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Compedium of Diaspora opportunities

RECYCLING PLASTICS BUSINESS IN UGANDA

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Introduction

This business idea is premised on production of 36,400 plastic products per month which translates into 436,800 products per year. The revenue potential is estimated at US $ 21,331 per month which translates into US $ 255,975 per year. The project cost is US $ 11,028.Net profit is estimated at 72%. Payback is 3 months.

The demand for this idea is high due to the growing demand for Plastic products.

Production Process

The production process involves cleaning waste plastic, sorting plastics according to their grades, cutting to small pieces, extruding or crushing the plastics to get required sizes of granules. Chemicals are mixed with the crushed plastic to reinstate its originality. The mixture is then put into a boiler, melted before transfer into the injection machine that sends it to the molding machine. The finished product is removed from the molds, taken for trimming and packed.

Capital Investment Requirements in US $

Capital Investment Item Units Qty @ Amount
Weighing scale No. 1 28 28
Molding machine No. 1 3,000 3,000
Injection machine No. 1 2,500 2,500
Boiler No. 1 1,500 1,500
Crushing machine No. 1 3,000 3,000
Hand tools No. 20 50 1000
TC of Machinery       11,028

Production and Operating Costs in US $

Cost Item Units @/ day Qty/ day Prod. cost/ day Prod. Cost/ month Prod. Cost/ year
Plastics/scrap tones 250 1 250 6,500 78,000
Chemicals (PVC/ DBP) Ltrs 0.5 20 10 260 3,120
Sub-total         6,760 81,120

General costs (Overheads)

Utilities (power) 150 1,800
(Utilities (water) 15 180
Salaries 350 4,200
Renting 200 2,400
Depreciation (Assets write off) Expenses 834 10,005
Sub-total 1,549 18,585
Total Operating costs 8,309 99,705
  1. Production costs assumed 312 days per year with a daily capacity of 500 Sealing Wax
  2. Depreciation (fixed assets write off) assumes 4 years life of assets write off of 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 structure $

Item Qty/ day Qty/ yr @ Prod. Cost /year UPx TR
Ladies shoes 200 62,400 0.2 14,244 1.5 93,600
Soles 200 62,400 0.2 12,480 1.5 93,600
Front heels 500 156,000 0.2 31,200 0.5 78,000
Hind Heals 300 93,600 0.2 18,720 0.3 28,080
Sandals 200 62,400 0.2 12,480 1 62,400
  1,400 436,800   31,200   355,680

Profitability Analysis in US $

Profitability item per day per month per year
Revenue     TR
Ladies shoes 300 7,800 93,600
Soles 300 7,800 93,600
Front heels 250 6,500 78,000
Hind Heals 90 2,340 28,080
Sandals 200 5,200 62,400
Less: Prod & Operating Costs 320 8,309 99,705
Profit 820 21,331 255,975

Market

There is a growing demand for Plastic products across the country. Plastic products are also sold to the neighboring countries such as: Rwanda, Burundi and Congo. Crushed materials of plastics can also be sold to other big companies in form of raw materials.

Government Incentives Available

Government is encouraging the development of small scale industries in a bid to curb poverty and create employment.

Suppliers

Plastics are purchased from local individuals at a relatively cheaper Price all over the country. Some of the machinery needed can be fabricated locally.

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