KNITTING, CROCHETING AND EMBROIDERY
Introduction
This business idea is for production and marketing of products such as: Sweaters, Sleeveless/ Waist Coats, Shawls Socks, Table Clothes and Embroidery on Caps, Jackets, Shirts, Gifts and more. The business idea is premised on production of various products with a revenue potential of US$ 3,000 per year. The project cost is US 27,050 Dollars.
Process Description
The person knitting needs to have a Knitting Machine. The Burbins are loaded with threads, and then they start knitting. For Embroidering, a multi-head embroidering machine is loaded with thread in their burbins; embroidering is done according to the desired computerized image or picture.
Market Analysis
The business has a great market demand from Schools, Colleges, Corporate, NGOs; Households, Security organs and the various forces for designing and printing their uniforms. The key players in this business in Uganda include; Phoenix (U) Ltd, NYTIL, among others.
Capital Investment Requirements in US$
|
Item |
Unit |
Qty |
Unit Cost |
Total |
|
Sewing machine |
No. |
1 |
100 |
100 |
|
Multi head Embroidery Machine |
No. |
1 |
12,500 |
12,500 |
|
Delivery van |
No. |
1 |
3,500 |
3,500 |
|
Embroidery Design Shop software |
No. |
1 |
1,500 |
1,500 |
|
Hand tools |
No. |
5 |
10 |
50 |
|
Total Cost of Machinery |
|
17,650 |
Production and Operation Costs In US $
Direct Materials, Supplies and Costs
|
Item
|
Qty |
Unit cost |
Prod. cost/ day |
Prod. Cost/ month |
Prod. Cost/ year |
|
|
Yarn |
Dozens |
15 |
30 |
450 |
11,700 |
140,400 |
|
Embroidery |
|
|||||
|
threads |
Dozens |
10 |
4 |
40 |
1,040 |
12,480 |
|
Brake fluids |
Ltrs |
0.5 |
1 |
1 |
13 |
156 |
|
Sub-total |
|
|
12,753 |
153,036 |
||
|
General costs (Overheads) |
|
|||||
|
Utilities (power) |
|
100 |
1,200 |
|||
|
Salaries |
|
150 |
1,800 |
|||
|
Renting |
|
150 |
1,800 |
|||
|
Depreciation (Assets write off) Expenses |
|
368 |
4,413 |
|||
|
Sub-total |
|
768 |
9,213 |
|||
|
Total Operating costs |
|
13,521 |
162,249 |
|||
Production costs assumed 312 days per year with a daily capacity of 2,551 products.
Depreciation (fixed assets write off) assumes 4 years life of assets write off at 25% per year for all assets.
Direct costs include: materials, supplies and other costs that directly go into production of the product.
Project Product Cost and Price Structure In US$
|
Item |
Qty/ day |
Qty/ yr. |
Unit Cost |
Prod. Cost /year |
Unit price |
Total revenue |
|
Sweaters |
|
|
|
|
|
|
|
(small |
36 |
11,232 |
3.70 |
41,558 |
6.0 |
67,392 |
|
Sweaters |
||||||
|
(big size) |
36 |
11,232 |
3.70 |
41,558 |
7.0 |
78,624 |
|
Waist |
||||||
|
coats |
36 |
11,232 |
3.70 |
41,558 |
6.0 |
67,392 |
|
Baby |
||||||
|
Shawls |
36 |
11,232 |
3.70 |
41,558 |
6.5 |
73,008 |
|
Table cloth |
||||||
|
(sets) |
7 |
2,184 |
19.0 |
41,496 |
12.5 |
27,300 |
|
Badges |
500 |
156,000 |
0.06 |
9,360 |
0.3 |
39,000 |
|
Caps |
500 |
156,000 |
0.27 |
42,120 |
0.8 |
117,000 |
|
Logos on |
|
|
|
|
|
|
|
T-shirts |
700 |
218,400 |
0.25 |
54,600 |
1.3 |
273,000 |
|
Labeling |
700 |
218,400 |
0.03 |
6,552 |
1.0 |
218,400 |
|
|
|
|
|
320,362 |
|
961,116 |
Profitability Analysis in US$
|
Profitability item |
per day |
per month |
per year |
|
Revenue |
|
|
|
|
Sweaters (small size) |
216 |
5,616 |
67,392 |
|
Sweaters (big size) |
252 |
6,552 |
78,624 |
|
Waist coats |
216 |
5,616 |
67,392 |
|
Baby Shawls |
234 |
6,084 |
73,008 |
|
Table cloth (sets) |
88 |
2,275 |
27,300 |
|
Badges |
125 |
3,250 |
39,000 |
|
Caps |
375 |
9,750 |
117,000 |
|
Logos on T-shirts |
875 |
22,750 |
273,000 |
|
Labeling |
700 |
18,200 |
218,400 |
|
Less Prod & Operating Costs |
520 |
13,524 |
162,286 |
|
Profit |
2,560 |
66,569 |
798,830 |