STARTING A CURRY POWDER BUSINESS IN UGANDA

Introduction
This business idea is for making curry powder. Curry powder is a mixture of spices of widely varying composition. It adds taste to food and stimulates secretion of gastric juices.
Curry powder is an item required in every household and thus has a good market potential both in urban and rural areas. Supply to supermarket chains, grocery/retail shops, restaurants and hotels are recommended for one to enter the market.
The business idea aims at production of 2,600 kgs of curry powder per month. The revenue potential is estimated at $ 218,400 per year with a net profit of 12% and payback period of 4 months. The total capital investment for the project is US $9,270.

Plant Capacity
The profiled plant has a minimum capacity of 100 kgs of curry powder per day.

Production Process
The production process involves toasting the spices, mixing the various spices, grinding the spices and packaging.

Sources of supply of Equipments
All equipments can be got in Uganda.
Scale of investment Capital Investment Requirements

Capital Item	Units	Qty	@	Amount
Spice Grinders	No	1	1300	1300
Sealing machine	No	1	7200	7200
Storage containers	No	2	385	770
Total			8885	9270

Production and Operation costs

Cost Item	Units	@	Qty/ day	Pdn Cost/ day	Pdn Cost/ mth	Prod. Cost/ Year1
Direct costs3:
Fenugreek Seeds	Kgs	20	3	60	1,560	18,720
Caraway Seeds	Kgs	12	3	36	936	11,232
Cinnamon Powder	Kgs	15	5	75	1,950	23,400
Cummin Seeds	Kgs	15	8	120	3,120	37,440
Ground mace	Kgs	14	8	112	2,912	34,944
Tumeric powder	Kgs	8	15	120	3,120	37,440
Packaging materials	Pieces	0.2	100	20	520	6,240
Sub-total					14,118	169,416
General costs (Overheads)
Labour					500	6,000
Utilities					500	6,000
Selling and Distribution					150	1,800
Administrative expenses					250	3,000
Shelter					400	4,800
Depreciation (Asset write off) Expenses					79	948
Sub-total					1,879	22,548
Total Operating Costs					15,997	191,964

1. Production is assumed for 312 days per year.
2. Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
3. 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
Curry powder	100	31,200	6	191,964	7	218,400
Total				191,964		218,400

Profitability Analysis Table

Profitability Item	Per day	Per Month	Per Year
Revenue	700	18,200	218,400
Less: Operating Costs	615	15,997	191,964
Profit	85	2,203	26,436

Market Analysis

The idea is a rural micro enterprise activity and has good demand in domestic as well as international markets. Areas of concentration would include restaurants, hotels, retail/grocery stores, tourist centers, parking yards, etc.

Government Incentives

The government encourages agro-based investments because they add value. The tax policy is quite favorable to the industrialists; for instance if you export you enjoy reimbursement tax.

General Costs (Overheads)