MAKING PLASTIC BANGLES
Introduction
This business idea is for the production and marketing of plastic bangles Women
world over wear bangles for elegance. Plastic bangles have a good market as
they are available in different designs and colours for different occasions and
seasons. Thus setting up a plant to make plastic bangles is a good business and
is quite viable. The total revenue is estimated at US$ 200 per year while the
production capacity is estimated at 1,000 bangles per day. The total investment
is estimated at US$ 1,380,714 per year.
Production process
In manufacturing plastic bangles, acrylic pipes of different diameters are cut
as per the demanded market size and thickness, which are engraved and polished
and ultimately packed for market.
Market Analysis
Plastic bangles have a ready market both in rural and urban areas. However,
these items are being imported in Uganda.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit cost |
Amount |
|
Socket buffing machine |
No. |
1 |
1,250 |
1,250 |
|
Fixer |
No. |
2 |
500 |
1,000 |
|
Testing machine |
No. |
1 |
125 |
125 |
|
Total cost on machinery |
2,375 |
Production and Operating cost in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
A cyclic |
mtrs |
40 |
50 |
2,000 |
52,000 |
624,000 |
|
Colour |
Kgs |
5.0 |
60 |
300 |
7,800 |
93,600 |
|
Sub-total |
110 |
2,300 |
59,800 |
717,600 |
||
|
General costs(overheads) |
||||||
|
Utilities(water and power) |
150 |
1,800 |
||||
|
Labour |
750 |
9,000 |
||||
|
Rent |
250 |
3,000 |
||||
|
Miscellaneous costs |
500 |
6,000 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation (Asset write off)Expenses) |
49 |
594 |
||||
|
Sub -total |
1,959 |
23,514 |
||||
|
Total Operating Costs |
61,759 |
741,114 |
Production costs assumed are for312 days per year with a
daily capacity of 1000 bangles.
Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets.
Direct costs include: materials, supplies and other costs that directly go into
production of the product.
Project product Costs and Price Structure in US $
|
Item |
Qty/day |
Qty/ yr |
Unit Cost |
Prod cost /yr |
Unit Price |
Total |
|
plastic |
1,000 |
312,000 |
4.43 |
1,380,714 |
5.0 |
1,560,000 |
Profitability Analysis in US$
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
5,000 |
130,000 |
1,560,000 |
|
Less production and operating Costs |
4,425 |
115,059 |
1,380,714 |
|
Profit |
575 |
14,941 |
179,286 |