Compedium of Diaspora opportunities
MAKING LLDPE MAILING COVER / ENVELOPES BUSINESS IN UGANDA
Linear low-density polyethylene (LLDPE) is a linear polymer, with short number of branches; it has a narrower molecular weight. LLDPE mailing covers and envelops are a good substitute for the conventional paper covers. Aesthetically designed and lightweight, these envelopes also save on postage charges and can be recycled, have excellent wear and tear resistance and are durable. A plant to make such products can be put up anywhere in Uganda, and it can cost US$78,055 with a production capacity of 50,000Kgs per year. The project is estimated to yield revenue of US$109,996, with a net profit of 29%.
Capital Investment Requirement in US $
|Blown film extruder||No.||1||4500||4500|
|Bag making machine||No.||1||3750||3750|
|TC of tools & Equipment||10,300|
- Production costs assume 312 days per year with daily capacity of 160 Kgs.
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and all other costs incurred to produce the product.
- A production month is 26 work days
- Currency used is US Dollars.
Production and Operation in US $
Direct materials, supplies and costs
Production Process, Capacity and Technology
The LLDPE granules along with fillers and pacifiers are charged into the blown film extruder, to melt and are homogenized and blown vertically upwards through a die and taken up by rollers. The air bubble controls the width of the film. The bubble is cooled by a jet of air. The film is treated for better printability and wound over paper tubes. These rolls are printed and converted in the form of envelope by cutting and side sealing. The profiled plant has a minimum capacity of 50 tonnes per annum on the basis of 312 working days in a year.
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/ yr|
|Filter & pacifiers||Kgms||100||1||50||1,300||15,600|
|Other materials / chemicals||Ltrs||75||1||75||1,950||23,400|
General Costs (Overheads) Project product and Price Structure in US $
|Selling & distribution||100||1,200|
|Utilities (Water, power)||1,000||12,000|
|Total Operating Costs||6,504.5||78,055|
|Item||Qty/ day||Qty/ yr||@||Pdn cost/yr||UPx||TR|
Profitability Analysis in US $
|Profitability Item||Per day||Per month||Per year|
|Less: Production and operating costs||115||3,002||78,055|
LLDPE mailing covers are used for sending documents, brochures, annual reports, magazines, shareholder certificates, etc., through post or couriers. Other features are that they are lightweight, high tear resistant, printable and economic as they can be easily protected from dust & rain, etc which makes this product easily marketable.
Source of Machinery and Materials
The equipment and machines are specialized and computerized and so they can only be imported. They can be got from USA, China, India, etc. Materials are got from Kenya and some locally.
Initial allowance granted in the first year of production 75% granted on the cost base of plant and machinery for industries located elsewhere in the country.