Nail polish is a cosmetic product used by the majority of women in Uganda. It has got market both in rural and urban areas of the country.
This project idea was developed on the basis of using the simplest technology in the manufacturing of nail polish with an estimated fixed capital of 4,850 US$, and operating costs of 175,817US$ used to produce 11,856 liters of nail polish to realize 330,439US$ of revenue in the first year of operation.
Production Capacity, Technology and Process
The production technology is very complex and may involve the use of robots, but recently a home made nail polish can be manufactured using a much simpler technology. Here the primary film former called nitrocellulose is mixed with a shimmer or metallic pearl and this may create a good shade if applied but care has to be taken by first applying it on the nails to test its quality.
Investment Scale, Capital Requirements and Equipment
The investment scale is dependant on the set project objectives.
Capital Investment Requirements
|Capital investment item||units||Qty||@||Total|
|Laboratory testing kit||No||1||500||500|
|Portable stirrer with mortar||No||1||2,400||2,400|
|Bottle filling machine||No||1||650||650|
Production and Operating Costs
|Cost Item||Units||@ day||Qty/ day||Pdn cost/ day||Pdn cost/ mth||Pdn cost/yr|
General Costs (Overheads)
|Cleaning & toiletries||100||1,200|
|Selling & distribution||200||2,400|
|Total Operating Costs||15,490||185,874|
- Production costs assumed are for 312 days per year with daily production capacity of 38 litres of nail polish.
- 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-work days.
- The valuation currency used is United States Dollars.
The market for cosmetics is readily available country wide and for successful implementation, it is recommended that products are distributed to supermarkets, salons and cosmetic shops that can easily increase sales.
Project Product Costs and Price Structure
|Item||Qty/ day||Qty/yr||@||Pdn cost/yr||UPx||T/rev|
Profitability Analysis Table
|Profitability Item||Per Day||Per Month||Per Year|
|Less: Production & Operating Costs||596||15,490||185,874|
Government Facilities and Incentives
The initial allowance on plant and machinery offered can be an incentive as it reduces on income tax components on the investment.
|Electronic flat Iron||No||2||20||40|
|Steam Pressing table||No||1||250||250|