MAKING LOW DUST CHALK

• Manufacturing
• Printing And Stationery

Introduction
This business idea is for production and marketing of low dust chalk. Chalk is a soft compacted whitish calcite used as a writing aid in educational institutions. Low dust chalk reduces health hazards that result from excess chalk dust. The market structure for chalk cuts across academic institutions. It can be produced in a wide range of colors though white chalk is most preferred. The business idea aims at production of 3,900 boxes of chalk per month. The revenue potential is estimated at 600 US$ per year with a sales margin of 10%; the total capital investment for the project is 2,500 US$.

Production capacity
The profiled plant has a minimum capacity of 150 boxes of chalk per day and each box normally has 100 chalk pieces.

Production Process
To produce chalk, Plaster of Paris, French chalk and kaolin are mixed and made in a form of paste. The paste is cast in a suitable mould and dried. The dried material is then neatly packed for the market.

Market Analysis
The demand for low dust Chalk is very high in Uganda due a big number mushrooming learning Institutions. There are very many investors in this sector, which includes; SOMENI, KALUNGU,
PICFARE, Uganda Chalk Industry, among others.

Scale of Investment
1. Capital Investment Requirements

Capital Item	Units	Qty	Unit Cost	Amount
Oven	No	1	500	500
Moulds	No	10	100	1000
Vessels	No	10	100	1,000
Total	2,500

 

 

 

2. Production and Operating Expenses

Cost Item	Unit s	Unit cost /day	Qty /day	Prod Cost /day	Prod Cost /month	Prod Cost/Yea r1
Direct costs:
Plaster of Paris	Bags	27	50	1,349	35,074	420,888
French Chalk	Kgs	20	15	300	7,800	93,600
Kaolin	Kgs	17	10	167	4,342	52,104
Binder	Kgs	30	10	300	7,800	93,600
Packaging materials	Piece s	0.05	100	5	130	1,560
Subtotal	43,004	516,048

 

General costs (Overheads)
Labour	300	3,600
Utilities	200	2,400
Selling and Distribution	100	1,200
Administrative expenses	100	1,200
Shelter	100	1,200
Depreciation (Asset write off) Expenses	52	625
Sub-total	852	625
Total Operating Costs	43,856	516,673

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 work days.

3. Project Product Costs and Price Structure

Item	Qty /day	Qty /yr	Unit Cost	Prod /yr	Unit price	Total revenue
Chalk boxes	150	46,800	11	516,673	12	561,600

 

4. Profitability Analysis Table

Profitability Item	Per day	Per Month	Per Year
Revenue	1,800	46,800	561,600
Less: Production and Operating Costs	1,656	43,056	516,673
Profit	144	3,744	44,927