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MAKING MOSQUITO COIL BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction:

Mosquito coil is mosquito repelling incense usually shaped into a spiral; and typically made from a dried paste of pyrethrum powder. The coil is usually held at the center of the spiral, suspending it in the air, or wedged by two pieces of fireproof nettings to allow continuous smoldering. Burning usually begins at the outer end of the spiral and progresses slowly toward the centre of the spiral, producing a mosquito-repellent smoke. A typical mosquito coil can measure around 15 cm in diameter and lasts up to 8 hours. Mosquito coils are widely used in Asia, Africa, and South America. The Production capacity is 1404000 boxes per year bringing estimated revenue of US$ 82240 annually having invested US$ 6340

Government Incentive

Initial allowance 70% granted on actual cost base of plant and machinery for industries located elsewhere in Uganda.

Market

There is good market potential because mosquitoes are a menace and malaria prevalence is quite high. A mosquito coil requires no electricity and is affordable in rural areas.

Capital Investment Requirement in US$

Item Units Qty Price Total
Powder blending machine No 1 1000 1000
Crushing & Kneading machine No 1 1700 1700
Extrusion Machine vessel with stirrer No 2 900 1800
Cutting Machine with blower No 2 850 1700
Rota stamping Machine No 1 40 40
Tube filling machine No 1 100 100
TC of tools       6340
  1. Production costs assume 312 days per year with daily capacity of 32.1 Kgs.
  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 work days
  5. Currency used is US Dollars.

Production and Operating Costs in US $

Cost Item Units @ Qty/ day Pdn cost/day Pdn cost/ mth Pdn cost/ yr
Direct Costs          
Pyrethrum Kgms 2 3 6 156 1,872
Deodar sawdust ltrs 2.2 0.2 0.44 11.4 137.28
Maida wood bark ltrs 1.3 0.13 0.169 4.3 52.72
pyrethrum oleoresin Pkts 1.5 31 46.5 1,209 14,508
Citronella oil ltres 2.4 0.32 0.768 20.1 240
Benzoic acid ltres 90 0.16 14.4 374 4,493
Packaging boxes kgs 3.6 3 10.8 281 3,370
Other materials / chemicals Ltrs 45 1 45 1,170 14,040
Sub-total 124 3,226.00 38,712.02

General Costs (Overheads)

Labour 1,200 14,400
Selling & distribution 250 3,000
Utilities (Water, power) 900 10,800
Rent 500 6,000
Miscellaneous expenses 150 1,800
Depreciation 132.08 1,585
Sub-total 3,132 37,585
Total Operating Costs 6,358 76,297

Project product cost and Price Structure in US$

Item Qty / day Qty /yr @ Pdn cost/ yr($) UPx TR($)
Mosquito Coils 4,500 1,404,000 0.2 280,800 0.3 84,240

Profitability Analysis in US $

Profitability Item Per day Per month Per year
Revenue 270 7,020 84,240
Less: Production and operating costs 244.5 6,358 76,297
Profit 25.5 662 7,943

Source of Machinery and materials

Local fabricators can provide the raw materials such as: Tree shade Ltd, Mwanga II road –Kisenyi, Kampala or Tonet Ltd Kanyanya, Gayaza road or John Lugendo Co. Ltd, Ndeeba Masaka Rd. email lugendojohn07@yahoo.com. Kenya and the local market will provide raw materials.

 

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