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SYNTHETIC GEM CUTTING AND POLISHING BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for cutting and polishing synthetic gem. . Synthetic gems are widely used in preparation of imitation jewelry and also in decorative jewelry, fancy articles, mirrors, slip-ons, ready-made garments and bitenge. The business idea aims at production of 5,000 units per month which translates into 60,000 units annually. The revenue potential is estimated at $US 10,055 per month, translating into $ 120,660 per year with a sales margin of 15%. The total capital investment for the project is $ 6,860.

Technology and Production Process

The Tools and Equipments used include: a slicing machine, a performing machine, faceting machine, tools and other items and office furniture. The raw materials are cutting plates and synthetic gems.

The rough gem crystal is cut on a thin steel plate and is fed with real diamond dust mixed with water. The work done in cutting the rough gem crystal gives deep horizontal and vertical cuts on the rough gem which are chiseled and hammered out to get a fine gem.

Due to its fragile nature, it breaks into rough coned pieces. The rough pieces are mounted with a pitch and shell on the edge of bamboo stick, which is pressed against rough carborundum wheels. Finally, proper facing and polishing of rough-cut pieces is done by using grinding lap made of gun metal, copper, lead, etc.

 

Capital Investment Requirements

Capital Investment item Qty @ Amount
Slicing machine 1 1,280 1,280
Performance machine 1 700 700
Faceting machine 1 3,380 3,380
Office Furniture 4 800 3,200
Others 1 500 500
Total     9,060

Production and operation costs in us $ Direct materials, supplies and costs

Cost item Units @/ day Qty/ day Cost/ day Cost/ month Cost/ yr
Direct Costs Cutting plate pcs 12 19 228 5,928 71,136
Synthetic Gems pcs 10 19 190 4,940 59,280
Other Materials pcs 0 1,708 20,496
Subtotal   22 38 418 12,576 150,912

General Costs

Admin.expenses 500 6,000
Labour 2,500 30,000
Utilities 650 7,800
Rent 1,000 12,000
Selling & Distribution 542 6,500
Depreciation 189 2,265
Miscelleneous 375 4,500
Subtotals 5,755 69,065
Total operating Costs 18,331 219,977

Projected Monthly Revenue

Project product costs and Price structure in US$

Item Qty/ day Qty/yr @ Prodn/ year UPx Revenue
Jewerly Rings 150 46800 4.7 219,977 5.5 257,400

Market Analysis

Synthetic gems are widely used in preparation of imitation jewelry, decorative/fancy articles, mirrors, slip-on and ready-made garments. Apart from domestic market, synthetic gems can also be exported.

Sources of Supply of Equipments and Raw Materials

The equipments and raw materials can be imported.

 

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