Introduction
Spray painting is a technique where a device sprays a coating (paint, ink, vanish) through the air onto a surface. It leaves the surface uniform and bright, and above all, gives the product an elegant look. It protects the metal from rusting and makes it weather proof. The business idea aims at creation of 1,560 job works per annum with persons spraying cars. The revenue potential is estimated at US$ 24,700 per month, translating into US$ 234,000 per year with a sales profit of $ 23,446 the total capital investment for the project is US$ 3,434.
The profiled project has a minimum capacity of 1,560 job works per annum.
Technology and Production Process
The equipment used includes: an Air Compressor, a Spray Gun and an HVLP Paint Sprayer and other equipments. The raw materials are paint hardener and thinner. Paint is poured in the spraying gun and sprayed uniformly with the help of a compressor.
Capital requirements in US $
| Capital Investment item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Air compressor | No | 1 | 2,450 | 2,450 |
| Spray gun | No | 1 | 235 | 235 |
| HVLP Paint | No | 1 | 499 | 499 |
| Other equipment | Number | 1 | 50 | 250 |
| Total | Â | Â | Â | 3,434 |
Production and operating costs in US $
| Cost item | Units | @/ day | Qty/ day | Cost/ day | Cost/ month | Cost/ year |
| Direct Costs | Â | Â | Â | Â | Â | Â |
| Paint | liters | 30.0 | 10 | 300 | 7,800 | 93,600 |
| Hardener | liters | 25.0 | 5 | 125 | 3,250 | 39,000 |
| Thinner | liters | 11.5 | 10 | 115 | 1,708 | 20,496 |
| Subtotal | Â | 66.5 | 25 | 540 | 12,758 | 153,096 |
General Costs(Overheads) Project product costs and Price structure in US$
| Administration expenses | 542 | 6,500 |
|---|---|---|
| Labour | 2,083 | 25,000 |
| Utilities | 650 | 7,800 |
| Rent | 1,000 | 12,000 |
| Selling & Distribution Expenses (Advertising) | 233 | 2,800 |
| Depreciation | 72 | 859 |
| Miscellaneous | 208 | 2,500 |
| Subtotals | 4,747 | 56,959 |
| Total operating Costs | 17,546 | 210,555 |
| Item | Qty/ day | Qty/ year | @ | Prod./ year | UPx | Revenue |
|---|---|---|---|---|---|---|
| Saloon car | 5 | 1,560 | 134.97 | 210,555 | 150 | 234,000 |
Profitability Analysis
| Profitability item | Per day | Per month | Per year |
|---|---|---|---|
| Revenue | 750 | 19,500 | 234,000 |
| Less: Production operating costs | 675 | 17,546 | 210,555 |
| Profit | 75 | 1,954 | 23,446 |
Sources of Supply of Equipments
All equipments are imported, but could also be got from the local market from places such as: Casement (U) Limited. Materials that can be got from Uganda include: Sadoline paint and other local paint manufacturers.
Market Analysis
Apart from being used in the normal construction procedures, this technique can be employed for painting steel furniture, two wheelers, three wheelers and tractors. This is most suitable in places where automobiles and tractors are aplenty.
Government Facilities and Incentives Available
The Government is willing to support industrialization in Uganda through; Tax exemptions, Land, Basic infrastructure, Grants, long term Loans and liberalized market.
