Introduction
A cost- effective substitute for glass fibre, banana fibre polymer composite can be a very good fibre-reinforced with plastic to make a variety of products. Products such as trays, mirror-casings, voltage stabilizer covers and electrical panels are now made from this material. The envisaged project is therefore to set up a plant for making banana fabric polymer. The project cost is US$4,325 with a capacity of 10,000kg per annum yielding an estimated revenue of US$ 62,000 per year with a payback period of 2 years and 1 month.
Production Process, capacity and technology
The process starts with preparing moulds of metal, wood or plaster of Paris, followed by mixing of resin with dye in requisite proportion, shaping the banana fabric by placing it on the mould and reinforcing the polymer over banana fabric. Later these are cured, de-moulded and cut. Finally these are trimmed and polished for market. The proposed plant would have a minimum capacity of 10 tonnes per annum on the basis of 312 working days.
Capital Investment Requirement in US $
| Capital Investment Item | Units | Qty | @ | Amount |
| Two roll crusher | No | 1 | 1,000 | 1,000 |
| Drying chambers | No | 1 | 800 | 800 |
| Weighing balance | No | 1 | 25 | 25 |
| Cutting and splitting equipment | No | 2 | 1,000 | 2,000 |
| Open vat | No | 1 | 500 | 500 |
| Total | 4,325 |
Direct materials, supplies and costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/yr |
| Direct Cost | ||||||
| Banana pseudo stem | Kgms | 0.025 | 321 | 8.01 | 208 | 2,499 |
| Chemical | Litres | 5 | 0.64 | 3.2 | 83.2 | 998 |
| Paper / Plastic roll stems | Rolls | 2 | 3 | 4.5 | 117 | 1,404 |
| Polythene bags/ sacks | packets | 0.4 | 3.2 | 1.33 | 35 | 415 |
| Other materials | – | – | – | 10 | 120 | |
| Sub-total | – | – | – | 17 | 453 | 5,438 |
General Costs (Overheads)
| Labour | 625 | 7,500 |
|---|---|---|
| Selling & distribution | 150 | 1,800 |
| Utilities | 250 | 3,000 |
| Rent | 350 | 4,200 |
| Administration expenses | 65 | 780 |
| Miscellaneous expenses | 150 | 1,800 |
| Depreciation | 163 | 1,959 |
| Sub-total | 1,753 | 21,039 |
| Total Operating Costs | 2,206.18 | 26,477 |
- Production costs assume 312 days per year with daily capacity of 32.1 Kgs.
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and all other costs incurred to produce the product.
- A production month is 26 work days
- Currency used is US Dollars.
Project product costs and Price structure in US $
| Item | Qty/ day | Qty/yr | Unit Cost | Pdn cost/yr | UPx | TR |
| Banana Fabric Polymer | 32 | 10,000 | 5.70 | 56,972 | 6.20 | 62,000 |
Profitability Analysis in US$
| Profitability Item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 199 | 5,166 | 62000 |
| Less: Production and operating costs | 85 | 2,206 | 26,477 |
| Profit | 16 | 419 | 35,523 |
Market
The cost effective nature of this product has made it a perfect substitute for glass fibre. Today, the demand for banana fabric polymer is gaining ground as a variety of products can be made from this, with a potential market growth. Therefore most of the manufacturing industries should be targeted so as to tap forward and backward linkages as the fibre is normally used in the manufacture of other products.
Source of Equipment
Equipment can be locally made by Tonet Ltd, Kanyanya, Gayaza Rd and others or imported.
Government incentive:
Startup costs 25% granted on actual cost over the first four years in four equal installments. Initial allowance granted in the first year of production 75% granted on the cost base of plant and machinery for industries located elsewhere in the country.
