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Compedium of Diaspora opportunities

MAKING HAND MADE PAPER BUSINESS IN UGANDA

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Introduction

This Business Idea is about the manufacturing of paper from agro-waste and cotton waste. It is popularly known as hand paper because the production process is labour oriented. Paper and paper products are of great value to mankind in modern times. Paper is a basic means or medium of communication, and of great use in dissemination, capture, and storage of information. This is an ideal project because the demand is immense and all paper used in this country is imported.

Secondly, the paper produced is cheap and the raw materials are readily available locally. Thirdly it could be located in rural areas where the raw materials are in plenty, and where the end users are found instead of transporting it long distances.

The project requires estimated fixed capital of US$ 12,300 and operating costs of US$ 325,635 generating revenue of US$ 499,200. This venture is estimated to yield a net profit margin of 35% and a payback period of 3 months.

Production Process and Capacity

This process produces paper between 150 to 600 grams and about one to two tons could be produced every day. Waste paper as well as grass, jute, rice straw and other agro-wastes are made into pulp by cutting them into small pieces that easily dissolve in water and turn into a paste form which is the pulp. This is then refined and colour and chemicals are added. A wet sheet is formed on the mould and is transferred to felt. The cylinder moulded paper is dried and polished over a roller and the paper produced is taken in form of sheets.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ total
Rug Chopper No 1 1,250 1,250
Digester No 1 100 100
Hollander Beater No 1 300 300
Agitator/Shaker No 1 350 350
Cylinder Mould No 1 300 300
Hydraulic Press No 1 500 500
Drying Chamber equipment No 1 1,000 1,000
Calendaring machine No 1 1,000 1,000
Paper cutting machine No 1 1,500 1,500
Knife Grinder No 1 1,500 1,500
Delivery Van No 1 4,000 4,000
Furniture & Fittings No 500
Total       12,300

Production and Operating Costs in US$ General Costs(Overheads)

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/ yr
Direct Costs            
Agro waste &waste paper Tns 25 3 75 1,950 23,400
Rosin kgs 3.5 50 175 4,550 54,600
Whitening agent kgs 4.4 50 220 5,720 68,640
Starches kgs 1.2 150 180 4,680 56,160
Caustic Soda kgs 1.3 50 65 1,690 20,280
Bleaching powder kgs 4 50 200 5,200 62,400
Dyes &other chemicals kgs 0 500 6,000
Sub-total     353 915 24,290 291,480
Rent 400 4,800
Labour 1,000 12,000
Utilities 640 7,680
Cleaning and Toiletries 100 1,200
Selling & distribution 325 3,900
Miscellaneous 125 1,500
Depreciation 256.25 3,075
Sub-total 2,846 34,155
Total Operating Costs 27,136 325,635

Market Analysis

As far as paper is concerned, any amount or tonnage that is produced would find market. Currently all sorts of paper in this country are imported. Thus, the potential is inexhaustible. Secondly, this is a project which would easily be located where the consumers are since the major input raw materials are everywhere.

 

Project Product Costs and Price Structure

Item Qty/ day Qty/yr @ Pdn Cost/ yr UPx Total Rve
Handmade Paper 800 249,600 1.30 325,635 2 499,200

Profitability Analysis Table

Profitability Item Per day Per Mnth Per year
Revenue 1,600 41,600 499,200
Less: Production and Operating Costs 1,044 27,136 325,635
Profit 556 14,464 173,565

 

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