RECYCLING PLASTICS
Introduction
The business idea is to set up a plant to recycle plastics. This business idea
is premised on production of 36,400 plastic products per month which translates
into 436,800 products per year. The revenue potential is estimated at US $, 640
per month which translates into US $ 355,680 per year. The project cost is US $
395,700.
Production Process
The production process in this project involves cleaning of waste plastic,
sorting plastics according to their grades, cutting to small pieces, extruding
or crushing the plastics to get required sizes of granules. Chemicals are mixed
with the crushed plastic to reinstate its originality. The mixture is then put
into a boiler for melting before being transferred into the injection machine
that sends it to the molding machine. The finished product is then removed from
the molds, taken for trimming and packaging.
Market Analysis
There is a growing demand for Plastic products across the country. Plastic
products are also sold to the neighboring countries such as: Rwanda, Burundi
and Congo. Crushed materials of plastics can also be sold to other big
companies in form of raw materials. The major key player in this sector include;
Alfred Muwonge Technology Project
Capital Investment Requirements in US $
|
Item |
Unit |
Qty |
Unit Cost |
Total |
|
Weighing scale |
No. |
1 |
15 |
15 |
|
Molding machine |
No. |
1 |
10,000 |
10,000 |
|
Injection machine |
No. |
1 |
10,000 |
10,000 |
|
Boiler |
No. |
1 |
10,000 |
10,000 |
|
Crushing machine |
No. |
1 |
10,000 |
10,000 |
|
Hand tools |
No. |
20 |
0.3 |
5 |
|
Total Cost of Machinery |
40,020 |
Production and Operating Costs in US $
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod. |
Prod. |
Prod. |
|
Plastics/scrap |
tones |
250 |
1 |
250 |
6,500 |
78,000 |
|
Chemicals |
Ltrs |
0.5 |
20 |
10 |
260 |
3,120 |
|
Sub-total |
6,760 |
81,120 |
||||
|
General costs (Overheads) |
||||||
|
Utilities (power) |
150 |
1,800 |
||||
|
(Utilities (water) |
15 |
180 |
||||
|
Salaries |
350 |
4,200 |
||||
|
Renting |
200 |
2,400 |
||||
|
Depreciation (Assets write off) Expenses |
834 |
10,005 |
||||
|
Sub-total |
1,549 |
18,585 |
||||
|
Total Operating costs |
8,309 |
99,705 |
Production
costs assumed 312 days per year with a daily capacity of 500 Sealing Wax
Depreciation (fixed assets write off) assumes 4 years life of assets write off
of 25% per year for all assets Direct costs include materials, supplies and
other costs that directly go into production of the product.
Project product costs and price
structure in US$
|
Item |
Qty/day |
Qty/yr. |
Unit cost |
Prod.cost |
Unit price |
Total Revenue |
|
Ladies shoes |
200 |
62,400 |
0.2 |
14,244 |
1.5 |
93,600 |
|
Soles |
200 |
62,400 |
0.2 |
12,480 |
1.5 |
93,600 |
|
Front heels |
500 |
156,000 |
0.2 |
31,200 |
0.5 |
78,000 |
|
Hind Heals |
300 |
93,600 |
0.2 |
18,720 |
0.3 |
28,080 |
|
Sandals |
200 |
62,400 |
0.2 |
12,480 |
1.0 |
62,400 |
|
1,400 |
436,800 |
31,200 |
355,680 |
Profitability Analysis in US $
|
Profitability item |
per |
per |
per year |
|
Ladies shoes |
300 |
7,800 |
93,600 |
|
Soles |
300 |
7,800 |
93,600 |
|
Front heels |
250 |
6,500 |
78,000 |
|
Hind Heals |
90 |
2,340 |
28,080 |
|
Sandals |
200 |
5,200 |
62,400 |
|
Less Prod & Operating Costs |
320 |
8,309 |
99,705 |
|
Profit |
820 |
21,331 |
255,975 |