BUSINESS IDEA FOR MAKING HERBAL DEODORANT IN UGANDA

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 1/2 tablespoon of beeswax (yellow is best)
  2. 1/2 tablespoon cocoa butter
  3. 1 tablespoon coconut oil
  4. 15 drops white thyme essential oil
  5. 15 drops rosemary essential oil
  6. 25 drops lavender essential oil
  7. 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
  1. Production costs assumed are for 312 days per year with a daily capacity of 500 Herbal Deodorants.
  2. Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.
  3. 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.

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