Introduction
Rubber stamps are used with some type of ink made of dye or pigment applied on them to leave a mark or an image or pattern that has been carved, molded, laser engraved when stamped on a piece of paper or anything. The stamps are made in different sizes and design as per the requirements of the custAomer. Manufacturing of rubber stamps is not only simple but also lucrative. Company seals can also be made in this project. It costs US$ 2,721 to be set up for the first year of operation with capacity production of 14,998 stamps per year and yielding TR of US$ 53,999 per annum. The net profit margin is at 5% with a payback period of 5 months.
Production Process, Capacity and Technology
The letter types are arranged in a composing tray with the text placed along with spaces and lines fixed on to the frame of a wooden block. A mixture of plaster of Paris and whitening powder are placed on a metallic tray. The tray is kept on letter type frame and fixed tightly, which results in an impression on the plaster of Paris mixture. A thin rubber sheet is cut into the required size. The rubber sheet is spread over the impression of plaster of Paris and pressed to the frame with the help of a hand press.
The frame (entire set) is heated for a specific time so that the rubber penetrates in the letter impression. Finally, the rubber impression is cleaned and pasted to a wooden or metal handle with the help of synthetic adhesive. A rubber cushion piece is also used to hold the rubber firmly to the handle. The profiled plant has a minimum capacity of 15,000 units of rubber stamps per annum and this is on the basis of 312 working days in a year.
Capital Investment Requirement in US $
| Item | Unit | Qty | Price | Total |
|---|---|---|---|---|
| Lead letter types | No | 1 | 500 | 500 |
| iron composing stand | No | 1 | 122 | 122 |
| case stand or wooden frames | No | 4 | 10 | 40 |
| stamp pressing machine | No | 1 | 500 | 500 |
| Hand cutter | No | 1 | 4 | 4 |
| Stove | No | 1 | 55 | 55 |
| Other tools | No | 1 | 1500 | 1500 |
- Production costs assume 312 days per year with daily capacity of 48.1stamps.
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Direct costs include materials, supplies and all other costs incurred to produce the product.
- A production month is 26 days
- Currency used is US Dollars.
Production and Operation costs in US$
Direct materials, supplies and costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ mth | Pdn cost/yr |
|---|---|---|---|---|---|---|
| iron and wooden sheets | ltrs/ kgs | 1 | 0.16 | 0.16 | 4.16 | 49.92 |
| Synthetic adhesive | ltrs | 0.1 | 0.1 | 0.1 | 2.6 | 31.2 |
| plaster of Paris | roll | 0.04 | 0.96 | 0.038 | 0.9984 | 12 |
| cushion sheet & whitening powder | ltrs/ kgs | 4.65 | 0.22 | 1.023 | 26.598 | 319.18 |
| Packaging material | pkts | 0.5 | 3.21 | 1.605 | 42 | 501 |
| Sub-total | 76.36 | 914 |
General Costs (Overheads)
| Labour | 200 | 2,400 |
|---|---|---|
| Selling & distribution | 70 | 840 |
| Utilities (Water, power) | 100 | 1,200 |
| Administration | 110 | 1,320 |
| Rent | 100 | 1,200 |
| Miscellaneous expenses | 50 | 600 |
| Depreciation | 81 | 975 |
| Sub-total | 711 | 8,535 |
| Total Operating Costs | 787.36 | 42,825 |
Project product costs and Price structure
| Item | Qty/ day | Qty/ yr | Unit Cost | Pdn cost/yr | UPx | TR |
|---|---|---|---|---|---|---|
| Rubber stamps | 48.1 | 14,998 | 2.86 | 42,825 | 3.6 | 53,999 |
Profitability Analysis in US $
| Profitability Item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 173 | 4,499 | 53,999 |
| Less: Production and operating costs | 137 | 3,569 | 42,825 |
| Profit | 36 | 931 | 11,174 |
Market
The demand of this product is increasing day by day and this has resulted in a small number of entrepreneurs generally becoming involved in manufacturing these products locally. The customer base for rubber stamps, among others, includes government offices, colleges, schools, banks, private companies and small shops in semi- urban and urban areas.
Source of Equipment and Raw materials
Some Equipment may be imported and others got locally. Raw materials like rubber tires can sometimes be used and they are locally available although importing could also be done.
