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MAKING PLASTIC BANGLES BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for the production and marketing of plastic bangles Women world over wear bangles for elegancy. Plastic bangles have a good market as they are available in different designs and colours for different occasions and seasons. Thus setting up a plant to make plastic bangles is a good business and is quite viable. The TR is estimated at US$ 1,248,000 per year while the production capacity is estimated at 1,000 bangles per day. The total investment is estimated at US$ 852,277 per year.

Production process

In manufacturing plastic bangles, acrylic pipes of different diameters are cut as per the demanded market size and thickness, which are engraved and polished and ultimately packed for market.

 

Capital Investment Requirements in US$

Capital investment item Units Qty @ Amount
Socket buffing machine No. 1 1,400 1,400
Fixer No. 2 500 1,000
Testing machine No. 1 145 145
Total cost on machinery 2,545

Production and Operating cost in US$

Cost Item Units @/ day Qty/ day Pdn cost/ day Pdn cost / month Pdn cost/ year
Acyclic plastic Pipe mtrs 46 50 2,300 59,800 717,600
Colour kgs 5.8 60 348 9,048 108,576
Sub-total 110 2,648 68,848 826,176

General costs(overheads)

Utilities(water and power) 150 1,800
Labour 750 9,000
Rent 250 3,000
Miscellaneous costs 500 6,000
Distribution costs 260 3,120
Depreciation (Asset write off)Expenses) 53.02 636.25
Sub -total 1,963 23,556
Total Operating Costs 70,811 849,732
  1. Production costs assumed are for312 days per year with a daily capacity of 1000 bangles.
  2. Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project product Costs and Price Structure in US $

Item Qty/ day Qty/ yr @ Pdn cost /yr UPx TR
plastic bangles 1,000 312,000 2.72 849,732 4 1,248,000

Profitability Analysis in US$

Profitability Item Per day Per month Per Year
Revenue 4,000 104,000 1,248,000
Less production and operating Costs 2,724 70,811 849,732
Profit 1,276 33,189 398,268

Market Analysis

Plastic bangles have a ready market both in rural and urban areas. More so, they are liked by tourists and are normally bought for remembrance. They are therefore supplied in tourist centers, cultural centers and all shops.

Sources of Raw Materials and Equipments

Raw materials are locally available from industries dealing in plastics where acyclic plastic pipes are made out of recycled plastics and equipments can be sourced from India and China.

Government Facilities and Incentives

The government policy encourages establishment of many industries to create employment and plastic materials are an environment hazard and so recycling them is in line with government environment policy of controlling plastic bags.

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