MANUFACTURING MOSQUITO REPELLANT CREAM IN UGANDA

Introduction

This proposal is for producing cream that drives mosquitoes away from whoever applies the product. Mosquitoes are a menace to human race as they transmit malaria parasites through their bite. They must therefore be kept at bay. This can be successfully done by applying a repellent cream which keeps them at bay. The cream is applied on the exposed parts of the body e.g. the face and neck; the legs, the hands, and it remains effective for about 10 hours. The project requires an estimated fixed capital of US$ 629 and total operating costs of US$84,566 generating revenue of US$126,000 in the first year of operation with a net profit margin of 33%. The payback period is estimated at 4 years.

Production Capacity, Technology and Process

Snow white petroleum jelly is heated and melted in stainless steel air-tight vessel and when it reaches a boiling point, mosquito repellent essential oil is added and allowed to mix thoroughly. Color may be added if desired. After, the solution is filled in plastic containers and placed on trays to cool. These are later cleaned, labeled and packed in dozens and sealed for dispatch to the market.

Capital Investment Requirements in US$

Capital Investment Item Qty @ total
Production Utensils 125
Tables 3 130 390
Basins 5 1.2 6
Jerrycans 5 1.6 8
Charcoal Stove 2 50 100
Total     629

Production and Operating Costs in US$ Direct materials, Supplies and Costs

Cost Item @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/yr
Direct Costs          
Essential Oil 45 1 45 1170 14040
White Mineral Oil 30 3 8.6 223.6 2683.2
Petroleum Jerry 400 4 61.5 1599 19188
Labels 0.01 256 2.56 66.56 798.72
Plastic Containers 0.5 256 128 3328 39936
Sub-total   268 360 6,387 76,646

General Costs (Overheads)

Labour 175 2,100
Rent 125 1,500
Selling and Distribution 50 600
Utilities 160 1,920
Miscellaneous 150 1,800
Sub-total 660 7,920
Total Operating Costs 7,047 84,566

Production costs assumed 312 days per year with daily capacity of producing

  1. 3,500-150mgs of repellant cream. Depreciation (fixed asset write off) assumes 4-years 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. Total monthly days assumed are 26-days. The valuation currency used is United States Dollars.

Market Analysis

The market is wide since malaria is one of the biggest killer diseases in Uganda. The people who feel uncomfortable by sleeping under mosquito nets can easily switch to repellant creams.

Project Product Costs and Price Structure

Item Qty/ day Qty/yr @ Pdn Cost/yr UPx Total Rve
Mosquito Repellent Cream 538 168,000 0.50 84,566 0.75 126,00000

Profitability Analysis Table in US4

Profitability Item Per day Per Mnth Per year
Revenue 404 10,500 126,000
Less: Production& Operating Costs 271 7,047 84,566
Profit 133 3,453 41,434

Risk certainty

The risk involved in this idea is healthy and safety which can be mitigated by employing better qualified scientists.

 

9. When the olive green color is already even, remove the mixture from the mixer.

Essential oil Litres 6 10 60 1,560 18,720
Spring Fragrance Litres 10 5 50 1,300 15,600
Lanolin Litres 26 5 130 3,380 40,560
CDEA Kgs 4.25 5 21.25 553  
Aloe vera Litres 9 50 450 11,700 140,400
Silicate Litres 20 5 100 2,600  
Sodium Kgs 0.43 5 2.15 56 670.8
Sub total       842.4 22,422 224,999

General Costs (Over heads)

Rent 200 2,400
Labour 500 6,000
Utilities (Power &Water) 300 3,600
Repair & Maintenance 200 2,400
Fuel 500 6,000
Depreciation(Asset write off) Expenses 139.7 1,676
Sub – total 1,840 22,076
Total Operating Costs 24,262 247,075
  1. Project Product Costs and Price Structure
  2. Profitability Analysis

 

Item Qty/day Qty/yr @$ Pdn Cost/yr$ UPx T/rev
H. Soap 200 62,400 3.96 247,075 6 374,400
Profitability Item Per day Per Month Per Year
Revenue 1,200 31,200 374,400
Less: Production & Operating Costs 792 20,590 247,075
Profit 408 10,610 127,325

Sources of Supply of Raw Materials:

Raw materials are readily available in Ugandan markets in the Chemicals Shops and Aloe vera farmers.

Leave a Reply