Post: MANUFACTURING PRINTING INK BUSINESS IN UGANDA

MANUFACTURING PRINTING INK BUSINESS IN UGANDA

Introduction

Printing ink is one of the most needed products in the printing industry. Most of the printing ink is imported and this gives an opportunity for any new company to explore the un tapped section in the industry. This Idea therefore targets a wide market with an estimated fixed capital of US$ 15,020 and operating costs of US$ 377,663 generating revenue of US$ 561,600 in the first year of operation with the net profit margin of 33%.

The payback period for the project is 3 months.

Production Capacity, Technology and Process

The most efficient method of manufacturing printing ink is the paste form. Here raw materials such as dry pigments are mixed with additives such as oxidants, modifiers, driers wetting agents in a stainless planetary mixer. The mixture is then passed into a triple roll for a number of times until the required quality standard is attained. The paste form ink is then packed.

Investment Scale, Capital Requirements and Equipment

The investment scale largely depends on the set project objectives.

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ total
Ball Mill No 1 1650 1650
Varnish Kettle No 1 825 825
Planetary Mixer No 1 1500 1500
Triple Roll Mill No 1 2500 2500
Vessels No 2 750 1500
Hot Plates No 3 275 825
Furniture No 1500 1500
Storage Tanks No 3 500 1500
Weighing Scale No 1 300 300
Laboratory equipment No 1 2420 2420
Other tools 500
Total 15,020

Production and Operating Costs in US$ (a)Direct Materials, Supplies and Costs

Cost Item Units @ Qty/ day Pdn Cost/ day Pdn Cost/ mth Pdn Cost/yr
Direct Costs
Dyes Kgms 10 55 550 14,300 171,600
Solvents Kgms 5.6 20 112 2,912 34,944
Resins Kgm 7 45 315 8,190 98,280
Waxes Kgms 4 15 60 1,560 18,720
Other Materials Kgms 0 0
Packaging materials Pcs 0.5 135 67.5 1,755 21,060
Sub-total 270 1,105 28,717 344,604
Advertising 200 2,400
Labour 1188 14,256
Utilities 483 5,796
Cleaning and Toiletries 396 4,752
Miscellaneous 175 2,100
Depreciation 312.92 3,755
Sub-total 2,755 33,059
Total Operating Costs 31,472 377,663
  1.  Production costs assumed 312 days per year with daily capacity of producing 120kgs of printing ink.
  2. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
  3. Direct costs include: materials, supplies and other costs that directly go into production of the product.
  4. Total monthly days assumed are 26-days.
  5. The valuation currency used is United States Dollars.

Market Analysis

The market for printing ink widely exists with major consumers such as: printeries, educational institutions, public and private offices etc.

Project Product Costs and Price Structure in US$

Item Qty/ Day Qty/Yr @ Pdn cost/yr Unit Price Total Rve
Printing Ink 120 37,440 10.09 377,663 15 561,600

Profitability Analysis Table in US$

Profitability Item Per day Per Mnth Per year
Revenue 1800 46,800 561,600
Less: Production and Operating Costs 121083 31,472 377,663
Profit 589 15,328 183,937

Government Facilities and Incentives

There is no VAT charged on raw materials and the government has secured the European Investment Fund which can be accessed by investors

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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