Liquid Detergent Production in Nigeria; The Feasibility Report.

A Detergent is a cleansing agent and a synthetic substance other than soap. A detergent contains an active agent (called surface active agent or surfactant) that wets the fabric, emulsifies oily metal soubise grime and keeps the soil in suspension. A liquid detergent is a surfactant or a mixture of surfactants with “cleaning properties in dilute solutions.” These substances are usually alkyl benzene sulfonates, a family of compounds that are similar to soap but are more soluble in hard water, because the polar sulfonate (of detergents) is less likely than the polar carboxyl (of soap) to bind to calcium and other ions found in hard water.

Liquid detergent finds extensive use in households, guest houses, hotels, canteens, hospitals, schools and higher institutions, offices, etc, as a general cleaning agent. It is used to wash hands, dishes, cooking and other household utensils, tiles, walls, kitchens, motor vehicles, furniture, clothes etc. Industrially, liquid detergent is used in large quantities in manufacturing industries where conveyor belts are employed in the production lines in order to lubricate the rolling sections of the chains so as to allow easy and effective movement of the belts on these bearings. Such industries include but are not limited to breweries, food processing, pharmaceutical, beverage, chemical and allied industries, glass, etc.

The product is in great demands in Nigeria. Considering the estimated national population of 167 million and per capita consumption of 0.5 Litres, the national demand for liquid detergent is estimated at 83.5 million Litres per annum.

This report seeks to examine the financial viability or otherwise of establishing a liquid detergent production plant in Lagos, Nigeria.

The production capacity of the proposed plant is two thousand (2,000) L of one (1) L detergent per day and comprises of Motorized Stainless – Steel Mixer, Motorized Chemical Mixing Tank, Semi-Automatic Filling Machine with 1 nozzles, Stainless Steel Working Table, Stainless Steel Holding Tank, Weighing Machine, Project Vehicles, Generator, Wood Pallets, Shrink Wrapper, Stainless Pump and Accessories.

The raw materials for production of Liquid Detergents are sulphonic acid, caustic soda, sodium lauryl sulphate, STPP, Thickener, CMC, sodium sulphate, colourant and perfume. The raw materials are readily available in the local industrial chemical markets.

The plant would operate at eighty (80%) percent of the installed capacity and would operate for eight (8) hours per day in three hundred (300) working days per annum. Based on the above assumptions, the plant would produce eighty thousand (80,000) of one (1) L of liquid detergents bi- monthly.

Table of Contents

EXECUTIVE SUMMARY Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Milestones Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule Financial Plan 5.1 Financial Assumption 5.2 Start up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cashflow Analysis 5.8 Viability Analysis Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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