MANUFACTURING OF NAIL POLISH

• Manufacturing
• Printing And Design

Introduction
Nail polish is a cosmetic product used by the majority of women in Uganda. It has got market both in rural and urban areas of the country. This project idea was developed on the basis of using the simplest technology in the manufacturing of nail polish with an estimated fixed capital of3,450US$, and operating costs of 175,817US$ used to produce 11,856 liters of nail polish to realize 439US$ of revenue in the first year of operation.

Production Capacity, Technology and Process
The production technology is very complex and may involve the use of robots, but recently a homemade nail polish can be manufactured using a much simpler technology. Here the primary film former called nitrocellulose is mixed with a shimmer or metallic pearl and this may create a good shade if applied but care has to be taken by first applying it on the nails to test its quality.

Market Analysis
The market for cosmetics is readily available country wide and for successful implementation, it is recommended that products are distributed to supermarkets, salons and cosmetic shops that can easily increase sales.

 

 

Investment Scale, Capital Requirements and Equipment
The investment scale is dependent on the set project objectives.
Capital Investment Requirements

Item	Units	Qty	Unit Cost	Total($)
Laboratory testing kit	No	1	500	500
Utensils	No	-	-	400
Portable stirrer with mortar	No	1	1,200	1,200
Bottle filling machine	No	1	450	450
Containers(Drums)	No	2	250	500
Other tools	No	-	-	400
Total	3,450

 

Production and Operating Costs
Direct materials, Supplies and Costs

Cost Item	Units	Unit cost	Qty/ day	Prod cost/ day	Prod cost/ month	Prod cost /yr
Direct Costs
Nitrocellulose	Kgs	11.4	25	285	7,410	88,920
A shimmer	Kgs	9	7	63	1,638	19,656
Metallic pearl	Kgs	5.7	3	17	445	5,335
Ethyl alcohol	Ltrs	6.4	3	19	499	5,990
Bottles- 25ml(packaging)	Pcs	0.05	1,513	76	1,967	23,603
Other materials	-	-	-	167	2,000
Sub-total			1,551	460	12,125	145,504
General Costs (Overheads)
Labour	767	9,200
Utilities	538	6,450
Rent	500	6,000
Administrative expenses	204	2,450
Cleaning & toiletries	100	1,200
Selling & distribution	200	2,400
Miscellaneous expenses	146	1,750
Depreciation	72	863
Sub-total	2,526	30,313
Total Operating Costs	14,651	175,817

1) Production costs assumed are for 312 days per year with daily production capacity of 38 litres of nail polish.
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-work days.
5) The valuation currency used is United States Dollars.

Project Product Costs and Price Structure

Item	Qty/day	Qty/yr	Unit Cost	Prod cost/yr	Unit price	Total Revenue
Nail Polish	1,513	472,056	0.37	175,817	0.7	330,439

 

 

 

 

Profitability Analysis Table

Profitability Item	Per Day	Per Month	Per Year
Revenue	1,059	27,537	330,439
Less: Production & Operating Costs	564	14,651	175,817
Profit	496	12,885	154,622