This business idea is for production of sisal fibre handicrafts. Sisal fibre extracted from sisal leaves is used for making many types of decorative items, bags, wall hangings and toys. The products from sisal are normally appealing in tourist places, hotels and restaurants with a business risk is competition from other manufacturer thus need for proper management and control of the business. The business idea aims at production of 1,300 pieces of fibre handicrafts. The revenue potential is estimated at US$ 524,160 per year with a net profit margin 7%. The total capital investment for the project is US$ 1,260.
The profiled plant has a minimum capacity of 50 units per day.
Technology and Production Process
Sisal leaves are cut and fibre extracted through a Raspador machine. After washing in water and subsequent drying, the leaves are ‘beaten’ to remove undesired particles. The dry fibre is used for making braids, which are dyed and made into attractive handicrafts.
Scale of investment
Capital Investment Requirements
|Capital Investment Item||Units||Qty||@||Amount|
Production and Operation costs
|Cost Item||Units||@/ day||Qty/ day||Pdn Cost/ day||Pdn Cost/ month||Pdn Cost/ Year|
|Crude Petroleum Jelly||Kgs||8||129||1032||26,832||321,984|
|General costs (Overheads)|
|Selling and Distribution||3250||39,000|
|Depreciation (Asset write off) Expenses||26.25||315|
|Total Operating Costs||40,421||485,047|
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 days
Project Product costs and Price Structure in US $
|Item||Qty /day||Qty/ yr||@||Pdn/ yr||UPx||T/rev|
Profitability Analysis in US $
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production and Operating Costs||1555||40,421||485,047|
Sources of supply of raw materials and equipments
All equipments and raw materials can be got in Uganda.
As the handicrafts made of sisal fibre are elegant and cost effective, the market for sisal fibre is promising and attractive especially in urban and semi-urban areas. The sisal handicrafts also enjoy export potential.