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Compedium of Diaspora opportunities

30/05/2018

REXENE WORKS (BICYCLE CARRIER SEATS)

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Written by: wmutenza

Introduction

This business idea is for the production and marketing of Rexene products, Rexene finds a wide application ranging from being used as seat covers to covering material. Rexene works include: bicycle carrier seats that are used in transportation of people. As Rexene products are cost effective, flexible and long lasting, there is a good demand for Rexene products that is untapped. The production capacity is estimated at 140 seats per day, total operating costs are estimated at US$ 142,827 per year and revenue estimates at US$ 213988 per year.

Production Process

After creating patterns, Rexene is put along with a suitable cloth lining stitched along with the needed fittings like, sisal roll plywood sponge and glue etc. The Rexene material can also be used for making two-wheeler seats covers, using the same machines.

Capital Investment Requirements in US$

Capital investment item Qty @ Amount
Sewing machine with 1/4 horse power 3 1,850 5,550
Other tools   1,000 1,000
TCs on Equipments     6,550

Production and operating Costs in US$

Cost Item Units @/ day Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Sponge (21/2×6) fts 1.05 60 63 1638 19,656
Sisal Rolls 3 2 6 156 1872
Glue Ltrs 5.2 3 15.6 405.6 4,867
Threads sets 2.15 2 4.3 111.8 1,342
Plywood Mtrs 11.5 30 345 8,970 107,640
Sub-total     97 433.9 11,281 135,377
Utilities (water and power) 50 600
Labour 250 3,000
Rent 100 1,200
Miscellaneous costs 50 600
Administration costs 25 300
Depreciation (Asset write off)Expenses) 136.5 1,638
Sub -total 621 7,450
Total Operating Costs 11,902 142,827
  1. Production costs assumed are for 312 days per year with a daily capacity of 150
  2. bicycle carrier seats
  3. Depreciation (fixed assets write off) assumes 4 years life of assets written off at
  4. 25% per year for all assets
  5. Direct costs include: materials, supplies and other costs that directly go into
  6. production of the product

Project product cost nd Price structurein US

Item Qty/ day Qty/ yr @ Pdn cost /yr UPx TR
Bicycle carrier seats 140 43,680 2.13 93,038 2.3 213,988

Profitability analysis in US $

Profitability Item Per day Per month Per Year
Revenue 685.85 17,832 213,988
Less production and operating Costs 457.7 11,902 142,827
Profit 19 484 5,810

Market Analysis

A relatively low cost process, products made out of rexene have tremendous market potential. Preferred by many, Rexene products have high demand.

Sources of Raw Materials and Equipments

Raw materials are available in markets and equipment can be sourced from China North Machine (U) co.ltd. Plot 24 Jinja Rd opp. Bank of Africa.

Government Facilities and Incentive Available The Government is willing to promote this sector through provision of: Tax exemptions, Land, Basic infrastructure, Grants and long term Loans at relatively low interest rates and a liberalized market.






 
 

 

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