Introduction
Zinc sulphate is a colorless crystalline, water-soluble chemical used to manufacture animal feeds, fertilizers and agricultural sprays. It also has applications in textile dyeing and printing, as a reagent in glues, in electro galvanizing paints, varnishes and in the manufacture of many zinc compounds. Zinc sulphate has a good market potential in rural areas and agriculture sector. The business idea aims at production of 3,900 kgs of zinc sulphate per month. The revenue potential is estimated at US$ 374,400 annually with a net profit margin of 9% with a payback period of 3 month.
The total capital investment for the project is US $11,622.
Plant Capacity
The plant in this profile has a minimum capacity of 46,800 kgs of zinc sulphate per annum.
Capital Investment Requirements
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Pulverizer | No | 1 | 291 | 291 |
| Pumps | No | 10 | 26 | 260 |
| Reaction tank | No | 1 | 147 | 147 |
| Sulphuric acid storage tank | No | 1 | 219 | 219 |
| Discharge and mud recovery tank | No | 1 | 122 | 122 |
| Filter Press | No | 1 | 7,900 | 7900 |
| Crystallizers | No | 1 | 52 | 52 |
| Centrifuge | No | 1 | 1,800 | 1800 |
| Chilling Plant | No | 1 | 831 | 831 |
| Total | 11,622 |
Production Process
Zinc sulphate is manufactured by leaching zinc ash with dilute sulpuric acid. The leached solution is filtered to separate unreacted zinc, which is reused along with the next charge. The filtrate is treated with potassium permanganate and zinc dust to precipitate impurities.
It is then treated with nitro so beta-naphthol to remove cobalt. The excess of sulphuric acid is neutralized with zinc carbonate. The solution is filtered and evaporated. After evaporation, the thick solution is allowed to settle in a settling tank where crystals of zinc sulphate come out of the cooler. The crystals are separated from the mother liquor in a centrifuge and dried on belt drier. The mother liquor is re-circulated to the evaporator. The crystals are then packed and marketed.
Production and Operating Expenses
| Cost Item | Units | @/ day | Qty/ day | Pdn Cost/ day | Pdn Cost/ month | Pdn Cost/ Year1 |
|---|---|---|---|---|---|---|
| Direct costs3: | ||||||
| Zinc Ash | Kgs | 8 | 100 | 800 | 20,800 | 249,600 |
| Sulphuric acid | Kgs | 10.5 | 20 | 210 | 5,460 | 65,520 |
| Packaging Materials | Pieces | 2 | 5 | 10 | 260 | 3,120 |
| Subtotal | 26,520 | 318,240 |
General costs (Overheads)
| Labour | 400 | 4,800 |
|---|---|---|
| Utilities | 400 | 4,800 |
| Selling and Distribution | 200 | 2,400 |
| Administrative expenses | 150 | 1,800 |
| Shelter | 400 | 4,800 |
| Depreciation (Asset write off) Expenses | 242 | 2,906 |
| Sub-total | 1,792 | 21,506 |
| Total Operating Costs | 28,312 | 339,746 |
- Production is assumed for 312 days per year.
- Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
- A production Month is assumed to have 26 work days
Project Product Costs and Price Structure
| Item | Qty / day | Qty/yr | @ | Pdn/yr | UPx | T/rev |
|---|---|---|---|---|---|---|
| Zinc Sulphate | 150 | 46,800 | 7 | 339,746 | 8 | 374,400 |
Profitability Analysis Table in US$
| Profitability Item | Per day | Per Month | Per Year |
|---|---|---|---|
| Revenue | 1,200 | 31,200 | 374,400 |
| Less: Production and Operating Costs | 1,089 | 28,312 | 339,746 |
| Profit | 111 | 2,888 | 34,654 |
Sources of Supply of Equipments
All equipments can be got in Uganda; however others can be imported from counties like China, USA etc.
