JEWELLERY MAKING

Introduction
This business is about making jewelry such as rings, brooches, chains, and bracelets by cutting, shaping and polishing the material for producing fashion jewels. Jewelry is used by women mostly though of late men have started using it. This business idea aims at production of 200 pieces of jewelry per day thus 62,400 pieces annually. The revenue potential is estimated at US $ 600 annually.

Production Process
It also involves collecting, designing and decorating beads, horns, metals, stones, shells and joining them with threads and strings.

Market Analysis
The market for Jewelries is wide spread in Uganda especially among women and Tourists. They can be supplied to Supermarkets, Crafts and Tourist Shops. There are widely spread small scale players in
this industry.

Scale of Investment
1. Capital Investment Requirements

Capital Item

Units

Qty

Unit Cost

Amount

Working table

5

400

2,000

Scissors

5

5

25

Brushes

5

3

15

Needles

sets

7.5

5

38

Other equipments

150

150

Total

2,228


 

2. Production and Operation costs in US$

Cost Item

Units

Unit
cost
/day

Qty
/day

Prod
Cost/
day

Prod
Cost/
month

Prod
Cost/
Year1

Direct costs:





Beads

Kgs

5

4

20

520

6240

Shells

Kgs

3

8

24

624

7488

Stones

Kgs

1

5

5

130

1560

Horns

3

5

15

390

4680

Sand paper

5

2

10

260

3120

Strings

Meters

0.75

10

7.5

195

2340

Metals

0.5

10

5

130

1560

Subtotal

2,249

26,988



General costs (Overheads)





 Salaries and wages

300

3,600

Utilities

200

2,400

Selling and Distribution

100

1,200

Administrative expenses

200

2,400

Rent

100

1,200

Depreciation (Asset write off) Expenses

60

723

Sub-total

960

557

Total Operating Costs

3,209

27,545








Production is assumed for 312 days per year. Depreciation assumes 4 year life of assets written off at 25% per year for all assets. A production Month is assumed to have 26 days.


3. Project Product Costs and Price Structure in US$

Item

Qty
/day

Qty
/yr

Unit
Cost

Prod/
yr

Unit
price

Total
revenue

Bead
jewelry

100

31,200

0.44

13,772

0.75

23,400

Metal
Jewelry

50

15,600

0.44

6,886.22

1

15,600

Shell
jewelry

50

15,600

0.44

6,886.22

1

15,600

TOTAL

200

62,400

1.32

27,545

2.75

54,600

 

4. Profitability Analysis Table in US$

Profitability Item

Per day

Per
Month

Per Year

Revenue

175

4,550

54,600

Less: Operating Costs

88

2,295

27,545

Profit

87

2,255

27,055