Introduction
Caffeine is a drug that is naturally produced in the leaves and seeds of many plants. Coffee is quite popular as a leisure drink, and the ingredients of coffee include:caffeine, aroma, protein, tannic acid and fat etc.
The references show a small amount of caffeine can stimulate the brain and enhance memory while if caffeine is drunk too much, then it may trigger high blood pressure, kidney and coronary artery diseases, which are negative effects.
Production Capacity
It is projected that this plant will produce 1 ton (1,000kgs) of Caffeine powder per day. The production cost is estimated at USD 300,886, generating revenue potential of USD 655,200 per annum and a net profit margin of 54%. The payback period for this project is 2 months.Production Process & Technology First, a grinder is used to crush coffee beans into a fine consistency and its filtered through a 40 mesh filter. When it reaches the operating temperature, a mixture of coffee powder and RO water is placed into the ultrasound machine, and then processed under various extraction conditions. The extracted liquid is initially filtered through a 40 mesh filter and collected. In order to achieve a ratio of liquid to water of 1:9 for a final dilution of 10 times, the
extraction liquid is further filtered through a 0.45μm filter paper.
And then, the caffeine content is used as a base for comparative analysis of the HPLC.
Market Analysis
There is soaring demand for caffeine-fueled energy drinks, which are especially popular among teens. And as it happens, energy drinks have become enormously popular as mixers with alcohol in bars.
Project Costs:
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @$ | Amount $ |
| Truck | No. | 1 | 8,000 | 8,000 |
| Grinder | No. | 1 | 2,700 | 2,700 |
| Filter | No. | 1 | 50 | 50 |
| Water Baths | No. | 2 | 30 | 60 |
| Cleaning Equipment | No. | 1 | 500 | 500 |
| Furniture | No. | 2 | 30 | 60 |
| Weighing Scale | No. | 1 | 100 | 100 |
| Packaging Machine | No. | 1 | 1,000 | 1,000 |
| Total Amount | 12,470 |
Operating Cost in US$ General Costs (Over heads)
| Item | Units | @ $ | Qty/day | Prod. Cost/day | Prod. Cost/ month | Prod. Cost/ Year[1] |
| Direct Costs | ||||||
| Coffee | Kgs | 0.75 | 1,112 | 834 | 21,684 | 260,208 |
| Sub total | 834 | 260,208 | 21,684 |
| Rent | 500 | 6,000 |
|---|---|---|
| Labour | 500 | 6,000 |
| Utilities (Power & Water) | 500 | 6,000 |
| Repair & Maintenance | 500 | 6,000 |
| Packaging Materials | 130 | 1,560 |
| Fuel | 1000 | 12,000 |
| Depreciation(Asset write off) Expenses | 259.8 | 3,118 |
| Sub – total | 3,390 | 40,678 |
| Total Operating Costs | 25,074 | 300,886 |
Project Product Costs & Price Structure
| Item | Qty/ day (mg) | Qty/yr | @$ | Pdn Cost/ yr$ | UPx | Total / revenue |
| Caffeine | 10,000 | 3,120,000 | 0.1 | 300,886 | 0.2 | 655,200 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 2,100 | 54,600 | 655,200 |
| Less: Production & Operating Costs | 964.3766 | 25,074 | 300,886 |
| Profit | 1,136 | 29,526 | 354,315 |
Raw Material Availability
Raw materials are readily available in Uganda since there are many coffee growers.
Government Facilities and Incentives Available
Government is willing to finance Agro-Processing Industries and provide technical support to them in a bid to promote Industrialization.
Risk
The business risk involved is healthy and safety related, surrounding the manufacturing and processing but this can be solved by employing food scientists and adhering to a strict safety regime.
Capital Investment in US$ General Costs (Over heads)
