MAKING AIR FRESHENER
Introduction
Air fresheners are consumer products that mitigate unpleasant odors within indoor spaces. They can be in form of candles, sprays and gel and can also be used as a deodorant. They are an item that both household and public offices can’t seem to do without. The freshener is also commonly used in both public and home toilets. The production capacity is estimated at 200 pieces per day, monthly production of 5,200 pieces and annual production of 62,400 which yields the total revenue US$124,800 per year, and gives birth to US$ 10,862 as profit margin.
Production Process
Air freshener cake is made out of Para dichlorobenzene, colour and perfume. These ingredients are properly mixed and molded by using fly press. The resulting gel of freshener is packed to avoid the absorption of moisture, which weakens the freshener.
Market Analysis
With increasing population and the need for improved living conditions, the demand for air freshener is also gradually increasing. The hygiene consciousness has attracted attention to this product; hence, there is ready market. Areas of target are: supermarket chains, retail shops, restaurants, hotels and tourist centers. However, there are no investors in this sector in Uganda.
Capital Investment Requirements ($)
|
item |
Unit |
Qty |
Unit |
Amount |
|
Fly press wheel type |
No. |
1 |
5,900 |
5,900 |
|
Drum mixer |
No. |
1 |
560 |
560 |
|
Plastic bucket with lid |
No. |
3 |
33 |
99 |
|
Van |
No. |
1 |
6,500 |
6,500 |
|
Packing materials |
No. |
1,500 |
0.3 |
375 |
|
Total cost of machinery |
13,434 |
Production and Operating costs (US$)
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Para |
Kg |
0.8 |
100 |
80 |
2,080 |
24,960 |
|
Perfume |
kg |
25 |
10 |
250 |
6,500 |
78,000 |
|
Sub-total |
330 |
8,580 |
102,960 |
|||
|
General costs (overheads) |
||||||
|
Utilities(water and power) |
125 |
1500 |
||||
|
Labour |
75 |
900 |
||||
|
Rent |
125 |
1500 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation (Asset write off)Expenses) |
280 |
3,359 |
||||
|
Sub -total |
915 |
10979 |
||||
|
Total Operating Costs |
9,495 |
113,939 |
1 Production costs assumed are for 312
days per year with a daily capacity of 200 tins of air freshener.
2 Depreciation (fixed assets 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.
Project product Costs and Price Structure ($)
|
Item |
Qty/day |
Qty/yr |
Unit Cost |
Prod cost /yr |
Un |
|
Air freshener |
200 |
62,400 |
1.83 |
113,939 |
Profitability Analysis ($)
|
Item |
Per day |
Per month |
Per Year |
|
Revenue |
400 |
10,400 |
124,800 |
|
Less production and operating Costs |
365 |
9,495 |
113,939 |
|
Profit |
35 |
905 |
10,862 |