MAKING RUBBER ERASERS
Introduction
An eraser or rubber is an article of stationery that is
used for removing pencil and sometimes pen writings. Erasers have a rubbery
consistency and are often white or pink, although modern materials
allow them to be made in any color. Many pencils are equipped with an eraser on
one end. Typical erasers are made from synthetic rubber, but more expensive or
specialized erasers can also contain
vinyl, plastic, or gum-like materials. Other cheaper erasers can be made out of
synthetic soy-based gum.
Used by school and college going students, erasers are used in addition to the
common pencil erasers and some special type of erasers such as typewriter print
erasers, ink erasers, etc., which are used in offices and other establishments.
The project cost is US$139,300 producing 624,000 units annually giving
estimated revenue of US $ 1a00 per year.
Production process
The process essentially consists of the following steps:
i) Mixing of various ingredients of the rubber compound namely pale crepe, sulphur, white factice, whiting, zinc oxide and other chemicals and colours.
ii) Moulding the same, in the form of desired shapes and sizes. The profiled plant has a minimum capacity of 2,000 rubber erasers per day.
Market Analysis
The demand for rubber erasers is closely linked with the growth of education and industrial establishments. With the increasing number of schools, colleges, educational institutions and offices, the market for erasers is poised for growth. The major key players in this industry includes; Picfare.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Mixing mill |
No |
1 |
500 |
500 |
|
Hydraulic |
No |
1 |
150 |
150 |
|
Grinder machine |
No |
1 |
750 |
750 |
|
other tools & equipment |
No |
1 |
1,500 |
1,500 |
|
Total costs for equipment |
2,900 |
1. Production costs assumed are for 312 days per year with daily capacity of 2,000 rubbers.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. . Direct costs include: e materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 days
5. Currency used is US Dollars.
Production
and Operating costs in US$
Direct material, supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
||||||
|
Direct Costs |
|
|||||||||||
|
Rubber |
kgs |
25 |
16.03 |
400.64 |
10416.7 |
125,000 |
125,000 |
|
||||
|
Sulphur |
kgs |
15 |
0.32 |
4.81 |
125.0 |
1,500 |
1,500 |
|
||||
|
other |
ltrs |
7.5 |
0.16 |
1.20 |
31.3 |
375 |
375 |
|
||||
|
Packing |
pkts |
0.5 |
9.62 |
4.81 |
125.0 |
1,500 |
1,500 |
|
||||
|
Sub-total |
411 |
10,697.92 |
128,375 |
|
|
|||||||
|
General Costs (Overheads) |
|
|
||||||||||
|
Labour |
250 |
3,000 |
|
|
||||||||
|
Selling & distribution |
100 |
1,200 |
|
|
||||||||
|
Utilities (Water, power) |
300 |
3,600 |
|
|
||||||||
|
Administration |
50 |
600 |
|
|
||||||||
|
Rent |
100 |
1,200 |
|
|
||||||||
|
Miscellaneous expenses |
50 |
600 |
|
|
||||||||
|
Depreciation |
60 |
725 |
|
|
||||||||
|
Sub-total |
910 |
10,925 |
|
|
||||||||
|
Total Operating Costs |
11,608.32 |
139,300 |
|
|
||||||||
Project product costs and Price structure in US$
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Dehydrated |
2,000.0 |
624,000 |
0.22 |
139,300 |
0.25 |
156,000 |
Profitability Analysis in US$
|
Item |
Per day |
Per month |
Per year |
|
Revenue |
500 |
13,000 |
156,000 |
|
Less:
Production and operating |
446 |
11,608 |
139,300 |
|
Profit |
54 |
1,392 |
16,700 |