MAKING WAX CANDLES BUSINESS IN UGANDA

By: wmutenza01 comments

Introduction

Candles are cylindrical structures made of wax and are used for illumination purposes. Their market structure is relatively high since they are used in hotels, households, churches and for decorative purposes. They are available in ordinary, fancy shapes and various sizes. The business idea aims at production of 14,612 wax candles per month which translates into 175,344 wax candles per year. The revenue potential is estimated at US$ 1,753 per month, translating into US$ 21,041 per year with a sales margin of 20%. The total investment capital for this project is US$17,586.The demand for this product.

Production Capacity

The production capacity for the project depends on the size of a mould used. For example, a medium mould can produce 70 wax candles per hour and a single 8-hour working shift per working day produces 562 candles. But in a period of one month the machine can produce 14,612 wax candles and each candle costs at a minimum US$0.075-0.15)

Technology and Process Description:

The Equipments used are simple and can be fabricated locally. It Includes: Aluminum mould, charcoal stove, knife, saucepan and firewood. The process involves wax and satiric acid which are melted in a mild steel mould. The wick is inserted in the candle – moulding machine and the molten mass is poured in the cylindrical mould and it is cooled by water and poured on the floor. When completely dry, the wick threads are trimmed and then packed.

Scale of Investment, Capital Investment requirements and equipment:

The scale of investment depends on the market available, but most especially the manufacturer produces on orders.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Candle moulds No 2 80 160
Charcoal Stove No 2 55 110
Weighing machine No 1 160 160
Packing Machine No 1 150 150
Total       580

Production and Operating Costs Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/ year
Direct Costs            
Wax Kgs 3 7 21 546 6,552
Satiric acid Liters 4 2 8 208 2,496
Wick length Rolls 3 1 3 65 780
Sub-total       32 819 9,828

General Costs (Overheads)

Rent 60 720
Labour350 4,200  
Utilities (Charcoal) 25 300
Other costs (Transport costs, & others) 200 2,400
Deprecation (Asset write off) Exp 11.46 137.52
Sub-total 646.46 7,758
Total Operating Cost 1,465 17,586
  1. Production costs are assumed for 312 days per year with a daily capacity of 562 wax candles.
  2. Depreciation (fixed asset 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.
  4. A production month is assumed to have 26 days.

 

Project Product Costs and Price Structure

Item Qty/ day Qty/Yr Unit cost Pdn/Yr Unit Price T/rev
Wax candles 562 175,344 0.08 17,550 0.12 21,041

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 67.4 1,753 21,041
Less: Production and Operating Costs 56.4 1,466 17,586
Profit 11 288 3,455

Market Analysis

The market for candles is available throughout the year both in rural and as urban areas.

Government Facilities and Incentives Available:

The government has put up youths training projects to improve on their skills in candle making and there are Non Government Organizations based in Kampala and Pader districts which support people with capital for making wax candles.

 

Related post

Comments

  • Acram

    09/09/2021

    Can anyone directly tell me what I need to start in summary because I desperately want to start this business

Leave A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.