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MAKING BAMBOO PRODUCTS BUSINESS IN UGANDA

By: wmutenza0 comments

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
Subtotal 1,872 22,464
General costs (Overheads)  
Salaries and Wages 280 3,360
Electricity 120 1,440
Water 250 3,000
Transportation Expenses 200 2,400
Consumable stores 85 1020
Selling and Distribution 90 1080
Administrative expenses 150 1,800
Repairs 55 660
Shelter 210 2,520
Depreciation (Asset write off) Expenses 22 261.6
Subtotal 1,462 17,542
Total Operating Costs 3,334 40,006
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 days.

 

Project Product Costs and Price Structure in$

Item Qty /day Qty/ yr @ Pdn Cost /yr UPx TR
Small Baskets 12 3,744 6 19,223 6.5 24,336
Medium Baskets 7 2,184 6 9,612 7 15,288
Large baskets 6 1,872 6 9,612 8 14,976
Total 25 7,800 18 40,006 21.5 54,600

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 175 4,550 54,600
Less: Production and Operating Costs 128 3,334 40,006
Profit 47 436 14,594

 

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