MAKING CARBON PAPER

• Manufacturing
• Chemicals and fertilizers

Introduction
This business idea is for production and marketing of carbon paper. Carbon paper is paper coated on one side with a layer of a loosely bound dry ink or pigmented coating, usually bound with wax. It is used for making one or more copies simultaneously with the creation of an original document. The total investment requirement per year is US$ 412,194, with total revenues estimated at US$ 400 per year and production capacity estimated at 4 cartons per day, each carton with 100 pieces.

Production process
The process involves preparation of coating mix, coating on the paper surface, and cutting it into sizes for the market.

Market Analysis
Carbon papers have a steady market. Carbon papers are used I banks, offices, micro-finance institutions, educational institutions therefore there is a huge potential for carbon paper. Picfare industry is the major key player in this industry.
Capital investment in US$

item	Units	Qty	Unit cost	Amount
Coating machine	No	1	500	500
Printing machine	No	1	390	390
Paper cutting machine	No	1	75	75
Ball mill	No	1	200	200
Packing materials(kg	No	10	25	250
Total cost on machinery				1,415

Production and operating costs in US$

Cost Item	Units	Unit price	Qty cost	Prod cost/ day	Prod cost/ month	Prod cost/yr
Papers	Grams	2.5	500	1,250	32,500	390,000
Dyes and waxes	Ltrs	5	10.0	50	1,300	15,600
Oil	Ltrs	2.5	4	10	260	3,120
Sub-totals			514	1,310	34,060	408,720
General costs(overheads)
Utilities(water and power)			35	420
Labour			50	600
Rent			125	1,500
Miscellaneous costs			50	600
Depreciation(Asset write off)Expenses)			29	354
Sub -total			289	3,474
Total Operating Costs			34,349	412,194

                                                                                           
1 Production costs assumed 312 days per year with a daily capacity of 5 cartons carbon papers
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 structures in US$

Item	Unit Price	Qty Cost	Prod cost/day	Prod cost/month	Prod cost/year	Total Revenue
Carbon papers	2.6	3.0	500	412,194	156,000	468,000
Total					156,000	468,000

Probability Analysis

Item	Profitability Per day	Per month	Per Year
Revenue	1,500	39,000	468,000
Less production and operating Costs	1,321	34,349	412,194
Profit	179	4,651	55,806