MAKING DISINFECTANT FLUIDS
Introduction
A disinfectant is basically an agent, which destroys pathogenic organisms. A good disinfectant should also be a deodorant possessing good shelf qualities and it should be effective against a host of microorganisms. The project cost is US$223,144, with production capacity of 50,000kgs per year with estimated revenue of US$999 annually.
Production process, capacity and
technology
The manufacture of black fluid disinfectants involves saponification of fatty oils. Soft soap is prepared by adding a boiling solution of caustic soda (33 %) to a mixture of fatty oils and molten rosin. The soft soap thus obtained is dissolved in hot water and the creosote and cresol are added. The fluid thus obtained is dark brown or black in colour. To manufacture white fluid disinfectants, casein is dissolved in water and a homogenous solution is made. Borax is added to this casein solution and stirred properly, which is then filtered and the requisite amounts of HBTA and cresol and creosote are added. Subsequently, homogenization is done in shearing colloid mill. The profiled plant has a minimum capacity of 50 tonnes per annum. It is assumed that there are 312 working days in a year.
Market Analysis
The product has a good market both in rural and urban areas. Thanks to the growing awareness, the people are using disinfectants as a preventive measure. Supply to Hotels, Restaurants, Public and Private Offices, Supermarket Chains, Stores, etc would help in capturing a portion of the market. However, this Industry is not yet developed in Uganda.
Capital Investment Requirement in US$
|
Item |
Units |
Qty |
Price |
Total |
|
Cast iron pan |
No |
1 |
500 |
500 |
|
Soft soap dissolving vessel |
No |
1 |
650 |
650 |
|
Colloid mill |
No |
1 |
750 |
750 |
|
Hot water still direct fired |
No |
1 |
150 |
150 |
|
Casein solution tank |
No |
1 |
1,000 |
1,000 |
|
HBTA creosote mixing tank |
No |
1 |
500 |
500 |
|
Other tools & equipment |
No |
1 |
1,500 |
1,500 |
|
Total cost of Machinery & Tools |
5,050 |
1. Production costs assume 312 days per year with daily capacity of 160.3Ltrs.
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 all other costs incurred to produce the product.
4. A production month is 26 days.
5. 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 |
||||||
|
High boiling |
Ltrs/kgs |
22 |
25.64 |
564.10 |
14666.7 |
176,000 |
|
Cresol, |
Ltrs |
6 |
3.21 |
19.23 |
500.0 |
6,000 |
|
Carsem& |
Ltrs |
7.5 |
1.60 |
12.02 |
312.5 |
3,750 |
|
Sodium |
Ltrs |
12.5 |
1.60 |
20.03 |
520.8 |
6,250 |
|
W.W. Rosin |
Ltrs |
7.5 |
0.15 |
1.13 |
29.3 |
351 |
|
Castor oil & |
Ltrs/kgs |
10 |
0.25 |
2.50 |
65.0 |
780 |
|
Caustic soda |
Ltrs |
11.5 |
0.32 |
3.69 |
95.8 |
1,150 |
|
Packing |
kgs/pkts |
0.15 |
64.10 |
9.62 |
250.0 |
3,000 |
|
Sub-total |
632 |
16,440.08 |
197,281 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
350 |
4,200 |
||||
|
Selling & distribution |
300 |
3,600 |
||||
|
Utilities (Water, power) |
600 |
7,200 |
||||
|
Administration |
150 |
1,800 |
||||
|
Rent |
500 |
6,000 |
||||
|
Miscellaneous expenses |
150 |
1,800 |
||||
|
Depreciation |
105 |
1,263 |
||||
|
Sub- total |
2,155 |
25,863 |
||||
|
Total Operating Costs |
18,595.28 |
223,144 |
Project product costs and Price structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Disinfectant |
160.3 |
50,000 |
4.46 |
223,144 |
5 |
249,999 |
Profitability Analysis in US
|
Item |
Per day |
Per |
Per year |
|
Revenue |
801 |
20,833 |
249,999 |
|
Less: Production and operating costs |
715 |
18,595 |
223,144 |
|
Profit |
86 |
2,238 |
26,856 |