MAKING SANITARY TOWELS
Introduction
This business idea is for production and marketing of sanitary towels. A
sanitary towel is an absorbent item worn by a woman while she is menstruating,
recovering from vaginal surgery or any other situation where it is necessary to
absorb a flow of blood from a woman's vagina. The towels are made of cotton,
which is extensively grown in Uganda. The product is a necessity. The total
investment cost is estimated at US$ 47,749 per year, with a production capacity
of 200 packets per day and revenue estimated at US$140 per year.
Production process:
Cotton yarn is knitted into loose fabric tube. The loose fabric tube is cut
into required pieces of absorbent cotton with the ends of the towels tied by
thread. The towels are packed in printed polythene bags.
Market Analysis
Sanitary towels are on high demand in urban areas and are supplied in
Supermarkets, Retail shops, Hospitals, Dispensaries, Educational institutions
and clinics. Demand has stretched to rural areas due to
raising standards of living. The key players include Unilever (U) Ltd, Makerere
University Science and Technology Department.
Capital Investment Requirements in US $
|
Item |
Units |
Qty |
Unit Cost |
Amount |
|
Hand driven knitting machine |
No. |
2 |
1,500 |
3,000 |
|
Yarn twister |
No. |
4 |
43 |
172 |
|
Total cost of machinery |
3,172 |
Production and Operating Costs in US $
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Cotton threads |
Cartons |
1 |
2 |
2 |
52 |
624 |
|
card boards |
No. |
9 |
3 |
27 |
702 |
8,424 |
|
Cotton staple |
Yard |
4 |
2 |
8 |
208 |
2,496 |
|
Absorbent |
kg |
7 |
5 |
35 |
910 |
10,920 |
|
Craft papers |
Grams |
16 |
8 |
128 |
3,328 |
39,936 |
|
General costs(overhead |
||||||
|
Utilities(water and power) |
50 |
600 |
||||
|
Labour |
100 |
1200 |
||||
|
Rent |
125 |
1,500 |
||||
|
Production and operating costs |
50 |
600 |
||||
|
Distribution costs |
260 |
3,120 |
||||
|
Depreciation(Asset write off)Expenses) |
66 |
793 |
||||
|
Sub -total |
651 |
7813 |
||||
|
Total Operating Costs |
3,979 |
47,749 |
1, Production costs assumed 312 days per year with a daily
capacity of 200, packets of sanitary towels
2, Depreciation (fixed assets write off) assumes 4 years life of assets written
off at 25% per year for all assets
3, Direct costs include materials, supplies and other costs that directly go
into production of the product.
Project Product Cost and Price
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
Total |
|
Sanitary |
200 |
62,400 |
0.77 |
47,749 |
0.9 |
53040 |
Profitability Analysis ($)
|
Profitability Item |
Per day |
Per month |
Per Year |
|
Revenue |
170 |
4,420 |
53,040 |
|
Less production and |
153 |
3,979 |
47,749 |
|
Profits |
17 |
441 |
5,291 |