MAKING SURGICAL GLOVES (LATEX)


Introduction
This business idea is for making surgical gloves. Surgical gloves, produced by latex dipping, are a thin
gauge latex product, used by surgeons, physicians and other persons in medical profession. There are two types of surgical gloves: one for surgical operations and clinical purposes; and other used for postmortems. The business idea aims at production of 3,000 units per month which translates into 36,000 pairs annually. The revenue potential is estimated at $ 256 per 8tosyear with a sales margin of 15%; the total capital investment for the project is $ 16,492.
Plant Capacity
The profiled plant has a minimum capacity of 36,000 pairs of surgical gloves per annum.
Technology and Production Process

The equipments are: pot mills with jars, a paddle mixer, dipping vats, coagulating tanks, a hot air oven, a micrometer, a hardness tester, a weighing balance and moulds. The raw materials are: natural rubber latex, anti oxides, sulphur, accelerators, zinc oxide and packaging materials. In manufacturing surgical gloves, the ammonia content of the latex is first reduced to about 0.1% by blowing air and by treating with formaldehyde. Then dispersion of various additives is made and added in the latex compound. Later, a coagulant solution is prepared with the mould of aluminum, wood, glass or porcelain, dipped in the coagulant solution and then into the latex compound. After withdrawal, the mould is rotated to assure even distribution of latex film deposits. The next operations are leaching, drying and preliminary finishing operations such as beading. Finally, the gloves are cured in hot air or stream, packed and marketed.
Market Analysis
The demand for surgical gloves is big in hospitals, pharmaceuticals and research centers. The major key players include; ABACUS, RENA Pharmacueticals, KPI, e.t.c.
Scale of Investment
The fixed capital requirement needed to operate this business is 16,492 dollars.
Capital Investment Requirements

Capital Investment item

Units

Qty

Unit cost

Amount

Pot mill

Number

1

170

170

Paddle mixer

Number

1

122

122

Dipping Vats

Number

1

200

200

Coagulating Tanks

Number

2

1,950

3,900

Hot air Oven

Number

1

8,400

8,400

Micrometre

Number

1

100

100

Hardness Tester

Number

1

2,700

2,700

Weighing Balance

Number

1

500

500

Moulds

Number

2

200

400

Totals

14,342

16,492

Production and operation costs in US $

 

Cost item

Units

Unit
cost/
day

Qty/
day

Cost/
day

Cost/
month

Cost/yea
r

Direct Costs






Natural Latex

litres

2.4

15.87

38.08

990

11,880

Antioxidants

litres

1.5

7.5

11.31

294

3,528

Sulphur

kg

2.0

11

21.08

548

6,576

Accelerators

kg

1.3

5

6.15

160

1,919

Zinc Oxide

kg

2.0

2

4.61

120

1,439

Subtotal

9

34

81

2,112

25,342

General Costs (Overheads)






Administration expenses

500

6,000




Labour

700

8,400




Utilities

280

3,360




Rent

400

4,800




Selling & Distribution

458

5,500




Depreciation

344

4,123




Miscellaneous

292

3,500




Subtotals

2,974

35,683




Total operating Costs

5,085

61,025





Sources of Supply of Raw Materials
All raw materials and equipments are imported.
Project product costs and price structure in US$

Item

Qty/d
ay

Qty/
year

Unit
Cost

Prodn/
year

Unit
price

Reven
ue

Gloves

800

249,600

0.24

61,025

0.25

62,400

Profitability Analysis table

Profitability item

Per day

Per month

Per year

Revenue

200

5,200

62,400

Less: Production operating costs

196

5,085

61,025

Profit

4

115

1,375

Sources of Supply of Equipment and Rawmaterials
All Rawmaterials and equipments are imported.
Incentives
Government is willing to finance Health supporting projects and provide technical support to them in a bid to promote Good Health of its Citizens.