MAKING POWER INVERTERS

Introduction

The business idea is for making and marketing of Power Inverters. This business idea is premised on production of 15 Inventors per month which translates into 180 Inverters per year. The revenue potential is estimated at US $ 4,000 per month which translates into US $ 52,000 per year. The project cost is US $ 108,165.

Production Process

Production process involves making a metallic box, and sealing all its corners with solidal welding. Building the Oslators, Inverter system, Charging system and Automatic system, putting in switches and sockets

Market Analysis

There is an ever-increasing demand for Inverters due to power shortages and interruptions. The market for the inverters is within the country and spreads beyond our borders like Rwanda, Sudan and Congo.  REEM (U) Ltd and Katwe Steel and Dynamo works are the Key players in this Industry..

Capital Investment Requirements in US Dollars

Item    Unit 

 Quantity      Unit Cost     Total  

Solidaling

machine

 No. 

 

1

 

20

 

20

Drill

 No. 

1

20

20

Hand tools

 No. 

10

12.5

125

Total cost of Machinery

165

 

 

 

 

Production and Operation Costs in US$

Direct Materials, Supplies and Costs

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project Product Cost and Price Structure in US $

 Item

 Period

 out put 

 Unit cost 

 unit price 

 Total cost 

 Total

Revenue 

Power

Invertors

 per month 

         

15 

             

455 

           

600 

                          6,820 

              

9,000 

 

 per

         

             

           

              

         

 

year 

180 

5,456 

7,200 

81,839 

108,000 

Profitability Analysis in US$

Profitability item

 per day 

 per month 

 per year 

Revenue

 

 

 

Power Inverters

346

9,000

108,000

Less Prod & Operating Costs

262

6,820

81,839

Profit

84

2,180

26,161