Introduction
This business idea is for making cleaning powder. The cleaning powder, manufactured in different qualities and grades, is mainly used for cleaning stainless steel utensils, glassware, ceramic ware and flooring etc. In addition to households, the bulk users of cleaning powders are hotels, canteens and commercial organizations.
The busiAness idea aims at production of 15,600 kgs of cleaning powder annually. The revenue potential is estimated at US$ 255,840per year with a net profit margin of 19% and a payback period of 4 months. The total capital investment for the project is US$ 9,250.
Production Process
Soda ash and acid slurry are mixed in required proportion and left for an hour. Subsequently, this is mixed with calcite powder, fragrance and grounded to fine powder and packed for marketing.
Scale of Investment
Capital Investment Requirements
| Capital Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Ribbon blending machine | No | 1 | 7,500 | 7,500 |
| Weighing balance | No | 1 | 500 | 500 |
| Sealing machine | No | 1 | 300 | 300 |
| Bag Sealing machine | No | 1 | 500 | 500 |
| Containers | No | 10 | 45 | 450 |
| Total | 9,250 |
Production and Operation costs General costs (Overheads)
| Cost Item | Units | @ | Qty/ day | Pdn Cost/ day | Pdn Cost/ mth | Pdn Cost/yr1 |
| Direct costs3: | ||||||
| Dolomite | Kgs | 0.49 | 50 | 24.5 | 637 | 7644 |
| Acid slurry | Litres | 1.89 | 10 | 12 | 309 | 3709 |
| Soda Ash | Kgs | 1.27 | 10 | 12.7 | 330.2 | 3962.4 |
| Tri-sodium phosphate | Kgs | 55 | 10 | 550 | 14300 | 171600 |
| Sub-total | 15,576 | 186,916 | ||||
| Labour | 500 | 6,000 |
|---|---|---|
| Utilities | 400 | 4,800 |
| Selling and Distribution | 200 | 2,400 |
| Administrative expenses | 150 | 1,800 |
| Shelter | 300 | 3,600 |
| Depreciation Expenses | 193 | 2,313 |
| Sub-total | 1743 | 20,913 |
| Total Operating Costs | 17,319 | 207,829 |
- 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 US
| Item | Qty / day | Qty/yr | @ | Pdn/yr | UPx | Total revenue |
|---|---|---|---|---|---|---|
| Cleaning powder | 50 | 15,600 | 13.32 | 207,829 | 16.4 | 255,840 |
Profitability Analysis Table
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 820 | 21,320 | 255,840 |
| Less: Production and Operating Costs | 666 | 17,319 | 207,829 |
| Profit | 154 | 4,001 | 48,011 |
Sources of Supply of Equipments
All equipments can be obtained in Uganda.
