MAKING ICE CANDY
Introduction
The
business idea is for the production and marketing of ice candies. Ice Candy
is one of
the usual summer treats of the Pinoys, especially the kids. It is made out of
frozen juice or shaked fruits in
little ice bags where one would have to nibble at the end of the plastic to sip
or bite the ice candy.This frozen delight doesn't only keep one cool during summer
days, but it can easily transport him/her back to childhood in just one sip of
its chilled sweetness. The total investment is estimated at US$ 662,014 with production capacity of
15,000 ice candies per day. The total revenue is estimated at a cost of US$ 200per
year.
Production
process
To make
an ice candy, one needs to have ice candy bags, funnel and fresh fruits or
juices, depending on the Ice Candy flavor you wish to make. The required
quantity of water is taken into the container. Colours, fresh fruits and juices
are mixed thoroughly and filled in candy blocks. Bamboo sticks are inserted
into candy holes and placed in a freezer for solidification. After cooling,
they are removed and placed in a cold chamber.
Market
Analysis
Ice candy
is consumed by all sections of society particularly children. The market for
ice candy is good especially primary schools. There are a few participants in
this business who are operating informally.
Capital
investment in US$
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Ice candy machine |
No. |
1 |
1,500 |
1,500 |
|
Defreezer |
No. |
1 |
1,000 |
1,000 |
|
Electrical motor |
No. |
1 |
250 |
250 |
|
Packing materials (kg) |
No. |
10 |
3 |
25 |
|
Total cost of machinery |
2,775 |
Production and operating costs in US $
|
Cost Item |
Units |
Unit |
Qty/ |
Pdn |
Pdn |
Pdn |
|
Colours,
fruits |
kg |
60 |
35 |
2,100 |
54,600 |
655,200 |
|
Sub-total |
35 |
2,100 |
54,600 |
655,200 |
||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
50 |
600 |
||||
|
Labour |
75 |
900 |
||||
|
Rent |
75 |
900 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
58 |
693.75 |
||||
|
Sub -total |
568 |
6813.75 |
||||
|
Total Operating Costs |
55,168 |
662,014 |
1
Production costs assumed 312 days per year with a daily capacity of 15000 packets
of ice candies
2 Depreciation (fixed assets write off) assumes 4 years life of assets written off
at 25% per year for all assets
3 Direct costs include materials, supplies and other costs that directly go
into production of the product.
Project
product costs and Price structure in US$
|
Item |
Qty |
Qty/yr |
Unit |
Pdn cost |
Unit |
Total |
|
Ice |
15,000 |
4,680,000 |
0.14 |
662,014 |
0.2 |
702,000 |
Profitability Analysis in US $
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
2,250 |
58,500 |
702,000 |
|
Less production and operating Costs |
2,122 |
55,168 |
662,014 |
|
Profit |
128 |
3,332 |
39,986 |
Sources of Supply of Rawmaterials and Equipment
Rawmaterials
and Equipments can be purchased from the local market.
Incentives
The
government has come out to encourage industrialists through being very liberal
in her policies. Facilitation is extended to them through organizations like
Private Sector Foundation Uganda; an
initiative that encourages investors.