MAKING NATURAL FIBRE YARN (ROPES)

• Manufacturing
• Cotton and Textiles

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 cost/ day	Qty /day	Prod cost /day	Prod cost month	Prod cost/ year
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 revenue
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 Costs	656	17,066	204,792
Profit	19	484	5,808