MAKING NATURAL FIBRE YARN (ROPES)
Introduction
This business idea is for the production and marketing of ropes, Ropes prepared
by fiber yarn are used
for different purposes. The ropes are used in all the sectors of the economy
but are most prominent in the agricultural sector. Right from livestock keeping
to simple cultivation and then to commercial farming, ropes play a substantial
role in the farming processes. Setting up a small plant to make ropes out of
fiber yarn using local materials like jute is thus a good entrepreneurial idea.
The business idea is premised on the production of 900 ropes per day, 23,400
per month and 280,800 per year. The revenue potential is estimated at US
Dollars 600 per year.
Production Process
By using sewing machine parts, the yarn is spun, which is operated by
sitting on a stool and by simply pedaling the table model sewing machine. The
total cost for this project for this project is US Dollar
202,917 per year
Market analysis
Ropes are highly demanded in various sectors of the economy especially
Agricultural sector. This sector is still informal in Uganda.
Capital Investment Requirements in US $
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
Stool |
No. |
10 |
2 |
20 |
Sewing machine |
No. |
1 |
5,000 |
5,000 |
Yarn twister |
No. |
4 |
43 |
172 |
No. |
4 |
20 |
80 |
1,600 |
No. |
1 |
1 |
7,500 |
7,500 |
Total cost on machinery |
12,625 |
4-hole rope maker machine Extruder (900-1000 per min)
Production and Operating costs ($)
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
yarn or, jute |
kg |
25 |
25 |
625 |
16,250 |
195,000 |
Sub-total |
25 |
625 |
16,250 |
195,000 |
||
General costs(overheads) |
||||||
Utilities(water and power) |
40 |
480 |
||||
Labour |
100 |
1200 |
||||
Rent |
100 |
1200 |
||||
Miscellaneous costs |
50 |
600 |
||||
Distribution costs |
260 |
3,120 |
||||
Depreciation(Asset write off)Expenses) |
266 |
3,192 |
||||
Sub -total |
816 |
9792 |
||||
Total Operating Costs |
17,066 |
204,792 |
Production costs assumed 312 days per year with a daily
capacity of 900 ropes.
Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets
Direct costs include materials, supplies and other costs that directly go into
production of the product.
Project product Costs and Price Structure ($)
Item |
Qty /day |
Qty/yr |
Unit Cost |
Prod cost /yr |
Unit Price |
Total |
Ropes |
900 |
280,800 |
0.73 |
204,792 |
0.8 |
210600 |
Profitability Analysis ($)
Profitability Item |
Per day |
Per month |
Per Year |
Revenue |
675 |
17,550 |
210,600 |
Less
production and operating |
656 |
17,066 |
204,792 |
Profit |
19 |
484 |
5,808 |