MAKING POLYPROPYLENE ENTRANCE MATS

• Manufacturing
• Leather Products

Introduction

This business idea is for making and marketing of polypropylene entrance mats. Polypropylene mats are for their quality, durability and usage in various lobbies and indoors. The product range is made from the best grades of rubber that offers optimum quality. A polypropylene mat is one such example replacing the conventional mat of natural fibers in the market. These mats have a wide market structure mostly in urban areas due to their exceptional performance in visible areas that demand a visibly attractive and durable mat. These provide moisture and grime retention at the passageways and entrances. The business idea is premised on production of 2,600 units per month which translates into 31,200 units per year. The revenue potential is estimated at US$ 400 per year with a sales margin of 10%. Total Investment requirement is US$ 134,053 for the first year of project operation

Technology and Production Process Description

Polypropylene rolls available in different colours, are used in the making of mats with two rolls simultaneously fed as a warp to the web. The Jacquard selects the particular colour tube, which acts as
web. The woven mat comes out as a continuous roll, which is cut to 6 ft. or 9 ft. length. Stitching side stripe machine finishes the mat. Finished products are packed by use of packing machine.

Market Analysis

With increasing urbanization, the consumption of innovative plastic products is on the rise. Polypropylene mat is one such plastic product, which is growing with the increase in demand. Supply to public and private offices, hospitals, supermarket chains, etc., would help in capturing a market for the mats. There are no investors yet in this sector.

Scale of Investment, Capital Investment Requirements and
equipment
Capital Investment Requirements in US$

Item	Units	Qty	Unit Cost	Amount
Looms –3ft wide	No	4	300	1200
Warping machine	No	4	250	1,000
Sewing machine	No	4	250	1,000
Delivery Van	No	1	6,500	6,500
Packing machine	No	1	250	250
Other Equipment	No	500	500
Total	10,450

 

Production and Operating Costs
Direct Materials, Supplies and Costs in US$

Cost Item	Units	Unit cost	Qty/ day	Prod cost/ day	Prod cost/ month	Prod cost/ year
Direct Costs
Polypropylene tubes cloth strip	Mtrs	3	100	300	7,800	93,600
Packing material	No	0.03	50	1.25	33	390
sewing threads	Roll	2	25	50	1,300	15,600
Subtotal	175	351.3	9,133	109,590
General Costs(Overheads)
	Labour				750	9,000
Rent	100				1,200
Utilities( water & power)	50				600
Miscellaneous Costs	50				600
Depreciation(Asset write off)Expenses	218				2,613
Sub-total	1,168				14,013
Total Operating Costs	10,300				123,603

 

5. Production costs assumed are for 312 days per year with a daily capacity of 100 Pieces of polypropylene mats
6. Different Polypropylene mats in different sizes and designs can be made.
7. Depreciation (fixed asset write off) assumes 4 years life of assets written off at 25% per year for all assets.
8. Direct Costs include materials, supplies and other costs that directly go into production of the product.
9. A production month is assumed to have 26 workdays.

Project Product Costs and Price Structure in US$

Item	Qty/ day	Qty/Y r	Unit cost	Prod cost/Yr.	Unit price	T/rev
Polypropylene Entrance mats	100	31,200	4.0	123,603	4.5	140,400

 

Profitability Analysis in US$

Item	Per day	Per Month	Per Yr.
Revenue	450	11,700	140,400
Less: Production and Operating Costs	396	10,300	123,603
Profit	54	1,400	16,798