarti Ice Factory, Ambernath

CMC

E.P. Industrial & Agro Chemicals Pvt.

Ltd.,Secunderabad
Reliance Cellulose Products Ltd.,Secunderabad
Meridian Chem-Bond Ltd.,Gujarat

28

SECTION X
GLOBAL SCENARIO

US detergent Scenario
1.

US Laundry detergent market (in millions of dollars)

Brand

Manufacturer

Tide
All
Purex
Wisk
Era
Cheer
Xtra
Arm & Hammer
Surf
Gain
Dreft
Private Label
Total

Procter & Gamble

Unilever
Dial
Unilever
Procter & Gamble
Procter & Gamble
USA Detergents
Church & Dwight
Unilever
Procter & Gamble
Procter & Gamble
Various

2.

Liquid
Sales

%
Change
from
1998
12.0%
11.0
31.8
-0.2
-4.4
6.8
14.0
14.3
2.9
67.8
-NA
11.4

$872
287
234
232
149
143
130
90
84
83
-73
2678

Market
Share

Powder
sales

32.5%
10.7
8.7
8.6
5.5
5.3
4.8
3.3
3.1
3.0
-14.5
58.0%

$902
51
72
61
-181
-122
147
213
38
53
2044

Laundry detergent market share in US

Procter & Gamble

57%
Dial
7%
Church & Dwight
5%

Reckit & Benckiser

1%
Huish
1% LaCorna
1%

Colgate Palmolive
4%
USA Detergents
3%
Unilever
18%

29

Private Label
3%

%
change
from
1998
-1.4%
1.0
-7.7
-13.7
--7.0
--0.4
-2.2
13.7
-0.7
-8.4
-2.3

Market
share
44.0%
2.4
3.5
2.9
-8.8
-5.9
7.1
10.4
1.8
2.5
42.0%

3.

Personal care market share in US

Procter &
Gamble
21%

Dial
15%
Others
16%

Kao
2%
Unilever
33%
Colgate
Palmolive
13%

Japan Scenario

2.1.

Estimated Soaps and detergents market shares in 1999.

Lion
30%

Procter & Gamble

20%

Kao
40%
Unilever
10%

30

SECTION - XI

DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST

AND PROFITABILITY PROJECTIONS
Installed capacity

Detergent
Cakes

:
:

Total Project cost

600 tonnes per annum

300 tonnes per annum
Rs.94 lakhs

Assessment of project cost

1.

Land

S.No.

Description

1.1
1.2

Cost of land of 0.5 acre at Rs.5.5 lakh per acre

Cost of levelling, laying internal roads/fencing and
compound wall
Subtotal

2.

Cost
Rs.in lakhs
2.75
0.28
3.03

Building

S.No.

Description

2.1
2.2

Factory building of area 170 sq.m. at Rs.3200/sq.m.

Non-factory building of area 80 sq.m.at Rs.4500/sq.m.
Subtotal

3.

Cost
Rs.in lakhs
5.44
3.6
9.04

Cost of Plant & Machinery

S.No.

Description

Cost
Rs.in lakhs
13
0.98
1.3
0.65

3.1
3.2
3.3
3.4

Cost of basic plant and machinery

Instrumentation and control
Pipelines and valves
Structurals for erection

3.5
3.6
3.7
3.8
3.9
3.10

Subtotal
Octroi, excise duty, sales tax, etc.at 12%
Packaging and insurance charges (2%)
Transportation charges (2%)
Machinery stores and spares (2%)
Foundation charges (2%)
Installation charges (2%)
Total cost of plant and Machinery
31

15.93

1.91

0.32
0.32
0.32
0.32
0.32
19.44

4.

Technical know-how fees

5.

Miscellaneous fixed assets

Rs.2.50 lakhs

S.No.

Description

5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.

Electrification
Steam boiler and auxillaries
Water storage tank, borewell etc.
Fuel storage tank
Laboratory equipment
Office machinery & equipment
Material handling equipment, packaging machinery,
weigh balance, etc.
Diesel generator
Effluent treatment
Total

5.8.
5.9.
6.

Cost
Rs.in lakhs
3
4
0.8
0.8
1.2
0.8
0.8
4.5
0.8
16.7

Preliminary & Pre-operative expenses:

S.No.

Description

6.1.
6.2.
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7

Preliminary expenses
Pre-operative expenses:Establishment
Rent rates and taxes
Travelling expenses
Interest and commitment charges on borrowings
Insurance during construction period
Other preoperative expenses and deposits
Interest on deferred payment
Total

Cost
Rs.in lakhs
0.8
0.8
0.8
0.8
7.0
1.8
12

7.

Provision for contingency

Rs. 3.78 lakhs

8.

Working capital margin

Rs.27.32 lakhs

9.

Total project cost

Rs. 93.81 lakhs

Say Rs.94 lakhs

10.

Means of Finance

Promoter's contribution
Term loan from financing institutions
Total project cost

Rs.38 lakhs
Rs.56 lakhs
Rs.94 lakhs

32

11.I.

Financial Statements

Variable Cost

Rs.in lakhs

Raw material and utilities

Spares and maintenance
Selling expenses
Total variable cost
B
Fixed cost

213.5
1.2
18.3
233

Salaries and wages

Interest on term loan and working capital loan
Depreciation
Administrative expenses
Total fixed cost
C.
Total cost of production A + B
D.
Selling price per kg. (in Rupees)
Detergent
Cake
E.
Annual sales turnover (Rs.in lakhs)
F.
Net profit before tax (Rs.in lakhs) (E-C))
G.
Breakeven point in %

15
24.83
3.36
10.98
54.17
287.17
150
45
32
366
78.83
41%

33

SECTION XII
SWOT ANALYSIS
Strength

Large percentage of the households in India

are already using the soaps and detergents ,
notwithstanding the low per capita
consumption.

Weakness

Poor buying power of the average citizen

Opportunity

The market can

application efforts

Threat

Higher price segment product are unlikely

to enjoy large demand

34

be

developed

by

SECTION XIII
FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND
RECOMMENDATIONS
The Indian soaps and detergent industry, backed by a countrywide retail network of
retailers, numbering nearly seven million, can grow significantly given further
reductions in excise tariffs. These duties should be further reduced in order to stimulate
demand.
In India, the most important criterion in formulation of detergent is the cost.
consumer relates the performance to the price of the product.

The

The market is heavily skewed towards lower price products, as the entire Indian fabic
wash market and indeed the carbolics and the popular brands account for about 40% each
of the total market.
Detergent industry represents good investment opportunity in the small and medium
sector.

35