Introduction
Air fresheners are consumer products that mitigate unpleasant odors within indoor spaces. They can be in form of candles, sprays and gel and can also be used as a deodorant. They are an item that both household and public offices can’t seem to do without. The freshener is also commonly used in both public and home toilets. The production capacity is estimated at 200 pieces per day, monthly production of 5,200 pieces and annual production of 62,400 which yields the TR US$162,240 per year, leading to net profit margin of 27% and payback period of 8 months.
Production Process
Air freshener cake is made out of Para dichlorobenzene, colour and perfume. These ingredients are properly mixed and molded by using fly press. The resulting gel of freshener is packed to avoid the absorption of moisture, which weakens the freshener.
Capital Investment Requirements ($)
| Capital investment item | Unit | Qty | @ | Amount |
|---|---|---|---|---|
| Fly press wheel type single body | No. | 1 | 6,000 | 6,000 |
| Drum mixer | No. | 1 | 630 | 630 |
| Plastic bucket with lid weighing balance | No. | 3 | 50 | 150 |
| Van | No. | 1 | 6,000 | 6,000 |
| Packing materials | No. | 1,500 | 0.4 | 600 |
| TC of machinery | 13,380 |
Market Analysis
With increasing population and the need for improved living conditions, the demand for air freshener is also gradually increasing. The growing hygiene consciousness has attracted attention to this product. Hence, there is ready market in urban areas. Areas of target are: supermarket chains, retail shops, restaurants, hotels and tourist centers.
Sources of Raw Materials and Equipments Raw materials are readily available in Uganda markets in the chemicals industry and equipments are available in the market.
Government Facilities and Incentives
The government is willing to support industrialists in Uganda through capital, tax exemptions, grants and liberalized markets and trade policies. There is a lot of free data and free consultation in government ministries and parastatals like Private Sector Foundation Uganda.
Production and Operating costs (US$)
| Cost Item | Units | @/ day | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Para dichlorobenzene | Kg | 0.8 | 100 | 80 | 2,080 | 24,960 |
| Perfume colour | kg | 25 | 10 | 250 | 6,500 | 78,000 |
| Sub-total | 3 | 30 | 8,580 | 102,960 |
General costs (overheads)
| Utilities(water and power) | 125 | 1500 |
|---|---|---|
| Labour | 75 | 900 |
| Rent | 125 | 1500 |
| Miscellaneous costs | 50 | 600 |
| Distribution costs | 260 | 3120 |
| Depreciation (Asset write off)Expenses) | 278.75 | 3,345 |
| Sub -total | 913.75 | 10965 |
| Total Operating Costs | 9,494 | 113,925 |
- Production costs assumed are for 312 days per year with a daily capacity of 200 tins of air refreshner.
- Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other costs that directly go into production of the product.
Project product Costs and Price Structure ($)
| Item | Qty/ day | Qty/ yr | @ | Pdn cost /yr | UPx | TR |
|---|---|---|---|---|---|---|
| Air freshener | 200 | 62,400 | 1.83 | 113,925 | 2.6 | 162,240 |
Profitability Analysis ($)
| Profitability Item | Per day | Per month | Per Year |
|---|---|---|---|
| Revenue | 520 | 13,520 | 162,240 |
| Less production and operating Costs | 365.14423 | 9,494 | 113,925 |
| Profit | 154.85577 | 4,026 | 48,315 |
TEFLON (PTFE) PRODUCTS
