MANUFACTURING MOSQUITO REPELLANT CREAM
Introduction
This business proposal is for producing creams that drives mosquitoes away from whoever would apply the cream on his/her body. Mosquitoes are a menace to human race as they transmit malaria parasites through their bite. They must therefore be kept at bay. This can be successfully done by applying a repellent cream which keeps them at bay. The cream is applied on the exposed parts of the body e.g. the face and neck, the legs, the hands, and it remains effective for about 10 hours. The project requires an estimated fixed capital of US$ 992 and operating costs of US$46,248 generating revenue of US$100 in the first year of operation.
Market Analysis
The market for mosquito repellant cream is wide since malaria is one of the biggest killer diseases in Uganda. The people who feel uncomfortable by sleeping under mosquito nets can easily switch to repellant creams.
Production Capacity, Technology and
Process
Snow white petroleum jerry is heated and melted in stainless steel air-tight vessel and when it reaches a boiling point mosquito repellent essential oil is added and allowed to mix thoroughly. Colour may be added if desired. Afterwards, the solution is filled in plastic containers and placed on trays to cool. These are later cleaned, labeled and packed in dozens and sealed for dispatch to the market.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit cost |
total |
|
Production Utensils (assorted) |
No |
- |
- |
125 |
|
Tables |
No |
3 |
100 |
300 |
|
Basins |
No |
5 |
2.5 |
12.5 |
|
Jerry cans |
No |
5 |
2.5 |
12.5 |
|
Charcoal Stove |
No |
2 |
40 |
80 |
|
Total |
992 |
Production and Operating Costs in US$
Direct materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/d |
Prod |
Prod month |
Prod |
|
Direct Costs |
||||||
|
Essential Oil |
Ltrs |
50 |
1 |
1.9 |
50 |
600 |
|
White |
Jerry cans |
28 |
3 |
8.6 |
224 |
2,688 |
|
Petroleum |
Drum |
400 |
4 |
61.5 |
1,600 |
19,200 |
|
Labels |
Pcs |
0.03 |
256 |
7.7 |
200 |
2,400 |
|
Plastic |
Pcs |
80 |
3.5 |
280.0 |
1,120 |
13,440 |
|
Sub-total |
268 |
360 |
3,194 |
38,328 |
||
|
General Costs (Overheads) |
||||||
|
Labour |
175 |
2,100 |
||||
|
Rent |
125 |
1,500 |
||||
|
Selling and Distribution |
50 |
600 |
||||
|
Utilities |
160 |
1,920 |
||||
|
Miscellaneous |
150 |
1,800 |
||||
|
Sub-total |
660 |
7,920 |
||||
|
Total Operating Costs |
3,854 |
46,248 |
1) Production costs assumed 312 days per year with
daily capacity of producing 3,500-150mgs of repellant cream.
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.
Project Product Costs and Price
Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Mosquito |
3,500 |
168,000 |
0.28 |
46,248 |
0.75 |
126,000 |
Profitability Analysis Table in US$
|
Item |
Per day |
Per month |
Per year |
|
Revenue |
404 |
10,500 |
126,000 |
|
Less: Production and Operating Costs |
148 |
3,854 |
46,248 |
|
Profit |
256 |
6,646 |
79,752 |