Introduction
This project is for manufacturing and marketing decorated glassware. In order to upgrade the quality of the daily-use glassware items like tea sets, dinner sets, and lampshades different designs are put on the glassware to make it more attractive. They have a wide market because they are household items in almost every family in both rural and urban areas.
They are used in places like hotels, offices, Restaurants, and homes. The business idea is based on production of 26,000decorated glasses per month, which translates into 312,000glasses per annum.
The revenue potential is estimated at US$14,300 per month, translating into US$171,600 per annum with a net profit margin of 23% and a payback period of 1 year and 4 months. Total investment requirements are US$ 24,110 for the first one year of project operation.
Production process-The glassware is decorated with the help of special attractive designs are painted or printed.. In making multicoloured designs, different types of silk screens are prepared after mixing colours with turpentine fat oil or gum. After painting on a clean surface, the glassware is allowed to dry and put in an electric muffle furnace and heated at a temperature of 500°C-550 °C
Capital Investment Requirements in US$
| Item | Unit | Qty | Cost | Amount |
|---|---|---|---|---|
| Silk Screen- Printing machine | No | 1 | 1,100 | 1,100 |
| Electronic Muffle furnace | No | 1 | 13,000 | 13,000 |
| Painter’s wheels | No | 2 | 230 | 460 |
| Paint brushes, dishes, basins, buckets etc | No | 20 | 2 | 40 |
| Office Equipments | No | 510 | 510 | |
| Delivery Van | No | 1 | 9,000 | 9,000 |
| Total | 24,110 |
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Direct costs | ||||||
| Ceramic ware | No | 0.2 | 1,000 | 200 | 5,200 | 62,400 |
| Ceramic colours | liters | 1 | 50 | 50 | 1,300 | 15,600 |
| Luster | liters | 2.5 | 25 | 62.5 | 1,625 | 19,500 |
| Screen printing materials | No | 3 | 5 | 15 | 390 | 4,680 |
| Packing Materials | No | 0.027 | 1,000 | 27 | 702 | 8,424 |
| Sub-total | 2,080 | 355 | 9,217 | 110,604 |
General Costs (Overheads)
| Rent | 250 | 3,000 |
|---|---|---|
| Labour | 750 | 9,000 |
| Utilities (Water & power) | 100 | 1,200 |
| Preliminary costs | 100 | 1,200 |
| Miscellaneous costs | 100 | 1,200 |
| Depreciation (Asset write off)Exp | 492 | 5,900 |
| Sub-total | 1,792 | 21,500 |
| Total Operating Costs | 11,009 | 132,104 |
- Production and Operating Costs in US$
- Production costs assumed are for 312 days per year with a daily capacity of 1,000 decorated glass wares
- Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
- Direct Costs include: materials, supplies and other costs that directly go into production of the product.
- A production month is assumed to have 26 days.
Project Product Costs and Price Structure
| Item | Qty/ day | Qty/Yr | @ | Pdn cost/Yr | UPx | T/rev |
|---|---|---|---|---|---|---|
| Decorated Glass wares | 1,000 | 312,000 | 0.4 | 132,104 | 0.55 | 171,600 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Yr |
|---|---|---|---|
| Revenue | 550 | 14,300 | 171,600 |
| Operating Costs | 423 | 11,009 | 132,104 |
| Profit | 127 | 3291 | 39,496 |
