ESTABLISHING A COTTON MOSQUITO NETS BUSINESS IN UGANDA

 ESTABLISHING A COTTON MOSQUITO NETS BUSINESS IN UGANDA

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       1,705

source: Chinese market

Production and operation costs

Cost item Units @/ day Qty/ day Cost/ day Cost/ month Cost/ year
Direct Costs            
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   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
  1. Embroidery machine
  2. 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.

Leave a Reply