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Acid Slurry (ALKYL Benzene Sulphonate)

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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. 5000000
1000 sq mtr 5000/- sqmtr

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 800000
complete with motor, Cap 1 m3

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 2000000
Equipment.

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: [email protected]