This Business Ideais for manufacture and marketing of spectacle frames from plastic cellulose acetate sheets. They are mass consumption items and are used by those with eye sight problems and for protection from the sun. The project envisages producing 1,300 sets of spectacle frames per month on the basis of 8 hours per working day. This translates into 15,600 sets per annum. The revenue potential is estimated at US$ 546,000 per year with a net profit margin 14% and a payback period of 3 months. The total investment requirement for the venture US$ 17,510
Spectacle frames are made in two parts that is; one is the front which holds the two glasses and the other is the two sides which are fitted on each of the front. Generally spectacle frames are specified by Eye size and Bridge size. Eye size is the one which decides the size of the glass which it holds while the bridge size is the distance between the two glasses.
Capital Investment Requirement in US$
|Capital Investment Item||Units||Qty||@||Amount|
|Sheet cutting machine||No||1||4,300||4,300|
|Pneumatic wire shooting machine||No||1||4,000||4,000|
|Front design machine||No||1||250||250|
|Pneumatic hing fitting machine||No||1||3,250||3,250|
|Nose bumping fixture||No||1||2,000||2,000|
|S.P hand press and bending fixture||No||1||500||500|
|Side grooving machine||No||1||500||500|
|Fixture and hammer||No||2||200||400|
|Special purpose fixture with heating box||No||1||250||250|
|Barrel polishing machine||No||1||1,500||1,500|
Production and Operating costs
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/ year|
|Cellulose Acetate Sheets of 4mm to 8mm thickness||85||15||700||18,200||218,400|
|Depreciation (Asset write off) Exp||365||4,378|
|Total Operating costs||39,261||471,126|
- Production costs assumed are for 312 days per year with a daily capacity of 231 Spectacle frames.
- Depreciation (fixed asset write off) assumes a 4 year 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 Product Costs and Price Structure
Profitability Analysis in US$
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production and Operating Costs||1510.0176||39,260||471,126|
Government Incentives Available
Government is encouraging small and Medium Enterprises and income generating activities to eradicate poverty through provision of soft loans in the financial institutions.
There are more people today wearing spectacles as a creative treasure and many more use sun glasses. Thus plastic frames which are trendy and fashionable have a ready market and their Prices are relatively low.
Availability of Raw Materials and Equipments
Raw materials and equipments are imported from Japan, China and German.