HAND MADE PAPER

• Manufacturing

Introduction

This Business Idea is about the manufacturing of paper from agro waste and cotton waste. It is popularly known as hand paper because the production process is labour oriented. Paper and paper products are of great value to mankind in modern times. Paper is a basic means or medium of communication, and of great use in dissemination, capture, and storage of information. This is an ideal project because the demand is immense and all paper used in this country is imported. Secondly, the paper produced is cheap and the raw materials are readily available locally. Thirdly it could be located in rural areas where the raw materials are in plenty, and where the end users are found instead of transporting it long distances. The project requires estimated fixed capital of US$12,300 and operating costs of US$ 325,635 generating revenue of US$ 200 in the first year of operation.

Production Process and Capacity

This process produces paper between 150 to 600 grams and about one to two tons could be produced every day. Waste paper as well as grass, jute, rice straw and other agro-wastes are made into pulp
by cutting them into small pieces that easily dissolve in water and turn into a paste form which is the pulp. This is then refined and colour and chemicals are added. A wet sheet is formed on the mould and is transferred to felt. The cylinder moulded paper is dried and polished over a roller and the paper produced is taken in form of sheets.

Market Analysis

As far as paper is concerned, any amount or tonnage that is produced would find market. Currently all sorts of paper in this country are imported. Thus, the potential is inexhaustible. Secondly, this is a project which would easily be located where the consumers are since the major input raw materials are everywhere. The major investors in this sector include; Pickfare, Musana, Kalungu, Nile ply among others.

Capital Investment Requirements in US$

Item	Units	Qty	Unit cost	total
Rug Chopper	No	1	1,250	1,250
Digester	No	1	100	100
Hollander Beater	No	1	300	300
Agitator/Shaker	No	1	350	350
Cylinder Mould	No	1	300	300
Hydraulic Press	No	1	500	500
Drying Chamber equipment	No	1	1,000	1,000
Calendaring machine	No	1	1,000	1,000
Paper cutting machine	No	1	1,500	1,500
Knife Grinder	No	1	1,500	1,500
Delivery Van	No	1	4,000	4,000
Furniture & Fittings	No	-	-	500
Total	12,300

 

Production and Operating Costs in US$
Direct Materials, Supplies and Costs

Cost Item	Units	Unit Cost	Qty/ day	Prod Cost/ day	Prod Cost/ month	Prod Cost/yr
Direct Costs
Agro waste &waste paper	Tins	25	3	75	1,950	23,400
Rosin	kgs	3.5	50	175	4,550	54,600
Whitening agent	kgs	4.4	50	220	5,720	68,640
Starches	kgs	1.2	150	180	4,680	56,160
Caustic Soda	kgs	1.3	50	65	1,690	20,280
Bleaching powder	kgs	4	50	200	5,200	62,400
Dyes &other chemicals	kgs	0	-	-	500	6,000
Sub-total	353	915	24,290	291,480
General Costs(Overheads)
Rent	400	4,800
Labour	1,000	12,000
Utilities	640	7,680
Cleaning and Toiletries	100	1,200
Selling & distribution	325	3,900
Miscellaneous	125	1,500
Depreciation	256	3,075
Sub-total	2,846	34,155
Total Operating Costs	27,136	325,635

 

1) Production costs assumed 312 days per year with daily capacity of producing 800 reams of paper.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
3) Direct costs include materials, supplies and other costs that directly go into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.

Project Product Costs and Price Structure in US$

Item	Qty/ day	Qty/yr	Unit Cost	Prod Cost/yr	Unit Price	Total Revenue
Handmade Paper	800	249,600	1.30	325,635	2	499,200

 

Profitability Analysis Table

Item	Per day	Per month	Per year
Revenue	1,600	41,600	499,200
Less: Production and Operating Costs	1,044	27,136	325,635
Profit	556	14,464	173,565