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PRODUCTION OF ZINC SULPHATE BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

Zinc sulphate is a colorless crystalline, water-soluble chemical used to manufacture animal feeds, fertilizers and agricultural sprays. It also has applications in textile dyeing and printing, as a reagent in glues, in electro galvanizing paints, varnishes and in the manufacture of many zinc compounds. Zinc sulphate has a good market potential in rural areas and agriculture sector. The business idea aims at production of 3,900 kgs of zinc sulphate per month. The revenue potential is estimated at US$ 374,400 annually with a net profit margin of 9% with a payback period of 3 month.

The total capital investment for the project is US $11,622.

 

Plant Capacity

The plant in this profile has a minimum capacity of 46,800 kgs of zinc sulphate per annum.

Capital Investment Requirements

Capital Investment Item Units Qty @ Amount
Pulverizer No 1 291 291
Pumps No 10 26 260
Reaction tank No 1 147 147
Sulphuric acid storage tank No 1 219 219
Discharge and mud recovery tank No 1 122 122
Filter Press No 1 7,900 7900
Crystallizers No 1 52 52
Centrifuge No 1 1,800 1800
Chilling Plant No 1 831 831
Total       11,622

Production Process

Zinc sulphate is manufactured by leaching zinc ash with dilute sulpuric acid. The leached solution is filtered to separate unreacted zinc, which is reused along with the next charge. The filtrate is treated with potassium permanganate and zinc dust to precipitate impurities.

It is then treated with nitro so beta-naphthol to remove cobalt. The excess of sulphuric acid is neutralized with zinc carbonate. The solution is filtered and evaporated. After evaporation, the thick solution is allowed to settle in a settling tank where crystals of zinc sulphate come out of the cooler. The crystals are separated from the mother liquor in a centrifuge and dried on belt drier. The mother liquor is re-circulated to the evaporator. The crystals are then packed and marketed.

Production and Operating Expenses

Cost Item Units @/ day Qty/ day Pdn Cost/ day Pdn Cost/ month Pdn Cost/ Year1
Direct costs3:            
Zinc Ash Kgs 8 100 800 20,800 249,600
Sulphuric acid Kgs 10.5 20 210 5,460 65,520
Packaging Materials Pieces 2 5 10 260 3,120
Subtotal         26,520 318,240

General costs (Overheads)

Labour 400 4,800
Utilities 400 4,800
Selling and Distribution 200 2,400
Administrative expenses 150 1,800
Shelter 400 4,800
Depreciation (Asset write off) Expenses 242 2,906
Sub-total 1,792 21,506
Total Operating Costs 28,312 339,746
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 work days

Project Product Costs and Price Structure

Item Qty / day Qty/yr @ Pdn/yr UPx T/rev
Zinc Sulphate 150 46,800 7 339,746 8 374,400

Profitability Analysis Table in US$

Profitability Item Per day Per Month Per Year
Revenue 1,200 31,200 374,400
Less: Production and Operating Costs 1,089 28,312 339,746
Profit 111 2,888 34,654

Sources of Supply of Equipments

All equipments can be got in Uganda; however others can be imported from counties like China, USA etc.

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