MAKING OFFICE GLUE
Introduction
This profile
envisages the establishment of a plant that will
manufacture office glue based on the capacity of 500 liters per day.
The simplest glue is that made from a paste of flour and water.
Production Process
1. Put plain white flour and water into
a bowl depending on
how much glue you need.
2. Mix the flour and water together until a
smooth paste is
achieved. It should not be too thick or too drippy
3. Use it soon after creating it. It can be used
to stick paper
together.
Scale of Investment, Capital Investment
Requirements
The total
capital investment cost to start this project is estimated at
USD 8,300.
Market Analysis
The demand
for office glue 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 |
|
Gas Cooker |
No. |
1 |
500 |
500 |
|
Boiler |
No. |
1 |
100 |
100 |
|
Bowls |
No. |
2 |
100 |
200 |
|
Total Amount |
8,300 |
2. Operating Costs in US$
|
Item |
Units |
Unit Cost |
Qty/ |
Prod |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Manioc Powder |
Kgs |
0.5 |
250 |
125 |
3250 |
39000 |
|
Vinegar |
Litres |
2.5 |
100 |
250 |
6500 |
78000 |
|
Water |
Litres |
0.05 |
200 |
10 |
260 |
3120 |
|
Sub total |
385 |
10,010 |
120,120 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
400 |
4,800 |
||||
|
Packaging Material |
500 |
6,000 |
||||
|
Labour |
800 |
,600 |
||||
|
Utilities (Power & Gas) |
1,000 |
12,000 |
||||
|
Repair & Servicing |
500 |
6,000 |
||||
|
Fuel |
500 |
6,000 |
||||
|
Depreciation (Asset write off) Expenses |
173 |
2,075 |
||||
|
Sub - total |
3,873 |
46,475 |
||||
|
Total Operating Costs |
13,883 |
166,595 |
3. Project Product Costs & Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
T/rev |
|
Glue |
500 |
156,000 |
1.06 |
166,595 |
1.5 |
234,000 |
4. Profitability Analysis in US$
|
Item |
Per day |
Per |
Per |
|
Revenue |
750 |
19,500 |
234,000 |
|
Less: Production & Operating Costs |
385 |
13,883 |
166,595 |
|
Profit |
365 |
5,617 |
67,405 |