MAKING LIQUID LAUNDRY SOAP BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This profile envisages the establishment of a plant that will produce laundry liquid soap based on the capacity of 267 liters per day. The liquid laundry soap maybe used in hand or machine washing, that’s why it’s called laundry soap.

Production Process

It is important to thoroughly boil the lye solution so that it will become clean and clear.

Procedure

A. Making the Lye Solution – The proportion of one liter lye concentrate solution is: 45% or 450ml caustic potash and 55% or 550ml of water.

  1. Weigh the 450ml caustic potash accurately and dissolve this in 550ml water. Mix well in a pail. This is the lye solution.
  2. Place the pail with the lye solution on a big pail containing hot water so that the solution becomes slightly warm.

B. Making the Soap

1. Mix one liter of coconut oil and 560ml lye solution in the stainless steel container of the electric mixer.
2. When the mixture is slightly blended, transfer the stainless container to the stove. Continue mixing while the mixture is being boiled or until its temperature reaches 180°F. Switch off the stove to maintain the 180°F temperature.
3. Meanwhile, mix the Ethylene Diamine Tetra Acetic Acid (EDTA) with a little water in a separate container.
4. Slowly add 428 to 432ml of boiling water to the mixture while stirring continuously.
5. Continue stirring the mixture for one hour until it becomes clear.
6. Allow 10-15 minutes to pass before adding the Coconut Diethanolamide (CDEA). The CDEA makes the soap produce more suds.
7. Add 2-5ml of lemon fragrance to the liquid soap.
8. When all of the ingredients have been thoroughly mixed, switch off the stove and the electric mixer. Remove the stainless steel container from the stove and allow the liquid laundry soap to cool.
9. When cooled, pour the soap into the plastic bottle. Before using the soap, set aside for some time to let the caustic soda lose its effect. The liquid laundry soap is now ready to use.

 

Scale of Investment, Capital Investment

The total Capital investment cost to start this project is estimated at USD 4,100.

Market Analysis

The market for Laundry Liquid soap is spread all over the country especially in Super markets, Schools, Hospitals, Hotels & Hostels, Retail shops and can be exported.

Project Costs

The total production cost at full operation capacity is estimated at US$ 197,521 generating annual revenue of US $ 249,600.

Capital Investment requirements in US$

Capital Investment item Units Qty Unit cost Amount
Electronic Soap mixer No. 2 500 1000
Weighing Scale No. 2 50 100
Thermometer No. 2 50 100
Boilers No. 3 300 900
Other office equipments No. 1 2000 2000
Total       4100

Production and operating costs in US$ Direct materials, supplies and costs

Cost item Units @/ day Qty/ day Cost/ day Cost/mth Cost/Yr
Direct Costs       US$ US$ US$
Coconut oil waste oils Ltrs 12 19 228 5,928 71,136
Caustic Potash Ltrs 10 19 190 4,940 59,280
Other materials Ltrs 0 208 2,496
Subtotal       418 11,076 132,912

General Costs(Overheads)

Administration expenses 541 6,492
Labour 2000 24,000
Utilities 500 6,000
Rent 1000 12,000
Selling & Distribution 541 6,492
Depreciation 85 1,025
Miscellaneous 375 4,500
Subtotals 5,042 60,509
Total operating Costs 16,118 193,421

Project product cost and Price structure in US $

Item Qty/ day Qty/ yr @ Prodn/ yr UPx Revenue
Liquid soap            
(20liters jerry-can) 160 49,920 3.9 193,421 5 249,600

Profitability analysis in US $

Profitability item Per day Per month Per year
Revenue 800 20,800 249,600
Less: Production & operating costs 620 16,118 193,421
Profit 180 4,682 56,179

Sources of Supply of Raw materials

Raw materials are readily available in Uganda from chemical shops.

Government Facilities and Incentives Available

The Government supports industrialization in Uganda through; Tax exemptions, Land, Basic infrastructure, Grants, long term Loans and liberalized market. The manufacturers are allowed to recover their start-up cost to the tune of 25% of their expenditure in the year of income for four years and initial allowance of 50%.

 

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