Add To Calendar                |              About Us              |              Contact Us              |              Plan Your Visit               |              Subscribe for Update

MAKING CLEANING POWDER BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for making cleaning powder. The cleaning powder, manufactured in different qualities and grades, is mainly used for cleaning stainless steel utensils, glassware, ceramic ware and flooring etc. In addition to households, the bulk users of cleaning powders are hotels, canteens and commercial organizations.

The busiAness idea aims at production of 15,600 kgs of cleaning powder annually. The revenue potential is estimated at US$ 255,840per year with a net profit margin of 19% and a payback period of 4 months. The total capital investment for the project is US$ 9,250.

Production Process

Soda ash and acid slurry are mixed in required proportion and left for an hour. Subsequently, this is mixed with calcite powder, fragrance and grounded to fine powder and packed for marketing.

 

Scale of Investment

Capital Investment Requirements

Capital Item Units Qty @ Amount
Ribbon blending machine No 1 7,500 7,500
Weighing balance No 1 500 500
Sealing machine No 1 300 300
Bag Sealing machine No 1 500 500
Containers No 10 45 450
Total       9,250

 

Production and Operation costs General costs (Overheads)

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/yr1
Direct costs3:          
Dolomite Kgs 0.49 50 24.5 637 7644
Acid slurry Litres 1.89 10 12 309 3709
Soda Ash Kgs 1.27 10 12.7 330.2 3962.4
Tri-sodium phosphate Kgs 55 10 550 14300 171600
Sub-total         15,576 186,916
Labour 500 6,000
Utilities 400 4,800
Selling and Distribution 200 2,400
Administrative expenses 150 1,800
Shelter 300 3,600
Depreciation Expenses 193 2,313
Sub-total 1743 20,913
Total Operating Costs 17,319 207,829
  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 US

Item Qty / day Qty/yr @ Pdn/yr UPx Total revenue
Cleaning powder 50 15,600 13.32 207,829 16.4 255,840

 

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 820 21,320 255,840
Less: Production and Operating Costs 666 17,319 207,829
Profit 154 4,001 48,011

Sources of Supply of Equipments

All equipments can be obtained in Uganda.

Related post

Leave A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: