Post: MAKING BATHROOM SANDALS BUSINESS IN UGANDA

MAKING BATHROOM SANDALS BUSINESS IN UGANDA

Introduction

This venture is for making of Bathroom sandals. Their market structure is wide because they are used by all people in the society. Their demand prospect is high due to the continuous increase in income of people and improved life styles.

Production Capacity

The business idea is premised on production of 12,012 pairs of sandals per month which translates into 144,144 pairs per year. The revenue potential is estimated at US$278,198per year , with a net profit margin of 34% and a payback period of 4 months. This project Investment is US$11,638.

Process Description:

The process involves cutting cellular rubber sheets into required shapes & sizes and ready-made straps are fixed to the cut rubber sheets depending on the size and colour.

 

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Hydraulic cutting machine No 1 2,800 2,800
Drilling Machine No 1 500 500
Smoother Machine No 1 230 230
Drilling bits for straps, cutting tools No 6 18 108
Delivery van No 1 8,000 8,000
Total       11,638

Production and Operating Costs in US$

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ month Pdn cost/ year
Direct Costs            
Hawai Rubber Cellules No 10.9 8 87 2,267 27,206
Straps pairs 0.96 462 444 11,532 138,378
Sub-total     470 531 13,799 165,585

General Costs(Overheads)

Packing materials 20 240
Rent 75 900
Utilities(power) 30 360
Labour 775 9300
Preliminary costs 250 3000
Other costs 100 1200
Depreciation (Asset write off) Exp 242 2,910
Sub-total 1,492 17,910
Total Operating costs 15,291 183,495
  1. Production costs assumed are for 312 days per year with a daily capacity of 462 pairs of bathroom sandals.
  2. Depreciation (fixed asset write off) assumes _4_ years life of assets written off at _25% per year for all assets.
  3. Direct Costs include materials, supplies and other costs that directly go into production of the product. 4. A production month is assumed to have 26 days

Project production Costs and Price Structure

Item Qty/day Qty/Yr @ Pdn cost/Yr UPx T/rev
Bathroom sandals 462 144,144 1.27 183,495 1.9 278,198

Profitability Analysis in US$

Profitability Item Per day Per Month Per Yr
Revenue 891.66 23,183 278,198
Less: Production and Operating Costs 588 15,291 183,494
Profit 304 7,892 94,704

Raw materials and equipments

Raw materials can be imported from countries like Ghana and equipments can be obtained from the local market.

Government Incentives Available

Government is encouraging small scale businesses and income generating activities to eradicate poverty through

 

John Doe
John Doe

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1 Comments

  • Hello Mr/ Mrs.
    I want to know how to manufacture bathroom sandles in Uganda.
    Please let me know know the procedures because I want to be a job creator in my area and my fellow youth..
    Thank you ?

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Hi, jenny Loral
Hi, jenny Loral

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