Know Your Emulsifier Cost Wise

As you can see, our recommendation table clearly indicates our aim to reduce the formulation cost as well as the financial  investments on the emulsifiers in your EC by specifically developing  new pair of Emulsifiers, MAC-A & MAC-B.

Let us take an example of an EC formulation, ‘Cypermethrin 25% EC’, where generally, most of the emulsifier manufacturers recommends 7-10% dosage. Our research team has found out that the same performance at their recommended dosage could be matched by using only 4% of our Emulsifiers MAC-A & MAC-B in the same EC.

Let us see the advantages, if you use at ½ times lesser dosage.

A. If you use General Emulsifier @ 8% in the batch of 1000 Kg, you have to use 80 kg  of it & in case, if you use MAC Emulsifiers , you will have to use only 4% which comes to 40 kg.

For Example, if we take basic rate of any general Emulsifier as Rs. 99.00 Per Kg. & basic rate of MAC-Emulsifier as Rs.146.00 then…

The financial involvement & cost contribution of the each Emulsifier per 1000 kg will be as shown as under

General Emulsifier Dosage @ 8% ───►80 kg x Rs. 99 =  Rs. 7920

MAC-Emulsifier dosage @ 4%───► 40 kg x Rs. 146    =  Rs. 5840

                                                                                               ——–
Difference            ───►                                                   Rs. 2080
                                                                                               ——–

Your finance involvement & cost will be lesser by Rs. 2080.00 per 1000 kg  

 If you are producing 100 such batches, the finance required for emulsifier will be lesser by Rs. 2,08,000.00

B. Our research team has also found that using our premium grade general pair of emulsifier as per the prescribed dosages all your formulations will also get the advantages of the extra yield (extra output in ltrs.) because of using less quantity of emulsifier and substituting the differential gap with the solvent which are generally of very low sp.gravity than the usual emulsifier for e.g. in case of Cypermethrin 25% EC that if you are using Solvent C- IX having Sp.Gravity about 0.87 & Cypermethrin Technical having purity 92% then you will save Rs.1230.00 per every 1000 kg batch, the deatailed working are as follows.

Sp. gravity of Cypermethrin 25% EC using general market emulsifier @ 8% per 1000 kg gives sp.gravity approx. 0.9390 which will give you yield approx. 1065 ltrs.

Sp.Gravity of Cypermethrin 25% EC using Premium Grade MAC emulsifier @ 4% per 1000 kg gives sp.gravity approx. 0.9337 which will give you yield approx. 1071 ltrs. Therefore, the yield obtained by using MAC emulsifier is approx.extra by 6 ltrs.

In other words,the Sp.Gravity of your EC is reduced by 0.0053 units thereby increases output by 6 ltrs per 1000 kgs.

If you take current approx. price of bulk Cypermethrin 25% EC as Rs.205.00 & multiply with 6 litres (205 x 6) will give you Rs. 1230.00 which is your extra saving per 1000 kg.

Your extra saving due to Sp.Gravity will be Rs. 1230.00 per 1000 kg & you will be selling these extra out put of 6 ltr with profit.

It is also observed that in any EC if you use solvent C-IX having Sp.Gravity about 0.87, the difference of Sp.Gravity will be approx. 0.001325 unit per every 1% of dosage reduction by using above mentioned Emulsifiers MAC-A & MAC-B.

C. Now you can straight away calculate the cost savings in manner as shown above for your any EC, if you use Emulsifiers MAC-A & MAC-B.

If the Basic cost of the market Emulsifier is Rs. 99.00 Per Kg. & if their recommended dosage is 8% in the formulation and if the basic cost of Premium Grade MAC – Emulsifier is Rs. 146.00 Per Kg. & If their recommended dosage is 4% in the formulation, equally best perfoming in 34.2, 342 & 800 ppm water hardness.

Cost Difference between both Emulsifiers = 146 – 99 =  Rs.47.00

Dosage Difference between both Emulsifiers = 8 – 4 = 4%

.00

Then for the batch size of 1000 Kgs. the quantity of market Emulsifier required per batch will be:

                                                                                1000 x 8 = 80 kg.
                                                                                 ———-
                                                                                    100

The cost of market Emulsifier per batch will be 80 x 99 = Rs. 7920.00

Whereas, for the batch size of 1000 Kgs. the quantity of Premium Grade MAC Emulsifier required per batch will be

                                                                                 1000 x 4 = 40 kg.
                                                                                 ———–
                                                                                    100

The cost of Premium Grade MAC Emulsifier per batch will be 40 x 146 = Rs. 5840.00

 

Though, the supplier who gave price lower than MAC by Rs. 47.00 they are still costlier by Rs. 2080.00 per batch, at the end.

D. In accordance to above, to match the production cost of the supplier Emulsifier per batch, the price of MAC – Emulsifier should have to be

(Production cost using other emulsifier ÷ Dosage of MAC Emulsifier )

 

                                                                                 7920 = 198.00
                                                                                ——–
                                                                                   40

The price of MAC Emulsifier should be Rs. 198.00 per kg,

 

i.e. that is Rs. 52.00 more per kg.

Therefore, the real price difference between supplier Emulsifier and MAC Emulsifier is not of Rs.47.00 but, it is (198 – 99 = 99) of Rs. 99.00. Though the price of MAC Emulsifier should have been Rs. 198.00.

MAC-Emulsifier is charging Rs. 146.00 Per kg. for the same Emulsifier.

                                                                                  OR

To match the production cost of the MAC Emulsifier per batch, the price of Emulsifier of the said supplier should have to be

                                                                                  5840 = 73.00
                                                                                 ——–
                                                                                    80

The price of the Emulsifier of the said supplier should be Rs.73.00 Per kg.

From the above calculations it is clear that to buy Emulsifier from supplier @ Rs. 99.00 with the dosage of 8%, the buyer have the scope of bargaining to the extent of Rs. 26.00 to match the production cost of MAC – Emulsifier in a batch.

E. PRICE PARITY AGAINST PERFORMANCE

SUPPLIER – EMULSIFIER                                             MAC – EMULSIFIER

 

       Rs. 99.00 (price) x 8% (dosage)                    =                  Rs. 198.00 (price) x 4% (dosage)

 

         OR

 

       Rs. 73.00 (price) x 8% (dosage)                    =                  Rs. 146.00 (price) x 4% (dosage)

F. Now we will also consider the importance of bargaining on the price of poor quality emulsifier are really cost effective or on other hand important to ask for the good quality of emulsifier which reduce the dosage level, let us take one example to ascertain whether lower price is important or better quality is important.

In a 1000 kg batch,

Take cost of emulsifier Rs.104.00 & dosage 8% i.e. 80 kg. in 1000 kg ───► 104 X 80 = Rs. 8320.00

If you bargain the supplier and succeed to Reduce cost of emulsifier by Rs.5.00(104 – 5= 99.00) & dosage 8% ───► 99 X 80 = Rs. 7920.00

Your net gain after bargaining Rs.5.00 per kg = Rs. 400.00

Now if you ask the quality of Emulsifier which Reduce dosage of emulsifier by 1% & keep the cost Rs.104.00 ───► 104 X 70 = Rs. 7280.00

The net gain obtained by getting such a quality emulsifiers which works on low dosage by 1% = Rs.1040.00

Please Note the difference from above calculation, it is very clear that it is better to be stringent on the quality of the emulsifier and ask supplier to better quality product which reduces the dosage of the emulsifier rather then bargaining on price factor.

‘It may be best to employ a relatively expensive emulsifier when it is effective at lower concentration than a cheaper one.’ (Paul Becher-  ‘Emulsions: Theory and Practice, pp’. 188 Reinhold publishing corporation, New York, USA)

Please note that the differential gap of dosage will be filled by the solvent which have

*The cost lower than the emulsifiers and

*Sp.gravity is also very less as compared to the emulsifiers.

G. Net Effect considering the eg. of Cypermethrin 25% EC made from technical purity 92% (Rs.644.00 / kg ) by using solvent C-IX (Rs.56.00 / kg) post adding 40 kg. because of the dosage difference having sp.gravity of 0.87 and price of Cypermethrin 25% EC in bulk apprx. Rs.205.00 , the net positive effect you will get by using MAC emulsifiers are as follows:

1. At the end other emulsifier is costlier to you by Rs.35.63

2. The supplier is at par against MAC if their price is Rs.63.37

3. Using 200kgs. of MAC Emulsifier, you can produce 5352.4 ltr of your formulation.

4. Using 200kgs. of other Emulsifier, you can produce 2659.1 ltr of your formulation.

5. Comparatively lesser Investment.

H. Last but not the least, our Premium Grade MAC Emulsifiers General pair covers most of the formulations hence you have to buy comparatively very less category of emulsifiers which reduces the emulsifier inventories drastically that will be an ease to formulation chemist, stock manager & purchase department which ultimately leads to reduce your investment, time & energy.

All above contents proves that the quality of Premium Grade MAC Emulsifiers supersedes the importance of the price.

We have designed a XLS sheet which autocalculates all the variables and can give you the above mentioned answers as per your input. We can send you the same on your request. Please click here to request.