Professional Documents
Culture Documents
CONTENTS
SECTION
SECTION
II
PRODUCT APPLICATIONS
SECTION
III
SECTION
IV
INDIAN MANUFACTURERS
SECTION
IMPORT/EXPORT LEVEL
SECTION
VI
PRICE TRENDS
SECTION
VII
INDIAN DEMAND
SECTION
VIII
SECTION
IX
SECTION
GLOBAL SCENARIO
SECTION
XI
SECTION
XII
SWOT ANALYSIS
SECTION
XIII
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
SECTION III
3
3.1.
Soaps
35
37.72
Synthetic Detergents
31.79
30
24.89
21.83
15.75
14.25
3.2.1. Soap
Weighted Average annual growth rate in demand
7 to 9% 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.
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.
Bars
40%
Powders
60%
The detergent powder segment caters to three categories, lower, middle and higher end
markets.
3.5.
Detergent Powders
Rural
60%
Urban
60%
Rural
40%
Urban
40%
Laundry Soaps
Rural
70%
Urban
30%
3.6.
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.
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.
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
*
Adnoc Chemicals,
II, G/F, Reddy Hostel Complex,
Tilak Road, Hyderabad - 500 001.
Anand Chemicals
7th Cross, PIPDIC Industrial Estate
Sedarapet-605 111
Hipolin Limited
4th Floor, Madhuban,
Near Madalpur, Ellisbridge, Ahmedabad-380 006
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
11
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
12
Pond'
s (India) Ltd.,
GST Road, Chromepet, Madras 600 044.
C-60/69, PIPDIC Indl. Estate,
Mettuplayam, Pondicherry 605 010
Sun Chemicals
Office
Factory
Sadhna Soaps
Sadhna Indl. Estate,
S.V. Road, Oshiwara,
Jogeshwari (W)
Mumbai-400 102
Sri Chemicals,
A-5, Fishing Harbour,Visakhapatnam - 530 001.
13
14
Office :
Factory
15
SECTION - V
IMPORTS/EXPORT DETAILS
5.1.
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
Value in Rs.
Country
Date
Port
Quantity in
tonnes
0.150
44607
Germany
Mumbai
0.420
48258
Belgium
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
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
Value in Rs.
Country
Date
Port
Quantity in
tonnes
1.500
49698
Dubai
Mumbai
SSA Impex
5.500
933625
Duabi
21.600
377325
Rashid
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
:
:
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)
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.
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.
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
in Wt, %)
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 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
68 to 70%
12 to 13%
18 to 20%
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
*
Neutraliser
Pulveriser
Blender
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
0.12 tonne
0.06 tonne
0.048 tonne
0.36 tonne
0.36 tonne
0.08 tonne
Utilities
Power
Acid slurry
Soda ash
27
Sodium bicarbonate
Talc
Trisodium phosphate
Sodium sulphate
CMC
28
SECTION X
GLOBAL SCENARIO
US detergent Scenario
1.
Brand
Manufacturer
Tide
All
Purex
Wisk
Era
Cheer
Xtra
Arm & Hammer
Surf
Gain
Dreft
Private Label
Total
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
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.
Procter &
Gamble
21%
Dial
15%
Others
16%
Kao
2%
Unilever
33%
Colgate
Palmolive
13%
Japan Scenario
2.1.
Lion
30%
Kao
40%
Unilever
10%
30
SECTION - XI
Detergent
Cakes
:
:
Land
S.No.
Description
1.1
1.2
2.
Cost
Rs.in lakhs
2.75
0.28
3.03
Building
S.No.
Description
2.1
2.2
3.
Cost
Rs.in lakhs
5.44
3.6
9.04
S.No.
Description
Cost
Rs.in lakhs
13
0.98
1.3
0.65
3.1
3.2
3.3
3.4
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.
5.
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
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.
8.
Rs.27.32 lakhs
9.
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
213.5
1.2
18.3
233
15
24.83
3.36
10.98
54.17
287.17
150
45
32
366
78.83
41%
33
SECTION XII
SWOT ANALYSIS
Strength
Weakness
Opportunity
Threat
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