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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - ECODETERGENT (CUSTOM-MADE INSTANT LIQUID DETERGENT PREPARING MACHINE IN SITU. (MIX-UP))

Teaser

Summary

DEVELOPING CUSTOM-MADE INSTANT LIQUID DETERGENT PREPARING MACHINE TO WORK AT SITU.
Our object is to introduce resource efficiency solutions in the liquid detergent industry to minimize wasted efforts and expenses in producing, transporting, warehousing and selling processes. Instead of sending end products that consists high level of water (80-95%), super-high concentrated dilute-ready extracts of detergents will be forwarded to retail points and then mini machines will instantly dilute, pack and serve customized end products to consumers directly at retail points. Economic gains through this disruptive innovation are; production process will need 20% less energy, 50% less warehouse need, 70% scale-down on transportation need and 20% less operational expenses.
We had convincing improvements in technical side at Phase1 period. Commercialization plans have also improved with the help of the field tests and the pitch presentations conducted to retailers. More than this, ecommerce commercialization plans has been evolved within this work period and it is very likely to influence and amend the final commercialization plans at Phase2 period. We foresee bigger opportunities in e-commerce distribution channel compared to the early stages of our project. One major reason of this change is worth to review data from CB Insights. A recent data shows that the laundry detergents showed the highest growth year over year out of the top 10 packaged goods in CPG category.
The beachhead market as we have described in the grant agreement has remained mostly the same with a chance of adding ecommerce as primary launch distribution channel. We intend to have a final conclusion at Phase2 period, as we still need to review in depth. We will be focusing on low-end priced product category. Parallel to this we will also be looking for opportunities on commercial consumers like hotels, hospitals and etc. where high volume consumption exists. The impact also remained the same as we have planned with some minor adds to the one we have explained in our Phase1 proposal. Our innovative business model will disrupt conventional business model of liquid detergent production, transportation and supply. As you know that most of the detergents sold in the market has up to 95% of water content. With our business model consumers can get better value at much reduced costs. YDR is about to introduce the Custom-made Instant Liquid Detergent Preparing Machine on situ. This allows customers to purchase liquid detergents in the right concentration with ease. Another high point is that you can choose from various options so the power as a savvy consumer is truly in their hands.
Phase1 objectives were running technical, commercial feasibility studies that will conceive the technological and economic viability of our business model, together with the resources needed to implement it and the risks involved.
We have conducted end-user field tests. Those works helped us to increase consumerâ€™s buying experience. Those feedbacks have been reflected to our development. We are glad to say those technical improvements will lead us to a new patent application. We held 79 hours of meetings with technical consultants, private sector experts, mentorship activities and academic consultants. Plus we had 3 days coaching activity granted by SME Instrument coaching program.
We have attended to Hannover Industrial Automation and Venditalia fairs. The inspirations we had at those fairs led us to redesign an improved mixing method that lowered the cost of the machine, maintenance need, electric consumption and the process time of end-product preparation. This means a faster ROI on the machines. Less operational costs and higher buying experience for consumers are all key progresses for a more successful commercialization potential.
We have found reliable suppliers offering innovative solutions for important components of our machine. Working with reliable and powerful suppliers will have d

Work performed

Phase1 objectives were running technical and commercial feasibility studies that will conceive the involved risks in our innovation idea. We are happy to say we achieved more than we expected thru this work period. In this report we will describe in detail what we have accomplished in Phase1 period.
We have run deeper technical feasibility assessments thru field tests with end-users that helped us to understand the needs of customers to increase their buying experience with the aid of this work. This knowledge has been reflected to an improved technical mechanism, which will probably lead to a new patent application at Phase2 period.
We held meetings in total of 67 hours with technical consultants both from private sector experts, consultants and Universities.
We have attended to Hannover Industrial Automation fair in Germany and Venditalia Vending machines fair in Italy. Visiting those exhibitions helped us to improve our technical designs, especially the mixing method of the machine framework. The inspiration we received at Hannover fair led us to redesign a much-improved technical mixing method that lowered the cost structure of machines, maintenance need, the process time of detergent preparation. This means less ROI of the machines, which is key progress aspect for faster commercialization.
We have found reliable suppliers for some important parts of the machine; like printing solutions, sensors, buttons, touch screen and etc. Working with reliable and powerful suppliers has key importance in our project. We would like to have as low maintenance need as possible to lower operational expenses in commercialize period.
Our founder attended to Innovative Enterprises financing event at The Hague, The Netherlands, Scaleup for Europe event that was organized by EBAN in Porto, Portugal held a pitch presentation at German Startups Association at Hannover Messe. Those events helped us to have worthy contacts with some major investors both from BA and VC segments. Those debates are still going on with promising uptrends. One of the most important VC company that we received valuable interest is BASF Venture Capital firm from Germany. BASF is the biggest Chemical company in the world with over 79 Billion USD Global sales. Raising a fund from their Venture Capital firm is very likely to make a synergic value, as we are a chemical product producer company as well.
We have deeply analyzed 4th industrial revolution on the purpose of relation with our business model innovation. All positive relations are explained in detail in this report. We are truly excited with the vast opportunities we may create thru in phase of 4th industry revolution. Saying this would not be an exaggeration; we are set to revolutionize how detergents are being produced and sold.
Customization is becoming a trend, where more and more examples from different industries are coming into our attention. Those examples from all over the world from different industries are explained in detail that we think helps to verify that the world shows an irresistible interest to customized production in situ.
We are proud to briefly say that works carried out thru Phase1 period verifies that we should definetely pursue on our business innovtaion idea. Therefore we are getting prepared to submit a Phase2 proposal with all the experience we earned thru Phase1 period.

Final results

One of the major problem we were trying to overcome was to lower the cost of the machine. This is very critical as the commercialization is very depended on return on investment (ROI). Phase1 statement of cost of machine was 7.000.- EUR which were not so acceptable for many investors.
Due to this obstacle we were trying to overcome, we were in constant search for better ways to develop the machine. We were inspired from a laboratory-mixing device that we have seen at Hannover Messe Industrial Automation at Hannover, Germany. After deeper technical feasibility reviews of this concept we have decided to change the mixing and filling method. We are totally relieved to be able to come over this major cost structure problem and now we have a new target cost of 3.000.- EUR per machine that will allow ROI to be around 1 year.
We may shortly explain this method as; mixing all ingredients in the pack rather than mixing first and then filling it into the pack. This method doesnâ€™t need inline cleaning system, which was a major and solving costly problem. At the same time we don\'t need hot-seal pack closing mechanism, as the filling of ingredients will be done thru the lid of the pack by suitable nozzles. This will also lower the cost of the machines and the electricity consumption, which is also a great progress.
We would like to explain in detail what we have accomplished in super-high concentrated detergent extracts formulation at Phase1 period. We have conducted deeper literature researches and web searches, attended to chemical exhibitions and symposiums in order to track closely the developments in chemical industry. We have gathered laundry detergent samples from different markets and brands to expand our sample products archive. Those samples have been examined in our laboratory. Laboratory examinations involve; organoleptic analyzes, pH value measurement, viscosity measurement, density measurement, total dissolved material measurement and active ingredients measurements. Those conducted works help us to keep a close eye on market conditions and competitor products portfolios. We have contacted numerous raw material suppliers, attended to international and local fairs and kept a close eye on ultimate innovations on chemical industry. We are happy to see that all major companiesâ€™ research & development activities, especially global giants, are focused on liquid laundry detergents rather than powder laundry detergents, which is a major advantage for our concept.
We have gone far beyond the point we aimed through Phase 1 on detergent chemical formulation framework. The improved formulation we are developing is much more promising. One of the newest raw materials we use in our development is called Methyl Ester Sulfonate (MES). This is a new alternative to Sodium Lauryl Ether Sulfate (SLES), which is one of the main ingredients in laundry detergents.
One of our major aim was to lower the cost of the machine. This is very critical as the commercialization is very depended on return on investment (ROI) especially for retail channel. Phase1 statement of cost of the machine was 7.000.- EUR, which were a critical level.
Therefore, we were in constant search in better and easier ways to develop the working mechanism of the machine. We were inspired from a laboratory-mixing device that we have seen at Hannover Messe Industrial Automation fair at Hannover, Germany.
After deeper technical feasibility reviews of this concept, we have decided to change the whole mixing and filling method. We are totally relieved to be able to come over this critical cost structure problem and now we have a new cost structure target of 3.000.- EUR per machine that will decline the ROI into 3-year in worst case study for an average retailer sales volume.
We may shortly explain this method as; mixing all ingredients in the product pack rather than mixing first and then filling it into the pack. This method doesnâ€™t need inline cleaning system, which was a co