MANUFACTURING HALF BRICKS
Introduction
The construction sector is the most vibrant sector in Uganda
today registering the highest level of growth and therefore any investment in
such sector takes a lucrative path. The Business Idea is targeted towards
investing in a sector that is very vibrant with its products being on rising
demand .An estimated output of 499,200half bricks per year has been done and
fixed capital
of 19,875US$ if injected in the project with operating costs of 42,589US$, can
yield an estimated revenue of,880US$ in the first year of operation.
Production Capacity, Technology
&Process
The production capacity depends on the machine used and the skilled manpower
employed to operate it. The production process of bricks is quite simple as it
majorly involves mixing of the soil, moulding, drying the bricks but gently in
a shade not by direct sunshine to reduce cracks that may develop on the brick.
After drying them for about two weeks, they are well built to gather and then
burnt. The burnt bricks are left for about four days and thereafter can be sold.
Market Analysis
The demand for bricks is very high more especially by housing estate developers, construction companies, and individuals. The key players include; Uganda clays, Lweza Clays and PAN Clay works.
The investment scale depends on the set objectives of the
project.
Capital Investment Requirements in US$
|
Capital investment item |
units |
Qty |
unit |
Total |
|
Furniture &Fittings |
No |
- |
- |
450 |
|
Double Shaft mixer |
No |
1 |
4,000 |
4,000 |
|
Truck (3Tones) |
No |
1 |
12,000 |
12,000 |
|
Shade &glazing room |
No |
- |
1,500 |
1,500 |
|
Water tank |
No |
3 |
450 |
1,350 |
|
Spades, hoes, axes |
No |
- |
- |
375 |
|
Other tools |
No |
- |
- |
200 |
|
Total |
19,875 |
Production
and Operating Costs
1) Production costs assumed 312 days per year with daily capacity of producing
1,600half bricks.
2) Depreciation (fixed asset 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.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars
Production and Operating costs
|
Cost Item |
Units |
Unit |
Qty/d |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Plastic red Clay |
kgs |
0.02 |
900 |
18 |
468 |
5,616 |
|
Water |
ltrs |
0.005 |
1,500 |
7.5 |
195 |
2,340 |
|
Carbonized |
kgs |
0.03 |
400 |
12 |
312 |
3,744 |
|
Rice husk Ash |
kgs |
0.02 |
300 |
6 |
156 |
1,872 |
|
Sub-total |
3,100 |
43.5 |
1,131 |
13,572 |
||
|
General Costs(Overheads) |
||||||
|
Firewood |
420 |
5,040 |
||||
|
Fuel |
347 |
4,158 |
||||
|
Labour |
708 |
8,500 |
||||
|
Feeding costs |
175 |
2,100 |
||||
|
Utilities |
21 |
250 |
||||
|
Ground and office rent |
288 |
3,450 |
||||
|
Miscellaneous |
46 |
550 |
||||
|
Depreciation |
414 |
4,969 |
||||
|
Sub-total |
2,418 |
29,017 |
||||
|
Total Operating Costs |
3,549 |
42,589 |
|
Item |
Qty/day |
Qty/yr. |
Unit |
Prod |
Unit |
Total revenue |
|
Half |
1,600 |
499,200 |
0.09 |
42,589 |
0.15 |
74,880 |
Profitability Analysis Table
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
240 |
6,240 |
74,880 |
|
Less: Production & Operating Costs |
137 |
3,549 |
42,589 |
|
Profit |
103 |
2,691 |
32,291 |