MANUFACTURING PRINTING INK

• Manufacturing
• Printing And Stationery

Introduction
Printing ink is one of the most needed products in the printing industry. Most of the printing ink is being imported and this gives an opportunity for any new company to explore the un tapped section in the industry. The Business Ideatherefore targets a wide market with an estimated fixed capital of US$ 14,950 and operating costs of US$ 386,96 generating revenue of US$ 600 in the first year of operation.

The most efficient method of manufacturing printing ink is the paste form. Here raw materials such as dry pigments are mixed with additives such as oxidants, modifiers, driers wetting agents in a stainless planetary mixer. The mixture is then passed into a triple roll for a number of times until the required quality standard is attained. The paste form ink is then packed.
Investment Scale, Capital Requirements and Equipment
The investment scale largely depends on the set project objectives.
Market Analysis
The market for printing ink widely exists with major consumers such as: printeries, educational institutions, public and private offices etc. There are no players yet in Uganda.
Capital Investment Requirements in US$

Capital Investment Item	Units	Qty	Unit cost	total
Ball Mill	No	1	1,500	1,500
Varnish Kettle	No	1	750	750
Planetary Mixer	No	1	1,500	1,500
Triple Roll Mill	No	1	2,500	2,500
Vessels	No	2	750	1,500
Hot Plates	No	3	250	750
Furniture	No	-	1,500	1,500
Storage Tanks	No	3	500	1,500
Weighing Scale	No	1	250	250
Laboratory equipment	No	1	2,200	2,200
Other tools	-	-	1,000
Total	14,950

Production and Operating Costs in US$
(a)Direct Materials, Supplies and Costs

Production Capacity, Technology and Process

Profitability Analysis Table in US$

 

Cost Item	Units	Unit Cost	Qty / day	Pdn Cost/ day	Pdn Cost/ mth	Pdn Cost/yr
Direct Costs
Dyes	Kgms	10.00	55	550	14,300	171,600
Solvents	Kgms	5.60	20	112	2,912	34,944
Resins	Kgms	7.00	45	315	8,190	98,280
Waxes	Kgms	4.00	15	60	1,560	18,720
Other Materials	Kgms	-	-	-	708	8,500
Packaging materials	Pcs	0.50	135	68	1,755	21,060
Sub-total	135	1,105	29,425	353,104
Cleaning and Toiletries
Advertising	200	2,400
Labour	1,188	14,250
Utilities	483	5,800
Cleaning and Toiletries	396	4,750
Miscellaneous	175	2,100
Depreciation	380	4,563
Sub-total	2,822	33,863
Total Operating Costs	32,247	386,967

1) Production costs assumed 312 days per year with daily capacity of producing 120kgs of printing ink.
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 in US$

Item	Qty/D ay	Qty/Yr	Unit Cost	Pdn cost/yr	Unit Price	Total Rve
Printing Ink	120	37,440	10.34	386,967	15	561,600

 

Profitability Item	Per day	Per Mnth	Per year
Revenue	700	21,292	561,600
Less: Production and Operating Costs	305	9,281	386,967
Profit	395	12,010	144,126

Sources of Supply of Equipment andRawmaterials:
The major supplies can be imported from China, South Africa and India.
Incentives
There is no VAT charged on raw materials and the government has secured the European Investment Fund which can be accessed by investors through Private Sector Foundation.