TOOTH BRUSH MAKING BUSINESS IN UGANDA

By: wmutenza0 comments

Introduction

This business idea is for making and marketing of tooth brushes. Toothbrushes are important for safeguarding teeth and cleaning the accessible surface, which helps prevent tooth decay and maintain dental hygiene and freshness. They have a wide market structure especially in urban areas throughout the year and can be made in different shapes and sizes.

The business idea is premised on production of 260,000 toothbrushes per month which translates into 3,120,000 tooth brushes per annum and this is on the basis of 312 working days in a year and 8-hour single work shifts in working day. The revenue potential is estimated at US$528,321per month translating into US$6,240,000 per annum with a net profit margin of 92%. Total investment requirement is US$ 27,027 for the first year of project operation.

Production Process

In manufacturing toothbrushes, cellulose acetate is used in a multifamily injection-moulding machine to make handles. Mixed in a hopper of an automatic injection machine, cellulose acetate moulding powder is mixed together with a suitable dyestuff. The materials melt to take the shape of mould cavity after injecting this into multi-cavity moulds.

On opening the mould, the handles are ejected. Brush handles thus obtained are put into automatic toothbrush making machine for boring, bristle filling and then tightening of bristle is done by fine steel or brass. The bristle is trimmed and packed ready for sale.

 

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Automatic Injection molding machine No 1 4,052 4,052
Pre-heating Oven No 1 58 58
Automatic Toothbrush making machine No 1 9,096 9,096
Scarp grinder No 1 3,168 3,168
Multi Cavity mould No 1 516 516
Hand tools Set 1 541 541
Packing Machine No 1 632 632
Weighing machine No 1 132 132
Other Equipments Set 1 1,212 1,212
Delivery Van No 1 7,620 7,620
Total 27,027

Direct Materials, Supplies and Costs in US$ General Costs (Overheads)

Cost Item Units @ Qty/ day cost/ day cost/ month cost/ year
Direct Costs
Cellulose acetate moulding powder Kg 1 500 500 13,000 156,000
Nylon Bristle Kg 0.75 200 150 3,900 46,800
Dyes in different colours Kg 0.75 100 75 1,950 23,400
Gum Liter 1 100 100 2,600 31,200
Packing materials No 0.05 10,000 500 13,000 156,000
Sub-total 10,900 1,325 34,450 413,400
Rent 270 3,240
Labour 2,150 25,800
Utilities 200 2,400
Preliminary costs 100 1,200
Miscellaneous Costs 100 1,200
Deprecation (Asset write off)Exp 6757 81,081
Sub-total 9,577 114,921
Total Operating Costs 44,027 528,321
  1. Production costs assumed are for 312 days per year with a daily capacity of 10,000 toothbrushes.
  2. This business unit can make tooth brushes of different colors and sizes.
  3. Depreciation (fixed asset write off) assumes 4 years life of assets written off at 25% per year for all assets.
  4. Direct Costs include materials, supplies and other costs that directly go into production of the product.
  5. A production month is assumed to have 26 work days.

 

Project Product Costs and Price Structure

Item Qty/ day Qty/Yr @ Pdn cost/Yr UPx T/rev
Tooth brushes 10,000 3,120,000 0.2 528,321 2 6,240,000

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 20,000 520,000 6,240,000
Less: Production & Operating Costs 1,693 44,027 528,321
Profit 18,307 475,973 5,711,679

Market Analysis

Due to the increasing awareness, personal dental care and dental hygiene is recommended by dental surgeons and is generally accepted by people in both urban and rural areas. Therefore, this product provides good scope for new entrants in the field and considering the growth in the total population coupled with the increasing awareness, the products are bound to find a good market.

Supply of Raw Materials and Equipments

Raw materials can be procured locally from chemical shops while Equipments can be imported from Japan and China.

 

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