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STARTING A CURRY POWDER BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction
This business idea is for making curry powder. Curry powder is a mixture of spices of widely varying composition. It adds taste to food and stimulates secretion of gastric juices.
Curry powder is an item required in every household and thus has a good market potential both in urban and rural areas. Supply to supermarket chains, grocery/retail shops, restaurants and hotels are recommended for one to enter the market.
The business idea aims at production of 2,600 kgs of curry powder per month. The revenue potential is estimated at $ 218,400 per year with a net profit of 12% and payback period of 4 months. The total capital investment for the project is US $9,270.
Plant Capacity
The profiled plant has a minimum capacity of 100 kgs of curry powder per day.
Production Process
The production process involves toasting the spices, mixing the various spices, grinding the spices and packaging.
Sources of supply of Equipments
All equipments can be got in Uganda.
Scale of investment Capital Investment Requirements

Capital Item Units Qty @ Amount
Spice Grinders No 1 1300 1300
Sealing machine No 1 7200 7200
Storage containers No 2 385 770
Total 8885 9270

Production and Operation costs

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Prod. Cost/ Year1
Direct costs3:
Fenugreek Seeds Kgs 20 3 60 1,560 18,720
Caraway Seeds Kgs 12 3 36 936 11,232
Cinnamon Powder Kgs 15 5 75 1,950 23,400
Cummin Seeds Kgs 15 8 120 3,120 37,440
Ground mace Kgs 14 8 112 2,912 34,944
Tumeric powder Kgs 8 15 120 3,120 37,440
Packaging materials Pieces 0.2 100 20 520 6,240
Sub-total 14,118 169,416
General costs (Overheads)
Labour 500 6,000
Utilities 500 6,000
Selling and Distribution 150 1,800
Administrative expenses 250 3,000
Shelter 400 4,800
Depreciation (Asset write off) Expenses 79 948
Sub-total 1,879 22,548
Total Operating Costs 15,997 191,964
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 2 year life of assets written off at 50% 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
Curry powder 100 31,200 6 191,964 7 218,400
Total 191,964 218,400

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 700 18,200 218,400
Less: Operating Costs 615 15,997 191,964
Profit 85 2,203 26,436

Market Analysis

The idea is a rural micro enterprise activity and has good demand in domestic as well as international markets. Areas of concentration would include restaurants, hotels, retail/grocery stores, tourist centers, parking yards, etc.

Government Incentives

The government encourages agro-based investments because they add value. The tax policy is quite favorable to the industrialists; for instance if you export you enjoy reimbursement tax.

General Costs (Overheads)

 

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