Introduction

This profile envisages the setting up of a plant for the production of Herbal bath soap with a capacity of 200kg per day. The herbal bath soap is a kind of soap that contains natural ingredients like the essential oils from aloe vera, patchouli, citronella, rose and sampaguita.

Production Procedure/Process

  1. Measure and weigh the ingredients as specified.
  2. To make 36°Be lye solution, mix well 2 1/2 liters of water with 1 kg of caustic soda.
  1. Measure 360 ml lye solution and mix with 590 ml of the oil using an electric mixer. Blend the oil-lye mixture very well until creamy.
  1. While mixing continuously, prepare the coloring for the soap. In separate containers, dissolve a few drops of oil with a little of the blue and yellow coloring powder. Use separate sticks for stirring each color.
  1. Mix together the dissolved blue and yellow coloring powder in one container. Estimate the amount of each color to produce an olive green color. Set aside.
  1. Go back to the oil-lye mixture in the mixer and test its consistency by using a chopstick or bamboo stick.
  1. When the oil-lye mixture is already creamy, add the aloe vera essence and spring fragrance. Next, add the remaining additives – CDEA, sodium silicate and sodium benzoate.
  1. While mixing continuously, add the prepared olive green color.
  1. When the olive green color is already even, remove the mixture from the mixer.
  1. Transfer the mixture to the molds. Distribute the soap mixture evenly
  1. Allow the soap to harden for 2-4 hours. When the soap hardens, slice it by using a piece of string.

Capital Investment Requirements

The total Capital Investment cost to start this project including year one’s operating costs is estimated at NGN 7,968,000.

Market Analysis:

The demand for herbal soap is widely spread all over the Country although it may also be exported.

 

Capital Investment Requirements (CBN exchange rate -$1 to 414.89 NGN) as of  25 feb 2022.

Capital investment item Units Qty Cost in

NGN

 Cost in USD
Electric Blender  No. 1 8000 19.28
Pail  No. 2 1000 2.41
Turning stick  No. 2 300 0.72
Soap Molds No 5 3000 7.23
Strings Meters 20 300 0.72
Measuring Cups No 2 1000 2.41
Weighing Scale No 1 3000 7.23
Total cost of machinery 16,600 40.01

 

 

 

 

Production and operating costs

Cost Item  Units @

 

NGN

  Qty/

day

 Pdn cost/ month  in NGN Pdn cost/  year

In NGN

 Pdn cost/  year

In USD
Caustic Soda kg 100 50 130,000 1,560,000 3,760.03
Coloring Powder kg 200 5 26,000 312,000 752.01
Essential oil Litres 500 10 130,000 1,560,000 3,760.03
Spring Fragrance Litres 200 5

 

 26,000 312,000 752.01
Lanolin Litres 300 5 39,000 468,000 1128.01
CDEA Litres 300 5 39,000 468,000 1128.01
Aloe vera Litres 100 50 130,000 1,560,000 3,760.03
Silicate Litres 500 5 65,000 780,000 1,880.02
Sodium kgs 500 5 65,000 780,000 1,880.02
Sub-total 650,000 7,800,000 18,800.16

 

 

 

General costs (overheads) 

   Cost Per Month

NGN

 Cost Per Year

NGN

 Cost Per Year

USD
Utilities(water and power)  2000 24,000 57.553
Labour 5000 60,000 143.881
Rent 2000 24,000 57.553
Distribution costs 5000 60,000 143.881
Sub –total 14000 168,000 402.868
Total Operating Costs 664,000 7,968,000 19,205.09

 

 

 

Project product costs and Price structure  

Item  Qty /day Qty/yr @ Pdn cost /yr NGN Pdn cost/yr USD TR

In NGN

 TR

In USD
HERBAl BATH SOAP 50 15,600 600 7,968,000 19,205.09 9,360,000 22,560.196

 

 

 

 

Profitability Analysis

Profitability Item  Per day Per month Per Year

NGN

 Per Year

USD
Revenue  30,000 780,000 9,360,000 22,560.196
Less production and  operating Costs 25,000 664,000 7,968,000 19,205.09
Profit 5,000 116,000 1,392,000 3,355.11

 

Learn How to Get Funding for Your Business

Visit: www.learnstation.com.ng/fundraising 

Learn How to Write Business Plan

Visit: www.learnstation.com.ng/Bplan-course

 

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