MAKING PLASTIC FOLDER FILES
Introduction
This business idea is aimed at Production and Marketing of Plastic Folders. The
idea is premised on production of 13,000 Plastic Folders per month which
translates into 156,000 per year. The revenue potential is estimated at US$ 750
per year. The business has a good market demand throughout the year and has a
production capacity of 500 plastic folders per day. This kind of investment can
cost about US$13,250.
Production Process
PVC sheet and U-shaped profiles are used, which are of different sizes and
thickness made available in the form of rolls. As per the requirements, these
rolls are cut with the help of a plastic welding machine into different sheet
sizes, with the help of a plastic welding machine, into different sheet sizes.
With the help of U shaped profile, PVC sheets are attached as per the folder
requirements.
Market Analysis
There is a good demand for plastic folders with an increase of educational
institutions, banks, financial institutions and other
organizations. Special orders are normally placed by commercial and other
organizations with the manufacturers for different types and sizes of plastic
folders. Plastic folders are stocked in all bookshops, supermarkets and retail
shops through the country. This industry has not registered any investor in
this industry.
Capital Investment Requirements in US $
|
Item |
Unit |
Qty |
Unit Cost |
Total |
|
Plastic Welding machine |
No. |
1 |
5,600 |
5,600 |
|
Plastic Cutting machine |
No. |
1 |
2,600 |
2,600 |
|
Screen printing machine |
No. |
1 |
2,000 |
2,000 |
|
Other tools |
No. |
1 |
50 |
50 |
|
Delivery van |
No. |
1 |
3,000 |
3,000 |
|
Total Cost of Machinery |
13,250 |
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units Kgs |
Unit Cost |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Plastics |
0.1 |
100 |
10 |
260 |
3,120 |
|
|
Sub-total |
260 |
3,120 |
||||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
100 |
1,200 |
||||
|
Utilities (water) |
18 |
210 |
||||
|
Salaries |
150 |
1,800 |
||||
|
Rent |
150 |
1,800 |
||||
|
Depreciation (Assets write off) Expenses |
276 |
3,313 |
||||
|
Sub-total |
694 |
8,323 |
||||
|
Total Operating Costs |
954 |
11,443 |
Production
costs assumed 312 days per year with a daily capacity of 500 Herbal Deodorants.
Depreciation (fixed assets write off) assumes 4 years life of assets write 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/ |
Qty /yr. |
Unit |
Prod. |
Unit |
Total |
|
plastic folders |
500 |
156,000 |
0.1 |
11,443 |
0.8 |
117,000 |
Profitability Analysis in US $
|
Profitability item |
per day |
per |
per year |
|
Revenue |
|||
|
Plastic folders |
375 |
9,750 |
117,000 |
|
Less Prod & Operating Costs |
37 |
954 |
11,443 |
|
Profit |
338 |
8,796 |
105,558 |