Introduction
This business idea is for making of bamboo products. Bamboo products are made out of natural resources available in rural areas. The application of bamboo is widely found in making variety of baskets, partitions, candy sticks, trays used in sericulture, etc. The business idea aims at production of 520 units per month which translates into 6240 units annually. The revenue potential is estimated at $54,600 per annually with a total capital investment of $1,465. The project has an estimated net profit of 14,594 and a payback period 2 years and 7 months.
Plant capacity
The idea envisages production of 6,240 units annually.
Production Process
The equipments used are knives and fixtures. Hand tools are also used. The manufacturing process starts with splitting bamboo into thin wafers to suit the variegated needs of the end product. This is followed by manually knitting the split wafers into products especially designed to cater for the needs of the customers.
Market Analysis
The bamboo products have a ready market both in rural and urban areas. A variety of bamboo products are used for storage of fruits, vegetables and grains etc. There is potential market at: traditional sites, tourist centers, public and private offices, hotels, etc. which would help in promoting this industry.
Scale of Investment
Capital Investment Requirements in US $
Item
Units
Qty
@
Amount
Knives and fixtures
No
25
22
550
Hand tools
No
30
16.5
495
Working Tables
No
3
140
420
Total
1,465
Production and Operating Expenses in US$
Cost Item
Units
@/ day
Qty/ day
Pdn Cost/ day
Pdn Cost/ month
Pdn Cost/ Year1
Direct costs3:
Bamboo Sticks
No
0.18
400
72
1,872
22,464
Sub-total
1,872
22,464
Production is assumed for 312 days per year.
Depreciation assumes 4 year life of assets written off at 25% per year for all assets.