Establishing soap manufacturing company

Business Overview
The soap industry falls under the fast-moving consumer goods (FMCG) sector, which represents one of the largest industries worldwide. It is mainly characterized by companies that supply low-cost products that are in constant high demand.

According to research, the aggregate output from the local soap industry is about 650,000 tonnes per annum. Soap is very useful in our daily lives as a personal care product and almost inevitable in every household and corporation, especially in this period of COVID-19. 

Market Prospects
The soap market in Nigeria is estimated to be worth about N18 billion and it is estimated that over 800,000 tonnes of toilet and laundry soap are produced per annum (NBS). This is based on a conservative estimate of weekly consumption of one tablet of 75g per person each of the laundry and bath soap. This demand is driven by population growth, disposable income, and consumer trends.

Raw Materials
Soap is the traditional washing compound made from the saponification of oil fats and caustic alkali. The two vital raw materials needed for the production of bar soap are palm oil and caustic soda.

Equipment required
The core machines used for bar soap manufacturing include oil refinery, boiling pot, amalgamator plodder/extruder cutler eyelet, sealing machines

Production process
The production process follows the sequence below:
Bleaching: This is the process of refining the palm to meet production standard. It usually takes one-hour duration per batch.

Saponification: A mixture of the refined palm oil with caustic soda and heated to form intermediate products know as soap pellets.

Amalgamator: At this stage, soap pellets are combined with fragrances and other materials which are blended homogeneously in the amalgamator. This process takes about 45 minutes for the substance to generate the desired output.

Extruder: This resultant mass from the amalgamator is then passed through an extruder. This brings out long log soaps.

Eyelet: This will determine the shapes of the bar soaps.

Cutting: At this stage, the soap is ready to be cut into different sizes as specified by the company.
Sealing and packaging: This is the final stage in the process. The finished products are packed in cartons, sealed, and moved to the warehouse for storage and dispatch.

Distribution/marketing
The envisaged factory can make products available to customers through distributors in major market places. Also, the use of sales representatives/marketers is imperative.

Promoter’s qualification     
The promoter(s) should be experienced in Industrial Chemistry, management and supervisory skills.

Manpower requirement
A total of 10 staff is required in the short-term operations of the plant. They are a skilled worker – 4, factory workers – 5, and security operative – 1

Estimated start-up cost: N13.500 million for a reasonable output capacity        

Potential net profit: N2.500 million – N5.0 million per annum

Source of funding: Bank of Industry loan
This profile, or any similar one, can be developed into a bankable proposal for any interested investor.
For clarification, contact: info@michaelstevens-consulting.com