MAKING PETROLEUM JELLY

• Manufacturing
• Cosmetics and Toiletry

Introduction
Cosmetic products are widely used by many people in the country. Cosmetic products can attract a great customer base if they are of high quality. An estimated fixed cost of US$ 15,264 when injected into the project can yield estimated revenue of US$ 190 in the first year of operation.
Plant Capacity
The idea envisages production of 60,000 units annually.
Production Process
The technology and process is simple. The process involves mixing crude petroleum jelly with lubrication oils using a mixer. The mixture is passed into a boiler and heated until it melts. While being stirred by a mixer, perfumed ingredients are added and stirred together with the boiling jelly. The thoroughly mixed liquid jelly is then passed to a chilling container to cool at a temperature of about 400°c and then packed in the respective packing containers.
Market analysis
The market for cosmetics widely exists in the Country. Producing different brands may increase the sales revenue: the key players includes; Movit products Ltd, Samona products ltd, Mwana mugimu, Sleeping baby e.t.c.
Scale of Investment
1. Capital Investment Requirements

Capital Investment Item	Units	Qty	Unit Cost	Amount
Mixer	No	2	600	1,200
Boiler	No	1	1,700	1,700
Cooler	No	2	350	700
Gas cooker	No	1	750	750
Mixing container	No	2	300	600
Transfer funnels	No	3	38	114
Furniture and fixture	No	1	2,000	2,000
Delivery van	No	1	7,000	7,000
Other tools	No	1	1,200	1,200
Total	15,264

2. Production and Operation costs

Cost Item	Units	Unit cost/ day	Qty/ day	Pdn Cost/d ay	Pdn Cost/ month	Pdn Cost/ Year1
Direct costs3:
Crude Petroleu m Jelly	Kgs	0.75	129	97	2,517	30,200
Oils	Litres	3	7	22	583	7,000
Scented ingredient s	Kgs	7.5	1	10	250	3,000
Wax	Kgs	2	2	4	100	1,200
Packagin g materials	Pieces	0.04	721	29	750	9,000
Sub-total

 

4,200	50,400
General costs (Overheads)
Labour	700	8400
Other materials	1000	12000
Utilities	1500	18000
Administrative expenses	1500	18000
Selling and Distribution	3250	39000
Fuel	3000	36000
Miscellaneous expenses	700	8400
Depreciation (Asset write off) Expenses	2544	30528
Sub-total	14194	170328
Total Operating Costs	18,394	220,728

Production is assumed for 312 days per year. Depreciation assumes 4 year life of assets written off at 25% per year for all assets. A production Month is assumed to have 26 days.
3. Project Product costs and Price Structure

Item	Qty /day	Qty/ yr	Unit Cost	Pdn/yr	Unit price	Total revenue
Petroleu m jelly	721	224,952	1	220,728	1.25	281,190
Total	220,728	281,190

4. Profitability Analysis Table

Profitability Item	Per day	Per Month	Per Year
Revenue	901	23,433	281,190
Less: Production and Operating Costs	707	18,394	220,728
Profit	194	5,039	60,462

Source of Supply of Equipment and Rawmaterials
Equipments and Rawmaterials can be imported from Japan, Asia and Malaysia.
Incentives
The Government maintains favorable tax policies and liberalized economy for investors.