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MAKING PLASTIC ROPES BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

A rope is a bundle of flexible fibers twisted or braided together to increase its overall length and tensile strength. Ropes may be used for hunting, carrying, lifting, and climbing dates back to prehistoric times.

The capital investment required is US$ 13,178 generating TR of US $ 468,000 per year with an annual profit level of US $102,052. However, the payback period is estimated at 2 months.

Production technology

Fibers and filaments are first formed into yarn. The yarn is then twisted, braided, or plaited according to the type of rope being made. The diameter of the rope is determined by the diameter of the yarn, the number of yarns per strand, and the number of strands or braids in the finished rope.

Production Process

To make plastic ropes, chemists and chemical engineers must do the following on an industrial scale:

  1. Prepare raw materials and monomers
  2. Carry out polymerization reactions
  3. Process the polymers into final polymer resins.
  4. Produce finished products.

Production Capacity

Basing on the demand for plastic ropes, this plant will produce 1,000 ropes per day totaling to 26,000 ropes per month.

Raw Materials

Ropes will be made from plastics and a combination of chemicals to give them strength, which have been processed to allow them to be easily formed and extruded into long filaments.

Market Analysis & Projected Demand

The demand for plastic ropes is very high especially in the fishing, building and construction, & farming industry. Plastic ropes may also be exported to neighboring countries.

Project Costs

The project costs to establish this plant are shown in tables below:

Capital Investment Requirements in US$

Capital Item Units Qty @ Amount
Delivery Van No. 1 3,000 3000
Molding Machine No. 1 3,000 3000
Crushing Machine No. 1 3,000 3000
Injection Machine No. 1 2,500 2500
Boiler No. 1 1,500 1500
Furniture No. 3 30 150
Weighing Scale No. 1 28 28
Total Amount 13178

Operating Costs in US$ General Costs (Over heads)

Item Units @ Qty/ day Prod. Cost/ day Prod. Cost/ month Prod. Cost/ Year
Direct Costs
Compounded Plastics Kgs 0.2 3000 600 15,600 187,200
Chemicals Litres 1.5 300 450 11,700 140,400
Sub total 1,050 27,300 327,600
Rent 500 6,000
Labour 600 7,200
Utilities (Power) 800 9,600
Repair & Servicing 500 6,000
Fuel 500 6,000
Depreciation(Asset write off) Expenses 295.6 3,548
Sub – total 3,196 38,348
Total Operating Costs 30,496 365,948

Project Product & Price Structure in US$

Item Qty/day Qty/yr @$ Pdn Cost/yr$ UPx T/rev
Ropes 1000 312,000 1.3 404,970 1.5 468,000

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 1,500 39,000 468,000
Less: Production & Operating Costs 1,050 30.495.6 365.948
Profit 450 8,504.4 102,052

Sources of Supply of Raw Materials

The major raw material is Plastics which are purchased from local individuals at a relatively cheaper Price all over the country and chemicals used are readily available in chemical dealing industries & shops.

Government Facilities and Incentives Available:

Government is encouraging the recycling of plastics in a bid to minimize environmental degradation in Uganda hence availability of raw materials.

 

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