This business idea is for making rubber molded products. Rubber molded products are mostly used in automobile and assembling units. Molded rubber products find extensive use in railways, automobile, and bicycles and also in many industrial and domestic appliances. The business idea aims at production of 1,300 kgs of rubber products per month. The revenue potential is estimated at US$ 78,000 per year with a net profit margin of 42% and a payback period of 2 years. The total capital investment for the project is US$ 15,390.
The profiled plant has a minimum capacity of 36,000 kgs of rubber products per annum when operating a single shift of eight hours a day, 300 days per annum.
Technology and Process Description
Natural rubber latex is compounded with zinc oxide, anti-oxidants, paraffin wax, satiric acid, china clay, needle oil, ammonium chloride, in a rubber mixing mill. This mixture is extruded as slabs or other forms of rubber sheeting and then fed into moulds in measured quantities to the compression moulding press. These are cured by steam from a boiler.
Scale of Investment
Capital Investment Requirements
|Rubber Mixing Mill||No||1||220||220|
Production and Operation costs General costs (Overheads)
|Cost Item||Units||@/ day||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn Cost/ Year|
|Selling and Distribution||200||2,400|
|Depreciation (Asset write off) Expenses||321||3,848|
|Total Operating Costs||3,763||45,158|
- Production is assumed for 312 days per year.
- Depreciation assumes 2 year life of assets written off at 50% per year for all assets.
- A production Month is assumed to have 26 work days.
Project Product costs and Price Structure
|Item||Qty / day||Qty/yr||Unit Cost||Pdn/yr (US$)||Unit Price||T/ rev(US$)|
Profitability Analysis Table
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production and Operating Costs||145||3,763||45,158|
Sources of supply of Equipments
Equipments can be got from Eagle Co.Ltd, China and Kebeln Machinery Co. Ltd, China. They can also be got in Uganda.