MAKING MOSQUITO COIL
Introduction
Mosquito coil is mosquito repelling
incense usually shaped into a spiral; and typically made from a dried paste of
pyrethrum powder. The coil is usually held at the center of the spiral,
suspending it in the air, or wedged by two pieces of fireproof netting to
allow continuous smoldering. Burning usually begins at the outer end of the
spiral and progresses slowly toward the centre of the spiral, producing a
mosquito-repellent smoke. A typical mosquito coil can measure around 15 cm in
diameter and lasts up to 8 hours. Mosquito coils are widely used in Asia,
Africa, and South America. The Production capacity is 312,000 boxes per year
bringing estimated revenue of US$ 600 annually having invested US$ 76,304.
Mosquito repellent coils are one of the most popular means of driving out
mosquito and insects out of the houses. The mosquito repellents are
comparatively harmless with the main constituent pyrethrum extracted from the
flowers of pyrethrum. In Uganda, there is a high prevalence of mosquitoes
mainly
because of the high rainfall coupled with the warm weather favourable for
breeding. Setting up a plant to make mosquito coils would help to fight
mosquito bites and reduce malaria incidences.
Production Process, capacity and
technology
The raw materials are blended, kneaded and crushed. The mixture is extruded in the form of flat belt and cut by an air-blower. The belt shaped material is converted into moulds of double coils by a Rota stamping machine and finally packed in cartons. The plant profiled has a minimum capacity of 1,000 coil boxes per day.
Market Analysis
There is good market potential because mosquitoes are a menace and malaria prevalence is quite high. A mosquito coil requires no electricity and is affordable in rural areas. However, this Industry is not yet developed in Uganda.
Capital Investment Requirement in US$
|
Item |
Units |
Qty |
Price |
Total |
|
Powder blending machine |
No |
1 |
1125 |
1125 |
|
Crushing & Kneading machine |
No |
1 |
1500 |
1500 |
|
Extrusion Machine vessel with stirrer |
No |
2 |
750 |
1500 |
|
Cutting Machine with blower |
No |
2 |
1000 |
2000 |
|
Rota stamping Machine |
No |
1 |
27.5 |
27.5 |
|
Tube filling machine |
No |
1 |
125 |
125 |
|
Total cost of tools |
62,77.5 |
1. Production costs assume 312 days per year with daily capacity of 32.1 Kgs.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency used is US Dollars.
Production and Operating Costs in US $
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Pyrethrum |
Kgs |
2.50 |
3 |
8 |
208 |
2,499.90 |
|
Deodar |
ltrs |
1.5 |
0.2 |
0.24 |
6 |
75.00 |
|
Maida |
ltrs |
1.00 |
0.13 |
0 |
3 |
40.00 |
|
pyrethrum |
Pckts |
2 |
31 |
46.7 |
1,214.95 |
14,579.4 |
|
Citronella |
ltrs |
2 |
0.32 |
0.64 |
16.64 |
199.68 |
|
Benzoic |
ltrs |
75 |
0.16 |
12. |
312.00 |
3,744.00 |
|
Packaging |
kgs |
2 |
3 |
6.40 |
166.40 |
1,996.80 |
|
Other |
Ltrs |
50 |
1.00 |
50. |
1,300. |
15,600. |
|
Sub-total |
- |
- |
- |
124 |
3,227.9 |
38,734.8 |
|
General Costs (Overheads) |
||||||
|
Labour |
1,200 |
14,400 |
||||
|
Selling & distribution |
250 |
3,000 |
||||
|
Utilities (Water, power) |
900 |
10,800 |
||||
|
Rent |
500 |
6,000 |
||||
|
Miscellaneous expenses |
150 |
1,800 |
||||
|
Depreciation |
131 |
1,569 |
||||
|
Sub-total |
3,131 |
37,569 |
||||
|
Total Operating Costs |
6,358.6 |
76,304.19 |
Project product cost and Price Structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Mosquito |
1,000 |
312,000 |
0.2 |
76,304 |
0.3 |
93,600 |
Profitability Analysis in US $
|
Item |
Per |
Per |
Per year |
|
Revenue |
300 |
7,800 |
93,600 |
|
Less: Production and operating |
245 |
6,359 |
76,304 |
|
Profit |
55 |
1,441 |
17,296 |