BUSINESS IDEA FOR DISTILATION OF WATER IN UGANDA

Introduction

This business idea is for production of Distilled water to ensure its purity. The business idea is premised on the production of 200 liters per day which translates into 44,400 liters per year. The revenue potential is estimated at US$ 81,120 per year. The total Investment can cost about US $ 27,200.

Production process

Tap water is collected and heated in a glass flask to the boiling point and thus vaporizes (becomes steam), While other substances remain in solid state, in boiler (glass flask). Steam is then directed into cooler (condenser tube) containing cold water, where it cools down and returns to liquid water, purified of additional substances found in it before distillation

Equipments and tools required in us$ Product cost and Price structure in us$

Item Unit Qty @ Total
Water distiller No. 1 10,000 10,000
Delivery van No. 1 6,000 6,000
TC of Machinery       16,000

Raw materials

Water Project capacity

The project has a capacity of 100-240 gallons per day (24hrs)

Production and operating cost in us$ Direct Materials, Supplies and Costs

Cost Item Units @/ day Qty/ day Prod. Cost / day Prod. Cost/ month Prod. Cost/ year
Water Ltrs 0.001 1 0.001 0.026 0.312
Sub-total         0.026 0.312

General costs (Overheads)

Utilities (power) 50 600
Salaries 300 3600
Rent 150 1800
Fuel 100 1200
Depreciation (Assets write off) Expenses 333 4,000
Sub-total 933.33 11,200
Total Operating costs 933 11,200
  1. The plant is profiled to take a period of 4 years in production
  2. Depreciation rate is 25% per year
  3. Production assumed to take 8 hour per day
Item Qty/ day Qty / yr @ Prod./ yr UPx TR ($)
Distilled water 1,000 312,000 0.04 11,200 0.26 81,120

Profitability analysis in us $

Profitability item per day per month per year
Revenue      
Distilled water 200 5,200 81,120
Less Prod & Operating Costs 36 933 11,200
Profit 164 4,267 69,920

Demand

There is high demand for distilled water as it is purified for human consumption, the distilled water can be supplied to supermarkets, retailers, wholesalers, hospitals and individual organizations.

Equipment suppliers

Small Equipments and machinery can be obtained from the local market.

Government incentive

Government is encouraging small scale businesses and income generating activities to curb poverty.

 

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