MANUFACTURING SCENTED PHENYL
Introduction
This business idea is for manufacturing and marketing of Scented phenyl. Scented phenyl is used as a disinfectant to clean wash basins, toilets, and kitchen sinks etc. It is used in residential houses and commercial establishments such as: hospitals, offices and shops etc., as a disinfectant and also for some pleasant smell. It is used in most households and other institution like hotels and thus has a good market potential. The business idea is premised on production of 2,600 liters of scented phenyl per month which translates into31,200 liters per annum. The revenue potential is estimated at US$200 per month translating into US$62,400 per annum with a sales margin of 20% and total investment requirement is US$42,850 for the first year of project operation.
Production Capacity
The production capacity depends on the quantity of raw materials and technology used in the production process. But for this case, the plant has a minimum capacity of 31,200 liters of scented phenyl per annum and this is on the basis of 312 working days in a year and 8- hour single work shifts in the working days.
Production Process
The raw materials are weighed and put separately. After preparing the caustic soda solution, required quantities of resin, castor oil, light creosote oil and caustic soda solution, are mixed together in a reactor. After obtaining the final product from the storage tanks, the final product can be packed into bottles and ready for market.
Scale of Investment, Capital Investment
Requirement and Equipment
The Scale of investment depends on the target goals of an investor.
Market Analysis
Market for scented phenyl is growing due to good fragrance and also because of almost the same cost as that of ordinary phenyl. The wide application in commercial establishments, hospitals, hotels, nursing homes and restaurants, etc., has carved a good market niche for this product. In Uganda, this industry is not yet developed.
Capital Investment Requirements in US$
|
|
Units |
Qty |
Unit Cost |
Amount |
|
Reaction vessel |
No |
1 |
500 |
500 |
|
Medium
sealing |
No |
1 |
250 |
250 |
|
Bottle
filling |
No |
1 |
500 |
500 |
|
Storage vessels |
No |
3 |
250 |
750 |
|
Weighing scale. |
No |
1 |
250 |
250 |
|
Total |
2,250 |
Production
and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Rosin |
liter |
0.75 |
30 |
22.5 |
585 |
7,020 |
|
Caster oil |
liter |
0.5 |
15 |
7.5 |
195 |
2,340 |
1. Production costs assumed 312 days per year with a daily capacity of 100 liters of Scented Phenyl.
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. A production month is assumed to have 26 days.
Project Product Costs and Price
Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
T/rev |
|
Scented |
100 |
31,200 |
1.3 |
40,600 |
2 |
62,400 |
Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per Yr |
|
Revenue |
200 |
5,200 |
62,400 |
|
Less:
Production and |
130 |
3,383 |
40,600 |
|
Profit |
70 |
1,817 |
21,800 |