STARTING A NATURAL RUBBER ADHESIVES BUSINESS IN UGANDA

 STARTING A NATURAL RUBBER ADHESIVES BUSINESS IN UGANDA

Introduction

The demand for Adhesives is very high in the Paper products industry, Schools, Offices and Craft projects. This profile envisages the establishment of a plant that will manufacture Adhesives from Natural Rubber based on the capacity of 500 liters per day. An adhesive, or glue, is a mixture in a liquid or semi-liquid state that adheres or bonds items together.

The venture is estimated o yield an annual revenue of US$780,000, with net profit margin 19% and payback period of 2 months.

Production Process:

Adhesives cure (harden) by evaporating a solvent (Most adhesives cure at room temperature) or by exposing them to an elevated temperature. The rubber compositions are packed together by molding them into thin coatings between a release film and a porous substrate to allow curing. The resultant product has highly desirable bonding and release.

 

Project Costs

Capital Investment Requirements in US$

Capital Investment Item Units Qty @$ Amount $
Delivery Van No. 1 9,000 9,000
Mixer No. 1 540 540
Boiler No. 1 520 520
Rollers No. 2 238 476
Total Amount       10,536

Operating Costs in US$

Item Units @ $ Qty/ day Prod Cost/ day Prod. Cost/ month Prod. Cost/ Year[1]$
Direct Costs          
Rubber Kgs 3.8 500 1900 49400 592800
Sub total       1,900 49,400 592,800


General Costs (Over heads) Project Product Costs & Price Structure

Rent 500 6,000
Packaging Material 300 3,600
Labour 800 9,600
Utilities (Power & Water) 600 7,200
Repair & Servicing 500 6,000
Fuel 500 6,000
Depreciation(Asset write off) Expenses 220 2,634
Sub – total 3,420 41,034
Total Operating Costs 52,820 633,834
Item Qty/ day Qty/yr @$ Pdn Cost/yr UPx T/rev
Adhesive 500 156,000 4.1 633,834 5 780,000

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 2500 65,000 780,000
Less: Production & Operating Costs 2,032 52,820 633,834
Profit 468 12,181 146,166
  1. Sources of Supply of Raw Materials
  2. Raw materials are readily available in Uganda.
  3. Government Facilities and Incentives Available:
  4. The Government is willing to support industrialization through; Tax exemptions, Basic infrastructure, Grants, long term Loans and a liberalized market.

 

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