STARTING A POWER INVERTERS BUSINESS IN UGANDA

 STARTING A POWER INVERTERS BUSINESS IN UGANDA

Introduction

The business idea is for making and marketing of Power Invertors. This business idea is premised on production of 15Invertors per month which translates into 180 Invertors per year. The revenue potential is estimated at US $ 9,000 per month which translates into US $ 108,000 per year. The project cost is US $ 108,165.

Production Process

Production process involves making a metallic box, sealing all its corners with solidal welding. Building the Oslators, Inverter system, Charging system and Automatic system, putting in switches and sockets

Production and Operation Costs in US$ Direct Materials, Supplies and Costs

Cost Item Units @ Qty Prod. cost Prod. Cost/ month Prod. Cost/ yr
Orslator No. 25 1 25 650 7,800
Transformer No. 75 1 75 1,950 23,400
Diodes No. 5 1 5 130 1,560
Thermostat No. 8 1 8 195 2,340
Circuit board No. 3 1 3 65 780
Capacitors No. 4 1 4 91 1,092
Resistor No. 0.3 1 0 .3 7 78
Switch No. 4 1 4 104 1,248
Fetes No. 5 22 110 2,860 34,320
Box (metallic) No. 25 1 25 650 7,800
Sub-total         6,702 80,418

 

General costs (Overheads)

Utilities (power) 15 180
Salaries 25 300
renting 75 900
Depreciation (Assets write off) Expenses 3 41
Sub-total 118 1,421
Total Operating costs 6,820 81,839
Production costs assumed monthly capacity of 15 Power Invertors.
  1. Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.
  2. Direct costs include: materials, supplies and other costs that directly go into production of the product.
Item Unit Quantity @ Total
Solidaling machine No. 1 20 20
Drill No. 1 20 20
Hand tools No. 10 12.5 125
TC of Machinery       165
Item Period Output @ UPx TC TR
Power Invertors per month 15 455 600 6,820 9,000
  per year 180 5,456 7,200 81,839 108,000

 

Profitability Analysis in US$

Profitability item per day per month per year
Revenue      
Power Invertors 346 9,000 108,000
Less Prod & Operating Costs 262 6,820 81,839
Profit 84 2,180 26,161

Market Analysis

There is an ever-increasing demand for Invertors due to power shortages and interruptions. The market for the invertors is within the country and spreads beyond our borders like Rwanda, Sudan and Congo.

Availability of Raw Materials and Equipment

All Equipments, tools and other Materials can be got from the local market

Government Incentives Available

Government is encouraging small scale businesses and income generating activities to eradicate poverty through the Private Sector Foundation of Uganda and “Bonna Bagagawale Programme where subsidies are offered

 

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