FEASIBILITY STUDY REPORT ON LAUNDRY SOAP PRODUCTION

TABLE OF CONTENTS

INTRODUCTION:

RAW MATERIALS

WIDE RANGE OF USES

MARKET

THE OPPORTUNITY: LAUNDRY SOAP PRODUCTION

YIELD

ADVANTAGES TO INVESTING IN THIS INDUSTRY:

DEMAND POTENTIAL

MARKET STRATEGY

PRODUCTION PROCESS AND TECHNOLOGY

REQUIREMENTS FOR SETUP

ANNUAL FINANCIAL PROJECTIONS

PRODUCTION ITEMS

LABOUR

OTHER CONSIDERATIONS

FINANCING SOURCES

LAUNDRY SOAP PRODUCTION

SALES AND INCOME DATA:

INTRODUCTION:

It is indeed a sad tale to discover that there are many brands of toilet soaps in the market, which are imported from Malaysia, Indonesia, and even from Europe. Nigeria can conveniently produce any type of toilet and laundry soaps required by its population. The raw materials and technology are readily available, including experienced manpower. Soap production can be established on a cottage, or as small, medium or large scale depending on the investor's fund.

The technology and art of making soap has been with us for a very long time. it is only the technology that has improved globally, which Nigerian investors can as well imbibe. Soap production, either laundry or toilet (or both), can be carried out in any part of the country, but the most important thing is to apply professionalism in the proposed project, so as to achieve international standards. One can conveniently set up a virile and dependable plant using locally manufactured machinery and equipment.

It should be noted that the increase in unemployment situation in this country and other related economic problems cannot be solved, unless Nigerians as an individual looks inwards to establish small and medium scale industries, and develop technologically. This can only be done by using local raw materials and technology to gain people's attention.

RAW MATERIALS

The raw material is readily available and locally abundant in the country. Prospective investors will be advised on the best-recommended producers of these machines within the country. Alternatively, some foreign manufacturers of complete sets of the toilet and laundry soap making machines would be recommended to prospective investors also.

WIDE RANGE OF USES

There is hardly any home or industry where soap is not used on a daily basis. Also, Glycerin, a by­product recovered during soap production, commands very high commercial value, as it is very useful in cosmetics and pharmaceutical formulations, and in laboratories as re-agents.

MARKET

There is a vast market for soap such as Detergents, Cleaning Powder, Washing and Toilet Soaps, Liquid Detergents etc. Consumption and usage of soap for personal hygiene and general cleanliness per household is rising, and the importance cannot be emphasized. Nigeria market is a very large one considering the growing population yearly. Soaps and Detergents are cleaning products that have become an essential part in our daily lives. Cleaning products play an essential role by safely and effectively removing dirts, germs and other contaminants, and thus promote a hygienic lifestyle.

Moreover, with the increase in population, there is a widening demand-supply gap. As a result, the need to establish more soap production plants in both rural and urban areas at various levels of production, to cater for the cleansing needs of various classes of consumers.

THE OPPORTUNITY: LAUNDRY SOAP PRODUCTION

Soap, a product with a 5,000 year history, remains an essential ingredient in modern living, used daily for medicinal and laundry purposes, for household cleansing and personal hygiene. Until fairly recently its production remained a primitive art, its manufacture being essentially the treatment of fat with alkali, a chemical process which is the same whether production is done in a backyard or in a factory. The simplicity of the process has led to its worldwide practice as a small business operation.

Large factory operations are exclusively based on the modern continuous process, which produces soap in only 15 minutes but requires machinery that is expensive, and demands close production control, a very large output is required to be economical. Soap can still be effectively manufactured by the traditional batching method, which is a week-long, slow, open-vessel process that requires supervision to ensure a good product, but can be undertaken by relatively unskilled operators. Initial startup operations typically employ the batch process until the economies of production are developed and the market demand requires investment in the more expensive continuous process.

Mindful of the need to encourage local industry, Lindeners and other Region 10 citizens have usually supported indigenous products, including a very crude soap made by an entrepreneur in Wismar in the 1970's. This product was barely recognizable as soap, being either too hard or too soft and rarely at the right consistency. Never the less, it was popular amongst housewives as a cleanser in cruder applications like heavily soiled laundry, yard and building wash-up and industrial type cleaning. Its discontinuation by the entrepreneur for reasons unrelated to the product was unfortunate and 3 decades later, the product is still remembered with amusement, if not fondness, by those who used it. This self-supporting attitude augurs well for the introduction of an indigenously produced, affordable, consistent product. Besides domestic consumption, the demands of industries likely to be started in the Region such as laundries and other factory operations will make for symbiotic relationships as they provide a potential market for a good soap. The use of synthetic detergents has been increasing both in domestic and commercial consumption largely because of heavy national and international advertising, but soap still remains a viable cleansing product and can make a comeback in popularity, if its benefits and advantages are marketed properly.

Though the batch process requires very little training and skill to produce a crude soap, higher qualities are easy to achieve with closer control. Digital timing and sensor technologies are cheap and increasingly accessible and will introduce sophistication in the areas of temperature control and timing. Suitable staffing is assured by the availability of many ex-bauxite personnel accustomed to chemical processing in the plant.

Until the industry is well established, production should focus on laundry grade soap, with production of the higher grades being reserved for eventual introduction of a continuous process plant with its totally enclosed vessels.

The main ingredients are fat, alkalis and fuel. Fat can be obtained from numerous animal and vegetable sources, including animal carcasses and vegetable oils (coconut etc) and there are sufficient Linden based producers of both of these to provide an adequate indigenous supply, though other supplies from the coastlands (Region 4) are also viable. In fact a soap factory usually symbiotically triggers vegetable oil production, where suitable sources e.g. coconuts, are available. The main alkali, a caustic solution, is widely used in the bauxite industry and will be easily available from regional and external sources. Electricity is cheaper here than anywhere else in Guyana and open fire fuel sources, charcoal and wood, are widely available, as a by-product of ongoing clearing of land for agriculture and building.

An operation that produces a minimum of approx 2,500 bars (cakes) of soap per day will impact very positively on the market in this Region. With the additional advantage of the cheap and readily available supply of the basic raw materials, soap produced here should be price competitive with those produced elsewhere and provide sufficient incentive for use outside the Region and eventually for export.

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