MAKING RUBBER BALLONS BUSINESS IN UGANDA

 MAKING RUBBER BALLONS BUSINESS IN UGANDA

Introduction

The proposed Business Idea is to set up a plant for making and marketing of rubber balloons. Balloons are colorful rubber items produced in different sizes, patterns, designs, and shapes. Rubber balloons are play materials for children of all age groups and are also used for decorative purposes. They can be marketed through retail outlets, Stationary Shops, Fancy Stores and Gift Shops. This business idea is premised on production of 46800kgs per month which translates into 3900kgs per annum. The revenue potential is estimated at US$120058 per month translating into US$1,440,698 per annum with a sales margin of 5% and a total investment requirement is US$ 9856 for the first year of project operation.

Production Process

The latex is prepared, compounded, dipped and the film is dried and beading made with the help of moulds, through dipping and vulcanizing, the latex is stripped off, which gives the finished product; whereby a packet of 100 units of rubber balloons in different colours and sizes is ready for dispatch

Capital investment requirement in us$

Item Units Qty @ Amount
De-ammoniating Vessel No 1 400 400
Pot mill No 1 250 275
Paddle Mixer No 1 250 250
Dipping ace No 2 350 700
Packing Machine No 1 600 600
Weighing Balance No 1 150 150
Delivery Van No 1 8000 8,000
Total       10,375

Operating cost in us $

Cost Item Units @ Qty/ day cost/ day cost/ month cost/ year
Direct Costs          
Latex kg 1.5 1,000 1,500 39,000 468,000
Chemicals and dyes kg 2 200 400 80,000 960,000
Packing Materials No 1.2 10 12 312 3,744
Sub-total     1,210 1,912 119,312 1,431,744

General Operating Costs (Overheads)

Rent 50 600
Labour 180 2,160
Utilities(Power) 100 1,200
Preliminary costs 100 1,200
Miscellaneous Costs 100 1,200
Depreciation(Asset write off)Exp 216.16 2,594
Sub-total 746.16 8,954
Total Operating Costs 120,058 1,440,698

1,000 Kilograms of Rubber Balloons and it is assumed that each kilogram contains
50 Rubber balloons and each balloon is sold at US$0.035 on the wholesale market.
Depreciation (fixed asset write off) assumes _4_ years life of assets written off at
_25% per year for all assets.
Direct Costs include: materials, supplies and other costs that directly go into
production of the product.A production month is assumed to have 26 days.

 

Project cost and Price structure

Item Qty/ day Qty/ Yr @ Pdn cost/Yr UPx T/rev
Balloons 1,800 561,600 1.5 842,400 1.75 1,474,200

Profitability analysis table

Profitability Item Per day Per Month Per Yr
Revenue 4,725 122,850 1,474,200
Less: Production and Operating Costs 4,618 120,058 1,440,698
Profit 107 2,792 33,502

Market Analysis

Rubber balloons have a steady demand in the market since they are used in all occasions especially for decorations.

Source of Raw Materials and Equipments

Raw materials (Latex Rubber) can be imported from countries like Ghana and Liberia while equipment can be imported from India and China.

Government Incentives Available.

Government is encouraging small scale businesses and income generating activities to eradicate poverty through financial institutions which provide soft loans to the investors. Organizations like Private Sector Foundation Uganda are channels through which subsidies and free advisory services are given.

 

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