MAKING SPINDLE TAPES BUSINESS IN UGANDA

 MAKING SPINDLE TAPES BUSINESS IN UGANDA

Introduction

Spindle tapes are mainly used in textile industries where spindles do run at a very high speed with minimum vibrations. Perfect spindle tapes are ideal for cotton, woolen, worsted & synthetic fiber spinning.

The Project cost is US$42,006 bringing revenue estimates of US$139,994 from production capacity of 700128 rolls annually.

These tapes exhibit, Permanent anti static behavior, are energy saving, high resistance to abrasion and easy to join. With increased focus on increasing local textile output, and the advent of institutions like Nytile and phoenix textiles plus the successful accessing of foreign markets especially through new trade policies, the demand for spindle tapes is also increasing.

Production process, capacity, technology

The main production process consists of yarn preparation, and weaving. Yarn, nylon or cotton obtained in the form of cones from spinning mills is transferred into weaver’s beam using the warping machine and bobbins using the pin winding machine. The beaver’s beam is mounted on the multi- station power loom which constitutes warp.

Bobbins are fed into the power loom through shuttles and this constitutes weft. Tape is woven by the interlacing of weft and warp. This is done mechanically by the power loom. After the tape is made, it is inspected, measured and rolled by the automatic tape rolling machine. The plant at the start of production has a minimum output of 700,000 meters each year. This is equal to 14,000 rolls each of 50 meters length, and working 26 days in a month

 

Capital Investment Requirement in US $

Item Qty Price Total
Sectional warping machine 1 4,500 4,500
Pirn winding machines 1 3,200 3,200
Multi-station power loom 2 4,900 9,800
Automatic tape rolling machine 1 3,200 3,200
TC of tools     20,700

Production and Operation costs in US $

Cost Item Units @/ day Qty/ day Pdn cost/day Pdn cost/ mth Pdn cost/yr
Direct Costs          
Cotton Yarn Mtrs 0.21 19.2 4 105 1259.9
Nylon Yarn Mtrs 0.6 25.6 15 400 4,800
Chemicals Ltrs 45 0.16 7.2 187 2,246
Sub-total       26.6 692 8,306

General Costs (Overheads) Project product cost and Price Structure in US$

Labour 1,000 12,000
Selling & distribution 200 2,400
Utilities (Water, power) 200 2,400
Administration Expenses 400 4,800
Rent 500 6,000
Miscellaneous expenses 100 1,200
Depreciation 431 5,175
Sub-total 2,831 33,975
Total Operating Costs 3,523 42,006
Item Qty/day Qty/yr Unit cost Pdn cost/yr UPx TR
Spindles 2,244 699,972 0.1 38,700 0.2 139,994

Profitability Analysis in US$

Profitability Item Per day Per month Per year
Revenue 449 11,666 139,994
Less: Production and operating costs 134 3,501 42,006
Profit 314 8,166 97,988

Market

Spindle tapes have great market in the textile sector. Therefore, supply should be made to those industries, which deal in textile production. Potential for export exists in the long run especially with the advent of the AGOA act which promotes the export of textile materials to the USA. However, with the growth of the local textile industry, there is market locally for the tapes.

Source of machinery and Raw materials

All the machinery can only be imported while materials to be used can be got locally but also some can be imported.

Government intervention

75% initial allowance granted in the first year of production on the cost base of plant and machinery for industries elsewhere in Uganda. Startup costs 25% granted on actual cost over the first four years in four equal installments.

 

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