MAKING RUBBER MOULDED PRODUCTS
Introduction
This business idea is for making rubber molded products. Rubber molded products
are mostly used in automobile and assembling units. Molded rubber products find
extensive use in railways, automobile, and bicycles and also in many industrial
and domestic appliances. The business idea aims at production of 1,300 kgs of
rubber products per month. The revenue potential is estimated at US$ 800 per
year with a sales margin of 10%. The total capital investment for the project
is US$ 15,390.
Production Capacity
The profiled plant has a minimum capacity of 36,000 Kgs of rubber products per
annum when operating a single shift of eight hours a day, 300 days per annum.
Technology and Process Description
Natural rubber latex is compounded with zinc oxide, anti-oxidants, paraffin
wax, satiric acid, china clay, needle oil, ammonium chloride, in a rubber
mixing mill. This mixture is extruded as slabs or other forms of rubber
sheeting and then fed into moulds in measured quantities to the compression
moulding press. These are cured by steam from a boiler.
Market Analysis
The demand for these products is high in the Construction and Mechanical
sector. These are the fastest growing sectors in Uganda, hence an increasing
demand. There are no investors in this industry.
Scale of Investment
1. Capital Investment Requirements
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Rubber Mixing Mill |
No |
1 |
220 |
220 |
|
Extruder |
No |
1 |
12,500 |
12,500 |
|
Hot Press |
No |
1 |
300 |
300 |
|
Boiler |
No |
1 |
2,000 |
2,000 |
|
Moulds |
No |
10 |
22 |
220 |
|
Weighing Scale |
No |
1 |
150 |
150 |
|
Total |
15,390 |
2. Production and Operation costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct costs3: |
||||||
|
Rubber |
Kgs |
0.38 |
50 |
19 |
500 |
6,000 |
|
Zinc Oxide |
Litres |
0.46 |
20 |
9 |
240 |
2,879 |
|
Antioxidant |
Litres |
0.79 |
10 |
8 |
206 |
2,471 |
|
Paraffin |
Kgs |
0.12 |
30 |
4 |
|
Wax |
93 |
1,115 |
|
|||
|
Needle Oil |
Litres |
0.34 |
5 |
2 |
45 |
538 |
|
Satiric Acid |
Litres |
2.51 |
5 |
13 |
326 |
3,910 |
|
Ammonium |
Kgs |
0.22 |
7 |
2 |
40 |
480 |
|
China Clay |
Kgs |
0.27 |
8 |
2 |
56 |
676 |
|
Subtotal |
1,506 |
18,067 |
||||
|
General costs (Overheads) |
||||||
|
Labour |
400 |
4,800 |
||||
|
Utilities |
500 |
6,000 |
||||
|
Selling and Distribution |
200 |
2,400 |
||||
|
Administrative expenses |
200 |
2,400 |
||||
|
Shelter |
600 |
7,200 |
||||
|
Depreciation (Asset write off) Expenses |
321 |
3,847 |
||||
|
Sub-total |
2,221 |
26,647 |
||||
|
Total Operating Costs |
3,726 |
44,715 |
||||
Production is assumed for 312 days per year. Depreciation assumes 2 year life of assets written off at 50% per year for all assets. A production Month is assumed to have 26 work days.
3. Project Product costs and Price
Structure [US$]
|
Item |
Qty/day |
Qty/yr |
Unit cost |
Prod/yr |
Unit |
Total/Revenue |
|
Zinc |
50 |
15,600 |
3 |
44,715 |
5 |
78,000 |
4. Profitability Analysis Table
|
Profitability Item |
Per day |
Per Month |
|
Revenue |
250 |
6,500 |
|
Less: Production and Operating Costs |
143 |
3,726 |
|
Profit |
107 |
2,774 |