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03/06/2018

DECORATION OF GLASS WARES BUSINESS IN UGANDA

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Written by: wmutenza

Introduction

This project is for manufacturing and marketing decorated glassware. In order to upgrade the quality of the daily-use glassware items like tea sets, dinner sets, and lampshades different designs are put on the glassware to make it more attractive. They have a wide market because they are household items in almost every family in both rural and urban areas.

They are used in places like hotels, offices, Restaurants, and homes. The business idea is based on production of 26,000decorated glasses per month, which translates into 312,000glasses per annum.

The revenue potential is estimated at US$14,300 per month, translating into US$171,600 per annum with a net profit margin of 23% and a payback period of 1 year and 4 months. Total investment requirements are US$ 24,110 for the first one year of project operation.

Production process-The glassware is decorated with the help of special attractive designs are painted or printed.. In making multicoloured designs, different types of silk screens are prepared after mixing colours with turpentine fat oil or gum. After painting on a clean surface, the glassware is allowed to dry and put in an electric muffle furnace and heated at a temperature of 500°C-550 °C

 

Capital Investment Requirements in US$

Item Unit Qty Cost Amount
Silk Screen- Printing machine No 1 1,100 1,100
Electronic Muffle furnace No 1 13,000 13,000
Painter’s wheels No 2 230 460
Paint brushes, dishes, basins, buckets etc No 20 2 40
Office Equipments No   510 510
Delivery Van No 1 9,000 9,000
Total       24,110

Production and Operating Costs in US$

 

Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct costs            
Ceramic ware No 0.2 1,000 200 5,200 62,400
Ceramic colours liters 1 50 50 1,300 15,600
Luster liters 2.5 25 62.5 1,625 19,500
Screen printing materials No 3 5 15 390 4,680
Packing Materials No 0.027 1,000 27 702 8,424
Sub-total     2,080 355 9,217 110,604

General Costs (Overheads)

Rent 250 3,000
Labour 750 9,000
Utilities (Water & power) 100 1,200
Preliminary costs 100 1,200
Miscellaneous costs 100 1,200
Depreciation (Asset write off)Exp 492 5,900
Sub-total 1,792 21,500
Total Operating Costs 11,009 132,104
  1. Production and Operating Costs in US$
  2. Production costs assumed are for 312 days per year with a daily capacity of 1,000 decorated glass wares
  3. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
  4. Direct Costs include: materials, supplies and other costs that directly go into production of the product.
  5. A production month is assumed to have 26 days.

Project Product Costs and Price Structure

Item Qty/ day Qty/Yr @ Pdn cost/Yr UPx T/rev
Decorated Glass wares 1,000 312,000 0.4 132,104 0.55 171,600

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 550 14,300 171,600
Operating Costs 423 11,009 132,104
Profit 127 3291 39,496

 






 
 

 

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