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Compedium of Diaspora opportunities

MAKING CARBON PAPER BUSINESS IN UGANDA

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Introduction:

This business idea is for production and marketing of carbon paper. Carbon paper is paper coated on one side with a layer of a loosely bound dry ink or pigmented coating, usually bound with wax. It is used for making one or more copies simultaneously with the creation of an original document. The total investment requirement is USD1,620 with an operational cost of USD428,157 per year, with TRs estimated at US$ 561,600 per year and production capacity estimated at 4 cartons per day, each carton with 100 pieces.

Production process

The process involves preparation of coating mix, coating on the paper surface, and cutting it into sizes for the market.

Capital investment in US$

Capital investment item Units Qty @ Amount
Coating machine No 1 600 600
Printing machine No 1 410 410
Paper cutting machine No 1 100 100
Ball mill No 1 213 213
Packing materials(kg) No 10 29.7 297
Total cost on machinery       1,620

Production and operating costs in US$

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/yr
Papers Grams 2.6 500 1,300 33,800 405,600
Dyes and waxes Ltrs 4.5 10 45 1,170 14,040
Oil Ltrs 4 4 16 416 4,992
Subtotals     514 1,361 35,386 424,632

General costs(overheads)

Utilities(water and power) 35 420
Labour 50 600
Rent 125 1500
Miscellaneous costs 50 600
Depreciation(Asset write off)Expenses) 34 405
Sub -total 294 3,525
Total Operating Costs 35,680 428,157
  1. Production costs assumed 312 days per year with a daily capacity of 5 cartons carbon papers
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
  3. Direct costs include materials, supplies and other costs that directly go into production of the product.

Project Product costs and Price structures

Item Qty/ day Qty/yr @ Pdn cost /yr UPx TR
Carbon papers 500 156,000 2.74 428,157 3.6 561,600
Total   156,000       561,600

Probability Analysis

Profitability Item Per day Per month Per Year
Revenue 1,800 46,800 561,600
Less production and operating Costs 1,372 35,680 428,157
Profit 428 11,120 133,443

Market Analysis

Carbon papers have a steady market. Carbon papers are used in banks, offices, micro-finance institutions, educational institutions therefore there is a huge potential for carbon paper.

Sources of Raw Materials and Equipments

Raw materials are locally available and equipments can be imported from China or India.

Government facilities and incentives

Some of these items like chemicals used in this industry are imported tax free.

 

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