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MAKING BRASS WARE (FLOWER VASES) BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Flower vases are used in offices, homes, churches, hotels restaurants and reception halls. Vases can be made from a number of materials including cement, ceramics and glass.

The business idea is for the production and marketing of flower vases. The production capacity is estimated at producing flower vases 80 per day with the total investment estimated at a cost of US$368. the TR estimated at a cost of US$589,056per year, with a net profit of 10% .

Capital Investment Requirements in US$

Capital investment item Unit Qty @ Amount
Buckets No. 20 4.8 96
Molds No. 15 2.1 31.5
Working tables No. 4 40 160
Jeri cans No. 10 8 80
TC on machinery       368

Production Process

Cement is mixed into large empty buckets, clay and water are added and mixed together and the mix should not be thick. Painting oil is taken and rubbed into the mold, making sure that you cover the entire inside of the mold; this will make it a lot easier to remove the cement from the mold. The next step is to add cement to the mold, only filling it half way. Spread evenly into the mold, and then place the small flower pot directly in the middle of the mold bucket; this will help to set the shape of the flower pot. Then allow your mold to dry. This will probably take several hours. It will help if you can set the mold in the sun to allow it to harden.

Once the cement is hard you can them remove it from the mold. Make sure that it is completely dry before you remove it. Then paint the pot afterwards; two coats of paint are more desirable, allow the first coat to dry then add the second coat. Once the paint is dry you can then add your dirt and start planting your flowers.

Production and Operating costs

Cost Item Units @ Qty/ day Pdn cost / day Pdn cost/ month Pdn cost/yr
Cement Kg 10.6 100 1,060 27,559 330,720
Paint ltrs 18 20 360 9,360 112,320
Oil ltrs 1 8 8 208 2,496
Clay Tones 80 3 240 6,240 74,880
Sub-total         43,368 520,416

General costs(overheads)

Utilities(water and power) 100 1,200
Labour 250 3,000
Rent 175 2,100
Miscellaneous costs 250 3,000
Administration costs 100 1,200
Depreciation(Asset write off)Expenses) 8 92
Sub -total 883 10,592
Total Operating Costs
  1. 44,251
  1. 531,008
  1. Production costs assumed 312 days per year with a daily capacity of 80 flower vase.
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
  3. Direct costs include materials, supplies and other costs that directly go into production of the production

Project product Costs and Price Structure

Item Qty/ day Qty / yr @ Pdn cost /yr UPx TR
Flower vases 80 24,960 21.3 531,008 23.6 589,056

Profitability Analysis in US$

Profitability Item Per day Per mnth Per Year
Revenue 1,888 49,088 589,056
Less production and operating Costs 1,702 44,251 531,008
Profit 186 4,837 58,048

Sources of Raw Materials:

Raw materials are locally available.

Government Facilities and Incentives

The Government subsidies in form of Tax exemptions & Grants are available for the informal sector.

 

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