MAKING FANCY LEATHER GLOVES BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Leather gloves are used as protective wear for human hands. They are available in types and sizes and are sought after by all but especially motor bicycle riders and military personnel. The demand for leather gloves exists both in domestic and export markets. The business idea aims at production of 520 pairs of gloves per month, which translates into 6,240 pairs annually. The revenue potential is estimated at $ 44,928 annually year with a sales margin of 9.8%. The total capital investment for the project is $ 2,780.

Plant Capacity

The profiled plant has a minimum capacity of 20 pairs of gloves per day.

Production Process

The fancy gloves manufacturing process involves selecting suitable leather of required colours and thickness, cutting the leather to the desired sizes and designs, and putting linings. Gloves are stitched with thumbs attached to the palm, textile lining are also stitched and joined with glove. Finally, buttons, elastic, are fitted and the gloves are packed.

 

Scale of Investment

Capital Investment Requirements

Capital Item Units Qty @ Amount
Flat bed sewing machine No 1 120 120
Cylinder bed stitching machine No 1 400 400
Leather skiving machine No 1 1300 1300
Zig-zag sewing machine No 1 700 700
Jack setting machine No 1 30 30
Button-hole making machine No 1 200 200
Flexible dummies Sets 3 10 30
Total 2,780

Production and Operation costs General costs (Overheads)

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn Cost/ yr1
Direct costs3:
Leather Metres 3 20 60 1,560 18,720
Buttons Boxes 1 1 1 26 312
Lining Meters 2 1 2 52 624
Decoration Meters 2 1 2 52 624
Sub-total 1,690 20,280
Labour 250 3,000
Utilities 200 2,400
Selling and Distribution 80 960
Administrative expenses 100 1,200
Shelter 200 2,400
Depreciation machinery 57.92 695
Sub-total 887.92 10,655
Total Operating Costs 2,578 30,935
  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

Item Qty /day Qty/yr @ Pdn/yr UPx TR
Gloves 20 6,240 4.96 30,935 7.2 44,928
Total 20 6,240 4.96 30,935 7.2 44,928

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 144 3,744 44,928
Less: Production and Operating Costs 99.15 2,578 30,935
Profit 44.85 1,166 13,993

Sources of Supply of Equipment

All equipments and raw materials are present in Uganda at Kiyembe Lane along Market Street.

Government Facilities and Incentives

A favorable tax policy for investors/entrepreneurs, a liberalized economy and encouragement to export value added locally produced stuff.

 

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