Used as educational aid for drawings and sketches, coloured wax crayons are in great demand now, especially with current policy reforms in the education sector. They are normally used by children and artists, although they can be used by professionals, especially in business presentations, etc. A plant for making coloured wax crayons can be set up anywhere and does not require much in terms of expertise. This makes the project suitable for both rural and urban folks and will cost US$2,720 with capacity of 59,998 boxes annually, estimated revenues US$ 59,998per year with a net profit margin of 45%.
Production Process, capacity and Technology
The process consists of melting wax with the appropriate dye/ pigment. Filler is added to the melted wax and cast in required shapes and sizes. Finally, the crayons are wrapped and packed in cardboard boxes. The envisaged plant would have a minimum capacity of 192.3 boxes (1 gross per box) per day. This is on the basis of 312 working days in a year and single 8-hour daily work shifts.
Capital Investment Requirement in US $
|Packing &Sealing machine||No||2||4||8|
|Boilers/ Melting machine||No||2||512||1,024|
|TC of tools & Equipment||2,720|
- Production costs assumed are for 312 days per year with daily capacity of 192.3 boxes.
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include: materials, supplies and other costs directly incurred to produce the product.
- Currency used is US Dollars
Production and Operating costs in US$
Direct materials, supplies and costs
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/ yr|
General Costs (Overheads) Project product cost and Price Structure
|Selling & distribution||200||2,400|
|Utilities (Water, power)||150||1,800|
|Total Operating Costs||2,747||32,962|
|Item||Qty/day||Qty/yr||Unit cost||Pdn cost/yr||UPx||TR|
Profitability Analysis in US$
|Profitability Item||Per day||Per month||Per year|
|Less: Production and operating costs||106||2,747||32,962|
With the growing education base both in urban and rural areas, the use of coloured wax crayons have shot up in the last few years. Therefore, there is ready market and for this, educational institutions including nurseries, vocational colleges like Art academies, should be targeted. Supply should also be made to bookshops and other stationery shops.
Source of machinery and raw materials:
It can be locally made by Tonet Ltd, Kanyanya Gayaza Rd or John Lugendo and Co Ltd, Ndeeba Masaka Rd email lugendojohn07@ yahoo.com. Wax can be locally sourced cheaply, but can also be imported.
Startup costs 25% granted on actual cost over the first four years in four equal installments. Initial allowance granted in the first year of production; 75% granted on the cost base of plant and machinery for industries located elsewhere in the country.