This profile envisages the establishment of a plant that will manufacture office glue based on the capacity of 500 liters per day. The simplest glue is that made from a paste of flour and water.
- Put plain white flour and water into a bowl depending on how much glue you need.
- Mix the flour and water together until a smooth paste is achieved. It should not be too thick or too drippy
- Use it soon after creating it. It can be used to stick papertogether.
- Scale of Investment, Capital Investment Requirements
The total capital investment cost to start this project is estimated at USD 12,945 generating annual revenue of USD 234,000 at a net profit of 28% with a payback period of 5 months.
The demand for office glue is very high in the paper products industry, schools, offices, and craft projects.
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 in US$
|Utilities (Power & Gas)||1,000||12,000|
|Repair & Servicing||500||6,000|
|Depreciation (Asset write off) Expenses||269.69||3,236|
|Sub – total||3,970||47,636|
|Total Operating Costs||13,980||167,756|
|Item||Qty/day||Qty/yr||@$||Pdn Cost/ yr$||UPx||T/rev|
Profitability Analysis Table
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production & Operating Costs||538||13,980||167,756|
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 liberalized market.
The business risk involved may include operational risks; marketing risks among others thus need to manage properly the marketing mix tools of Price, product among others.