Ugandan UK Convention
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30/05/2018

BANANA FABRIC POLYMER BUSINESS IN UGANDA

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Written by: wmutenza

Introduction

A cost- effective substitute for glass fibre, banana fibre polymer composite can be a very good fibre-reinforced with plastic to make a variety of products. Products such as trays, mirror-casings, voltage stabilizer covers and electrical panels are now made from this material. The envisaged project is therefore to set up a plant for making banana fabric polymer. The project cost is US$4,325 with a capacity of 10,000kg per annum yielding an estimated revenue of US$ 62,000 per year with a payback period of 2 years and 1 month.

Production Process, capacity and technology

The process starts with preparing moulds of metal, wood or plaster of Paris, followed by mixing of resin with dye in requisite proportion, shaping the banana fabric by placing it on the mould and reinforcing the polymer over banana fabric. Later these are cured, de-moulded and cut. Finally these are trimmed and polished for market. The proposed plant would have a minimum capacity of 10 tonnes per annum on the basis of 312 working days.

Capital Investment Requirement in US $

Capital Investment Item Units Qty @ Amount
Two roll crusher No 1 1,000 1,000
Drying chambers No 1 800 800
Weighing balance No 1 25 25
Cutting and splitting equipment No 2 1,000 2,000
Open vat No 1 500 500
Total 4,325

Direct materials, supplies and costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Cost
Banana pseudo stem Kgms 0.025 321 8.01 208 2,499
Chemical Litres 5 0.64 3.2 83.2 998
Paper / Plastic roll stems Rolls 2 3 4.5 117 1,404
Polythene bags/ sacks packets 0.4 3.2 1.33 35 415
Other materials 10 120
Sub-total 17 453 5,438

General Costs (Overheads)

Labour 625 7,500
Selling & distribution 150 1,800
Utilities 250 3,000
Rent 350 4,200
Administration expenses 65 780
Miscellaneous expenses 150 1,800
Depreciation 163 1,959
Sub-total 1,753 21,039
Total Operating Costs 2,206.18 26,477
  1. Production costs assume 312 days per year with daily capacity of 32.1 Kgs.
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
  4. A production month is 26 work days
  5. Currency used is US Dollars.

Project product costs and Price structure in US $

Item Qty/ day Qty/yr Unit Cost Pdn cost/yr UPx TR
Banana Fabric Polymer 32 10,000 5.70 56,972 6.20 62,000

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 199 5,166 62000
Less: Production and operating costs 85 2,206 26,477
Profit 16 419 35,523

Market

The cost effective nature of this product has made it a perfect substitute for glass fibre. Today, the demand for banana fabric polymer is gaining ground as a variety of products can be made from this, with a potential market growth. Therefore most of the manufacturing industries should be targeted so as to tap forward and backward linkages as the fibre is normally used in the manufacture of other products.

Source of Equipment

Equipment can be locally made by Tonet Ltd, Kanyanya, Gayaza Rd and others or imported.

Government incentive:

Startup costs 25% granted on actual cost over the first four years in four equal installments. 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.

 





 

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