This business idea is for making of bamboo products. Bamboo products are made out of natural resources available in rural areas. The application of bamboo is widely found in making variety of baskets, partitions, candy sticks, trays used in sericulture, etc. The business idea aims at production of 520 units per month which translates into 6240 units annually. The revenue potential is estimated at $54,600 per annually with a total capital investment of $1,465. The project has an estimated net profit of 14,594 and a payback period 2 years and 7 months.
The idea envisages production of 6,240 units annually.
The equipments used are knives and fixtures. Hand tools are also used.
The manufacturing process starts with splitting bamboo into thin wafers to suit the variegated needs of the end product. This is followed by manually knitting the split wafers into products especially designed to cater for the needs of the customers.
The bamboo products have a ready market both in rural and urban areas. A variety of bamboo products are used for storage of fruits, vegetables and grains etc. There is potential market at: traditional sites, tourist centers, public and private offices, hotels, etc. which would help in promoting this industry.
Scale of Investment
Capital Investment Requirements in US $
|Knives and fixtures||No||25||22||550|
Production and Operating Expenses in US$
|Cost Item||Units||@/ day||Qty/ day||Pdn Cost/ day||Pdn Cost/ month||Pdn Cost/ Year1|
|General costs (Overheads)|
|Salaries and Wages||280||3,360|
|Selling and Distribution||90||1080|
|Depreciation (Asset write off) Expenses||22||261.6|
|Total Operating Costs||3,334||40,006|
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days.
Project Product Costs and Price Structure in$
|Item||Qty /day||Qty/ yr||@||Pdn Cost /yr||UPx||TR|
Profitability Analysis Table
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production and Operating Costs||128||3,334||40,006|