MAKING NAPHTHALENE BALLS
Introduction
This business idea is for manufacturing and marketing of Naphthalene Balls. Naphthalene balls are white crystalline balls extensively used as a deodorizer, as moth repellent for protection of clothes, in toilets and bathrooms etc. Soluble in benzene, absolute alcohol and ether, they have a strong coal tar odor. In view of the widespread use in households as well as commercial establishments, Naphthalene balls have a wider market structure and high demand. This business idea is premised on production of 26 tons of naphthalene balls per month which translates into 312 tons of naphthalene balls per annum. The revenue potential is estimated at US$300 per month, translating into US$ 468,000 per annum with a sales margin of 20% and total investment requirement is US$ 449,900 for the first year of Project Operation.
Market Analysis
The general awareness is improving on cleanliness and as a result, these products are gaining importance in rural as well as urban areas. In view of the widespread use of naphthalene balls in households as well as commercial establishments, the product has covered a niche in the market with a high demand. Supply to the textile sector, especially the garment industry would help in creating a bigger market niche for the product.
Production Process
Crude Naphthalene is available either in the form of solid mass or liquid. The crude naphthalene is put in a steam jacketed MS kettle and melted by steam or suitable heating arrangements and then treated with sulphuric acid. The acid-treated naphthalene is then neutralized with caustic soda and washed with water several times. After treating with caustic soda, naphthalene is purified by steam distillation of sublimation process. The powdered naphthalene is then converted into balls and packed in polythene bags.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Steam Jacketed Kettle with motor |
No |
1 |
250 |
250 |
|
Steam Distillation kettle |
No |
1 |
250 |
250 |
|
Sulphuric acid SS storage tank |
No |
1 |
400 |
400 |
|
Naphthalene balls making machine |
No |
1 |
2,500 |
2,500 |
|
Aluminum Vats |
No |
2 |
125 |
250 |
|
Weighing balance |
No |
1 |
150 |
150 |
|
Testing Equipment |
Set |
2 |
250 |
500 |
|
Boiler |
No |
2 |
250 |
500 |
|
Delivery Van |
No |
1 |
4,000 |
4,000 |
|
Total |
8,800 |
Production
and Operating Costs
Direct Materials, Supplies and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Crude |
liter |
1 |
500 |
500 |
13,000 |
156,000 |
|
Caustic Soda |
Kg |
1 |
250 |
250 |
6,500 |
78,000 |
|
Sulphuric acid |
liter |
1.5 |
250 |
375 |
9,750 |
117,000 |
|
Packing |
No |
0.15 |
1,000 |
150 |
3,900 |
46,800 |
|
Sub-total |
2,000 |
1,275 |
33,150 |
397,800 |
||
|
General Costs(Overheads) |
||||||
|
Utilities(Power & water) |
100 |
1,200 |
||||
|
Rent |
250 |
3,000 |
||||
|
Labour |
2,675 |
32,100 |
||||
|
Preliminary costs |
250 |
3,000 |
||||
|
Miscellaneous costs |
150 |
1,800 |
||||
|
Depreciation (Asset write off)Exp |
183 |
2,200 |
||||
|
Sub-total |
3,608 |
43,300 |
||||
|
Total Operating Costs |
36,758 |
441,100 |
1. Production costs assumed 312 days per year with a daily capacity of 1,000 Kilograms of Naphthalene balls
2. Depreciation (fixed asset 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.
4. A production month is assumed to have 26 work days
5.
Naphthalene balls can be sold in a single
unit at US$ 0.1
Project Product Costs and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
T/rev |
|
Naphthalene |
1,000 |
312,000 |
1.4 |
441,100 |
2 |
468,000 |
Profitability Analysis in US$
|
Item |
Per day |
Per |
Per Yr |
|
Revenue |
1,500 |
39,000 |
468,000 |
|
Less: Production and Operating Costs |
1,414 |
36,758 |
441,100 |
|
Profit |
86 |
2,242 |
26,900 |