This business idea is premised on production of 36,400 plastic products per month which translates into 436,800 products per year. The revenue potential is estimated at US $ 21,331 per month which translates into US $ 255,975 per year. The project cost is US $ 11,028.Net profit is estimated at 72%. Payback is 3 months.
The demand for this idea is high due to the growing demand for Plastic products.
The production process involves cleaning waste plastic, sorting plastics according to their grades, cutting to small pieces, extruding or crushing the plastics to get required sizes of granules. Chemicals are mixed with the crushed plastic to reinstate its originality. The mixture is then put into a boiler, melted before transfer into the injection machine that sends it to the molding machine. The finished product is removed from the molds, taken for trimming and packed.
Capital Investment Requirements in US $
|Capital Investment Item||Units||Qty||@||Amount|
|TC of Machinery||11,028|
Production and Operating Costs in US $
|Cost Item||Units||@/ day||Qty/ day||Prod. cost/ day||Prod. Cost/ month||Prod. Cost/ year|
|Chemicals (PVC/ DBP)||Ltrs||0.5||20||10||260||3,120|
General costs (Overheads)
|Depreciation (Assets write off) Expenses||834||10,005|
|Total Operating costs||8,309||99,705|
- Production costs assumed 312 days per year with a daily capacity of 500 Sealing Wax
- Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets
- Direct costs include materials, supplies and other costs that directly go into production of the product
Project product costs and Price structure $
|Item||Qty/ day||Qty/ yr||@||Prod. Cost /year||UPx||TR|
Profitability Analysis in US $
|Profitability item||per day||per month||per year|
|Less: Prod & Operating Costs||320||8,309||99,705|
There is a growing demand for Plastic products across the country. Plastic products are also sold to the neighboring countries such as: Rwanda, Burundi and Congo. Crushed materials of plastics can also be sold to other big companies in form of raw materials.
Government Incentives Available
Government is encouraging the development of small scale industries in a bid to curb poverty and create employment.
Plastics are purchased from local individuals at a relatively cheaper Price all over the country. Some of the machinery needed can be fabricated locally.