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MAKING RUBBER STAMPS BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Rubber stamps are used with some type of ink made of dye or pigment applied on them to leave a mark or an image or pattern that has been carved, molded, laser engraved when stamped on a piece of paper or anything. The stamps are made in different sizes and design as per the requirements of the custAomer. Manufacturing of rubber stamps is not only simple but also lucrative. Company seals can also be made in this project. It costs US$ 2,721 to be set up for the first year of operation with capacity production of 14,998 stamps per year and yielding TR of US$ 53,999 per annum. The net profit margin is at 5% with a payback period of 5 months.

Production Process, Capacity and Technology

The letter types are arranged in a composing tray with the text placed along with spaces and lines fixed on to the frame of a wooden block. A mixture of plaster of Paris and whitening powder are placed on a metallic tray. The tray is kept on letter type frame and fixed tightly, which results in an impression on the plaster of Paris mixture. A thin rubber sheet is cut into the required size. The rubber sheet is spread over the impression of plaster of Paris and pressed to the frame with the help of a hand press.

The frame (entire set) is heated for a specific time so that the rubber penetrates in the letter impression. Finally, the rubber impression is cleaned and pasted to a wooden or metal handle with the help of synthetic adhesive. A rubber cushion piece is also used to hold the rubber firmly to the handle. The profiled plant has a minimum capacity of 15,000 units of rubber stamps per annum and this is on the basis of 312 working days in a year.

Capital Investment Requirement in US $

Item Unit Qty Price Total
Lead letter types No 1 500 500
iron composing stand No 1 122 122
case stand or wooden frames No 4 10 40
stamp pressing machine No 1 500 500
Hand cutter No 1 4 4
Stove No 1 55 55
Other tools No 1 1500 1500
  1. Production costs assume 312 days per year with daily capacity of 48.1stamps.
  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.

Production and Operation costs in US$

Direct materials, supplies and costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
iron and wooden sheets ltrs/ kgs 1 0.16 0.16 4.16 49.92
Synthetic adhesive ltrs 0.1 0.1 0.1 2.6 31.2
plaster of Paris roll 0.04 0.96 0.038 0.9984 12
cushion sheet & whitening powder ltrs/ kgs 4.65 0.22 1.023 26.598 319.18
Packaging material pkts 0.5 3.21 1.605 42 501
Sub-total         76.36 914

General Costs (Overheads)

Labour 200 2,400
Selling & distribution 70 840
Utilities (Water, power) 100 1,200
Administration 110 1,320
Rent 100 1,200
Miscellaneous expenses 50 600
Depreciation 81 975
Sub-total 711 8,535
Total Operating Costs 787.36 42,825

Project product costs and Price structure

Item Qty/ day Qty/ yr Unit Cost Pdn cost/yr UPx TR
Rubber stamps 48.1 14,998 2.86 42,825 3.6 53,999

Profitability Analysis in US $

Profitability Item Per day Per month Per year
Revenue 173 4,499 53,999
Less: Production and operating costs 137 3,569 42,825
Profit 36 931 11,174

Market

The demand of this product is increasing day by day and this has resulted in a small number of entrepreneurs generally becoming involved in manufacturing these products locally. The customer base for rubber stamps, among others, includes government offices, colleges, schools, banks, private companies and small shops in semi- urban and urban areas.

Source of Equipment and Raw materials

Some Equipment may be imported and others got locally. Raw materials like rubber tires can sometimes be used and they are locally available although importing could also be done.

 

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