This business idea is for the production and marketing of ropes, Ropes prepared by fiber yarn are used for different purposes. The ropes are used in all the sectors of the economy but are most prominent in the agricultural sector. Right from livestock keeping to simple cultivation and then to commercial farming, ropes play a substantial role in the farming processes. Setting up a small plant to make ropes out of fiber yarn using local materials like jute is thus a good entrepreneurial idea. The business idea is premised on the production of 800 ropes per day, 20800 per month and 249600 per year. The revenue potential is estimated at 1,457,664 US $ per year.
By using sewing machine parts, the yarn is spun, which is operated by sitting on a stool and by simply pedaling the table model sewing machine. The total Operating costs for this project is 227,370 US $ per year
Capital investment requirement in US$
|Capital investment item||Units||Qty||@||Amount|
|4-hole rope maker machine||No.||4||15||60|
|Extruder(900-1000 per min)||No.||1||8,000||8,000|
|TC on machinery||9,480|
Production and operating costs
|Cost Item||Units||@/ day||Qty / day||Pdn cost / day||Pdn cost month||Pdn cost/ year|
|yarn or, jute||kg||25||25||700||18,200||218,400|
|Utilities(water and power)||40||480|
|Deprectiation(Asset write off)Expenses)||197.5||2,000|
|Total Operating Costs||19,016||227,370|
- Production costs assumed 312 days per year with adaily capacity of 800 ropes
- Depreciation (fixed asset write off ) assumes a 4 year life of assests written off at 25% per year for all assets
- Direct cost include materials ,supplies and other costs that directly go into production
Project product cost and Price structure
|Item||Qty/ day||Qty/yr||@||Pdn cost /yr||UPx||TR|
|Profitability Item||Per day||Per month||Per Year|
|Less production and operating Costs||728.75||18,948||227,370|
Ropes are highly demanded in various sectors of the economy especially agricultural sector both urban and rural areas.
Government Facilities and Incentives Available
The government has set up incentives to those who are involved in manufacturing sector as a bid to encourage setting up small and medium enterprise to create employment.
Source of information on machines
Machines can be purchased from Saachi Uganda Ltd Luwum Street.
General costs (Overheads)
|Salaries and Wages||280||3,360|
|Selling and Distribution||90||1080|
|Depreciation (Asset write off) Expenses||22||261.6|
|Total Operating Costs||3,334||40,006|