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Compedium of Diaspora opportunities

JEWELLERY MAKING BUSINESS IN UGANDA

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Introduction

This is about making jewelery such as rings, brooches, chains, and bracelets by cutting, shaping and polishing the material for producing fashion jewels. Jewelry is used by women mostly though of late men have started using it. This business idea aims at production of 200 pieces of jewelry per day thus 62,400 pieces annually. The revenue potential is estimated at US $ 62,400 annually and the total investment is estimated at US $ 1,580 in the first year of Project operation. The net profit margin is estimated at 39%.

Production Process

It involves collecting, designing and decorating beads, horns, metals, stones, shells and joining them with threads and strings.

Scale of investment
Capital Investment Requirements

Capital Item Units Qty @ Amount
Working table   6 220 1,320
Scissors   5 6 30
Brushes   5 4 20
Needles sets 7.5 6 45
Other equipments   1 165 165
Total       1,580

Production and Operation costs in US$

Cost Item Units Unit cost Qty/day Pdn cost/ day Pdn cost/ mth Pdn cost/ Year1
Direct costs3:          
Beads Kgs 5 4 20 520 6,240
Shells Kgs 3 8 24 624 7488
Stones Kgs 1 5 5 130 1560
Horns   3 5 15 390 4680
Sand paper   5 2 10 260 3120
Strings Mtr 0.75 10 7.5 195 2340
Metals   0.5 10 5 130 1560
Subtotal         2,249 26,988

General costs (Overheads)

Salaries and wages 300 3,600
Utilities 250 3,000
Selling and Distribution 100 1,200
Administrative expenses 180 2,160
Rent 100 1,200
Depreciation (Asset write off) Expenses 54 648
Sub-total 984 11,808
Total Operating Costs 3,233 38,796
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 days.

 

Project Product Costs and Price Structure

Item Qty / day Qty/yr Unit Cost Pdn/yr Unit Price TR
Bead jewelry 100 31,200 1 14,400 0.5 15,600
Metal Jewelry 50 15,600 12.0 187,200 2 31,200
Shell jewelry 50 15,600 0.44 6,864 1 15,600
TOTAL 200 62,400 13 38,796 2.75 62,400

Profitability Analysis Table in US$

Profitability Item Per day Per Month Per Year
Revenue 200 5,200 62,400
Less: Operating Costs 122 3,182 38,796
Profit 322 8,382 23,604

Market

The market for jewels is constant throughout the year and could include the following; beauty shops, market places, street vending places, work places, homesteads, salons and tourist places.

Suppliers of Materials and Equipment

All the materials and equipment can be sourced locally and are readily available since this does not require sophisticated technology.

 

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