MAKING MOSAIC TERRAZO TILES
Introduction
This business idea is for making
mosaic terrazzo tiles. Mosaic floor tiles, are made of cement, sand and
coloured stone chips. They are sold in attractive colours with a shining smooth
surface. They are
used extensively in making floors of residential as well as commercial blocks.
Mosaic tiles are load bearing, termite proof, impermeable and easy to clean.
The business idea aims at production of 3,000 square metres of tiles each
month. The revenue potential is estimated at $ 920 per month with a sales
margin of 10%. The total capital investment for the project is $ 3,300.
Plant Capacity
The plant would have a minimum capacity of 3,000 square metres of tiles each month. This is on the basis of 300 working days per year and 8-hour single daily work shifts but output can be increased as bigger portions of the market are captured.
Technology and Production Process
The machinery used to produce mosaic
terrazzo tiles includes: a Hydraulic pump, a Hydraulic accumulator, a grinding
machine, a colour mixing machine, a Semi-polishing machine and tile moulds.
The raw materials include: Portland cement, White cement, Marble powder and
chips, Black and other colours and Sand and stone chips. Ratios of cement,
coloured stone chips, sand and grey cement are well mixed. The mixture is then
pressed and tiles are removed. They are then stacked in wooden racks for a day.
The tiles are then soaked in water for 24 hours and cured for two weeks.
Finally, the tiles are semi-polished and stacked for sale.
Market Analysis
The demand for mosaic terrazzo tiles
is high mostly in urban centres especially construction companies. Hardware
shops also form a big component of the market for these tiles. All of these
items are being
imported
Scale of Investment
The project can be operated with a
fixed capital requirement of 3,300 dollars.
Capital Investments Requirements
|
item |
Units |
Qty |
Unit |
Amount |
|
Hydraulic Pump |
Number |
1 |
400 |
400 |
|
Grinding Machine |
Number |
1 |
800 |
800 |
|
Colour Mixing Machine |
Number |
1 |
500 |
500 |
|
Semi Polishing Machine |
Number |
1 |
500 |
500 |
|
Tile Moulding machine |
Number |
2 |
200 |
400 |
|
Hydraulic Accumulator |
Number |
1 |
700 |
700 |
|
Total |
3,300 |
Production and
operating costs in US $
Direct Materials, Supplies and Costs
|
Cost item |
Units |
Unit |
Qty/ |
Cost/ |
Cost/ |
Cost/yea |
|
Direct Costs |
||||||
|
Portland Cement |
Bags |
12.5 |
20 |
250 |
6,500 |
78,000 |
|
White Cement |
Bags |
10 |
19 |
190 |
4,940 |
59,280 |
|
Marble Powder |
Bags |
10 |
15 |
150 |
3,900 |
46,800 |
|
Sand and Stone |
Tonnes |
10 |
15 |
150 |
3,900 |
46,800 |
|
Colours |
Bags |
12 |
10 |
120 |
3,120 |
37,440 |
|
Subtotal |
33 |
54 |
860 |
22,360 |
268,320 |
|
|
General Costs(Overheads) |
||||||
|
Administration expenses |
500 |
6,000 |
||||
|
Labour |
1,500 |
18,000 |
||||
|
Utilities |
300 |
3,600 |
||||
|
Rent |
1,125 |
13,500 |
||||
|
Selling & Distribution |
542 |
6,500 |
||||
|
Depreciation |
69 |
825 |
||||
|
Miscellaneous |
375 |
4,500 |
||||
|
Subtotals |
4,410 |
52,925 |
||||
|
Total operating Costs |
26,770 |
321,245 |
Land and shelter can be rented at
13,500 dollars annually.
Project Costs and Price Monthly Revenue
|
Item |
Qty/ |
Qty/ |
Unit |
Prod. |
Unit |
Revenue |
|
Tiles |
200 |
62,400 |
5.15 |
321,245 |
5.5 |
343,200 |
Profitability Analysis table
|
item |
Per day |
Per month |
Per year |
|
Revenue |
1,100 |
28,600 |
343,200 |
|
Less: Production operating costs |
1,030 |
26,770 |
321,245 |
|
Profit |
70 |
1,830 |
21,955 |