MAKING PRINTED SHOPPING BAGS
Introduction
Shopping bags or carrying bags are made from LD/LLDPE plastic, which is used by traders and business houses with their firm names printed in multi–colors using offset printers. This project involves capital of US$153,638 which in return brings in gross profits of US$150,000 with a profit margin of US$ 3,638 per annum. The bags are not only convenient but are also a means of advertising and sales promotion. What is proposed here is to set up a plant to make printed shopping bags, which are environmentally friendly since they can be recycled.
Production Capacity
The proposed plant would have a minimum capacity of 150 tonnes per annum. The shopping bag production capacity is about 57,600 units of bags per annum.
Production Capacity, Technology, and Process Description
LD/LLDPE mixture after feeding to the blown film extruder, is melted and pumped out in the form of a tube, which is blown into a bubble and collapses to form a lay flat. The lay flat is given corona treatment and printed in the flex printing machine. The film is converted into a bag by attaching a handle and sealing the bottom.
Raw Materials Requirements
These are made out of plastics, which are used by traders and business houses with their firms' names printed on them in multicolor offset printers. This is a way of advertising and sales promotion. Within Uganda, these are mainly used by supermarkets and textile sellers. The market is highly readily in Uganda.
Market Analysis
There is a great market potential spread all over the Country as they are Trendy items. This industry is not yet developed in Uganda.
Capital Investments requirements in US$
|
Item |
Units |
Qty |
Unit cost |
Amount |
|
Film Blowing machine |
No. |
1 |
1,000 |
1,000 |
|
Printing Machine |
No. |
1 |
580 |
580 |
|
Rocker Hydraulic pressure cutting |
No. |
1 |
944 |
944 |
|
Paper bag-making machine |
No. |
1 |
630 |
630 |
|
Other equipment |
1 |
520 |
520 |
|
|
Total |
3,674 |
Production and operating costs in US $
Direct Materials, Supplies, and costs
|
Cost item |
Units |
Unit |
Qty/ |
Cost/ |
Cost/ |
Cost/ |
|
Direct Costs |
||||||
|
Turned leather |
Kg |
0.8 |
50 |
40 |
1,040 |
12,480 |
|
Dye |
liters |
0.5 |
20 |
10 |
260 |
3,120 |
|
Water |
0.6 |
10 |
6 |
1,708 |
20,496 |
|
|
Subtotal |
1.9 |
80 |
56 |
3,008 |
36,096 |
|
|
General Costs (Overheads) |
||||||
|
Administration expenses |
542 |
6,500 |
||||
|
Labor |
2,083 |
25,000 |
||||
|
Utilities |
650 |
7,800 |
||||
|
Rent |
650 |
7,800 |
||||
|
Selling & Distribution Expenses (Advertising) |
233 |
2,800 |
||||
|
Depreciation |
77 |
919 |
||||
|
Miscellaneous |
208 |
2,500 |
||||
|
Subtotals |
4,443 |
53,319 |
||||
|
Total operating Costs |
7,451 |
89,415 |
Project product costs and price structure in US$
|
Item |
Qty/ |
Qty/ |
Unit |
Prod. |
Unit |
Revenue |
|
Shopping |
600 |
187,200 |
0.48 |
89,415 |
0.6 |
112,320 |
Profitability Analysis in US$
|
item |
Per day |
Per month |
Per year |
|
Revenue |
360 |
9,360 |
112,320 |
|
Less: Production operating costs |
287 |
7,451 |
89,415 |
|
Profit |
73 |
1,909 |
22,906 |