BUSINESS IDEA FOR MAKING ARTIFICIAL SILK FLOWER IN UGANDA

Introduction

There are many types of artificial flowers including those made from glass, paper, porcelain and plastic, just to name but a few. The most popular artificial flowers are made from silk. All petals are made from white silk cotton and rayon fabric, regardless of the finished colour. The demand for silk flowers arises from the fact that they last much longer than natural flowers.

Production Capacity

The capacity of the firm depends on the type/design and size, however, it is estimated that at least 20 silk flowers can be produced per day.

Production Technology

The process of making artificial flowers requires simple technology with a little artistic knowledge especially in flower designs.

Process

The fabric is die-cut into many petal shapes and sizes for one single type of flower. In the first process the petals are dyed using cotton balls and paint brushes to touch colour onto the petals beginning from the edge of the petal working towards the center. The dyeing of one petal can take up to an hour of concentrated work.

Raw Materials:

The basic raw materials include: fabrics of silk, wires, corn starch, and clear fast-drying glue.

Equipment & Tools:

The essential tools and equipments include:

Scissors, wire cutter, paint brush, sewing thread and needles, foam rubber mat, and cardboard. These supplies are available in “Shauriyako” market – Kampala Uganda.

 

Scale of Investment & Capital Investment Requirements:

This project will be run on a small scale basis where at least 520 silk flowers will be made in a month. The fixed capital investment costs required to start this project are estimated at 100USD.

Market Analysis:

The demand for artificial silk flowers arises from the fact that they are durable; they last longer compared to natural flowers. The market for silk flowers is very high in residential houses, factories, hotels, offices, and even overseas. Natural flowers wither in a few days and they are quite expensive.

 

Project Costs

Capital Investment Requirements in US$

Capital Investment Item Units Qty @$ Amount $
Scissors No. 2 10 20
Mat No. 1 20 20
Card Board No. 1 50 50
Needles No. 2 5 10
Total Amount 100

Operating Costs in USS

Item Units @ Qty/ day Prod. Cost/ day Prod. Cost/ month Prod. Cost/Yr
Direct Costs
Fabrics Mtrs 4 20 80 2080 24960
Corn Starch Ltrs 5 5 25 650 7,800
Threads Roll 5 1 5 130 1,560
Glue Ltrs 7 1 7 182 2,184
Pigments& Dyes Ltrs 9 10 90 2,340 28,080
Sub total 207 5,382 64,584

General Costs (Over heads)

Rent 200 2,400
Labour 300 3,600
Utilities (Power & Water) 100 1,200
Sub – total 600 7,200
Total Operating Costs 5,982 71,784

Project Product Costs & Price Structure in US$

Item Qty/ day Qty/yr @$ Pdn Cost/yr UPx T/rev
Silk Flowers 20 6,240 12 71,784 15 93,600

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 300 7,800 93,600
Less: Production & Operating Costs 230.07692 5,982 71,784
Profit 69.923077 1,818 21,816

Sources of Supply of Raw Materials

The supply of inputs especially fabrics is readily available in Uganda, i.e. Phoenix International.

Government Facilities and Incentives Available

The Government is willing to promote this sector through provision of; tax exemptions, land, basic infrastructure, grants and long term loans at relatively low interest rates and liberalized market and good trade policies.

 

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