INDUSTRIAL ANALYSIS ON

SOAP INDUSTRY

BY
SHAIK IMRAN
2121BM010080
MBA (B SECTION)
CHAPTER-1

ABSTRACT & INTRODUCTION

ABSTARCT:
In this experiment, soap is prepared and the characteristic
of the soap is compared with a synthetics detergent. Soap is
prepared using vegetable oil, ethanol and sodium hydroxide. These
reagents are mixed together and heated up until the soap
formed. After the soap performed, the soap is being cooled in the
water bath before being tested. There are two experiments done
in comparing soap and detergent which are precipitation and
emulsification test. Each test yields variety of results. For precipitation
test, soap and detergent are tested using a few drops of HCluntil the
pH of the solution is equal to 3. The number of drops used
to get the value of 3 is counted.  For
emulsification  test,  each soap  and detergent  are tested  with  
various  kinds  of solutions in order to determine the emulsification
effect. The solutions which are emulsified by either soap or detergent
will perform a single layer. All the data are gathered and recorded

INTRODUCTION:
Soaps are categorized into men’s soaps, ladies soaps and common soaps. There are few specialty
soaps like the Glycerin soaps, sandal soaps, specially flavored soaps and medicated soaps.
Especially soaps are high valued which enjoy only a small share of the market in value terms.
The market is growing at 7 % a year. This means that the incremental demand generation is 5%
over and above the population growth. With increasing awareness of hygienic standards, the
market for the soaps grows at a rate higher than 8% annually. Interestingly, 60% of the market is
now sourced from the rural sector. This means that the variance between the two segments is not
very large. Since upper-end market focus is the urban areas, margins come from the urban sector.
Soap is a product for many people and the lathering up can be a treasured part of a morning or
nightly routine. Whether it might be scanted or unscented, in bars, gels, and liquids, soap is a part
of our daily lives. In the United States, soap is a $1,390 million (US$) industry with over 50
mass market brands, but in Indian markets the sales potential for soap is only beginning to be
analyzed. At the end of the year 2000, soap was a $1,032 million (US$) business in India

In present age, all people want to appear smart and elegant in his personality.
The history of soap industry in India is very old say since 1889. The use of soap
or soap like cleaning agent has always been associated with man’s inherent
instinct to keep his body and other belonging clean. Soap help remove slag from
skin to make skin a brilliant glow. The principal raw material of soap is oil and
fats. According to these raw materials the quality of soap and category of soap is
changed. The necessary raw materials are needed to be of high purity and the
finished product should have the balanced pH as its froth may enter the eye.

Toilet soaps are made by combining liquid fats (like vegetable oils or animal fat)
with an alkali like sodium hydroxide (also called lye). The process is called
saponification‖; the definition of saponify is literally to turn fat or oil into soap
by reaction with an alkali. During the curing process, the sodium hydroxide and
water evaporate out of the product, leaving behind just awesome soap. Super
fatting, which refers to the process of adding liquid fats to soap after
saponification, is popular for its rich, moisturizing effect. Clear soaps will add
glycerin and sorbitol (a sugar alcohol with emollient properties), and products
labeled antibacterial‖ usually rely on triclosan, a substance that kills bacteria and
helps prevent fungus growth. A simple production method with high return
soaps are invariably used in every household. The antibacterial soap with a
 moisturizer added has huge market potential. The market is spread from remote
village to the metro cities alike. The industry gives a good profit and high
employment oriented.

Soap is a salt of a fatty acid used in a variety of cleansing and lubricating

products. In a domestic setting, soaps are surfactants usually used
for washing, bathing, and other types of housekeeping. In industrial settings, soaps
are used as thickeners, components of some lubricants, and precursors to catalysts.

When used for cleaning, soap solubilizes particles and grime, which can then be
separated from the article being cleaned. In hand washing, as a surfactant, when
lathered with a little water, soap kills microorganisms by disorganizing their
membrane lipid bilayer and denaturing their proteins. It also emulsifies oils,
enabling them to be carried away by running water.

Soap is created by mixing fats and oils with a base. A similar process is used for
making detergent which is also created by combining chemical compounds in a
mixer.

Humans have used soap for millennia. Evidence exists for the production of soap-
like materials in ancient Babylon around 2800 BC.

Since they are salts of fatty acids, soaps have the general formula
(RCO2−)nMn+ (Where R is an alkyl, M is a metal and n is the charge of the cation).
The major classification of soaps is determined by the identity of Mn+. When M
is Na (Sodium) or K (Potassium), the soaps are called toilet soaps, used for
handwashing. Many metal dications (Mg2+, Ca2+, and others) give metallic soap.
When M is Li, the result is lithium soap (e.g., lithium stearate), which is used in
high-performance greases. A cation from an organic base such as ammonium can
be used instead of a metal; ammonium nonanoate is an ammonium-based soap that
is used as an herbicide. Unlike detergents, when used in hard water soap does not
lather well and a scum of stearate a common ingredient in soap, forms as an
insoluble precipitate.

19th century

Caricature of Lillie Langtry, from Punch, Christmas 1890: The soap box on which
she sits reflects her endorsements of cosmetics and soaps.

Until the Industrial Revolution, soapmaking was conducted on a small scale and

the product was rough. In 1780, James Keir established a chemical works
at Tipton, for the manufacture of alkali from the sulfates of potash and soda, to
which he afterwards added a soap manufactory. The method of extraction
proceeded on a discovery of Keir's. In 1790, Nicolas Leblanc discovered how to
make alkali from common salt.] Andrew Pears started making a high-quality,
transparent soap, Pears soap, in 1807 in London.[44] His son-in-law, Thomas J.
Barratt, became the brand manager (the first of its kind) for Pears in 1865.[45] In
1882, Barratt recruited English actress and socialite Lillie Langtry to become the
poster-girl for Pears soap, making her the first celebrity to endorse a commercial
product.
During the Restoration era (February 1665 – August 1714) a soap tax was
introduced in England, which meant that until the mid-1800s, soap was a luxury,
used regularly only by the well-to-do. The soap manufacturing process was closely
supervised by revenue officials who made sure that soapmakers' equipment was
kept under lock and key when not being supervised. Moreover, soap could not be
produced by small makers because of a law that stipulated that soap boilers must
manufacture a minimum quantity of one imperial ton at each boiling, which placed
the process beyond the reach of the average person. The soap trade was boosted
and deregulated when the tax was repealed in 1853.

William Gossage produced low-priced, good-quality soap from the 1850s. Robert

Spear Hudson began manufacturing a soap powder in 1837, initially by grinding
the soap with a mortar and pestle. American manufacturer Benjamin T.
Babbitt introduced marketing innovations that included the sale of bar soap and
distribution of product samples. William Hesketh Lever and his brother, James,
bought a small soap works in Warrington in 1886 and founded what is still one of
the largest soap businesses, formerly called Lever Brothers and now
called Unilever. These soap businesses were among the first to employ large-
scale advertising campaigns.

History of Soap in India

During the British rule the Lever Brothers, England introduced modem soaps by
importing and marketing them in country. The first company created was North
West Soap Company, the Soap manufacturing plant in India situated in the city of
Meerut, in the state of Uttar Pradesh. In 1897, they started marketing cold process
soaps. In 1918, Mr. Jamshedji Tata set up India’s first indigenous soap
manufacturing unit when he purchased the coconut oil mills at Cochin Kerala. Ok
mills crushed and marketed coconut oil for cooking and manufactured crude cold
process laundry soaps that were sold locally and it was renamed the Tata Oil Mills
Company and its first branded soaps appeared on the market in the early 1930’s.
Soap became a necessity for the moneyed class by around 1937.

Non-toilet soaps

Soaps are key components of most lubricating greases and thickeners. Greases are

usually emulsions of calcium soap or lithium soap and mineral oil .Many other
metallic soaps are also useful, including those of aluminium, sodium, and mixtures
thereof. Such soaps are also used as thickeners to increase the viscosity of oils. In
ancient times, lubricating greases were made by the addition of lime to olive oil.

Metal soaps are also included in modern artists' oil paints formulations as

a rheology modifier.

Production of metallic soaps

Most metal soaps are prepared by the hydrolysis of methane into ethanoic acid and
fatty acids:

2 RCO2H + CaO → (RCO2)2Ca + H2O
Toilet soaps

In a domestic setting, "soap" usually refers to what is technically called a toilet

soap, used for household and personal cleaning. When used for cleaning, soap
solubilizes particles and grime, which can then be separated from the article
being cleaned. The insoluble oil/fat molecules become associated
inside micelles, tiny spheres formed from soap molecules with
polar hydrophilic (water-attracting) groups on the outside and encasing
a lipophilic (fat-attracting) pocket, which shields the oil/fat molecules from the
water making it soluble. Anything that is soluble will be washed away with the
water.

Production of toilet soaps

The production of toilet soaps usually entails saponification of triglycerides,

which are vegetable or animal oils and fats. An alkaline solution
(often lye or sodium hydroxide) induces saponification whereby the triglyceride
fats first hydrolyze into salts of fatty acids. Glycerol (glycerin) is liberated. The
glycerin can remain in the soap product as a softening agent, although it is
sometimes separated.

The type of alkali metal used determines the kind of soap

product. Sodium soaps, prepared from sodium hydroxide, are firm,
whereas potassium soaps, derived from potassium hydroxide, are softer or often
liquid. Historically, potassium hydroxide was extracted from the ashes
of bracknn or other plants. Lithium soaps also tend to be hard. These are used
exclusively in greases.

For making toilet soaps, triglycerids (oils and fats) are derived from coconut,
olive, or palm oils, as well as tallow. Triglyceride is the chemical name for the
trimesters of fatty acids and glycerin. Tallow, i.e., rendered fat, is the most
available triglyceride from animals. Each species offers quite different fatty
acid content, resulting in soaps of distinct feel. The seed oils give softer but
milder soaps. Soap made from pure olive oil, sometimes called Castile
soap or Marseille soap, is reputed for its particular mildness. The term "Castile"
is also sometimes applied to soaps from a mixture of oils, but a high percentage
of olive oil.
In 1897, they started marketing cold process soaps. In 1918, Mr.
Jamshedji Tata set up India's first indigenous soap manufacturing unit
when he purchased the coconut oil mills at Cochin Kerala.

The soaps industry is estimated at 530, 000 TPA including small imports
the place that the Hindustan Lever is industry leader. The market features
several, leading national and global brands and a large number of small
brands. The well-liked brands are Lifebuoy, Lux, Cinthol, Liril, Rexona,
along with Nirma. Premium soaps are estimated to have a market volume
of concerning 80, 000 tones. This translates into a share of concerning 14
to 15%.

Size of the Industry

The Indian Soap Industry includes about 700 companies with combined
annual revenue of about $17 billion.

Geographical distribution
 All the major metropolitan cities
Output per annum
Indian per capita consumption of soaps at 460 gms per annum
Market capitalization
70% of India's population resides in the rural areas and around 50% of
the soaps are sold in the rural market.

Soap is a salt of a fatty acid in the form of a solid shape that is used as a
surfactant for washing, bathing and other cleansing. Soaps can be made
from natural plant oils or acids derived from animal fat. They also have
the ability to kill microorganisms such as any bacteria during the
cleaning process.

Ingredients and Process of making bath Soap a) Materials/Ingredients (for 14 bars,

135g/bar)

Soap Making Process

1. Refined coconut oil - 4.5 kg

2. Caustic soda solution (32 deg.) - 3.25 kg

3. EDTA (Ethylene diaminetetracetate) - 70 g

4. Citric acid - 70 g

5. Sodium chloride - 4.5 g

6. CDEA (Coco diethanolamide) - 50 g

7. Light mineral oil - 70 g

8. Scent to suit

9. Color (Optional)
Equipment/Tools

Equipment/Tools

1. Pails - 161 cap. (2 pcs); 201 cap. (1 pc)

2. Basin (large)

3. Hydrometer-0-70 Baume

4. Weighing scales - 10 kg cap.; 500 g cap

. 5. Mold and cutter

6. Wooden stirrer/manual or electric mixer

7. Spatula, stainless

Preparation of Materials

1) Caustic soda solution, 32 Be: dissolve 0.855 kg of caustic soda (NaOH) in 2.4
kg water. Cool to room temperature. Check the concentration with the hydrometer.
Adjust if necessary and filter ifneeded before using.

2) Additives: Dissolve EDTA, citric acid and salt in 100 ml water. For color, make
a 1% solution. Add color in oil.

Preparation ofthe Soap

1. Weigh carefully the required quantity of coco oil. To make a colored soap, add
about 10 ml ofthe 1% color in oil solution or the amount to suit the desired
intensity of color.
2. Add the required amount of caustic soda which stirring until the condensed
milk-like consistently is attained. This usually takes 45 minutes to 1 hour. 3. Add
the dissolved additives and continue stirring for 5 minutes more. 4. Add the light
mineral oil, CDEA and scent, stir for another 5 minutes. 5. Pour the soap mixture
into the moulder. Let it stand at room temperature for 12 hours or untilsoap
solidifies. 6. Remove soap from the moulder and cut into desired size. 7. Stamp
and pack allow to age for about 7 days to complete the saponification.

Based on product:

• Bath Soap

• Kitchen Soap

• Medicated Soap 

Laundry Soap
KEY INDUSTRY PLAYERS IN THE INDIA SOAP MARKET
• Godrej Consumer Products Limited
• Hindustan Unilever Limited
• ITC Limited
• The Himalaya drug Company
• Wipro enterprises (Pvt,Ltd)
• Patanjali
• Jyothy labs
• Kavit soap industries
REGIONAL ANALYSIS

• United States • Russia

• Canada • China
• Mexico • India
• France • Philippines
• Germany • Malaysia
• Italy • Australia
• Spain • South Korea
• United Kingdom • Japan

MARKET SHARE:

India Soap Market size was estimated at $3,085.6 Million in 2019 and is expected to reach $4,763.6
Million by 2027, growing at a CAGR of 6.46% during the forecast period
of 2020 to 2027.

The market scenario of soaps in the Indian context has seen

tremendous growth.

Currently, 700 companies are active in the soap industry in India. The
soap market capitalization is estimated to be 17 billion US dollars.
 COMPETITIVE

• The Procter & Gamble Company

• Unilever

• ITC

 Competitive Rivalry

 Supplier Power. ...

 Buyer Power. ...
 Threat of Substitution. ...
 Threat of New Entry.

Chapter 3

Certain categories of soap effluents are among the most

hazardous and potentially dangerous liquid wastes arising in
communities. Improper treatment of soap effluents may pose
health hazards through transmission of diseases to the soap
collectors and their families and impair the surrounding
environment. Alkalinity effluents threat the local surrounding
environment through contamination of soil and ground water and
deterioration of natural vegetative cover In the long-term,
improper disposal of soap effluent can not only impair the quality
of life of the community but also can affects the welfare of the
entire population and the national economy.

SWOT ANALYSIS:

Strengths
Popularity
Glycerine
Pure Soap
Advertising strategy
Variants
History of the brand

Weaknesses
Low acceptance in rural markets

Low margins

Repositioning

Opportunities
Huge market Potential:

Threats:
Competition

Chapter 3