Shopping bags or carrying bags are made from LD/LLDPE plastic, which are used by traders and business houses with their firm names printed in multi –colours using off set printers. This project involves capital of US$153,638 which in return brings in gross profits of US$112,320 with a profit margin of US$ 23,030 per annum. The bags are not only convenient, but are also a means of advertising and sales promotion. What is proposed here is to set up plant to make printed shopping bags, which are environmentally friendly since they can be recycled.
Production Capacity The proposed plant would have a minimum capacity of 150 tonnes per annum. The shopping bag production capacity is about 89,290 units of bags per annum.
Production Capacity, Technology and Process
LD/LLDPE mixture after feeding to the blown film extruder, are melted and pumped out in the form of a tube, which is blown into a bubble and collapses to form a lay flat. The lay flat is given corona treatment and printed in flex printing machine. The film is converted into a bag by attaching a handle and sealing the bottom.
Capital Investments requirements in US$
|Capital Investment item||Units||Qty||@||Amount|
|Film Blowing machine||No||1||1,100||1,100|
|Rocker Hydraulic pressure cutting||No||1||944||944|
|Paper bag making machine||No||1||830||830|
Production and operating costs in US $
|Cost item||Units||@/ day||Qty/ day||Cost/ day||Cost/ month||Cost/ year|
General overheads Project product costs and Price structure in US$
|Selling & Distribution Expenses||217||2,600|
|Total operating Costs||7,441||89,290|
|Item||Qty/ day||Qty/yr||@||Prodn/ yr||UPx||TR|
Profitability Analysis in US$
|Profitability item||Per day||Per month||Per yr|
|Less: Production operating costs||286||7,441||89,290|
Sources of Supply of Machinery and Equipment and Raw Materials
Blown film extruder, air compressor, pumps, printing machine flexography/rotogravure, bag making machine, and the raw materials used are Printing ink, LD/LLDPE granules and handles. These machines can be imported from China although they can also be got from our local market on Entebbe road.
Government Facilities and Incentives Available
The manufacturers are allowed to recover their start-up cost to the tune of 25% of their expenditure in the year of income for four years and initial allowance of 50% of cost base for eligible property in areas of Kampala, Namanve, Entebbe, Njeru and Jinja while 75% of cost base of those outside specified areas. Such initial cost is allowed for tax purposes.
Equipment: Project product costs and Price structure