MAKING DISINFECTANT FLUIDS BUSINESS IN UGANDA

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Introduction

A disinfectant is basically an agent, which destroys pathogenic organisms. A good disinfectant should also be a deodorant possessing good shelf qualities and it should be effective against a host of microorganisms. The total project cost is US$ 5,710, with production capacity of 50,000kgs per year with estimated revenue of US$ 250,068 annually with a net profit margin of 7%.

Production process, capacity and technology

The manufacture of black fluid disinfectants involves saponification of fatty oils. Soft soap is prepared by adding a boiling solution of caustic soda (33 %) to a mixture of fatty oils and molten rosin. The soft soap thus obtained is dissolved in hot water and the creosote and cresol are added. The fluid thus obtained is dark brown or black in colour. To manufacture white fluid disinfectants, casein is dissolved in water and a homogenous solution is made.

Borax is added to this casein solution and stirred properly, which is then filtered and the requisite amounts of HBTA and cresol and creosote are added. Subsequently, homogenization is done in shearing colloid mill. The profiled plant has a minimum capacity of 50 tonnes per annum. It is assumed that there are 312 working days in a year.

Capital Investment Requirement in US$

Item Units Qty Price Total
Cast iron pan No 1 550 550
Soft soap dissolving vessel No 1 720 720
Colloid mill No 1 790 790
Hot water still direct fired No 1 210 210
Casein solution tank No 1 1,200 1200
HBTA creosote mixing tank No 1 540 540
Other tools & equipment No 1 1,700 1700
TC of Machinery & Tools       5,710

 

General Costs (Overheads)

  1. Production costs assume 312 days per year with daily capacity of 160.3Ltrs.
  2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
  3. Direct costs include materials, supplies and all other costs incurred to produce the product.
  4. A production month is 26 days
  5. Currency used is US Dollars.
Castor oil & soya bean oil ltrs/ kgs 10.2 0.25 2.55 66.3 796
Caustic soda ltrs 12.5 0.32 4 104 1,248
Packing material kgs/ pkts 0.17 64.1 11 283 3,400
Sub-total       665 17,210 207,600
Labour 350 4,200
Selling & distribution 300 3,600
Utilities (Water, power) 600 7,200
Administration 150 1,800
Rent 500 6,000
Miscellaneous expenses 150 1,800
Depreciation 118.9 1,428
Sub-total 2,169 26,028
Total Operating Costs 19,468.9 233,627

Project product costs and Price structure in $

Market

The product has a good market both in rural and urban areas. Thanks to the growing awareness, the people are using disinfectants as a preventive measure. Supply to hotels, restaurants, public and private offices, supermarket chains, stores,

Item Qty/day Qty/yr Unit cost Pdn cost/yr UPx TR
Disinfectant Fluids 160.3 50,014 4.7 233,627 5 250,068

Profitability Analysis in US

etc. would help in capturing a portion of the market.

Production and Operating costs in US$ Direct materials, supplies and costs.

  Per day Per month Per year
Revenue 802 20,839 250,068
Less: Production and operating costs 749 19,469 233,627
Profit 53 1,370 16,441
Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs            
High boiling tar acid ltrs/ kgs 23 25.64 589.72 15332.72 183,993
Cresol, creosote ltrs 7.2 3.21 23.112 600.912 7,211
Casein & Borax ltrs 8 1.6 12.8 332.8 3,994
Sodium benzene ltrs 13.2 1.6 21.12 549 6,589
W.W. Rosin ltrs 7.9 0.15 2 31 370

 

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