Introduction
This profile envisages the establishment of a plant that will manufacture Cotton mosquito nets based on the production capacity of 450 nets per day. Mosquito nets are a natural alternative to toxic chemical sprays as a method of protection against mosquitoes, moths, sand flies and other insects. The 100% cotton muslin netting provides an enhanced sleeping environment due to its natural fibres and is superior to nylon or polyester mosquito nets. It also allows for a safe and comfortable nights sleep.
Production Process
The manufacturing process of making mosquito nets goes through cutting the fabric/material according to the required size and design, which is then followed by sewing.
Other accessories
Capital Investment Requirements
| Capital Investment item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Sewing machine | No | 3 | 375 | 1,125 |
| Embroidery machine | No | 1 | 129 | 129 |
| Zig zag machine | No | 2 | 172 | 344 |
| Other accessories | No | 1 | 107 | 107 |
| Total | Â | Â | Â | 1,705 |
source: Chinese market
Production and operation costs
| Cost item | Units | @/ day | Qty/ day | Cost/ day | Cost/ month | Cost/ year |
|---|---|---|---|---|---|---|
| Direct Costs | Â | Â | Â | Â | Â | Â |
| Cloth | mtrs | 1.6 | 900 | 1,440 | 37,440 | 449,280 |
| Thread | pcs | 0.5 | 3,000 | 1,500 | 39,000 | 468,000 |
| Other Materials | pcs | – | – | – | 1,708 | 20,496 |
| Subtotal | Â | 2 | 3,900 | 2,940 | 78,148 | 937,776 |
General Costs
| Administration expenses | 708 | 8,500 |
|---|---|---|
| Labour | 2,667 | 32,000 |
| Utilities | 650 | 7,800 |
| Rent | 1,000 | 12,000 |
| Selling & Distribution | 542 | 6,500 |
| Depreciation | 36 | 426 |
| Miscelleneous | 375 | 4,500 |
| Subtotals | 5,977 | 71,726 |
| Total operating Costs | 84,125 | 1,009,502 |
| Item | Qty/ day | Qty/yr | @ | pdn/yr | UPx | Revenue |
|---|---|---|---|---|---|---|
| Mosquito nets | 450 | 140,400 | 7.2 | 1,009,502 | 7.6 | 1,067,040 |
- Embroidery machine
- Zig zag machine
Profitability analysis in US $
| Profitability item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 3,420 | 88,920 | 1,067,040 |
| Less: Production operating costs | 3,236 | 84,125 | 1,009,502 |
| Profit | 184 | 4,795 | 57,538 |
Sources of Supply of Raw materials
The Raw materials can be sourced locally from Knitting Industries such as: Picfare, Nytil, Phoenix, but could also be imported from Italy, German, and China.
Government Facilities and Incentives Available
The Government has waved off taxes from the mosquito nets, and on top of that investors are allowed to recover startup cost in four years at a rate of 25%. If the factory is located in prescribed areas of Kampala, Entebbe, Jinja, Namanve, Njeru initial costs to the tune of 50% are allowed while for the rest of areas in Uganda 75% initial costs are allowed.
