Production of Toothpaste

 

Production of Toothpaste. Emerging Investment Opportunities in Dental Hygiene

A toothpaste or dentifrice is a substance used with a toothbrush for the purpose of cleaning the accessible surfaces of the teeth. Purposes • Cleaning • Polishing • Removal of stains • Reduce incidence of tooth decay.

Toothpaste Ingredients Abrasive s 20%- 40% Solid, insoluble particles Causing abrasion Remove debris and residual stain from teeth Aluminium oxide Calcium pyrophosphate Carbonates like sodium bicarbonate, calcium carbonate, Silica Binders 2% To provide consistency and shape. Polymers like Carboxymethyl Cellulose (CMC) Alginate, Gums Humectant 20%- 40% Used in toothpaste to prevent loss of water and subsequent hardening of the product upon exposure to air.

Related Projects: - Hygiene Products, Essential Personal Hygiene Products

Market Outlook

INDIAN MARKET

India Oral care market is fragmented in 5 categories includes toothpaste, toothbrushes, toothpowder, mouthwash and others. Toothpaste is dominant in oral care market. It is a primary product in daily oral hygiene has huge presence in urban and rural area. Increasing health and personal oral hygiene, Indians are now more aware how their diet affecting their teeth and mouth. Indian is now willing to pay more for prevention attention. This has helped toothpaste category to grow drastically in oral care market. Herbal toothpaste demand is increasing in oral care market from last few years. Toothbrushes are second increasing market in oral care market after toothpaste. Toothbrushes are sub-categories in manual & Electric. Manual toothbrushes have huge potential in Indian oral care market. Electric toothbrush is new emerging category and has huge opportunity in urban India; Toothpowder category is at decline stage due to consumer taste and preference. Consumers are shifting from toothpowder to toothpaste. Toothpowder has huge presence in rural India. In all 3 categories are dominant by Colgate & Palmolive India.

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India’s Oral Hygiene Market Prospects

The future outlook for the oral hygiene market of India appears to be very promising owing to various market conditions and educative initiatives on part of manufacturers and govt., which has led to increased demand from consumer side as well as offers great potential growth opportunities to the manufacturers. Apart from demand for improved oral care products, Indian consumers are getting more inclined towards herbal products in recent years. Large rural population depends upon natural products like neem twigs etc. for oral hygiene. Hence, through premiumization and production of natural-herbal oral care products, a large market segment can be captured. Also, low market penetration both in terms of region (urban-rural) and product (primary and secondary oral care products), implies a largely untapped Indian oral care market with great opportunities to the manufacturers to expand and grow.

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GLOBAL MARKET

Global Toothpaste Market is valued to reach USD 34.6 Billion by 2024, growing at CAGR of 5.8% over forecast period 2020-2026. Surge in prevalence of dental problems in adults and children caused by poor eating habits, rising awareness regarding the benefits of oral care and hygiene and rise in consciousness of oral health are the factors propelling the market growth.

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Rise in Utilization of Toothpaste by Adult Population to Fuel Segment Growth

Based on applications, the market has been bifurcated into adults and children. Toothpaste is used more by adults than children. Excessive use of toothpaste for the kids between the ages of 3 to 6 is dangerous for their oral health. Rising need for white teeth to improve esthetics and growing prevalence of dental and oral problems are encouraging adults to brush their teeth with two to three times a day with toothpaste. This, in turn, is fueling the segment growth.

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The increase in the prevalence of dental caries, periodontal diseases, and other dental diseases, growing awareness about oral hygiene, rising dental healthcare expenditure, an increasing number of small/private clinics with dental dispensaries are some of the factors contributing to the growth of this market. However, the competitive pricing pressure faced by prominent players is hampering the growth of the oral care/oral hygiene market.

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Increasing Consumer Awareness about Dental Hygiene

Increase in oral hygiene programs such as advertisements and campaigns by governments and dental associations have boosted the demand for sensitive toothpaste. Consumption of tobacco based products, and a sugar rich diet leads to major dental problems. Thus, consumers have started paying attention to oral hygiene which has led to the increase in demand for sensitive toothpaste.

Related Videos: - Hygiene Products, Essential Personal Hygiene Products, Feminine Hygiene Products

Growth of Population in Asia Pacific

Asia Pacific accounts for more than 59% of world population which is expected to offer huge opportunities for the product in the region during the forecast period. Increasing population across the Asia Pacific region coupled with increasing disposable income has resulted in enhanced demand for sensitive toothpaste. The population in India is growing which is expected to result in more demand for the product. Sensitive toothpaste has an advantage over other toothpaste as it minimizes gum sensitivity.

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Key players

Key players operating in the global toothpaste market include Colgate, P&G, Church & Dwight Co., Inc., Unilever, Henkel Adhesives Technologies India Private Limited, Lion Corporation, Sunstar Suisse S.A., LG household & Health Care, and Kao Corporation. These players engage in product launches, mergers & acquisitions, agreements, Palmolive Company (US), The Procter & Gamble Company (US), GlaxoSmithKline PLC (UK), Unilever PLC (UK), Koninklijke Philips N.V. (Netherlands) and Johnson & Johnson (US) and partnerships to strengthen their geographical presence.

Indian Brands:

Colgate

Close Up

Pepsodent

Patanjali Dant Kanti

Meswak

Dabur Red Paste

Vicco Vajradanti

Sensodyne

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


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• Export-Import Market Potential
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The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR