MAKING COTTON MOSQUITO NETS
Introduction
This profile envisages the establishment of a plant that will manufacture Cotton mosquito nets based on the production capacity of 500 nets per day. Mosquito nets are a natural alternative to toxic chemical sprays as a method of protection against mosquitoes, moths, sand flies and other insects. The 100% cotton muslin netting provides an enhanced sleeping environment due to its natural fibres and is superior to nylon or polyester mosquito nets. It also allows for a safe and comfortable night sleep.
Production Process
The manufacturing process of making mosquito nets goes through cutting the fabric/material according to the required size and design, which is then followed by sewing.
Raw Materials
Cotton fabric/Cloth & Thread
Equipment:
1. Sewing machine
2. Embroidery machine
3. Zig zag machine
4. Other accessories
Scale of Investment, Capital Investment
Requirements
The total project investment cost of the project including working capital is
estimated at USD 93,433.
Market Analysis
All serious people who can afford mosquito nets would own it to fight malaria
which is the number one killer disease in the country and once the prices are
reasonable, the market is wide spread across all people. The major key players
include; Quality Chemicals (U) Ltd, Coopers (U) Ltd, e.t.c.
Project Costs
The Fixed production cost at full
operation capacity is estimated at US $1,158$ (see Table below).
Capital Investment Requirements
|
item |
Units |
Qty |
Unit |
Amount |
|
Sewing machine |
No. |
2 |
375 |
750 |
|
Embroidery machine |
No. |
1 |
129 |
129 |
|
Zig zag machine |
No. |
1 |
172 |
172 |
|
Other accessories |
No. |
1 |
07 |
107 |
|
Total |
1,158 |
Production and operation costs
Direct materials, supplies and costs
|
Cost item |
Units |
Unit |
Qty/ |
Cost/ |
Cost/ |
Cost/ |
|
Direct Costs |
||||||
|
Cloth |
Mtrs |
1.50 |
900 |
1,350 |
35,100 |
421,200 |
|
Thread |
pcs |
0.25 |
3,000 |
750 |
19,500 |
234,000 |
|
Other Materials |
pcs |
- |
- |
- |
1,708 |
20,496 |
|
Subtotal |
2 |
3,900 |
2,100 |
56,308 |
675,696 |
|
|
General Costs (Overheads) |
||||||
|
Administration expenses |
708 |
8,500 |
||||
|
Labour |
2,667 |
32,000 |
||||
|
Utilities |
650 |
7,800 |
||||
|
Rent |
1,000 |
12,000 |
||||
|
Selling & Distribution |
542 |
6,500 |
||||
|
Depreciation |
143 |
1,715 |
||||
|
Miscellaneous |
375 |
4,500 |
||||
|
Subtotals |
6,085 |
73,015 |
||||
|
Total operating Costs |
62,393 |
748,711 |
Project Monthly Revenue: The estimated
daily sales and Revenue are shown in the table below:
Project product costs and price
structure
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
Revenue |
|
Mosquito |
500 |
156,000 |
4.80 |
748,711 |
5.5 |
858,000 |
Profitability analysis in US $
|
item |
Per day |
Per |
Per year |
|
Revenue |
2,750 |
71,500 |
858,000 |
|
Less: Production operating costs |
2,400 |
62,393 |
748,711 |
|
Profit |
350 |
9,107 |
109,289 |