REXENE WORKS (BICYCLE CARRIER SEATS)


Introduction
This business idea is for the production and marketing of Rexene products, Rexene finds a wide application ranging from being used as seat covers to covering material. Rexene works include: bicycle carrier seats that are used in transportation of people. As Rexene products are cost effective, flexible and long lasting, there is a good demand for Rexene products that is untapped. The production capacity is estimated at 150 seats per day, total investments are estimated at US$ 99,490 per year and revenue estimates at US$ 300 per year.


Production Process
After creating patterns, Rexene is put along with a suitable cloth lining stitched along with the needed fittings like, sisal roll plywood sponge and glue etc. The Rexene material can also be used for making two-wheeler seats covers, using the same machines.


Market Analysis
A relatively low cost process, products made out of Rexene have tremendous market potential. There are very many participants in this area spread across the Country.



Capital Investment Requirements in US$

Capital investment item

Units

Qty

Unit cost

Amount

Sewing machine with 1/4
horse power

No.

3

2,000

6,000

Other tools

No.

1,000

1,000


Total Costs on Equipment

7,000




 

Production and Operating costs in US$

Cost Item

Units

Unit
cost/day

Qty/day

Prod
cost/
day

Prod
cost/
month

Prod
cost/
year

Sponge(21/2
x6)

ft.

1

60

30

780

9,360

Sisal

Rolls

2

2

3

78

936

Glue

Ltrs

6

3

18

468

5,616

Threads

sets

2

2

4

104

1,248

Plywood

Mtrs

8

30

240

6,240

74,880

Sub-total



97

295

6,890

92,040

General costs (overheads)







Utilities (water and power)

50

600





Labour

250

3,000





Rent

100

1,200





Miscellaneous costs

50

600





Administration costs

25

300





Depreciation (Asset write off)Expenses)

146

1,750





Sub -total

621

7,450





Total Operating Costs

7,511

99,490





Production costs assumed are for 312 days per year with a daily capacity of 150 bicycle carrier seats
Depreciation (fixed assets write off) assumes 4 years life of assets written off at 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 /yr

Unit
Price

Total
Revenue

Bicycle
carrier
seats

150

46,800

2.13

99,490

2.3

105,300

 

Profitability Analysis in US$

Profitability Item

Per
day

Per
month

Per
Year

Revenue

338

8,775

105,300

Less production and operating Costs

319

8,291

99,490

Profit

19

484

5,810