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PROPOSAL FOR A LIQUID SOAP AND DETERGENT

PRODUCTION

PREPARED BY SOLOMON SIMIYU

This is a proposal for “Company”., the firm will be located in Isinya Kajiado
County: the plan is written to help solicit funds from the shareholders or any other
funders. The company anticipates being one of the best liquid soap and detergent
production in the Africa. The business has a vision of producing, processing, and

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retailing quality and cost effective products to virtual customers, with an aim of

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attaining sustainable livelihoods. “COMPANY” focuses on the scalability and retail

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distribution of liquid soap and detergent products.

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“-------Soap and Detergent Company” is in the industry to produce liquid soaps
and detergents. The main focus of the business is to make profit and at the same
time to give our customers value for their money.
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As a business we are aware that there are several soap and detergent
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production companies scattered all around Kenya and the entire world that is why
we have spent time and resources to conduct our feasibility studies and market
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survey. We have mapped out plans to develop a far reaching distribution network
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for wholesalers of liquid soap and detergent products all around the country (Kenya)

Beyond manufacturing quality and cost effective liquid soaps and detergents,
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our client care is going to be paramount to our business. We know that our
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consumers are the justification why we are in business that is why we will go the
extra mile to get them satisfied when they purchase our products.

-------” Soap & Detergent Production Company” will be owned by a group of

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investors “led by……………………. who is the Chief Executive Officer of the

Company and is Graduate of(-----------------------------)

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The proposal is not mainly meant for internal company use; but for the donor
who is willing to fund business in the efforts of creating jobs and providing cleaning
products and services; which is an essential requirement, in all corners of the

world.

PRODUCT AND SERVICES

….…….”COMPANY”Is going to run a standard soap and detergent production

company whose products will not only be sold in Kenya but also throughout the
entire East Africa. The ultimate goal for the industry is to make profits and also to
give our customers value for their money.

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These are some of the products:

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 Laundry Soap

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 Engine wash soap rs e
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 Carpet Cleaner
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 Window cleaner
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 Hair shampoo

 Dog shampoo
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 Multipurpose soap
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 Car wash

 Dish wash
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 Hand wash

 Customized shower gel(Niche)

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MARKET ANALYSIS SUMMARY

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Over the last few years, soap makers have evolved with emphasis now
shifting to hand washes. The battle for market-share is taking on a new frontier as
liquid soaps take over more shelf space than bar soaps. According to data from
“Synovate”, advertising exposure for hand washing category stood at Sh6.8 million
in Quarter 1, 2015. In Quarter 1, 2016, advertising spend grew to Sh18 million. A
survey by “Synovate “in the local retail outlets in Nairobi reveals that among the
various categories of detergents, preference is being given to liquid soaps.

Not long ago, solid soaps often placed on a sink in the wash rooms or
cafeterias were a common feature, however, hand washes are fast overtaking the
solid soaps especially among the urban population. For instance an average liquid
hand wash costs between Sh175 and Sh265 while a solid soap would go for as low

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as Sh40. But despite the high prices, the liquid hand washes seem to dominate the

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shelves in the supermarkets and other retail outlets hence outweighing the number

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of solid soaps with similar ingredients which are at a relatively cheaper price

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OUR TARGET MARKET

When it comes to selling liquid soap and detergent, there is indeed a wide
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range of available customers. We are in a business to engage in wholesale

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distribution and to retail our liquid soap and detergent to the following groups of
people.
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 Hotels
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 Hospitals
 Schools
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 Retail shops/supermarkets
 Commercial cleaning companies
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PRICING STRATEGY

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We are aware of the pricing trend in the liquid soap and detergent production
industry which is why we have decided to produce various sizes of liquid soap and
detergent. Our prices will conform to what is obtainable in the industry but we will
ensure that within the first 6 to 12 months our products are sold a little bit below
the average price. We have put in place business strategies that will help us run on
low profits for a period of 6 months; it is a way of encouraging people to buy into
our brand.

SALES AND MARKETING STRATEGY

When it comes to liquid soap and detergent production company, if your products
are well – packaged and branded and easily accessible, you will always attract

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customers cum sales and that will sure translate to increase in revenue generation

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for the business.

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We have been able to examine the soap, washing powder and synthetic detergents
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production industry, we have analyzed our chances in the industry and we have
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been able to come up with the following sales forecast. Below are the sales
projections if everything as per the vision of the company.
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FIRST FISCAL YEAR

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SECOND FISCAL YEAR

THIRD FISCAL YEAR

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START UP EXPENDITURE (BUDGET)

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Starting a standard liquid soap and detergent production company is indeed capital
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intensive because the amount required here is quite huge. The bulk of the startup
capital will be spent on leasing or acquiring a facility and also in purchasing
chemical mixer, vessels, crystalizing machines, burner, protective gears, a mini lab
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and good drainage system.

These are the key areas where we will spend our startup capital;

START-UP EXPENSES

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WORKING EXPENSES

 Business registration ------------------------------------------------------------------------- 2000

 Licenses-----------------------------------------------------------------------------------------15000

 Rent-----------------------------------------------------------------------------------------------20000

 Furniture and gadgets (Computers, Printers, Telephone, tables and chairs et al)--
100000
 KEBS Sample analysis---------------------------------------------------------------------------
90000
 Office supplies--------------------------------------------------------------------------------------
10000

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 Insurance--------------------------------------------------------------------------------------------

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20000

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 Floor petitioning/room and any repair--------------------------------------------------------

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50000
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 Setting a mini lab--------------------------------------------------------------------------------------
100000
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 Marketing promotion
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expenses------------------------------------------------------------------------30000
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 Operational cost for the first 3 months (salaries , payments of bills et

al)-----------------150000
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START-UP ASSETS NEEDED

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START- UP INVENTORY
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Motor vehicle (Closed pick-up)

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------------------------------------------------------------------------1500000

Liquid detergent mixer (fully automated)

----------------------------------------------------180000 to 50m

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RAW MATERIALS PACKAGING

Heavy Duty plastic drums-----------------------------------------------------------------------------

30000

Packing containers of all sizes (1ml----20litres)

--------------------------------------------------20000

Branding and labelling-------------------------------------------------------------------------------

50000

Water and Electricity----------------------------------------------------------------------------------

15000

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Raw materials for soap and detergent production-----------------------------------------

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200000

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170kg drum ungerol @210
20kg ungerol @4400
20kg ufacid @3700
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25kg caustic soda @3000

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25kg simet @1850

50kg magadi soda @1300
50kg ind . Salt @750
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20kg np9 @5400

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20kg cde @5200

45kg chlorine @10800
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25kg stpp @2750

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25kg cmc @3750

Colours from 300 per kg
Perfumes from 600 per l liter
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Miscellaneous ---------------------------------------------------------------------------------30000

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Total expenses
2,612,000

2020-2021 FINANCIAL FORECAST

Durati Marc April May June July Augu Sep Oct No De

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Expens

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