Powder Detergent Production in Nigeria; The Feasibility Report.

Laundry detergent is a type of detergent (For cleaning, softening and color protection) that is added for cleaning laundry, commonly mixtures of chemical compounds. Laundry detergent can be divided into laundry powder, liquid laundry detergent and Softener.

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.

Detergents work because they are amphiphilic – partly hydrophilic (polar) and partly hydrophobic (non-polar). Their dual nature facilitates the mixture of hydrophobic compounds (like oil and grease) with water.

Powder Detergent falls into four (4) major groups:

• Heavy duty detergents (high and low foaming),
• Light duty detergents,
• Soap powders, and
• Soda products.

The growing importance of healthier lifestyles with rising concerns among individuals about health and hygienic living, free of germs, bacteria, dust, and dirt has led to rise in per capita spending on household cleaning products including laundry detergents.

From the past few years, the fragrance is playing a vital role in household cleaning products as consumers are increasingly looking for products that offer strong pleasant odor, which, in turn, makes vendors to differentiate their products.

In addition, factors such as an increase in household expenditure, growth in the real estate sector owing to growth in residential units, has increased the demand for laundry detergent products across the globe.

Rising demand from different industries such as hotels, textile industry, restaurant, hospital, and others is boosting the growth of the laundry detergent market. The e-commerce is expected to be the key factor driving laundry detergent product growth because of easy accessibility and convenience among the working-class.

However, increasing the availability of fake products initially sold by established brands with the rising prices is affecting the market growth and this factor is hampering the laundry detergents market. As well, Issues regarding the safety of children consumption laundry detergent products acted as a restraint to market growth.

The product is in great demands in Nigeria. Considering the estimated national population of two hundred million (200,000,000) and per capita consumption of four point five (4.5) kilogrammes, the national demand for soap is estimated at seven hundred and eighty-seven thousand, five hundred (787,500) tons of powder detergents per annum.

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

The production capacity of the proposed plant is two thousand (2,000) kilogramme of one (1) kg detergent per dayand comprises of the Horizontal Stainless Steel Reactor, Packaging Machine, Stainless Steel Storage Tank, Stainless Steel Working Table, Rotary Dryer, Weighing Machine, Project Vehicles, Generator and Wood Pallets.

The raw materials required for production is Sulphonic Acid, Soda Ash Light, STPP, Sodium Sulphate, Calcium Carbonate, Perfume, Printed Sachet and Printed Carton.

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 four thousand (4,000) cartons of two (2) pieces of one (1) kilogramme of powder detergents bi- monthly.

Table of Contents

EXECUTIVE SUMMARY 1.0    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 2. 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 3. 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 Project Implementation Schedule 4.0 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 5. 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 Cash flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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