MAKING MATS
Introduction
This business idea is for production and marketing of Palm leaves mats. Mats
are popular both in private homes. Mats are widely used among all sections of
the society. Thus mat making is a good investment that can easily be taken up
by women. The production capacity per day is estimated at 30 Mats and the
revenue is estimated at US$400per year.
Production process
Mat making involves collecting palm leaves, drying it in proffered colours and
finally weaving the palm leaves into different kinds of Mats. They can be made
with threads, which are dried and sewed with a needle.
Market Analysis
Mats are ideal for use in aisles of homes parties and mosques. This business is
mainly undertaken by Women and Disabled groups in Uganda. It is usually done on
small scale.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Sewing needle |
No. |
5 |
5 |
25 |
|
Knives |
No. |
6 |
0.8 |
5 |
|
Basins |
No. |
10 |
2 |
15 |
|
Total cost on machinery |
45 |
Production and Operating costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod cost |
Prod |
Prod |
|
Palm leaves |
Kg |
0.5 |
100 |
50 |
1,300 |
15,600 |
|
Colors(kg) |
kg |
0.5 |
6 |
3 |
78 |
936 |
|
Sub-total |
1,378 |
16,536 |
||||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
25 |
300 |
||||
|
Labour |
100 |
1200 |
||||
|
Rent |
50 |
600 |
||||
|
Miscellaneous costs |
25 |
300 |
||||
|
Distribution costs |
130 |
1,560 |
||||
|
Depreciation (Asset write off)Expenses) |
1 |
11 |
||||
|
Sub -total |
331 |
3971 |
||||
|
Total Operating Costs |
1,709 |
20,507 |
1 Production costs assumed 312 days per year with a daily
capacity of 30 mats
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
|
Item |
Qty |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Mats |
30 |
9,360 |
2.19 |
20,507 |
2.5 |
23400 |
Profitability Analysis
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
75 |
1,950 |
23,400 |
|
Less production and operating Costs |
66 |
1,709 |
20,507 |
|
Profit |
9 |
241 |
2,893 |