MAKING CEMENT BASED PRODUCTS
Introduction
The business idea is for the production of and marketing of cement based
products. Cement Products are more on the move nowadays with the increase in
housing activity. These may include but are not limited to: Cement Blocks,
pavers, Bricks, Slabs, Culverts, Manhole covers, Sculptures or Statues to
mention but a few. To have such an Investment one needs to have at least a
small piece of land of about ½ Acre that can be either rented or owned. The
idea is premised on production of 26,000 blocks per month and 312,000 per year.
The revenue potential is estimated US $ 400 per year with total investment of US
$134,185.
Market Analysis
The demand for Cement based products is very high in Construction industry
being the fastest growing sector in Uganda. The key players in this sector
include; Cementers, Turnkey, and Master industries, among others.
Process Description
and Production Capacity
Cement, sand, stone chips, stone dust and rods are mixed in suitable
proportions along with water. This concrete mix is placed on metal or wooden
moulds. For reinforcement, wire mesh or rods are placed between successive
layers of Concrete mix and compacted by vibration. The cast items are kept for
a day to set. They are then cured in water tank for 15 days for complete
setting.
Capital Investment Requirements
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Cement Block making Machine |
No. |
1 |
6,000 |
6,000 |
|
Cement mixing machine |
No. |
1 |
5,000 |
5,000 |
|
Coffee tray |
No. |
1 |
6 |
6 |
|
Vibrator |
No. |
1 |
750 |
750 |
|
Moulds |
No. |
50 |
1.5 |
75 |
|
Wheel barrows |
No. |
6 |
30 |
180 |
|
Total cost on machinery |
|
12,011 |
Production and Operating Costs in US$
This
business idea is premised on production of 1,000 blocks. A producer needs 500kg
of cement, 1,500kg of stone dust and 4,000kg of sand that totals to 6,000kg per
day. Ratio=1:3:8, that is cement, stone dust and sand respectively (kg) and
each dried block
Project
Product Costs and price in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod cost/yr |
Unit Price |
Total |
|
Cement |
1,000 |
312,000 |
0.4 |
134,185 |
0.7 |
218,400 |
|
Total |
312,000 |
218,400 |
Profitability Analysis in US$
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
700 |
18,200 |
218,400 |
|
Less production and operating Costs |
430 |
11,182 |
134,185 |
|
Profit |
270 |
7,018 |
84,215 |