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 |
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 |
Qty/day |
Prod |
Prod |
Prod |
|
Sponge(21/2 |
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 |
Prod |
Unit |
Total |
|
Bicycle |
150 |
46,800 |
2.13 |
99,490 |
2.3 |
105,300 |
Profitability Analysis in US$
|
Profitability Item |
Per |
Per |
Per |
|
Revenue |
338 |
8,775 |
105,300 |
|
Less production and operating Costs |
319 |
8,291 |
99,490 |
|
Profit |
19 |
484 |
5,810 |