Acid Slurry (ALKYL Benzene Sulphonate)
| Product Code | 314805001 |
| Quality and Standards | IS 8401:1987 |
| Production Capacity: Qty. | 300 MT (per annum) |
| Value | Rs. 33000000 |
| Uploaded on | 13th December 2006 |
Introduction
Synthetic detergents had developed in the beginning of 20th century and started making inroads into the area earlier served by washing compounds i.e. soaps made traditionally from oils/ fats and caustic soda. Since soaps have comparatively lesser washing characteristics in hard water than synthetic detergents, synthetic washing compounds have been able to occupy a significant market which was enjoyed by washing soaps earlier. The term detergents which originated from the Latin word detergine (i.e. to wipe off), is now a days applied to all synthetic washing compounds. Synthetic detergents are not only used as cleaning materials but also have industrial applications in textiles, pesticide industry as carriers, etc.
Market Potential
Marketing is an important area of management in an industrial enterprise. It is a comprehensive term and includes all resources and economic activities necessary to direct the flow of manufactured goods from producers to consumers. The old concept of marketing was product-oriented where as the new concept is customer oriented. Customers are the champions whose needs, tastes, purchasing power, etc. are the guiding factors for the sale of products.
Synthetic detergents, being a mass consumption item have shown a dramatic growth since its inception in 1957. Presently, detergents are available to the consumers in the form of powders and cakes/bars. Bulk of the production of these items is done in the small scale sector.
The present strategy employed for introducing a detergent in the market covers
- Appointment of distributors in various regions
- Selection of whole sellers/ retailers/agents in the various cities/towns
- Publicizing through the advertisements, press media like radio, television, cinema etc.
- Introduction of sales promotion scheme etc.
Basis and Presumptions
The profile is drawn on the basis of the following presumptions
| Working hours/shift | 8 hours |
| No. of shift/day | 2 |
| Working days | 300 |
| Total no. of working hours | 4800 |
| Working efficiency | 70% |
| Time period for achieving max. cap. Utilisation | 3rd year from the date on which production will be started. |
| Labour charges | as per minimum wages act of State Govt. |
| Margin money | 25% of capital investment |
| Rate of Interest on fixed and working Capital | 14% |
| Operative period of the project | 10 years |
Value of machinery and equipment is estimated on the basis of the prevailing costs in the market.
Implementation Schedule
Project implementation will take a period of 8 months from the date of the approval of the scheme. Break-up of activities with relative time for activity is shown below
Nature of Activity |
Period in Month (Estimated) |
| Scheme preparation and approval | 0-1 |
| SSI provisional registration | 1-2 |
| Sanction of loan | 2-5 |
| Clearance from pollution control board | 3-4 |
| Placement of order of delivery of m/c | 4-5 |
| Installation of m/c | 6 |
| Power connection | 6-7 |
| Trial run | 7-8 |
| Commencement of production. | 9 onwards |
Technical Aspects
Process of Manufacture Acid Slurry
Acid slurry or alkyl benzene sulphonate is prepared by sulphonation of Linear Slkyl Benzene (LAB) with a suitable sulphonating agent.
Sulphonation can be done by the following processes
- Batch sulphonation with either diluted SO2 gas or concentrated sulphuric acid or a mixture of 20% oleum and 98% sulphuric acid or oleum alone.
- Continuous sulphonation with 20% oleum.
- Continuous sulphonation with SO3 (sulphor trioxide gas may be derived either from liquid So3 or from 65% oleum or from burning sulphur and converting SO2 to SO3 ).
Raw material consumption per tonne of 85-88% acid slurry is given below
- Linear alkyl benzene 700-750 Kg.
- Sulphonating agent 20% oleum- 800- 900 Kg. 98% sulphuric acid - 1100–1200 Kg.
Quality Control and Standards
As bulk of the detergent formulations consist mainly of acid slurry, soda ash, sodium tripoly phosphate, etc. to start with, it would be sufficient if testing facilities are installed for determining the purity of these ingredients. So far as finished formulation are concerned a list of the tests as prescribed in the respective standards of the BIS are given below
Acid Slurry (IS 8401:1987)
- Determination of alkyl benzene sulphonic acid
- Free alkyl benzene content
- Free sulphuric acid
- Colour
Production Capacity
Acid slurry - ½ MT per day/shift or 150 TPA.
Financial Aspects
Fixed Capital
(i) Capital Requirements
Amount (Rs.) |
|
| Land and building Land 2000 sq.m. | 600000 |
| Factory shed including laboratory/water arrangements Boundry wall, gates, store, godown etc. 1000 sq mtr 5000/- sqmtr | 5000000 |
| Store/Godown | |
| Office | |
| Total | 5600000 |
(ii) Plant and Machinery for Acid Slurry
Amount (Rs.) |
|
| Sulphonator: Stainless steel verticle and cylindrical vessel fitted within agitator with MS jacket and complete with motor, Cap 1 m3 | 800000 |
| Chilling plant | 500000 |
| Settling tank- MS vertical dished bottom, Lead line with agitator and motor Cap 3.5m3 | 600000 |
| LAB feed tank: vertical cylindrical tank, MS Cap 1.0 m3 | 100000 |
| Oleum/Acid slurry feed tank vertical cylindrical Tank Cap 2.5m3 | 200000 |
| LAB main storage tank horizontal cylindrical Tank Cap 12m3 | 1000000 |
| Oleum/acid storage tank ms-horizontal Cylindrical tank cap 5m3 | 1000000 |
| Pumps with motor | 500000 |
| Misc. equipment including valvers pipelines, exhaust, weighing machines etc. and laboratory Equipment. | 2000000 |
| Finished product stocks | 1000000 |
| Furniture/fixtures | 300000 |
| Installation/electrification | 600000 |
| Total | 8600000 |
| Fixed Capital | |
| Rs. 5600000 + Rs. 8600000 = Recurring Expenditure/Month | Rs. 14200000 |
(iii) Raw Material/Month (for Acid Slurry 25 MT)
Amount (Rs.) |
|
| Linear alkyl benzene 18MT @ Rs. 80,000 PMT | 1440000 |
| Sulphuric acid 98% and oleum 28 MT @ Rs. 12000 PMT | 336000 |
| Total | 1776000 |
B. Working Capital
(i) Salary/Wages (per month)
Amount (Rs.) |
|
| Manager/Chemist-1 | 15000 |
| Plant operator- 4 | 30000 |
| Unskilled workers- 4 | 50000 |
| Salary/Wages (per month) | (Rs.) |
| Clerk/typist-1 | 5000 |
| Watchman/peon-3 | 12000 |
| Total | 112000 |
| Perquisites 22% | 24640 |
| Total | 136640 |
(ii) Other Expenditure (per month)
Amount (Rs.) |
|
| Transport | 10000 |
| Postage/stationery | 3000 |
| Insurance | 10000 |
| Repair maintenance | 15000 |
| Packing | 7000 |
| Miscellaneous expenses | 15000 |
| Total | 60000 |
(iii) Utilities
Amount (Rs.) |
|
| Power/Water | 30000 |
| Total Recurring Expenditure (per month) Rs. 1776000+136640+60000+30000 | 2002640 |
| Say | 2003000 |
C. Total Capital Investment
| Fixed Capital | 14200000 |
| Working capital for 3 months | 4209000 |
| Total | 18409000 |
Financial Analysis
Cost of Production (per year) |
(Rs) |
| Total recurring expenditure | 24036000 |
| Depreciation on building @ 5% | 28000 |
| Depreciation on furniture @ 20% | 60000 |
| Depreciation on plant and machinery @ 10% | 83000 |
| Interest on total capital investment @ 12% | 2221080 |
| Total | 26428080 |
| or Say | 26428100 |
Turnover (per year)
Item |
Qty. |
Rate (RS). |
Value (Rs.) |
| Acid slurry | 300MT | 110000/MT | 33000000 |
Net Profit (per year)
Turnover |
Cost of Production |
Profit |
| 33000000 | 26428100 | 6571900 |
Net Profit Ratio
| Rate of Profit on Sales | Net profit per year × 100 Turnover |
|
| Rate of Return | 6571900 x 100 33000000 19.9% |
Rate of Return
| Rate of Profit on Sales | Net profit × 100 Total investment |
|
| Rate of Return | 6571900 x 100 18509000 35.5% |
Break-even Point (% of Total Production Envisaged)
Fixed Cost |
(Rs) |
| Depreciation on machinery and equipment | 83000 |
| Depreciation on office equipment | 60000 |
| Depreciation on building | 28000 |
| Interest on total capital investment @ 12% | 2221080 |
| Insurance | 120000 |
| 40% of salary and wages | 655872 |
| 40% of other contingent expenses | 298000 |
| Total | 3465952 |
| or say | 3466000 |
| Net Profit (per year) | B.E.P. = F.C. x 100 F.C. + Profit
|
|
3465000 x 100 3465000 + 6571900 |
||
3465000 x 100 10036900 |
||
34.5% |
Addresses of Machinery and Equipment Suppliers
- M/s. Mazzindia (P) Ltd.
C/o. K.S.Krishanan and Associates,
15,Community Centre,
East of Kailash,
New Delhi-110024 - M/s. Pioneer Engg. Co.
57, Bombay Samachar Marg,
Fort, Mumbai-23 - M/s. Precision Machanist
36 (D) Kandivli Indl. Estate,
Kandivli (W),
Mumbai-67 - M/s. Sethi Engg. Works
31-A G.T. Road, Indl. Area,
Delhi-110033 - M/s. Mechanico Engineers
15, Okhla Indl. Area,
New Delhi-110020 - M/s .Precision Tanks and Vessels (Pvt.) Ltd.
1311, Padma Towers,
Rajendra Place,
New Delhi-110008 - M/s. Dolphen Engg. Enterprises
4311, GIDC Estate,
Ankleshwar- 393002
Dt. Bharuch, Gujarat
Addresses of Raw Material Suppliers
- M/s. Indian Petrochemicals Corpn. Ltd.
P.O. Petrochemicals,
Distt. Vadodara
Gujarat - 391346 - M/s. Tamilnadu Petro Products Ltd.
Manali, Tamilnadu - M/s. Reliance Industries Ltd.
Patalganga,
Maharashtra - M/s. Dharamsi Morarji Chemical Limited
317/21, Dr. D. N. Road,
Fort, Mumbai-1.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
