MAKING ZINC PLATING


Introduction
This business idea is for the production and marketing of Zinc plating. It is used to protect the metal instruments from rust and for

Decoration.

 The business idea is premised on production of 2,600 packs of Zinc plating per month which translates into 31,200 per year. The revenue potential is estimated at US$, 600 per year. This project cost is US$ 188,710.
Production Process
Add the zinc-metal, sodium cyanide and sodium hydroxide in 1:2:3 ratios respectively and the solution is ready for zinc plating done by alkaline electrolytic process. The articles are cleaned by electrolytic cleaning method before zinc plating is done
Market Analysis
Zinc is much used in automobile and electronic industry to protect metallic objects from rusting. Manufacturing industries especially the iron and steel industry with fabrications utilize it extensively. This industry in not developed in Uganda
Capital Investment Requirements in US $

Item

Unit

Quantity

Unit Cost

Total

Rectifier

No.

1

1,370

1,370

Ms Welded tank

No.

1

3,000

3,000

Ms. tank

No.

1

500

500

Elastic barrel

No.

1

30

30

Delivery van

No.

1

2,500

2,500

Total Cost of Machinery

7,400




Production and operating costs in US$
Direct Materials, Supplies and Costs

Cost Item

Units

Unit
Cost
/ day

Qty/
day

Prod.
cost/
day

Prod.
Cost/
month

Prod.
Cost/
year

Zinc salt

Kgs

2.5

50

125

3,250

39,000

Zinc anode

Kgs

3.0

100

300

7,800

93,600

Acids
(HCL/HNO3/
H2So4)

Ltrs

2.5

50

125

3,250

39,000

Pacifying
chemicals

kgs

2.5

5

13

325

3,900

Sub-total

14,625

175,500





General costs (Overheads)







Utilities (power)

15

180





(Utilities (water)

15

180





Salaries

150

1,800





renting

150

1,800





Depreciation (Assets write off) Expenses

154

1,850





Sub-total

484

5,810





Total Operating costs

15,109

181,310





Production assumed 21 days in a month with a capacity of 38,000 eggs per press Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year Direct costs include materials, supplies and other costs that directly go into production of the product


Project Product Cost and Price Structure in US $

Item

Qty/
day

Qty/
yr

Unit
Cost

Prod.
Cost
/year

Unit
price

Total
revenue

zinc
plating

100

31,200

5.8

181,310

10

312,000

Profitability Analysis in US $

Profitability item

per day

per month

per year

Revenue




Rice (super)

1,000

26,000

312,000

Less Production &
Operating Costs

581

15,109

181,310

Profit

419

10,891

130,690