Blog: MANUFACTURING HALF BRICKS IN UGANDA

MANUFACTURING HALF BRICKS IN UGANDA

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
  1. 51007US$, can yield an estimated revenue of 54756US$ in the first
  2. 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.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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