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
Cost$

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
Cost
$

Qty/
day

Prod.
Cost/d
ay$

Prod.
Cost/m
onth$

Prod.
Cost/Year
[1]$

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
Cost$

Prod
Cost/yr

Unit
price

T/rev

Adhesive

500

156,000

4.03

628,620

5

780,000

 

4. Profitability Analysis in US$

 Item

Per
day

Per
Month

Per
Year

Revenue

25,00

65,000

780,000

Less: Production & Operating Costs

1,885

52,385

628,620

Profit

615

12,615

151,380