Introduction
The business idea is to set up a plant to make liquid deodorant that can be used in kitchens and bathrooms, etc. This business idea is premised on production of 13,000 Deodorants per month which translates into 156,000 Deodorants per year. The revenue potential is estimated at US $ 26,000 per month which translates into US $ 312,000 per year. This project cost is US $ 3,073.
Production Process
- 1 1/2 tablespoon of beeswax (yellow is best)
- 1/2 tablespoon cocoa butter
- 1 tablespoon coconut oil
- 15 drops white thyme essential oil
- 15 drops rosemary essential oil
- 25 drops lavender essential oil
- 3 drops castor oil
Melt beeswax in a glass jar standing in hot water, add the cocoa butter, and when it has melted, add the oils. Stir to mix thoroughly, and then pour into a clean container. Discard deodorant stick case and leave to cool and set.
Capital investment in US $
| Item | Unit | Qty | @ | Total |
|---|---|---|---|---|
| Emulsifier stirrer | No. | 1 | 500 | 500 |
| Storage vessel | No. | 1 | 50 | 50 |
| Hot plates | No. | 3 | 8 | 23 |
| Delivery van | No. | 1 | 2,500 | 2,500 |
| TC of Machinery | 3,073 |
Production and operating costs in US $ Direct materials, supplies and costs
| Cost Item | Units | @/ day | Qty/ day | rod. cost / day | Prod. Cost/ month | Prod. Cost/ year |
|---|---|---|---|---|---|---|
| bee wax | Kgs | 0.5 | 20 | 10 | 260 | 3,120 |
| Coacoa butter | Kgs | 5 | 10 | 50 | 1,300 | 15,600 |
| Cocoa Nut oil | Kgs | 0.2 | 5 | 1 | 26 | 312 |
| white thyme essential oil | Ltrs | 0.2 | 5 | 1 | 26 | 312 |
| rosemary essential oil | Ltrs | 0.2 | 5 | 1 | 26 | 312 |
| lavender essential oil | Ltrs | 0.2 | 5 | 1 | 26 | 312 |
| castor oil | Ltrs | 0.2 | 5 | 1 | 26 | 312 |
| Sub-total | 1,690 | 20,280 |
General costs (Overheads)
| Deodorant sticks | 13 | 156 |
|---|---|---|
| Utilities (power) | 150 | 1,800 |
| (Utilities (water) | 15 | 180 |
| Salaries | 300 | 3,600 |
| renting | 150 | 1,800 |
| Misc. costs | 100 | 1,200 |
| Depreciation (Assets write off) Expenses | 64 | 768 |
| Sub-total | 779 | 9,348 |
| Total Operating costs | 2,469 | 29,628 |
- Production costs assumed are for 312 days per year with a daily capacity of 500 Herbal Deodorants.
- 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 Cost and Price structure in US $
| Item | Qty/ day | Qty /yr | @ | Prod. Cost / yr | UPx | TR |
|---|---|---|---|---|---|---|
| Herbal deodorant | 500 | 156,000 | 0.19 | 29,628 | 2.0 | 312,000 |
Profitability Analysis in US $
| Profitability item | per day | per month | per year |
|---|---|---|---|
| Revenue | |||
| Herbal deodorant | 1,000 | 26,000 | 312,000 |
| Less Prod & Operating Costs | 95 | 2,469 | 29,628 |
| Profit | 905 | 23,531 | 282,372 |
Government Incentives
Government is encouraging small scale businesses and income generating activities to eradicate poverty through “Bonna Bagagawale Programme”. Government lab, the Chemothary Centre and National Drug Authority Labs at Wandegeya help to analyse the chemical contents of the herbs.
Supplier of Plant and Machinery
The equipments and raw materials required for this plant are locally available.
