MAKING OF CANE FURNITURE - CHAIRS
Introduction
This profile envisages the establishment of a plant that produces Cane Furniture with a capacity of 46 sets of Cane Chairs per annum. Cane chairs can be a beautiful addition to almost any home decor, Hotels, Recreation centres and on foreign market. Cane furniture has a simple elegance that seems to fit well almost anywhere.
Production Capacity
Given the complicated process in the making of Cane chairs, it is projected that at least 4 Sets (16 chairs) may be produced in a month giving a total of 46 sets of Cane Chairs per annum.
Production Process
Cane chairs are made from Canes being cut to the required size and design which are fixed in the chair frames using nails. These will intertwine to make comfortable and sturdy cane furniture. The chairs' frames will be created from larger specimens of cane or timber, and the smaller are used for the features that will be added to the frame later in the construction process.
Raw Materials
Cane, Hard timber and Nails are the major Raw materials used in the making of Cane chairs.
Equipment
The major Equipment needed in the process of making cane chairs includes: Carpentry Kit & Sea saws.
Scale of Investment, Capital Investment
Requirements
The total investment cost to start this project is estimated at USD 5, 525.6.
Market Analysis
Given the fact that Cane chairs are durable and Comfortable, there is a high demand and use in Residences, Hotels and Recreation Centres. They can also be exported too. The best example of participating parties in this Industry includes; ORCA, Hwangsung, Nina Interiors, plus so many small scale projects spread all over Uganda.
Project Costs
1. Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount $ |
|
Carpentry Kit |
No. |
1 |
500 |
500 |
|
Sea saws |
No. |
2 |
25 |
50 |
|
Total Amount |
550 |
2. Operating Costs in US $
|
Item |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod.
|
|
Direct Costs |
|
|
|
|
|
|
|
Timber |
Pcs |
5 |
8 |
40 |
1,040 |
12,480 |
|
Cane |
Bdls |
20 |
4 |
80 |
2,080 |
24,960 |
|
Nails |
Kgs |
2 |
2 |
4 |
104 |
1,248 |
|
Vanish |
Ltrs |
4 |
4 |
16 |
416 |
4,992 |
|
Cushions |
Pcs |
3 |
8 |
24 |
624 |
7,488 |
|
Sub total |
164 |
4,264 |
51,168 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
200 |
2,400 |
||||
|
Labour |
400 |
4,800 |
||||
|
Utilities (Power & Water) |
100 |
1,200 |
||||
|
Depreciation (Asset write off) Expenses |
11.5 |
138 |
||||
|
Sub - total |
711 |
8,538 |
||||
|
Total Operating Costs |
4,975 |
59,706 |
3. Project Product Costs & Price Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Cane |
4 |
1,248 |
47.8 |
59,706 |
56 |
69,888 |
4. Profitability Analysis
|
Item |
Per day |
Per Month |
Per Year |
|
Revenue |
224 |
5,824 |
69,888 |
|
Less: Production & Operating Costs |
164 |
4,975 |
59,706 |
|
Profit |
60 |
849 |
10,182 |