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Estimation - Detergent Usage in India

Guess estimate the total amount of detergent usage (in KG) in India per Day

My PM Interview

May 16, 2021

My PM Interview - Product Manager Interview Question Answers

PM Interview: How to Answer Estimation Questions?

2 years ago · 3 likes · My PM Interview

Clarifying Questions -

Is this detergent usage for Domestic purpose only or for Commercial purposes also (like hotels, restaurants, etc.)?
A) For the purpose of this question, let’s consider the usage of detergent is for domestic purposes only.
Should we consider powder detergent only or liquid detergent as well?
A) Consider powder detergent only.

Known: The population of India ~ 1.3 Billion

Assumption -

BPL (Below Poverty Line) in India ~ 25%, (assuming BPL people don’t use detergent to wash clothes regularly)

Therefore, the Population now stands at ~ 1 Billion.

Let the Rural : Urban split be 70 : 30 % of the population.

Population Split -

Therefore, the population split approximately comes to,

Rural = 700 Million

Urban = 300 Million

Household Split -

Next, we will calculate the number of Households in India,

Assuming, there are 5 people in a Rural household and 3 people in an Urban household,

Household split come to,

Rural = (700 Million / 5) = 140 Million

Urban = (300 Million / 3) = 100 Million

Based on my observation,

500gm of detergent is required for 2 people in 30 days in an Urban area

therefore, we can say 1 person needs ~10gm per day (approx).

or 1 household needs ~20 gm of detergent per day (approx) in Urban.

Assuming,

In Urban, 4 clothes are washed per day which takes ~20 gm of detergent.

In Rural, 2 clothes are washed per day which takes ~10gm of detergent.
(As in Rural India, people tend to wash less clothes per day on an average)

Calculation -

Detergent used per day in Rural India -

= 100 Million * 20 gm = 2 billion gram

Detergent used per day in Urban India -

= 140 Million * 10 gm = 1.4 billion gram

Total Detergent used in India - (Urban + Rural)

= (2 + 1.4 ) billion gram

= 3,400,000 KG

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