Why Start a Liquid Soap and Detergent Production Business?

As a newbie in the industry & less effort in convincing people to use our product that are
consumable on daily basis are the sure reasons indeed to trigger our plan for introduction of
household supplies line.

We are pretty convinced that we are having a winning formula for liquid soaps and detergents
that renders marvelous cleaning in hard as well as soft water, that’s why we are considering
launch our own production line. This is an open arena for investors to come in and compete for
the available market in the industry.

We have decided to start a liquid soap and detergent production line, after making dead sure that
we have carried out thorough feasibility studies and market survey. Business plan is yet another
very important business document that we should not take for granted when launching our
business.
Business Plan

  Industry Overview

Synthetic Detergent Manufacturing industry is involved in the manufacturing of detergent powder,

transparent soap, translucent soap, toilet soap, medicated soap, industrial soap, soap flakes, soap powder.
These products include household and industrial detergents used for clothes washing, dish washing &
hygienic sanitary cleaning etc.

Research conducted by IBIS World, an expert industry market researcher, reveals that in the past
few years, the Synthetic Detergent Manufacturing industry had been contended with steep
competition from soap manufacturers. The report also shows that foreign-based manufacturers
have glutted the market with low-cost soap products, pressuring demand for domestically
manufactured products.

IBIS World has also projected that the increase in per capita disposable income in coming years, many
will slowly shift a lot of consumers to relatively high-cost, brand-name soaps and cleaning products
because they are becoming brand as well as quality conscious. Additionally, downstream markets such as
restaurants, caterers, snacks packaging organizations will be requiring more cleaning products to comply
with regulations and maintain cleanliness & hygienic conditions in line with the rise in consumer inflow.

This is a thriving sector of Pakistani economy because GDP per capita has been increasing steadily in
recent years and rose to USD 1,468 according to latest estimates (World Bank), ranking somewhere
between India and Bangladesh. The population is booming with youth aged 0-24 accounting for 52% of
the total and a net growth rate of 1.43% (CIA World Factbook). While the income inequality is relatively
low compared to its region (Gini index score of 30.7 points, 129th worldwide), Pakistan offers a wide
range of consumer markets, owing to its large population (over 207 million, fifth largest in the world).
Pakistani consumers are now becoming more and more brand conscious. This trend is generating demand
for some products that were previously unknown in the country, particularly in sectors like household
consumable items. Despite increases in wages, Pakistani consumers continue to spend an important share
of their income on basic needs such as food (41.9% of total income) (Economic Research Service of the
United States Department of Agriculture).

The industry is responsible for the employment of mass number. By 2021 the global liquid detergent
market is expected to grow steadily over the next two years up to 8%. Due to the high cost of
manufacturing, marketing and distribution of soap, large corporations dominate the industry and despite
the fact that there are big corporations, who are into the business, the fact remains that starting a small –
scale detergent production business has minimal barriers to entry, with low startup capital. Most players
in the industry are small to medium – size establishments that cater to the local community.
The factors that encourage aspirants to venture into starting a liquid detergent production company are in
fact pretty huge and are not seasonal. That makes it easier for entrepreneurs who are interested in the
business to come into the industry at any time they desire; the barriers for new entrants are quite
affordable and any serious – minded entrepreneur can comfortably raise the startup capital without
collecting loans from the bank.

Over and above, the liquid Detergent Manufacturing industry is a profitable industry and it is open for any
aspiring entrepreneur to come in and establish his or her business. We are choosing to start on a small
scale production line to produce limited quantities of liquid detergents initially in single city & its
adjoining areas with the help of small sized marketing & distribution network.
– Executive Summary
AW-HOUSEHOLD (PVT) LIMTED is liquid detergent production company that will be located
initially at Sargodha with its office & manufacturing unit. We have been able to secure a long term lease
for a facility in a strategic location with an option of a long term renewal on terms and conditions. We
will get this facility approved for such kind of production. We want to run the facility as easily accessible.

AW-HOUSEHOLD (PVT) LIMTED is in the industry to produce liquid soaps and detergents. We are
also in business to make profit and at the same to give our customers value for their money.

We are well aware about presence of several soap and detergent production companies scattered all
around the canvas, that’s why we spent time and resources to conduct our feasibility studies and market
survey. We have delineated out plans to develop a far reaching distribution network for wholesalers of
liquid soap and detergent products all around Sargodha and throughout the Pakistan.

Despite producing quality liquid soaps and detergents, our customer care is going to be second to none.
Value addition for our customers is the reason why we are in business which is why we will go the extra
mile to get them satisfied when they purchase our products & our products will remain at their priority
list.

AW-HOUSEHOLD (PVT) LIMITED will ensure that all our customers (wholesale distributors) are given
first class treatment whenever they visit us. We will make use of latest technology to manage a one on
one relationship with them also.

AW-HOUSEHOLD (PVT) LIMITED will be owned by a group of investors led by Fayyaz Ahmed. Mr.
Fayyaz Ahmed who is the Chief Executive Officer of the Company, he holds a Master’s Degree in
Business Administration (MBA). He is a performance-driven professional with 10+ years of continuous
advancement and expertise in supervisory role. He has ability to design & implement proactive
approaches. He will be working with a team of professionals to build the business.

 Our Products Offerings

AW-HOUSEHOLD (PVT) LIMTED is going to run a standard liquid detergent production company
whose products will not only be sold in Sargodha but also throughout the Pakistan. We are in the industry
to make profits and also to give our customers value for their money.

These are our offerings for sale;

 Dish Washing Liquor

 Hand Sanitizer
 Toilet Bowl Cleaner
  Vision Statement

AW-Household’s vision is to add value to lives of our customers with products having every drop
momentous.

 Our Mission Statement

AW-Household’s corporate mission is to establish a world class liquid soap and detergent production
brand. We are exuberant to favorably compete with leaders in the industry and our product line will prove
to be paraphernalia for masses. We want to build a business that will be market leader within no time with
untiring efforts of professionals.

 Our Business Structure

We will put the right structure in place that to support the kind of growth that we have in mind for the
business. We will ensure hiring of people having inculcated traits of qualification, honesty, hardworking,
customer centricity and are ready to work to help us build a flourishing business to benefit stakes of all
the stake holders. Profit-sharing arrangement will be made available to all our senior management staff
and it will be based on their performance for a period of ten years or more depending how fast we meet
our set target with minimal variance.
In view of that, we have decided to hire qualified hands to occupy the following positions;

 Chief Executive Officer (Owner)

 Plant Manager
 Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Machine Operators
 Accountants / Cashiers
 Distribution Network

Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results and developing
incentives
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Strategy creation, communication, and implementation in lieu of the organization’s vision,
mission, and overall direction.
 Signatory for checks and documents on behalf of the company.
 Evaluation of the success of the organization.

Plant Manager

 Responsible for overseeing the smooth running of the production unit.

  Maps out strategy that will lead to efficiency amongst workers in the plant.
 Responsible for training, evaluation and assessment of plant workers
 Ensures operation of equipment by completing preventive maintenance requirements; calling for
repairs.
 Ensures the steady flow of raw chemicals to the plant and easy flow of finished products through
wholesale distributors to the market
 Ensures that the plant meets the expected safety and health standards at all times.

Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization.
 Defines job positions for recruitment and managing interviewing process.
 Carries out induction for new team members.
 Responsible for training, evaluation and assessment of employees.
 Oversees the smooth running of the daily office and factory activities.

Merchandize Manager

 Manages vendor relations, market visits, and the ongoing education and development of the
organizations’ buying teams.
 Responsible for the purchase of chemicals and packaging materials.
 Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and
pricing orders to vendors.

Sales and Marketing Manager

 Identifies, prioritizes, and reaches out to new partners, and business opportunities.
 Responsible for supervising implementation, advocate for the customer’s needs, and build a
liaison with clients.
 Develops, executes and evaluates new plans for achieving incremental sales.
 Documents all customer contact and information details.
 Represents the company in strategic meetings.
 Helps to increase sales and growth for the company.

Accountant/Cashier

 Responsible for preparation of financials, budgets, and financial statements for the organization.
 Provides managements with financial analyses, development budgets, and accounting reports.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting.
 Responsible for developing and managing financial systems and policies.
 Responsible for administering payrolls.
 Ensuring compliance with taxation legislation.
 Handles all financial transactions for the organization.
 Serves as internal auditor for the organization.

Client Service Executive

  Welcomes guests and clients by greeting them in person or on the telephone; answering or
directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client
with a personalized customer service experience of the highest level.
 Through interaction with clients on the phone, uses every opportunity to build client’s interest in
the company’s products and services.
 Manages administrative duties assigned by the manager in an effective and timely manner.
 Consistently stays abreast of any new information on the company’s products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to clients.
 Receives parcels / documents for the company.
 Distributes mails in the organization.

Production Workers/Machine Operators:

 Operates the chemical mixer, vessels.

 Assists in packaging and loading liquid soap and detergent products into distribution trucks.

Distribution Network Personnel

 Assists in loading and unloading liquid soap and detergent products.

 Maintains a logbook of their driving activities to ensure compliance with federal regulations
governing the rest and work periods for operators.
 Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment.
 Assists the transport and logistics manager in planning their route according to a delivery
schedule.
 Local-delivery drivers may be required to sell products or services to stores and businesses on
their route.
 Inspects vehicles for mechanical and safety issues and perform preventative maintenance.
 Comply with truck driving rules and regulations (size, weight, route designations, parking, break
periods etc.) as well as with company policies and procedures.
 Collects and verifies delivery instructions.
 Reports defects, accidents or violations.

SWOT Analysis
Mitigation of risks & threats is possible as a result of SWOT analysis conducted for our business. We will
position our business to maximize our strength, leverage on the opportunities that will be available to us.
AW-Household have employed the services of an expert HR and Business Analyst with bias in startup
businesses to help us conduct a thorough SWOT analysis and to help us create a business model that will
help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for AW-Household (Private) Ltd.
 Strength:
Part of what is going to count as positives for AW-Household is the experienced management team. We
have people on board who are highly experienced on how to grow a business. So also our closeness to
leading cleaning chemical production companies, large national distribution network and of course our
excellent customer service culture will definitely count as a strong strength for the business. Frugality &
momentous cleaning even in hard water is also strength of our composition because soft water is very
scarce resource.
  Weakness:
Major weakness confronting to us is being a newbie and we don’t have the financial capacity to engage in
the cumbersome kind of publicity that we intend giving the business especially when big names like
Procter & Gamble and Unilever et al are already determining the direction of the market as a market
leaders.
 Opportunities:
The opportunities available to liquid soap and detergent products manufacturers are enormous because
almost all Pakistani people are making use of liquid soap and detergent when washing just because of its
being hygienic. That’s why it will not transfer germs. As a result of that, we to position our business to
take advantage of the existing market to create our own new niche in existing market. We know that it is
going to requires hard work, and we are determined to achieve it. Our products being suitable for hard &
soft water will also give us an added opportunity to cater the needs of those people who are living in areas
with hard water.
 Threat:
Economic downturn and unfavorable government policies are the threats that discourage new entrants.
Another threat that may likely confront us is the arrival of a new production company in same location
where ours is located.

MARKET ANALYSIS

 Market Trends:
It is quite agreeable that despite the fact that there are competitions at different stages of the industry,
most liquid soaps and detergents production companies are leveraging on creativity in terms of packaging
and marketing to continue to stay afloat.
Lastly, our liquid soap and detergent company will adopt eco – friendly approach towards the production
and packaging of its products. As a matter of fact, the adoption of eco-friendly practices will likely
persuade environmentally conscious consumers to buy its products.

 Our Target Market

When it comes to selling dish washing liquor and detergent, there is indeed a wide range of available
customers. We are in business to engage in wholesale distribution and to retail our liquid soap and
detergent to the following groups of people both in B2B & B2C sectors;

 Banquet Halls
 Hotels, restaurants & Pizza Cuisines
 Hospitals
 Caterers & Party Decorators
 Whole Sellers & retailers
 Factories preparing snacks

Competitive Advantage

A quick preview of the industry reveals that the market has become much more intensely competitive
over the last decade. As a matter of fact, we have to be highly creative, customer centric and proactive if
we want to survive in this industry. We are aware of the competition and we are prepared to compete
favorably with other liquid soap and detergent production companies in Sargodha-Pakistan.
Our vast experienced management team is our competitive advantage. So also closeness to some of the
largest cleaning chemical manufacturing plants, our large and far reaching national distribution network
and of course our excellent customer service culture will definitely count as a strong strength for the
business. Eco & hard water friendliness of our product are also our haves what others don’t.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within
our category in the industry, meaning that they will be more than willing to build the business with us and
help deliver our set goals and objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.
SALES AND MARKETING STRATEGY

Sources of Income

AW-Household will be established with the aim of maximizing profits in the industry by selling our
product to a wide range of customers with multiple demographics in both B2B as well as B2C sectors.

 Sales Forecast

Our well – packaged and branded products; from centrally positioned and easily accessible production
unit, will always attract customers cum sales and that will sure translate to increase in revenue generation
for the business.
We are well positioned to take on the available market in Sargodha, adjoining areas and every city where
our liquid soap and detergent will be sold and we are quite optimistic that we will meet our set target of
generating enough profits from the first six months of operation.
We have been able to examine the washing liquor, hand sanitizer and toilet cleaner liquid production
industry, we have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. Below are the sales projections for AW-Household. It is based on the location of
our business and other factors that relate to small scale startups in the country;