Liquid soap includes many types of soap such as liquid detergent, car wash, body wash, hand wash, dish wash, baby soap, etc. Each type has different demands and also requires different licenses and permissions from various government authorities.
A Step by Step Project Report to Starting a Liquid Soap Making Business
An entrepreneur who has an idea about the chemical consumables industry or has practical experience in this segment can start this venture with considerable investment.
The Market Potential for Liquid Soap Making Business in India
The business of making liquid soap involves a wide range of processing, packaging, and marketing steps. The business also requires comprehensive market analysis and marketing plan. Liquid soap is a consumable item, and its demand is increasing in villages and cities. The total annual soap sales by branded companies are around 14000 tonnes, while the total soap market is believed to be around 1,26,000 tonnes.
Business Plan to Start a Liquid Soap Manufacturing Unit
A detailed business plan is essential for a liquid soap-making business. Decide what type of liquid soap you want to make. When starting any construction business, it is suggested that a sample project report come in handy. Calculate startup financial needs with fixed and working capital specifications.
Consider expenses related to legal compliance. Plan your marketing and promotional strategy and costs. Check the water pH balance of the area where you plan to install the unit. Choose a trendy and catchy name for your product.
Legal Compliance to Start a Liquid Soap Detergent Business
You must obtain certain licenses from various authorities while starting the business of making liquid soap. In ROC Registrar of Companies, you can register your company and ownership pattern. Apply for a PAN card. Obtain a local authority’s trading license. Apply NOC from Pollution Control Board. Apply for ISI Mark in the Bureau of Indian Standards (BIS) related to quality, safety, and performance from time to time. Your state government should implement a factory license. Get the GST Number from the Goods and Services Tax Department.
- Registration of firm: Even if your liquid soap production business is tiny to medium-sized, you must register it as a proprietorship or partnership.
- GST registration: Additionally, you need to be registered for a GST number.
- Trade license: You must also apply for a business license with your local government.
- Pollution certificate: Since making liquid soap deals with a chemical that can cause pollution to the environment, it is better to take a pollution control certificate from the pollution control board for safety purposes.
- MSME Udyam Registration: MSME Udyam online registration must be obtained and is mandatory for starting every business. This will allow you to take advantage of all government-sponsored business programs.
- Trademark: You need to protect your brand, then you have to apply for trademark registration from the municipal authority in your area where you have decided to start a business.
- IS4955-1968: All these, as well as domestic use of liquid soap, have to have BIS registration and IS 4955-1968 registration, and also to start a distribution network for your business, then you have to get a ‘Distribution Agreement’ paper.
Area Required to Start a Liquid Soap Making Business Plant
You can start a small-scale liquid soap manufacturing unit within a 500 sq ft area so that you can keep the machinery and store the raw material as well as the finished product. The area should be provided with an electronic power supply, water source, and transportation so that it can be easily available for the manufacture of liquid soap.
The Plant and Machinery Required for a Liquid Soap Manufacturing
It is advisable to start a small-scale business. When your business shifts to mass production. Select and engage the machinery as per the required production output. It is suggested to start production using a semi-automatic operation-based manufacturing unit. You should have a mixing unit with a stirrer and a fixed RPM. The filling and sealing unit must be specific to the packaging. You must have a water treatment plant to treat hard water to soft water.
Also Read: Detergent Cake Manufacturing Business Plan
The Raw Material Required for the Liquid Soap Manufacturing Business
Procure quality raw material from trusted dealers as per your formula. It is never wrong to assume that a quality product is derived from quality raw materials. Focus on packaging material with quality of shelf appeal and ease of use. Attractive leak-proof bottles will increase the value of your final products.
Why Buy a Project Report of Liquid Soap?
A project report of liquid soap manufacturing plant is necessary for the following reasons.
- Helps the investor to make an investment decision in the liquid soap manufacturing business.
- Makes the entrepreneur aware of the various aspects of the liquid soap business.
- Helps in understanding the liquid soap manufacturing process.
- Serves as a sample report to prepare project reports for other purposes.
Packaging of Liquid Soap
After the liquid soap making is complete, you will need to pack it in different weights, and you will need a packaging machine to pack your product for transportation and for sale purposes. Generally, the liquid soap is packed in polythene bags or bottles with a volume of 500 ml, 1 liter, two ltr, five ltr, etc., depending on the market demand. Packaging is an essential component of marketing since it allows you to print complete information such as the ingredients used, company information, amount, expiration date, customer service number, and email address. You can also do different designs on the packets of soap to attract customers.
Also Read: Article on Liquid Detergent Business Plan & Project Report
Profit Margin in Liquid Soap Making Business
The business of liquid soap making is on the rise today. Because it has many advantages compared to others, so, you can expect a good profit margin of 25-30% in this business. Your business will automatically attract customers if you can produce good quality products. Therefore, first of all, focus on producing a quality product.
Wholesale Market for Liquid Soap
Your Liquid Soap can be sold at your city’s wholesale market.
How to sell Liquid Soap online
- B2B websites: B2B websites such as Indiamart, Tradeindia, Exportersindia, and others will help you register your liquid soap-producing firm. You can also sell your product in large quantities in B2B market.
- B2C websites: You can also online register on B2C ecommerce websites like – Amazon, Flipkart, Snapdeal, where you can sell your product directly to customers online.
The Online Market for Liquid Soap
Social media is one of the most significant and most effective ways to advertise your company online and reach the largest number of people. You can share a short tale with a video to attract more buyers and subscribers.
Also Read: Project Report with Detailed Guideline for Floor Cleaner Manufacturing Business.
Marketing Ideas for Promoting Products in India
- Since liquid soap is a durable consumer product, it needs wide publicity for the brand.
- The most effective option to attract housewives is through FM channels and advertisements.
- Think about understanding customer segments in a data sense and very human way.
- Establish a solid dealer relationship if you want to reach a large market.
- Do some outdoor promotional activities like hoarding, events, etc., in busy areas of the city.
- Pay attention to the tagline. It should clearly explain the product in a nutshell…Build an online presence for your business.
- Using data to determine customer preferences, buying fashion, and problems with conversion or satisfaction are significant and have room for improvement.
- Offer annual sales promotion discounts to your channel affiliates.
- Focus on the benefits of using it in advertising.
Liquid soap making is a reputable business if planned carefully. As a beginner, if you want to start a small-scale business in the chemical segment, then a liquid soap manufacturing business can be the best option.
With a proper project report and marketing skills, one can make decent money from the liquid soap manufacturing business.