MAKING COLOURED WAX CRAYONS
Introduction
Used as educational aid for drawings and sketches, coloured wax crayons are in great demand now, especially with current policy reforms in the education sector. They are normally used by children and artists, although they can be used by professionals, especially in business presentations, etc. A plant for making coloured wax crayons can be set up anywhere and does not require much in terms of expertise. This makes the project suitable for both rural and urban folks and will cost US$28,866 with capacity of 60,000 boxes annually, estimated revenues US$ 600per year.
Production Process, capacity and
Technology
The process consists of melting wax with the appropriate dye/pigment. Filler is added to the melted wax and cast in required shapes and sizes. Finally, the crayons are wrapped and packed in cardboard boxes. The envisaged plant would have a minimum capacity of 192.3 boxes (1 gross per box) per day. This is on the basis of 312 working days in a year and single 8-hour daily work shifts.
Market Analysis
With the growing education base both
in urban and rural areas, the use of coloured wax crayons have shot up in the
last few years. Therefore, there is ready market and for this, educational
institutions including nurseries, vocational colleges like Art academies, should
be targeted. Supply should also be made to bookshops and other stationery
shops. Picfare and Oscar Industries are the major players in this sector.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Mixer |
No |
1 |
1,000 |
1,000 |
|
Packing &Sealing machine |
No |
2 |
3.75 |
7.5 |
|
Mould |
No |
2 |
75 |
150 |
|
Boilers/ Melting machine |
No |
2 |
500 |
1,000 |
|
Compressor /cooler |
No |
1 |
275 |
275 |
|
Total cost of tools & Equipment |
2432.5 |
1. Production costs assumed are for 312 days per year with daily capacity of 192.3 boxes.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and other costs directly incurred to produce the product.
4. Currency used is US Dollars
Production and Operating costs in US$
Direct materials, supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Paraffin, |
Ltrs |
1.25 |
0.48 |
0.60 |
15.6 |
187.5 |
|
Wax |
kgs |
2.5 |
16.03 |
40.1 |
1042 |
12,500 |
|
Dyes |
pkts/kgs |
3 |
0.10 |
0.3 |
8 |
90 |
|
Packaging |
pkts/kgs |
1 |
9.62 |
9.6 |
250 |
3,000 |
|
Sub-total |
51 |
1,314.79 |
15,778 |
|
General Costs (Overheads) |
|||
|
Labour |
390 |
4,680 |
|
|
Selling & distribution |
200 |
2,400 |
|
|
Utilities (Water, power) |
150 |
1,800 |
|
|
Administration |
50 |
600 |
|
|
Rent |
150 |
1,800 |
|
|
Miscellaneous expenses |
100 |
1,200 |
|
|
Depreciation |
51 |
608 |
|
|
Sub-total |
1,091 |
13,088 |
|
|
Total Operating Costs |
2,405.46 |
28,866 |
Project product cost and Price Structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total rev |
|
Crayons |
192.3 |
60,001 |
0.48 |
28,866 |
1 |
60,001 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per year |
|
Revenue |
192 |
5,000 |
60,001 |
|
Less: Production and operating |
93 |
2,405 |
28,866 |
|
Profit |
100 |
2,595 |
31,135 |