Introduction:
Mosquito coil is mosquito repelling incense usually shaped into a spiral; and typically made from a dried paste of pyrethrum powder. The coil is usually held at the center of the spiral, suspending it in the air, or wedged by two pieces of fireproof nettings to allow continuous smoldering. Burning usually begins at the outer end of the spiral and progresses slowly toward the centre of the spiral, producing a mosquito-repellent smoke. A typical mosquito coil can measure around 15 cm in diameter and lasts up to 8 hours. Mosquito coils are widely used in Asia, Africa, and South America. The Production capacity is 1404000 boxes per year bringing estimated revenue of US$ 82240 annually having invested US$ 6340
Government Incentive
Initial allowance 70% granted on actual cost base of plant and machinery for industries located elsewhere in Uganda.
Market
There is good market potential because mosquitoes are a menace and malaria prevalence is quite high. A mosquito coil requires no electricity and is affordable in rural areas.
Capital Investment Requirement in US$
| Item | Units | Qty | Price | Total |
|---|---|---|---|---|
| Powder blending machine | No | 1 | 1000 | 1000 |
| Crushing & Kneading machine | No | 1 | 1700 | 1700 |
| Extrusion Machine vessel with stirrer | No | 2 | 900 | 1800 |
| Cutting Machine with blower | No | 2 | 850 | 1700 |
| Rota stamping Machine | No | 1 | 40 | 40 |
| Tube filling machine | No | 1 | 100 | 100 |
| TC of tools | Â | Â | Â | 6340 |
- Production costs assume 312 days per year with daily capacity of 32.1 Kgs.
- 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 all other costs incurred to produce the product.
- A production month is 26 work days
- Currency used is US Dollars.
Production and Operating Costs in US $
| Cost Item | Units | @ | Qty/ day | Pdn cost/day | Pdn cost/ mth | Pdn cost/ yr |
|---|---|---|---|---|---|---|
| Direct Costs | Â | Â | Â | Â | Â | |
| Pyrethrum | Kgms | 2 | 3 | 6 | 156 | 1,872 |
| Deodar sawdust | ltrs | 2.2 | 0.2 | 0.44 | 11.4 | 137.28 |
| Maida wood bark | ltrs | 1.3 | 0.13 | 0.169 | 4.3 | 52.72 |
| pyrethrum oleoresin | Pkts | 1.5 | 31 | 46.5 | 1,209 | 14,508 |
| Citronella oil | ltres | 2.4 | 0.32 | 0.768 | 20.1 | 240 |
| Benzoic acid | ltres | 90 | 0.16 | 14.4 | 374 | 4,493 |
| Packaging boxes | kgs | 3.6 | 3 | 10.8 | 281 | 3,370 |
| Other materials / chemicals | Ltrs | 45 | 1 | 45 | 1,170 | 14,040 |
| Sub-total | – | – | – | 124 | 3,226.00 | 38,712.02 |
General Costs (Overheads)
| Labour | 1,200 | 14,400 |
|---|---|---|
| Selling & distribution | 250 | 3,000 |
| Utilities (Water, power) | 900 | 10,800 |
| Rent | 500 | 6,000 |
| Miscellaneous expenses | 150 | 1,800 |
| Depreciation | 132.08 | 1,585 |
| Sub-total | 3,132 | 37,585 |
| Total Operating Costs | 6,358 | 76,297 |
Project product cost and Price Structure in US$
| Item | Qty / day | Qty /yr | @ | Pdn cost/ yr($) | UPx | TR($) |
|---|---|---|---|---|---|---|
| Mosquito Coils | 4,500 | 1,404,000 | 0.2 | 280,800 | 0.3 | 84,240 |
Profitability Analysis in US $
| Profitability Item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 270 | 7,020 | 84,240 |
| Less: Production and operating costs | 244.5 | 6,358 | 76,297 |
| Profit | 25.5 | 662 | 7,943 |
Source of Machinery and materials
Local fabricators can provide the raw materials such as: Tree shade Ltd, Mwanga II road –Kisenyi, Kampala or Tonet Ltd Kanyanya, Gayaza road or John Lugendo Co. Ltd, Ndeeba Masaka Rd. email lugendojohn07@yahoo.com. Kenya and the local market will provide raw materials.
