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MAKING CHILLI SAUCE BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Chilli sauce is hot in taste and eaten either as raw or cooked for its hot flavor. Chilli or Pepper is used to make a variety of sauces and chilli pickles.

Production Capacity

The Rated Plant capacity is 500ltrs/day

Production Process

Chilli sauce is made following the steps outlined below:

Cut chillies roughly
Peel & chop garlic
Measure the capacity of your bottle with the jug & water
Add chillies and garlic to the jug & enough vinegar to make the

volume you need
Transfer these to a pan
Add 5 teaspoons of salt, and a teaspoon of sugar
Heat to boil
Blend this mixture until smooth
Re-heat in the pan & Pour into your bottle using the jug.

Raw Materials/Ingredients

Hot Paper, Salt, Mustard oil, Vinegar, Chillies and Garlic

Equipment

The Essential tools and equipments required for Chill Manufacturing includes: Food-blender, a sauce pan, graduated jug & clean bottles.

Capital Investment Requirements and Equipment

The project will be operated locally on small scale, i.e. producing at least 500ltrs of processed Chilli per day (15,000ltr/month). The total Fixed and Working Capital Investment required to start this project is estimated at USD 26,955.

Market Analysis:

Chilli may be sold locally in Super markets, Whole sale shops, Groceries and Hotels. It can also be exported.

Capital Investment in US$

Capital Investment Item Units Qty @ Amount
Delivery Van No. 1 26,000 26,000
Food Blender No. 1 150 150
Sauce Pan No. 2 100 200
Gas Cooker No. 1 600 600
Jug No. 1 5 5
Total Amount 26,955

Operating Costs in US$ General Costs (Over heads)

Item Units @ Qty/ day Prod. Cost/ day Prod. Cost/ month Prod. Cost/ Year
Direct Costs
Hot pepper Kgs 1.3 500 650 16,900 202,800
Vinegar Litrs 3 50 150 3,900 46,800
Garlic Kgs 4.8 50 240 6,240 74,880
Packaging Botls 0.4 500 200 5,200 62,400
Salt Kgs 0.4 20 8 208 2,496
Sub total 1248 32,448 389,376
Rent 600 7,200
Labour 1,000 12,000
Utilities (Power &Water) 300 3,600
Repair & Maintenance 500 6,000
Gas 500 6,000
Fuel 500 6,000
Depreciation (Asset write off) Expenses 562 6,739
Sub – total 3,962 47,539
Total Operating Costs 36,410 436,915

Project Product Costs & Price Estimate in US$

Item Qty/day Qty/yr @ Pdn Cost/yr UPx T/rev
Chill Sauce 500 156,000 2.8 436,915 3 468,000

Profitability Analysis:

Profitability Item Per day Per Month Per Year
Revenue 1,500 39,000 468,000
Less: Production & Operating Costs 1,248 36,410 436,915
Profit 540 10,495 125,941

Sources of Supply of Raw Materials

Raw materials will be supplied from Hot pepper growing areas of Uganda especially in the North and Central regions.

Government Facilities and Incentives Available

The following incentives are available from Government in her bid to promote Agriculture and prosperity for all programs. These include: Capital/Input, Tax exemptions, Land, Basic infrastructure, Grants and long term Loans at relatively low interest rates and a liberalized market. Private Sector Foundation of Uganda has finances to support this type of venture.

 

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