BLACK SMITHING
Introduction
This profile envisages the establishment of an Industry for Blacksmith. Blacksmithing is a process of creating objects from iron or steel by forging the metal; i.e., by using tools to hammer, bend, and cut. Blacksmiths produce things like wrought iron gates, grills, railings, light fixtures, furniture, sculpture, tools, agricultural implements, decorative and religious items, cooking utensils, horseshoes and weapons.
Production Capacity
Given the complicated processes involved in Blacksmithing, it is projected that at least 20 Rusty Cast Iron Pans can be produced in a day.
Production Process
Blacksmiths works with iron, the 'black' metal, and recently steel, and its derivative. Blacksmiths work by heating pieces of wrought iron or steel until the metal becomes soft enough to be shaped with hand tools, such as a hammer, anvil and chisel. Heating is accomplished by the use of a forge fueled by propane, natural gas, coal, charcoal, or coke.
Raw Materials
The major Raw material used in the making Of Rusty Iron Pans is Iron.
Equipment
The major Equipment needed in the production process includes: Hammer, Anvil, Chisel, Grinding stones and Forge.
Market Analysis
Given the fact that Rusty Cast Iron Pans are durable, there is a very high demand for them, especially in Homesteads, Hotels, Institutions, etc. They can also be exported too. There are so many investors in this industry; however, this sector is still informal.
Scale of Investment, Capital Investment
Requirements
The total investment cost to start this project is estimated at USD 9,758.
Project Costs in US$
1. Capital Investment Requirements
|
Item |
Units |
Qty |
Unit Cost$ |
Amount $ |
|
Delivery Van |
No. |
1 |
5,000 |
5,000 |
|
Hammers |
No. |
2 |
5 |
10 |
|
Forge |
No. |
2 |
10 |
20 |
|
Molds |
No. |
10 |
5 |
50 |
|
Chisels |
No. |
2 |
5 |
10 |
|
Anvils |
No. |
2 |
7 |
14 |
|
Total Amount |
5,104 |
2. Operating Costs
|
Item |
Units |
Unit |
Qty/day |
Prod. |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Iron |
Kgs |
1 |
100 |
100 |
2600 |
31200 |
|
Sub total |
100 |
2,600 |
31,200 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
500 |
6,000 |
||||
|
Depreciation(Asset write off) Expenses |
104 |
1,250 |
||||
|
Fuel |
500 |
6,000 |
||||
|
Charcoal |
150 |
1,800 |
||||
|
Repair |
200 |
2,400 |
||||
|
Labour |
500 |
6,000 |
||||
|
Utilities (Power & Water) |
100 |
1,200 |
||||
|
Sub - total |
2,054 |
24,650 |
||||
|
Total Operating Costs |
4,654 |
55,850 |
3. Project Product Costs & Price Structure
|
Item |
Qty/day |
Qty/yr. |
Unit |
Prod |
Unit |
T/rev |
|
Pans |
20 |
6,240 |
8.95 |
55,850 |
15 |
93,600 |
4. Profitability Analysis
|
Item |
Per day |
Per Month |
Per Year |
|
Revenue |
300 |
7,800 |
93,600 |
|
Less: Production & Operating Costs |
100 |
4,654 |
55,850 |
|
Profit |
200 |
3,146 |
37,750 |