MAKING NATURAL RUBBER ADHESIVES
Introduction
This profile envisages the establishment of a plant that will manufacture Adhesives from Natural Rubber based on the capacity of 500 liters per day. An adhesive, or glue, is a mixture in a liquid or semi-liquid state that adheres or bonds items together. Production Process: Adhesives cure (harden) by evaporating a solvent (Most adhesives cure at room temperature) or by exposing them to an elevated temperature. The rubber compositions are packed together by molding them into thin coatings between a release film and a porous substrate to allow curing. The resultant product has highly desirable bonding and release.
Scale of Investment, Capital Investment
Requirements
The total Capital Investment cost to start this project is estimated at USD 8,400.
Market Analysis
The demand for Adhesives is very high in the Paper products industry, Schools, Offices and Craft projects. The major key player in this Industry is NOBLE Synthetics (U) Limited.
Project Costs
1. Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount $ |
|
Delivery Van |
No. |
1 |
7,000 |
7,000 |
|
Mixer |
No. |
1 |
500 |
500 |
|
Boiler |
No. |
1 |
500 |
500 |
|
Rollers |
No. |
2 |
200 |
400 |
|
Total Amount |
8,400 |
2. Operating Costs in US$
|
Item |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Rubber |
Kgs |
3.77 |
500 |
1885 |
49010 |
588120 |
|
Sub total |
1,885 |
49,010 |
588,120 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
500 |
6,000 |
||||
|
Packaging Material |
300 |
3,600 |
||||
|
Labour |
800 |
9,600 |
||||
|
Utilities (Power & Water) |
600 |
7,200 |
||||
|
Repair & Servicing |
500 |
6,000 |
||||
|
Fuel |
500 |
6,000 |
||||
|
Depreciation(Asset write off) Expenses |
175 |
2,100 |
||||
|
Sub - total |
3,375 |
40,500 |
||||
|
Total Operating Costs |
52,385 |
628,620 |
3. Project Product Costs & Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Adhesive |
500 |
156,000 |
4.03 |
628,620 |
5 |
780,000 |
4. Profitability Analysis in US$
|
Item |
Per |
Per |
Per |
|
Revenue |
25,00 |
65,000 |
780,000 |
|
Less: Production & Operating Costs |
1,885 |
52,385 |
628,620 |
|
Profit |
615 |
12,615 |
151,380 |