Compedium of Diaspora opportunities

30/05/2018

MANUFACTURING SPRAY PAINTING BUSINES IN UGANDA

Introduction

Spray painting is a technique where a device sprays a coating (paint, ink, vanish) through the air onto a surface. It leaves the surface uniform and bright, and above all, gives the product an elegant look. It protects the metal from rusting and makes it weather proof. The business idea aims at creation of 1,560 job works per annum with persons spraying cars. The revenue potential is estimated at US$ 24,700 per month, translating into US$ 234,000 per year with a sales profit of $ 23,446 the total capital investment for the project is US$ 3,434.

The profiled project has a minimum capacity of 1,560 job works per annum.

Technology and Production Process

The equipment used includes: an Air Compressor, a Spray Gun and an HVLP Paint Sprayer and other equipments. The raw materials are paint hardener and thinner. Paint is poured in the spraying gun and sprayed uniformly with the help of a compressor.

Capital requirements in US $

Capital Investment item Units Qty @ Amount
Air compressor No 1 2,450 2,450
Spray gun No 1 235 235
HVLP Paint No 1 499 499
Other equipment Number 1 50 250
Total       3,434

Production and operating costs in US $

Cost item Units @/ day Qty/ day Cost/ day Cost/ month Cost/ year
Direct Costs            
Paint liters 30.0 10 300 7,800 93,600
Hardener liters 25.0 5 125 3,250 39,000
Thinner liters 11.5 10 115 1,708 20,496
Subtotal   66.5 25 540 12,758 153,096

General Costs(Overheads) Project product costs and Price structure in US$

Administration expenses 542 6,500
Labour 2,083 25,000
Utilities 650 7,800
Rent 1,000 12,000
Selling & Distribution Expenses (Advertising) 233 2,800
Depreciation 72 859
Miscellaneous 208 2,500
Subtotals 4,747 56,959
Total operating Costs 17,546 210,555
Item Qty/ day Qty/ year @ Prod./ year UPx Revenue
Saloon car 5 1,560 134.97 210,555 150 234,000

Profitability Analysis

Profitability item Per day Per month Per year
Revenue 750 19,500 234,000
Less: Production operating costs 675 17,546 210,555
Profit 75 1,954 23,446

Sources of Supply of Equipments

All equipments are imported, but could also be got from the local market from places such as: Casement (U) Limited. Materials that can be got from Uganda include: Sadoline paint and other local paint manufacturers.

Market Analysis

Apart from being used in the normal construction procedures, this technique can be employed for painting steel furniture, two wheelers, three wheelers and tractors. This is most suitable in places where automobiles and tractors are aplenty.

Government Facilities and Incentives Available

The Government is willing to support industrialization in Uganda through; Tax exemptions, Land, Basic infrastructure, Grants, long term Loans and liberalized market.

 






 
 

 

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