GODREJ

SOAP INDUSTRY
Ideas that make life Brighter
Logistics and Supply Chain
Management
Semester 1

Submitted toDr. Neeraj Anand

HOD LSCM &
OPERATIONS

Group No. 13 ( Sulfonus)

Group MembersPrasoon Gupta
500051323
Mayur Gupta
500051104
Mohammad Shoaib
500051061
Karan Khanna
500050679

Table Of Contents
Agenda
Overview
Global Scenario
Indian Scenario
Advantage in Indian Market
Business Structure
Methodology
Methods of Data Collection
Types of data

Continue

SIPOC
SWOT Analysis
Findings and Analysis
Functional Drivers
Cross Functional Drivers
Packaging
Quality Control
Waste Material Management
References
Appendix

Agenda
To understand the production and supply chain in Soap
Industry.
The Company which we have taken for this is Godrej
Group of Industry.

Overview
Tag line : Ideas that make life Brighter.
Godrej Consumer Productsis an emerging markets FMCG leader, delighting consumers
with innovative, superior quality products at affordable prices.
Godrej Propertiesbrings innovation and excellence to the real estate industry in India,
delivering superior value through extraordinary and imaginative spaces created out of
deep customer focus and insight.
Godrej Agrovetis a diversified, Research & Development
company, dedicated to addressing Indias key agricultural crises.

backed

agri-business

Godrej Natures Basketis Indias foremost retail destination for fine foods from across
the world.
Our Chemicals division, ranks among Indias leading manufacturers of oleochemicals and
surfactants and our products are exported to over 80 countries in North and South
America, Asia, Europe, Australia and Africa.

GLOBAL SCENERIO
Gradual shift experienced by the
sector from mass segment to
premium and super premium segment
will bring another round of growth for
the household detergents sector.
The detergent sector in the laundry
care industry has grown from INR 57
billion in 2003 to INR 130 billion in
2011, registering a growth of ~11%
during the period. We estimate the
industry to reach levels of INR 241
billion by 2017.

INDIAN SCENARIO
Developed by GODREJ SOAP INDUSTRY .
Different variants of soaps such as Almond, Orchid, Saffron,
International, Chocolate, Honey, Rose etc. are available in the market.
Market Share of HUL 54%
Market Share of Godrej 14%
Market Share of Lux 15%
Toughest Competitor Internal competitor i.e. Lifeboy with 17%
Market share compared to other brands of soaps.

Advantage in Indian Market

THE FMCG MARKET HAS THREE MAIN

SEGMENTS

INCREASING SALES OF TOP FMCG

COMPANIES

BUSSINESS STRUCTURE

METHODOLOGY

METHODS/SOURCES OF DATA
COLLECTION
Primary Source
Industry Visit at Godrej Industry LTD.

Secondary Source
Web sources
Books
Journals & Research Paper

TYPES OF DATA
Primary Data
It includes data collected through 1. Personal Interview
2. Observing different activities inside the plant
3. Questionnaire

Secondary Data
It includes data collected through
1.
2.

Official statistics
Internet.

IN PRIMARY DATA
Collected Information includes
General Information About company profile
Product Manufactured
Organizational hierarchy

Manufacturing Capabilities
Quality System
Material Handling, Storage & Shipping

IN SECONDARY DATA
We have collected the requirement and status of Soap
industry in India.
And, also how functional and cross functional drivers
affect the organisation.

What is Sulfonation ?
Sulfonation is a process in which sulphur react with
oxygen to give sulphur trioxide in the presence of
catalyst and further this gas react with alcohols to form
sulfonic acid.
S + O2
SO2 + O2
SO3 + R-OH

SO2
SO3 (V2o5)
R-SO3H (Sulfonic acid)

Uses of Sulfonation Products

Bath soaps
Detergent
Laundry purpose
Shampoo
Toilet soap
Industrial use.

Product Formed
SLS Paste.
SLES Paste (1 or 2 mole).
SLS Liquid.
SLS Needles.
SLS Powder.
SLS Granules.

SIPOC DIAGRAM
Involves the dealers
and vendors which
supply
the
raw
material like fat, acids
and alkali.

Splitting

Sodium hydroxide
Potassium hydroxide
Vegetable fat
Glycerine,
Olive oil and Coconut
oil.

Mixing

After all these processes

soaps are packed, stamped
and manufactured to be
used by the final customer.

Cooling

Finishing

Soaps are
delivered to the
customer through
marketing and
promotion of the
product that are
used by the end
customers.

Milling

Source:
www.iSixSigma.com

Processes involved in soap manufacturing

SUPPLIERS: Involves the dealers and vendors which supply the raw
material like fat, acids and alkali.
INPUT: Raw materials required in input for making soap involves
sodium hydroxide, potassium hydroxide vegetable fat, glycerine, olive
oil and coconut oil.
PROCESS: Continuous process which involves:
1) Splitting: splits natural fat into fatty acids and glycerine.
2) Mixing: mixes purified fatty acids with alkali to form soap.

Processes involved in soap manufacturing

3) Cooling and finishing: The soap may be poured into molds and
allowed to harden and the slab is cut into smaller pieces of bar size
which are stamped and wrapped.
4) Milling: Most soap undergoes additional processing called milling.
The milled bar has a finer consistency than non milled soap. The cooled
soap is fed through several sets of heavy rollers(mills), which crush it
and then it is extruded and cut into bar size, stamped and wrapped.

SWOT analysis of Godrej Soap

Industry
STRENGTHS:
1) Strong market research: door to door sampling once in a year in
rural and urban areas.
2) Many variants in product including almond oil, orchid extracts, milk
cream, fruit extracts, saffron sandalwood oil and honey.
3) Dynamically continuous innovations, new variants and innovative
promotions.
4) Strong brand promotion and relatively lower prices.

SWOT analysis of Godrej Soap

Industry
WEAKNESSES:
1) Mainly positioned as beauty soap targeted towards women and lack
unisex appeal.
2) Some variation like the sunscreen and international variant did not
do well in the market.
3) The products are not much popular in rural areas.

SWOT analysis of Godrej Soap

Industry
OPPORTUNITIES:
1) Soap industry is growing annually by 10% in India.
2) Liquid body wash is currently in the growth stage and Godrej should
come out with more variants in this segment.
3) Company has a large market share and strong hold over the market.

SWOT analysis of Godrej Soap

Industry
THREATS:
1) High internal competition, for eg, beauty segment from pears.
2) New entrants in this segment, for eg, Vivel, Lifeboy etc.
3) Maturity stage which involves threat of slipping down to decline
stage and if constant reinvention is not carried out for the product.

Findings and analysis

AUTOMATED CONTROL
PANEL

Controlling Panel :
Panel controlled by
operator of Plant .

Catalyst
Vanadium
pentaoxide

Cleaning of
Bag Filter

FUNCTIONAL
DRIVERS

TRANSPORTATION
Means of
Transportation
By Air for
Transportati
export
on
By Ship for
export
By Road for
import

TRANSPORTATION NETWORK AT
GODREJ
Transportat
ion
Network
Intermediat
e
Consolidati
on Points

Direct to
Demand

Road

Sea

Air

INVENTORY

Invento
ry

Forecasting
Simple Moving Average (Last
Month Simple Moving
Average)

CROSS FUNCTIONAL
DRIVERS

SUPPLIERS
Suppliers

Supplie
rs

Criteria for Selection

of Suppliers
Availability
Demographics
Stock
Cost
Credit Terms

INFORMATION
ERP technology
through SAP
software suite
Informati Manual attendance
of employees
on
Microsoft Excel for
Inventory
Management
Tally ERP .9 for
Accounting

Packaging
High speed (180-200 cakes per minute)

Suitable for 50-150 gms cake

Easy change-over, less change-parts

Accommodates large size wrapper and stiffener rolls for fewer stoppage for
the roll change

Additional standby roller mounting facility for least stoppage in changing

the paper roll

Easy availability of damaged-parts

Good wrapping quality

PLC controlled

PLC based paper length control for good wrapping quality

Can be supplied with any option of cold glue or hot melt

QUALITY CONTROL
Quality Control
System

Procurement
quality Control
COA verified
Quality tested before
unloading raw
material
Samples verified , if
found okay , then sent
to production site or
else returned

Manufacturing
quality Control
ISO 9001:2008, ISO
14001:2004 Standard
followed
Batch Sample Check

WASTE MATERIAL MANAGEMENT

Redu
ce

Recyc
le

Reuse

THANK YOU