SYNTHETIC GEM CUTTING AND POLISHING
Introduction
This business idea is for cutting and
polishing synthetic gem. . Synthetic gems are widely used in preparation of
imitation jewelry and also in decorative jewelry, fancy articles, mirrors, slip-on,
ready-made garments and bitenge. The business idea aims at production of 5,000
units per month which translates into 60,000 units annually. The revenue
potential is estimated at $ 660 per year
with a sales margin of 15%. The total capital investment for the project is $
6,860.
Plant Capacity
The profiled project has a minimum capacity of 60,000 units cut and polished per annum.
Technology and Production Process
The Tools and Equipments used include:
a slicing machine, a performing machine, faceting machine, tools and other
items and office furniture. The raw materials are cutting plates and synthetic
gems.
The rough gem crystal is cut on a thin steel plate and is fed with real diamond
dust mixed with water. The work done in cutting the rough gem crystal gives
deep horizontal and vertical cuts on the rough gem which are chiseled and
hammered out to get a fine gem. Due to its fragile nature, it breaks into rough
coned pieces. The rough pieces are mounted with a pitch and shell on the edge
of bamboo stick, which is pressed against rough carborundum wheels. Finally,
proper facing and polishing of rough-cut pieces is done by using grinding lap
made of gun metal, copper, lead, etc.
Market Analysis
Synthetic gems are widely used in preparation of imitation jewelry, decorative/fancy articles, mirrors, slip-on and ready-made garments. Apart from domestic market, synthetic gems can also be exported. Currently this sector is undeveloped.
Scale of Investment
The business can be operated with a fixed capital of $ 6,860.
Fixed Capital Requirement
Capital Investment Requirements
|
item |
Units |
Qty |
Unit cost |
Amount |
|
Slicing machine |
No. |
1 |
1,280 |
1,280 |
|
Performance machine |
No. |
1 |
700 |
700 |
|
Faceting machine |
No. |
1 |
3,380 |
3,380 |
|
Office Furniture |
No. |
1 |
1,000 |
1,000 |
|
Others |
No. |
1 |
500 |
500 |
|
Total |
6,860 |
The shelter can be rented at 700 dollars annually.
Production And Operation Costs In Us $
Direct Materials, Supplies and Costs
|
Cost item |
Units |
Unit |
Qty/ |
Cost |
Cost/m |
Cost/ |
|
Direct Costs |
||||||
|
Cutting plate |
pcs |
12 |
19 |
228 |
5,928 |
71,136 |
|
Synthetic |
pieces |
10 |
19 |
190 |
4,940 |
59,280 |
|
Other |
pcs |
- |
- |
0 |
1,708 |
20,496 |
|
Subtotal |
22 |
38 |
418 |
12,576 |
150,912 |
|
|
General Costs (Overheads) |
|
|
|
|
|
|
|
Administration expenses |
500 |
6,000 |
|
|
|
|
|
Labour |
2,500 |
30,000 |
|
|
|
|
|
Utilities |
650 |
7,800 |
|
|
|
|
|
Rent |
1,000 |
12,000 |
|
|
|
|
|
Selling & Distribution |
542 |
6,500 |
|
|
|
|
|
Depreciation |
143 |
1,715 |
|
|
|
|
|
Miscellaneous |
375 |
4,500 |
|
|
|
|
|
Subtotals |
5,710 |
68,515 |
|
|
|
|
|
Total operating Cost |
18,286 |
219,427 |
|
|
|
|
Projected Monthly Revenue
Project Product Costs And Price Structure
|
Item |
Qty/ |
Qty/ |
Unit |
Prod/ |
Unit |
Revenue |
|
Jewelry |
150 |
46800 |
4.69 |
219,427 |
5.5 |
257,400 |