PAINT MANUFACTURING

• Manufacturing
• Printing And Design

Introduction

Paint manufacture involves the mixing of different chemicals at different sequences and at specified duration for them to set and form a thick and, or sticky solution that is used to coat structure surfaces when applied to give them a decorated look of the desired colours. The mixing is done by a trained person with acumen in that field. This industry product is on high demand since the Construction sector is growing very fast and booming. The capital outlay is a bit stretched but the return on investment justifies it. The project requires an estimated fixed capital of US$ 14,454 and operating costs of US$ 283,820 generating revenue of US$ 280 in the first year of operation.

Production Capacity, Technology and Process

Paint manufacture machinery and equipment can be located in a moderate space of about 15ft *20ft, and a store of about 15ft* 10ft plus an office space of about 120 square feet. The factory production capacity depends on the size of the machinery the shifts operated and the capital invested. If materials are available, the factory can operate up to three shifts. Costing is based on a capacity of 2,000 jerry cans of emulsion paint a month. The process involves paint formulations designed in the laboratory and raw materials to suit a particular batch are specified. The specified materials are placed in a high speed mixer for a specified time. Afterwards, the paint base or concentrate is transferred to an agitate tank where tints and more chemicals are added. Once a proper consistency is achieved, the paint is filtered to remove any non-dispersed pigment and any foreign properties. This process may take a minimum of one hour. The paint is then filled in tins or jerry cans or drums depending on the demand.

Market Analysis

Construction Sector is one of the fastest growing sectors in the country. There is therefore, a ready market for the paint and paint products once quality is taken into account during production. Construction Companies, Estate Developers, Hardware shops, Institutions as well as individuals are the potential customers. The basic key players in this sector include; Sadolin paints, Basco paints, Peacock paints among others.

Capital Investment Requirements in US$

Item	Units	Qty	Unit cost	total
Mixer	No	1	2,150	2,150
Electrical Installation	No	-	-	750
Weighing Scale (Digital)	No	1	250	200
Laboratory Equipment	No	1	250	250
600 Liter drums	No	3	150	450
Jerry cans	No	1,600	2	2,960
Pickup	No	1	7,500	7,500
Viscometer	No	1	100	100
Carrier Trolley	No	1	50	50
Time Watch	No	1	4	4
Tool Kit	No	1	40	40
Total	14,454

 

Production and Operating Costs
Direct Materials, Supplies and Costs

Cost Item	Units	Unit Cost		Qty/d ay		Prod Cost/ day		Prod Cost/ month	Prod Cost/ yr
Direct Costs
TT	Kgs		3		96		288	7,488	89,856
PVA	Kgs		2		80		160	4,160	49,920
Whiting	Kgs		0.15		1,600		240	6,240	74,880
Foam line	Ml g m		1.5		11.2		17	437	5,242
Ammonia	Ml g m		0.02		400		8	208	2,496
Nitro Sal	Kgs		11		24		264	6,864	82,368
Water	Ltrs		0.03		1,920		58	1,498	17,971
Packaging Materials	Pcs		2		160		320	8,320	99,840
Sub-total	4,291		688		17,888		214,656
General costs (Overheads)
Rent	750		9,000
Labour	1,454		17,450
Protective ware	83		1,000
Power	1,950		23,400
Selling and Distribution	688		8,250
Cleaning and Toiletries	271		3,250
Miscellaneous	267		3,200
Depreciation	301		3,614
Sub-total	5,764		69,164
Total Operating Costs	23,652		283,820

 

1)    Production costs assumed 312 days per year with daily capacity of producing 160-20ltr jerry cans of emulsion paint.

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/ day	Qty/yr	Unit Cost	Prod Cost/yr	Unit Price	Total Revenue
Emulsion Paint	160	49,920	5.69	283,820	9	449,280

 

Profitability Analysis Table

Item	Per day	Per month	Per year
Revenue	1,440	37,440	449,280
Less: Production and Operating Costs	910	23,652	283,820
Profit	530	13,788	165,461