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Compedium of Diaspora opportunities

MAKING TOOTHPOWDER BUSINESS IN UGANDA

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Introduction

This business idea is for the production and marketing of toothpowder. Tooth powder is healthy for teeth and gums and will leave your mouth feeling super clean and your breath smelling good. Toothpaste simply adds binder agents and water, turning the powder into a paste that has a cleaner feeling and more easily coats the teeth. The TR is estimated at US$62,400per year with a net profit of 51% and a payback period of 2 years and 5 months. The total investment cost of US$15,555per year.

Production Process

Combine three tablespoons of baking soda, one tablespoon salt, and four drops of clove oil in glass or metal bowl. Use a spoon to mix well, mashing mixture against the sides of the bowl to ensure that oil is well distributed. To use powder, place a teaspoonful in the palm of your hand and pick up with a moistened toothbrush and Store powder in small, air-tight jar.

Capital investment requirements USD

Capital investment item Units Qty @ Amount
Distillation unit no 1 620 620
Toothpaste filling machine no 1 1,275 1275
Baby boiler no 1 2,295 2295
Grinder no 1 120 120
Crimping machine with hand operated no 1 945 945
Van no 1 9,000 9000
Drier no 1 1,300 1300
Total cost on machinery       15,555

Production and Operating Costs Direct Materials, Supplies and Costs

Cost Item Units @/ day Qty/ day Pdn cost / day Pdn cost/ month Pdn cost year
Baking soda kg 1.5 5 7.5 195 2,340
Table salt kg 0.8 2 1.6 41.6 499
Clove oil ltrs 2.5 3 7.5 195 2,340
Sub-total     10 16.6 431.6 5,179

General costs(overheads)

Utilities(water and power) 150 1,800
Labour 813 9,756
Rent 150 1,800
Miscellaneous costs 50 600
Distribution costs 650 7,800
Depreciation (Asset write off) Expenses 324 3,889
Sub -total 2,137 25,645
Total Operating Costs 2,569 30,824

Production costs assumed 312 days per year with a daily capacity of 500 tins of tooth powder. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets

Direct costs include materials, supplies and other costs that directly go into production of the product.

 

Project product Cost and Price Structure

Item Qty / day Qty /yr @ Pdn / yr UPx TR
Tooth powder 500 156,000 0.2 30,824 0.4 62,400

Profitably Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 200 5,200 62,400
Less production & operating Costs 99 2,569 30,824
Profit 101 2,631 31,576

Market Analysis

Tooth powder is used in our daily life irrespective of age group. Dental care awareness is increasing all the people’s demand for the paste and powder including the rural masses. As a result, it has a good growing market. It can be supplied to supermarket chains, retail/grocery shops and clinics. This product is stocked almost in all shops throughout the country.

Source of Raw Materials and Equipment

Raw materials and equipments are locally available on market

Government Facilities and Incentives

Government is encouraging small scale businesses and income generating activities to eradicate poverty and create employment.

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