MAKING BAMBOO PRODUCTS
Introduction
This business idea is for making of bamboo products. Bamboo products are made
out of natural resources available in rural areas. The application of bamboo is
widely found in making variety of baskets, partitions, candy sticks, trays used
in sericulture, etc. The business idea aims at production of 520 units per
month which translates into 6,240 units annually. The revenue potential is
estimated at $ 680 per annually with a total capital investment of $ 1,050.
Plant Capacity
The idea envisages production of 6,240 units annually.
Production Process
The equipments used are knives and fixtures. Hand tools are also used. The
manufacturing process starts with splitting bamboo into thin wafers to suit the
variegated needs of the end product. This is followed by manually knitting the
split wafers into products especially designed to cater for the needs of the
customers.
Market Analysis
The bamboo products have a ready market both in rural and urban areas. A
variety of bamboo products are used for storage of fruits, vegetables and
grains. There is potential market at: traditional sites, tourist centers,
public and private offices, hotels, etc. which would help in promoting this
industry. There are several women organizations which make Bamboo crafts spread
across the Country.
Scale of Investment
1. Capital Investment Requirements in US
$
|
Capital
Investment |
Units |
Qty |
Unit |
Amount |
|
Knives and fixtures |
No |
20 |
20 |
400 |
|
Hand tools |
No |
30 |
15 |
450 |
|
Working Tables |
No |
2 |
100 |
200 |
|
Total |
1,050 |
2. Production and Operating Expenses in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct costs: |
||||||
|
Bamboo |
No |
0.18 |
400 |
72 |
1,872 |
22,464 |
|
Sub-total |
1,872 |
22,464 |
||||
|
General costs (Overheads) |
||||||
|
Salaries and Wages |
250 |
3,000 |
||||
|
Electricity |
100 |
1,200 |
||||
|
Water |
300 |
3,600 |
||||
|
Transportation Expenses |
150 |
1,800 |
||||
|
Consumable stores |
80 |
960 |
||||
|
Selling and Distribution |
80 |
960 |
||||
|
Administrative expenses |
100 |
1,200 |
||||
|
Repairs |
50 |
600 |
|
Shelter |
200 |
2,400 |
|
Depreciation (Asset write off) Expenses |
21.8 |
262.5 |
|
Sub-total |
1,332 |
15,983 |
|
Total Operating Costs |
3,204 |
38,447 |
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 |
Qty/ |
Unit |
Prod |
Unit |
Total |
|
Small Baskets |
10 |
3,120 |
6 |
19,223 |
6.5 |
20,280 |
|
Medium |
5 |
1,560 |
6 |
9,612 |
7 |
10,920 |
|
Large baskets |
5 |
1,560 |
6 |
9,612 |
8 |
12,480 |
|
Total |
20 |
6,240 |
18 |
38,447 |
21.50 |
43,680 |
4. Profitability Analysis Table
|
Profitability Item |
Per day |
Per |
Per |
|
Revenue |
140 |
3,640 |
43,680 |
|
Less: Production and Operating Costs |
123 |
3,204 |
38,447 |
|
Profit |
17 |
436 |
5,233 |