A lot of things had happened in past few years, Firstly Covid, Then Russia- Ukraine war but one thing is clear that none of these factors created an issue for FMCG goods. So deciding to start Detergent Manufacturing Business is a great step as detergent is a FMCG product and it is consumed in every household and a lot of industries also need detergent.
Legal documentation Requirements
- To start a detergent manufacturing business you’ll need to register your company with the government as a partnership firm or sole proprietorship under MSME and you’ll get a GST number registered for your industry.
- You will also need to register a trademark/brand name i.e. the name under which you will sell your product to your customer.
- To Manufacture or start a industrial unit you’ll need the certificates to operate from the pollution control board of your city.
- Don’t worry you can hire an accountant or a lawyer to help you get all the documentation ready with an ease.
How to manufacture detergent?
To start detergent manufacturing business you first need to learn how to manufacture detergent.
To Manufacture detergents you’ll need raw material(Indiamart Link for raw raw material)
- Soda Ash
- Carboxy Methyl Chloride
- Sodium Perborate
- Lather Producing Chemicals
In the manufacturing process the raw materials are mixed thoroughly and the detergent powder is prepared by machine, and after that you need to do packaging you can do manual packaging or by machinery that totally depends on your budget.
Investment required to start detergent manufacturing business.
Their are various phase of expenses involved in this
the first one is getting legal documents ready and including a lawyer it will cost around 50k-60k.
The second one is looking for a place where you’ll setup your manufacturing plant the place requried for this is around 1500-3000 sq. ft. so if you have your own place it’s awesome else you can buy or lease a place .
The third one is machinery The basic machine costs around 1 lac-4lac which is enough for a small scale business. If you are scaling then you can get further machinery.
The forth one is pay-roll cost considering you have 7-10 employees and each employee takes 10k-15k so your total cost will be around 1 lac/month.
The fifth one is raw material.
Considering above factors your total investment will be approx around 12-20 lac and if your production capacity is high it could be high.
The business plan of any business is a framework of how will you make money and in detergent business you will make money by selling products with your margin in it. Now the next question is to whom will you sell, you can sell it to distributors, retailers and directly to customer.\
In FMCG sector the biggest issue is not manufacturing it is creating a distribution channel so you need to work very fast to create a distribution channel you need to meet new clients daily and make them your distributor or super stockist.
You can also sell on Digital platforms like Amazon, Flipkart, Snapdeal, etc. These marketplaces contain a lot of traffic for your product.
Before launching your product you need to build a relationship with your customers and make something unique in your product (If You want to scale) or you can sell it at a small scale and still make profit. For making it a brand you need to market it properly on digital platforms and share/tell a story so that your customer can relate to your product.
After that make it available at all the distributors and to all stores initially you need to sell it cheap so that it could first get comfortable in market and you need to give unique packaging so that it outstand on a shelf in a store and you need to then start promoting on e-commerce marketpalces.
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