Powder Detergent Production in Nigeria; The Feasibility Report.

Detergent is a chemical substance, usually in the form of a powder or liquid, which is used for washing things such as clothes or dishes. 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 major groups:

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

The demand for the product is high because detergent is a consumable item. It is used in households, guest houses, hotels, canteens, hospitals, schools, higher institutions, offices, etc, as a general cleaning agent.

The product is in great demands in Nigeria. Considering the estimated national population of one hundred and seventy-five (175,000,000) million and per capita consumption of 4.5 kg, the national demand for soap is estimated at 787,500 tons of powder detergents per annum.

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

The production capacity of the proposed plant is two thousand (2,000) kg of one (1) kg detergent per day and 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.

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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