MAKING FANCY LEATHER GLOVES

• Manufacturing
• Leather Products

Introduction
Leather gloves are used as protective wear for human hands. They are available in types and sizes and are sought after by all but especially motor bicycle riders and military personnel. The demand for leather gloves exists both in domestic and export markets. The business idea aims at production of 520 pairs of gloves per month, which translates into 6,240 pairs annually. The revenue potential is estimated at $ 300 annually year with a sales margin of 10%. The total capital investment for the project is $ 2,479.

Plant Capacity
The profiled plant has a minimum capacity of 20 pairs of gloves per day.
Production Process
The fancy gloves manufacturing process involves selecting suitable leather of required colours and thickness, cutting the leather to the desired sizes and designs, and putting linings. Gloves are stitched
with thumbs attached to the palm, textile lining are also stitched and joined with glove. Finally, buttons, elastic, are fitted and the gloves are packed.

Market Analysis
There is a high demand for Leather Gloves especially among motorists and Sports Men in Uganda. They can also be exported.
Scale of Investment
1. Capital Investment Requirements

Capital Item	Units	Qty	Unit Cost	Amount
Flatbed sewing machine	No	1	99	99
Cylinder bed stitching machine	No	1	250	250
Leather skiving machine	No	1	1,175	1,175
Zigzag sewing machine	No	1	699	699
Jack setting machine	No	1	34	34
Button-hole making machine	No	1	198	198
Flexible dummies	Sets	3	7.95	24
Total	2,479

 

2. Production and Operation costs

Cost Item	Units	Unit cost /day		Qty /day	Prod Cost /day	Prod Cost / month	Prod Cost/ Year1
Direct costs3:
Leather	Meters	3		20	60	1,560	18,720
Buttons	Boxes	1		1	1	26	312
Lining	Meters	2		1	2	52	624
Decoration	Meters	1.5		1	1.5	39	468
Sub-total			1,677		20,124
General costs (Overheads)
Labour			250		3,000
Utilities			200		2,400
Selling and Distribution			80		960
Administrative expenses			100		1,200
Shelter			200		2,400
Depreciation machinery			51.6		619
Sub-total			882		10,579
Total Operating Costs			2,559		30,703

Production is assumed for 312 days per year. Depreciation assumes 4 year life of assets written off at 25% per year for all assets. A production Month is assumed to have 26 days.

3. Project Product costs and Price Structure

Item	Qty /day	Qty/yr	Unit Cost	Prod/yr	Unit price	Total revenue
Gloves	20	6,240	4.9	30,703	7	43,680
Total	20	6,240	4.9	30,703	7	43,680

 

4. Profitability Analysis Table

Profitability Item	Per day	Per Month	Per Year
Revenue	140	3,640	43,680
Less: Production and Operating Costs	98	2,559	30,703
Profit	42	1,081	12,977