MAKING PLASTIC BOTTLE CAPS BUSINESS IN UGANDA

 MAKING PLASTIC BOTTLE CAPS BUSINESS IN UGANDA
Introduction
This business profile aims at setting up a plant that manufactures plastic bottle caps. Bottle caps, or closures, are used to seal the openings of bottles of many types. They can be small circular pieces of metal, usually steel, with plastic backings, and for plastic bottles a plastic cap is used instead. A bottle cap is typically colorfully decorated with the logo of the brand of beverage.
Production Process

To make plastic bottle caps, chemists and chemical engineers must do the following on an industrial scale:

Prepare raw materials and monomers
Carry out polymerization reactions
Process the polymers into final polymer resins
Produce finished products.

Production Capacity

Basing on the demand for bottle caps, this plant will be capable of producing 1tonn of bottle caps per day totaling to 26 tonnes per month.

Tools and Equipment in US $

Heater/Melting Machine Injection machine
Molding machine Weighing balance
Plastics crushing machine Raw Materials
Recycled plastics
Ethylene and propylene come from crude oil
Plasticizers, dyes and flame-retardant chemicals
Requirements Market Analysis& Projected Demand
The demand for plastic bottle caps is very high in Drinks and Beverage Company & Health and pharmaceuticals industry. Plastic bottles may also be exported to neighboring countries such as: Rwanda, Burundi and Congo.  

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amount
Truck No. 1 12,000 12,000
Injection Machine No. 1 3,100 3,100
Molding Machine No. 1 5,250 5,250
Plastic Melting Machine   1 1,250 1,250
  No.      
Weighing Scale No. 1 110 110
Furniture No. 3 33 99
Total Amount       21,809

Operating Costs in US$ General Costs (Over heads)

Item Units @ $ Qty/ day Prod. Cost/ day$ Prod. Cost/ mth$ Prod. Cost/ Year[1]$
Direct Costs          
Ethylene Oxide Litres 6 100 600 15,600 187,200
Compounded Plastics Kgs 0.6 1,000 650 16,900 202,800
Sub total         32,500 390,000
Rent 400 4,800
Packaging Material 100 1,200
Labour 600 7,200
Utilities (Power & Water) 1,000 12,000
Repair & Servicing 500 6,000
Fuel 500 6,000
Depreciation (Asset write off) Expenses 454 5,452
Sub – total 3,554 42,652
Total Operating Costs 36,054 432,652

Project Product Costs & Price Structure

Item Qty/day-ton Qty/ yr @$ Pdn Cost/ yr$ UPx T/rev
Caps 1 312 1,387 432,652 1,600 499,200

Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 1,600 41,600 499,200
Less: Production & Operating Costs 1387 36,054  
      432,652
Profit 213 5,546 66,548

Sources of Supply of Raw Materials The major raw material, plastics are purchased from local individuals at a relatively cheaper Price all over the country and chemicals used are readily available from chemical dealing industries & shops.

 

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