Post: MANUFACTURING ARTIST’S COLOURS

MANUFACTURING ARTIST’S COLOURS

Introduction

Artist’s colors are widely used in many art paintings and designs. They are produced in many forms using different color material mixtures. The Business Idea is based on the need to explore the existing market especially with the vocationalisation of education. An estimated fixed capital of US $ 14,950 and operating costs of US$ 50,223, generating revenue of US$97,812 in the first year of operations. The net profit margin is 47% with the payback period of 1 year and 5 months.

Production Capacity, Technology and Process

The production process of artist’s colors mostly involves mixing of artists’ color raw materials. Molten wax and citric acid is mixed with colors and clay using a mixer. The mixture is poured and cooled in the moulds to cast the wax crayons. The final product is then poured into printed tin boxes or glass bottles or paper cartoons.

Investment Scale, Capital Requirements and Equipment

The investment scale largely depends on the set goals and objectives of the project. The equipment used is very simple to acquire and relatively cheap.

Capital Investment Requirements in US$

Item Units Qty @ Amount
Mixer No 2 500 1000
Pot mill No 2 500 1,000
Table press No 1 400 400
Filling machine No 1 450 450
Testing equipment No 1 600 600
Delivery van No 1 6,000 6,000
Furniture & fittings No 3,000
Other tools No 2500
Total       14,950

Production and Operating Costs in US$ (a)Direct materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn cost/ day Pdn cost/ mth Pdn cost/yr
Direct Costs            
Clay Kgs 3 4 12 312 3,744
Citric acid Kgs 11.5 2 23 598 7,176
Paraffin wax Kgs 2 2 4 104 1,248
Colour pigments Kgs 4 4 16 416 4,992
Water Ltrs 0.25 16 4 104 1,248
Packaging materials Pcs 0.12 190 22.8 592.8 7,114
Other materials   100 1200
Sub-total     218 81.8 2,227 26,722

General Costs(Overheads)

Labour costs 625 7,500
Utilities 208 2,496
Administration expenses 188 2,256
Rent 100 1,200
Selling & distribution 150 1,800
Fuel 175 2,100
Miscellaneous expenses 113 1,356
Cleaning and toiletries 88 1,056
Depreciation 311 3,738
Sub-total 1,958 23,502
Total Operating Costs 4,185 50,223
  1. Production costs assumed are for 312 days per year with daily capacity of producing 190 tins of artist’s colours of 150 Liters each.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.
  4.  Total monthly days assumed are 26 work days.
  5. The valuation currency used is United States Dollars.

Market Analysis

The market exists especially in schools, vocational institutions, art galleries, universities and in ordinary craft paintings.

Project Product Costs and Price Structure

Item Qty/day Qty/yr @ Pdn Cost/yr UPx T/rev
Artists Colours 190 59,280 0.85 50,223 1.65 97,812

Profitability Analysis Table

Profitability Item Per Day Per Month Per Year
Revenue 313.5 8,151 97,812
Less: Production & Operating Costs 161 4,185 50,223
Profit 153 3,966 47,589

Government Facilities and Incentives

There is reduction of 100% on training expenditure cost incurred during the year of income on training citizen employees but not exceeding five years in total.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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