The demand for Adhesives is very high in the Paper products industry, Schools, Offices and Craft projects. This profile envisages the establishment of a plant that will manufacture Adhesives from Natural Rubber based on the capacity of 500 liters per day. An adhesive, or glue, is a mixture in a liquid or semi-liquid state that adheres or bonds items together.
The venture is estimated o yield an annual revenue of US$780,000, with net profit margin 19% and payback period of 2 months.
Adhesives cure (harden) by evaporating a solvent (Most adhesives cure at room temperature) or by exposing them to an elevated temperature. The rubber compositions are packed together by molding them into thin coatings between a release film and a porous substrate to allow curing. The resultant product has highly desirable bonding and release.
Capital Investment Requirements in US$
|Capital Investment Item||Units||Qty||@$||Amount $|
Operating Costs in US$
|Item||Units||@ $||Qty/ day||Prod Cost/ day||Prod. Cost/ month||Prod. Cost/ Year$|
General Costs (Over heads) Project Product Costs & Price Structure
|Utilities (Power & Water)||600||7,200|
|Repair & Servicing||500||6,000|
|Depreciation(Asset write off) Expenses||220||2,634|
|Sub – total||3,420||41,034|
|Total Operating Costs||52,820||633,834|
|Item||Qty/ day||Qty/yr||@$||Pdn Cost/yr||UPx||T/rev|
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production & Operating Costs||2,032||52,820||633,834|
- Sources of Supply of Raw Materials
- Raw materials are readily available in Uganda.
- Government Facilities and Incentives Available:
- The Government is willing to support industrialization through; Tax exemptions, Basic infrastructure, Grants, long term Loans and a liberalized market.