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 and Operating Costs in US$ Direct materials, Supplies and Costs
|Cost Item||@||Qty/ day||Pdn Cost/ day||Pdn Cost/ mth||Pdn Cost/yr|
|White Mineral Oil||30||3||8.6||223.6||2683.2|
General Costs (Overheads)
|Selling and Distribution||50||600|
|Total Operating Costs||7,047||84,566|
Production costs assumed 312 days per year with daily capacity of producing
- 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.
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|
|Less: Production& Operating Costs||271||7,047||84,566|
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.
General Costs (Over heads)
|Utilities (Power &Water)||300||3,600|
|Repair & Maintenance||200||2,400|
|Depreciation(Asset write off) Expenses||139.7||1,676|
|Sub – total||1,840||22,076|
|Total Operating Costs||24,262||247,075|
- Project Product Costs and Price Structure
- Profitability Analysis
|Profitability Item||Per day||Per Month||Per Year|
|Less: Production & Operating Costs||792||20,590||247,075|
Sources of Supply of Raw Materials:
Raw materials are readily available in Ugandan markets in the Chemicals Shops and Aloe vera farmers.