Introduction
The construction sector is the most vibrant sector in Uganda today registering the highest level of growth and therefore any investment in such sector takes a lucrative path.
The Business Ideais targeted towards investing in a sector that is very vibrant with its products being on rising demand .An estimated output of 4056000half bricks per year has been done and fixed capital of20475US$ if injected in the project with operating costs of
| Capital investment item | units | Qty | @ | Total |
|---|---|---|---|---|
| Furniture &Fittings | No | 2 | 500 | 1000 |
| Double Shaft mixer | No | 1 | 6,000 | 6,000 |
| Truck (3Tones) | No | 1 | 10,000 | 10,000 |
| Shade&glazing room | No | – | 2,000 | 2,000 |
| Water tank | No | 3 | 300 | 900 |
| Spades,hoes,axes | No | – | – | 375 |
| Other tools | No | – | – | 200 |
| Total | 20,475 |
- 51007US$, can yield an estimated revenue of 54756US$ in the first
- Production and Operating Costsyear of operation.
Production Capacity, Technology &Process
The production capacity depends on the machine used and the skilled manpower employed to operate it.
The production process of bricks is quite simple as it majorly involves mixing of the soil, moulding, drying the bricks but gently in a shade not by direct sunshine to reduce cracks that may develop on the brick. After drying them for about two weeks, they are well built to gather and then burnt. The burnt bricks are left for about four days and thereafter can be sold.
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ yr | Pdn cost/ yr |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Plastic red Clay | Kgs | 0.04 | 900 | 36 | 936 | 11,232 |
| Water | Ltrs | 0.01 | 1,500 | 15 | 390 | 4,680 |
| Carbonized materials | Kgs | 0.04 | 400 | 16 | 416 | 4,992 |
| Rice husk Ash | Kgs | 0.01 | 300 | 3 | 78 | 936 |
| Sub-total | 900 | 70 | 1,820 | 21,840 |
General Costs(Overheads)
| Firewood | 420 | 5,040 |
|---|---|---|
| Fuel | 347 | 4,158 |
| Labour | 708 | 8,500 |
| Feeding costs | 175 | 2,100 |
| Utilities | 21 | 250 |
| Ground and office rent | 288 | 3,450 |
| Miscellaneous | 46 | 550 |
| Depreciation | 427 | 5,119 |
| Sub-total | 2,432 | 29,167 |
| Total Operating Costs | 4,252 | 51,007 |
Profitability
| Profitability Item | Per Day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 175.5 | 4,563 | 54,756 |
| Operating Costs | 163.5 | 4,251 | 51,007 |
| Profit | 12.016 | 312 | 3,749 |
Market Analysis
The demand for bricks is very high more especially by housing estate developers, construction companies, individual construction projects etc.
Government Facilities and Incentives
There are clear incentives set by the government on such projects but there exists tax exemptions on same raw materials like fuel, soil, and firewood.
