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Compedium of Diaspora opportunities

MAKING RUBBER MOULDED PRODUCTS BUSINESS IN UGANDA

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Introduction

This business idea is for making rubber molded products. Rubber molded products are mostly used in automobile and assembling units. Molded rubber products find extensive use in railways, automobile, and bicycles and also in many industrial and domestic appliances. The business idea aims at production of 1,300 kgs of rubber products per month. The revenue potential is estimated at US$ 78,000 per year with a net profit margin of 42% and a payback period of 2 years. The total capital investment for the project is US$ 15,390.

Production Capacity

The profiled plant has a minimum capacity of 36,000 kgs of rubber products per annum when operating a single shift of eight hours a day, 300 days per annum.

Technology and Process Description

Natural rubber latex is compounded with zinc oxide, anti-oxidants, paraffin wax, satiric acid, china clay, needle oil, ammonium chloride, in a rubber mixing mill. This mixture is extruded as slabs or other forms of rubber sheeting and then fed into moulds in measured quantities to the compression moulding press. These are cured by steam from a boiler.

Scale of Investment

Capital Investment Requirements

Capital Item Units Qty @ Amount
Rubber Mixing Mill No 1 220 220
Extruder No 1 12,500 12500
Hot Press No 1 300 300
Boiler No 1 2,000 2000
Moulds No 10 22 220
Weighing Scale No 1 150 150
Total       15,390

Production and Operation costs General costs (Overheads)

Cost Item Units @/ day Qty/ day Pdn cost/ day Pdn cost/ mth Pdn Cost/ Year
Direct costs3:            
Rubber Kgs 0.4 50 20 520 6,240
Zinc Oxide Litres 0.48 20 9.6 249.6 2,995
Antioxidants Litres 0.8 10 8 208 2,496
Paraffin Wax Kgs 0.12 30 3.6 93.6 1,123
Needle Oil Litres 0.35 5 1.75 45.5 546
Satiric Acid Litres 2.52 5 12.6 327.6 3,931
Ammonium Chloride Kgs 0.22 7 1.54 40.04 480
China Clay Kgs 0.28 8 2.24 58.24 699
Subtotal         1,543 18,511
Labour 400 4,800
Utilities 500 6,000
Selling and Distribution 200 2,400
Administrative expenses 200 2,400
Shelter 600 7,200
Depreciation (Asset write off) Expenses 321 3,848
Sub-total 2,221 26,648
Total Operating Costs 3,763 45,158
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
  3. A production Month is assumed to have 26 work days.

Project Product costs and Price Structure

Item Qty / day Qty/yr Unit Cost Pdn/yr (US$) Unit Price T/ rev(US$)
Zinc sulphate 50 15,600 3 45,158 5 78,000

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 250 6,500 78,000
Less: Production and Operating Costs 145 3,763 45,158
Profit 105 2,737 32,842

Sources of supply of Equipments

Equipments can be got from Eagle Co.Ltd, China and Kebeln Machinery Co. Ltd, China. They can also be got in Uganda.

 

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