Introduction
This business idea is for production and marketing of products such as: Sweaters, Sleeveless/ Waist Coats, Shawls Socks, Table Clothes and Embroidery on Caps, Jackets, Shirts, Gifts and more. The business idea is premised on production of various products with a revenue potential of US$ 80,093 per month which translates into US$ 961,116 per year. The project cost is US 27,050 Dollars.
Process Description
The person knitting needs to have a Knitting Machine. The Burbins are loaded with threads, and then they start knitting. For Embroidering, a mult-head embroidering machine is loaded with thread in their burbins; embroidering is done according to the desired computerized image or picture.
Capital Investment Requirements in US$
| Capital Item | Units | Qty | @ |
|---|---|---|---|
| Sewing machine | No | 1 | 80 |
| Multi head Embroidery Machine | No | 1 | 15000 |
| Delivery van | No | 1 | 3000 |
| Embroidery Design Shop software | No | 1 | 100 |
| Hand tools | No | 5 | 52 |
| Total | 18,232 |
Production and Operation Costs In US $
Direct Materials, Supplies and Costs
- Production costs assumed 312 days per year with a daily capacity of 2,551 products.
- Depreciation (fixed assets write off) assumes 4 years life of assets write off at 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 / year | UPx | TR |
|---|---|---|---|---|---|---|
| Sweaters (small size) | 36 | 11,232 | 3.70 | 41,558 | 6.0 | 67,392 |
| Sweaters (big size) | 36 | 11,232 | 3.70 | 41,558 | 7.0 | 78,624 |
| Waist coats | 36 | 11,232 | 3.70 | 41,558 | 6.0 | 67,392 |
| Baby Shawls | 36 | 11,232 | 3.70 | 41,558 | 6.5 | 73,008 |
| Table cloth (sets) | 7 | 2,184 | 19.0 | 41,496 | 12.5 | 27,300 |
| Badges | 500 | 156,000 | 0.06 | 9,360 | 0.3 | 39,000 |
| Caps | 500 | 156,000 | 0.27 | 42,120 | 0.8 | 117,000 |
| Logos on T-shirts | 700 | 218,400 | 0.25 | 54,600 | 1.3 | 273,000 |
| Labeling | 700 | 218,400 | 0.03 | 6,552 | 1.0 | 218,400 |
| 320,362 | 961,116 |
Profitability Analysis in US$
| Profitability item | per day | per month | per year |
|---|---|---|---|
| Revenue | |||
| Sweaters (small size) | 216 | 5,616 | 67,392 |
| Sweaters (big size) | 252 | 6,552 | 78,624 |
| Waist coats | 216 | 5,616 | 67,392 |
| Baby Shawls | 234 | 6,084 | 73,008 |
| Table cloth (sets) | 88 | 2,275 | 27,300 |
| Badges | 125 | 3,250 | 39,000 |
| Caps | 375 | 9,750 | 117,000 |
| Logos on T-shirts | 875 | 22,750 | 273,000 |
| Labeling | 700 | 18,200 | 218,400 |
| Less Prod & Operating Costs | 520 | 13,524 | 162,286 |
| Profit | 2,560 | 66,569 | 798,830 |
Market Demand
The business has a great market demand from Schools, Colleges, Corporate, NGOs; Households, Security organs and the various forces for designing and printing their uniforms.
Equipment Suppliers
SENGA Sew Co Ltd, Plot 7 Luwum Street. P.O. Box 24901 Kampala Uganda.
Tel: 256-414-235832, +256-772-863857 in budget making.
