Post: MAKING CARD BOARD CARTONS FROM RECYCLED CARDBOARD BUSINESS IN UGANDA

MAKING CARD BOARD CARTONS FROM RECYCLED CARDBOARD BUSINESS IN UGANDA

Introduction

This business idea is for making card board cartons from recycled cardboard. Cardboard boxes (cartons) are industrially prefabricated boxes, primarily used for packaging goods and materials. This box uses regular cardboard that usually gets thrown away. It makes a sturdy box for storing small things; you can basically make it any size you like. They have the inherent advantages of being light in weight, easy to fabricate and store. Cardboard boxes are used for packing TVs, Fridges, and bulky things like soap, toothpastes and garments. The market potential covers the entire packaging industry. The business idea aims at production of 62,400 boxes annually. The revenue potential is estimated at $ 90,355 per year with a sales margin of 28%. The total capital investment for the project is $ 9,614.

Plant Capacity

The envisaged project has a minimum plant capacity of 200 boxes per day on the basis of 8-hour single working daily shifts. Output can then be increased with time depending on demand as operations gain experience.

Capital Investments Requirements

Capital Item Units Qty @ Amount
Box Cutter No 1 21 21
Carton Stapler No 1 243 243
Stitching machine No 1 350 350
Delivery Van No 1 9,000 9000
TOTAL       9,614

Production Process

The process description involves, deciding the size and dimensions of your box,(drawing and cutting), gluing the pieces together, sanding the pieces to see if they are even, let the pieces dry, join them all and the product is ready for use. Generally, boxes are prepared to customer specifications and the boxes/cartons can be prepared indifferent sizes, designs and colors

 

Production and Operating Cost

Cost Item Units @ day Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/ Year1
Direct costs3          
Card Boards No 0.58 200 116 3,016 36,192
Staples Boxes 0.42 5 2.1 55 655
Fixing Materials Boxes 0.23 10 2.3 60 718
Ruler and Pens No 0.2 10 2 52 624
Sub-total         3,182 38,189

General costs (Overheads)

Labour 400 4,800
Utilities (Electricity) 200 2,400
Selling and Distribution 100 1,200
Administrative expenses 100 1,200
Repairs 75 900
Shelter 150 1,800
Depreciation (Asset write off) Expenses 200 2404
Plant and Machinery 197 2,364
Sub-total 1,422 17,068
Total Operating Costs 4,605 55,257
  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 days.

Project product Costs and Price Structure

Item Qty /day Qty/yr Unit cost Pdn cost/ yr UPx T/rev
Small boxes 60 18,720 0.25 4,680 0.49 9,173
Medium Boxes 60 18,720 0.75 14,040 1.27 23,774
Large Boxes 80 24,960 1.5 37,440 2.3 57,408
Total 200 62,400   56,160   90,355

Profitability Analysis Table

Profitability Item Per day Per Month Per Year
Revenue 289.6 7,530 90,355
Less: Production and Operating Costs 177.10 4,605 55,257
Profit 112.50 2,925 35,098

Sources of supply of equipments

Equipments can be got from India, or fabricated locally at Katwe (Uganda) at modest Prices.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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