DETERGENT SOAP INDUSTRY COMPANY SUMMARY The company is to be co founded at Patrapada, Bhubaneswar. Harmony Soaps Pvt Ltd is an enterprise company engaged in manufacturing detergent soaps. In our country, people in villages are accustomed to washing clothes near rivers and ponds using cakes by scrubbing and applying mild force. Detergent cakes or bars are suitable for this purpose and are becoming popular both in the villages and urban areas. This is detergent in cake form, which can be used with hand as well as in soft water. START UP SUMMARY Start up of the company will require a capital of Rs. 16,80,000 of which Rs. 10,00,000 will come as loan from Syndicate Bank and the rest Rs. 6,80,000 will be provided by the founders. Approximately Rs. 80,000 will be allocated to equipments. COMPANY LOCATION AND FACILITIES The plant is to be located at Patrapada, Bhubaneswar, Orissa for now. Upon expansion, plants will move to different locations within the state as well outside it.
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DETERGENT SOAP INDUSTRY
COMPANY SUMMARY
The company is to be co founded at Patrapada, Bhubaneswar. Harmony Soaps Pvt Ltd is an
enterprise company engaged in manufacturing detergent soaps. In our country, people in villages
are accustomed to washing clothes near rivers and ponds using cakes by scrubbing and applying
mild force. Detergent cakes or bars are suitable for this purpose and are becoming popular both in
the villages and urban areas. This is detergent in cake form, which can be used with hand as well as
in soft water.
START UP SUMMARY
Start up of the company will require a capital of Rs. 16,80,000 of which Rs. 10,00,000 will come as
loan from Syndicate Bank and the rest Rs. 6,80,000 will be provided by the founders. Approximately
Rs. 80,000 will be allocated to equipments.
COMPANY LOCATION AND FACILITIES
The plant is to be located at Patrapada, Bhubaneswar, Orissa for now. Upon expansion, plants will
move to different locations within the state as well outside it.
SERVICE DESCRIPTIONS
The aim of the company is to provide this product throughout the state and country by widening of
distribution channels.
DETERGENT SOAP INDUSTRY
INTRODUCTION TO
ENTREPRENEURSHIP
The word ‘entrepreneur’ has its origin in the French language. It refers to the ORGANISER OF
MUSICAL or OTHER ENTERTAINMENTS. ENTREPRENURSHIP can be described as a creative
&innovative response to the environment. Such responses can takes place in any field of social
Endeavour-business, agriculture, education, social work the like.
An ENTREPRENEUR is one who organizes, manages & assumes the risks of an enterprise.
An entrepreneur visualizes a business, takes bold steps to establish under taking, co-ordinates the
various factors of production gives it a start.
ENTREPRENEURS are the owners of the business who contribute the capital & bear the risk
of uncertainties in business life.
ENTREPRENEUR is action-orient & highly motivated person who has the ability to evaluate
business opportunities, to gather the necessary resources to take advantage of them &to intimate
appropriate action to ensure success.
ENTREPRENEUR takes decision regarding what to produce, where to produce & whom to
produce. He mobilizes other factors of production namely; land, labour, capital, organization &
initiates production process. He is responsible for either profit or the loss.
ENTREPRENEUR is associated with innovations. He is the main factor of production.
DETERGENT SOAP INDUSTRY
ENTREPRENEURIAL PHILOSOPHY
To take calculated risk.
Willingness to accept responsibility for one’s own work
Failure must be accepted as a learning experience.
Goal orientedness.
Acceptable results are more important than perfect results.
Personal growth.
EXPECTATIONS OF ENTREPRENEURSHIP
It is expected from the entrepreneurs that they will help:-
Increase number of industries.
Increase production.
Increase employment opportunities.
Earn foreign exchange through exports.
Develop the underdeveloped parts of the country.
Economical development.
CHARACTERSTICS OF ENTREPRENEUR
Self confidence
Task-result oriented
Risk-taker
Leadership
Originality
Future oriented
DETERGENT SOAP INDUSTRY
ROLE OF FIs & BANKS IN SSI FINANCING The credit needs of entrepreneurs could be divided in three parts:
Short term Medium term Long term finance
Accordingly, the conventional mechanism for financing of SSIs in India stressed provision of terms
loans and working capital.
The public and private sector banks, Small Industries Development Bank of India (SIDBI), Regional
Rural Banks (RRBs), Urban Cooperative Banks (UCBs) and foreign loans for setting up of new
industries or modernization of the existing ones, Khadi and Village Industries Commission (KVIC)
and Khadi and Village Industries Boards (KVIBs) assist in financing khadi and village industry
sector. National Small Industries Corporation (NSIC) and State Small Industries Corporations
(SSICs) in their own way, also attempt to develop the cottage and small scale sector by supplying
machinery on a hire-purchase basis to small-scale and ancillary industries, inclusion of the value of
machinery and equipment already installed.
SFCs are one of the oldest credit institutions in the country which mainly cater to the long term
credit needs of small & medium enterprises. At present, there are 18 SFCs covering the entire
country & they have been in existence for 5 decades now. The cumulative sanctions &
disbursements of SFCs aggregated Rs 33000 crore & Rs 27000 crore respectively. It needs to be
high lighted that almost 75% of SFCs assistance flows to the SSI sector. Over the years the
financial health of SFCs has become a cause of concerns. Some of the reasons for the poor
financial health of SFCs are poor recovery performance increase in non performing assets.
Govt. of India had amended the SFCs act 1951 in the year 2000 so as to give them more operational
flexibility & freedom so that they can improve their performance & play their role more effectively.
DETERGENT SOAP INDUSTRY
CHALLENGES FOR ENTREPRENEURSHIP PROJECT:-
1. Technology up gradation:-
It is found that our small scale sector is not able to compete because of outdated technology.
We must appreciate that small scale industry has to keep itself updated and then only it can sell
goods. In the post WTO era, the best thing would be available anywhere in the world as there is no
restriction for goods to move. People will purchase only if the goods are of good quality.
We must remember that we may or may not need imported technology for up gradation. Our
small industries have the advantage of developing in import substitution period. Many SSI can
therefore become world class with only small modifications or improvement.
2. Testing facilities : -
Because our small scale industries are situated in far flung areas there for it is not possible
to service by one or two central laboratory. We suggest that educational institution even in small
towns should be equipped to provide testing facilities to small scale industries.
3. Exports: -
We find that small scale industries engaged in exports do not have any benefits, although
they count for bulk export. We strongly advocate special concessions for small scale industries,
which are engaged in exports.
4. Involvement of Industrial Associations:-
We feel that many problems of small sector can be taken care of if industrial associations are
involved in a big way.
DETERGENT SOAP INDUSTRY
5. Infrastructure Development:
Small scale industries suffer maximum from lack of infrastructure development. The quality
of power is bad and the power available is at very high cost. This must be corrected. Roads are bad.
Communication facilities are not up to mark etc.
6. Credit: -
The credit is still not available to small scale industries. The credit Guarantee Fund created
by SIDBI is not being exploited as there are still short coming in the scheme.
7. Skill Up gradation: -
Small scale Industries are known for providing on job training. But in the post WTO era when
cost cutting is order of the day, the people are running small scale industries must be skilled and
these skills must be up graded continuously so that they are in the job & no unemployment results.
8. Marketing:-
The present market assistance scheme is most welcome. More such schemes are
required .Small Scale Industries are being bundled out of the market by aggressive advertisement
done by large scale& multinationals. The small sector must be protected from this, if the small
sector has to survive.
9. Changing the Labour Laws:-
The present labour laws must be changed to have more flexibility & suitability for running of
small scale sector.
DETERGENT SOAP INDUSTRY
Products Applications,
Market Potential
Basis and PresumptionsTraditionally, soap has been manufactured from alkali (lye) and animal fats (tallow), although
vegetable products such as palm oil and coconut oil can be substituted for tallow. American
colonists had both major ingredients of soap in abundance and so soap making began in America
during the earliest colonial days. Tallow came as a by-product of slaughtering animals for meat, or
from whaling. Farmers produced alkali as a by-product of clearing their land; until the nineteenth
century wood ashes served as the major source of lye. The soap manufacturing process was
simple, and most farmers could thus make their own soap at home.
The major uses for soap were in the household, for washing clothes and for toilet soap, and in
textile manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because
colonial America was rural, soap making remained widely dispersed, and no large producers
emerged. By the eve of the American Revolution, however, the colonies had developed a minor
export market; in 1770 they sent more than 86,000 pounds of soap worth £2,165 to the West Indies.
The Revolution interrupted this trade, and it never recovered.
The growth of cities and the textile industry in the early nineteenth century increased soap usage
and stimulated the rise of soap-making firms. By 1840, Cincinnati, then the largest meatpacking
center in the United States, had become the leading soap-making city as well. The city boasted at
least seventeen soap factories, including Procter and Gamble (established 1837), which was
destined to become the nation's dominant firm. A major change in soap making occurred in the
1840s when manufacturers began to replace lye made from wood ashes with soda ash, a lye made
through a chemical process. Almost all soap makers also produced tallow candles, which for many
was their major business. The firms made soap in enormous slabs, and these were sold to grocers,
who sliced the product like cheese for individual consumers. There were no brands, no advertising
was directed at consumers, and most soap factories remained small before the Civil War.
DETERGENT SOAP INDUSTRY
The period between the end of the Civil War and 1900 brought major changes to the soap industry.
The market for candles diminished sharply, and soap makers discontinued that business. At the
same time, competition rose. Many soap makers began to brand their products and to introduce
new varieties of toilet soap made with such exotic ingredients as palm oil and coconut oil.
Advertising, at first modest but constantly increasing, became the major innovation. In 1893 Procter
and Gamble spent $125,000 to promote Ivory soap, and by 1905 the sales budget for that product