REXENE WORKS (BICYCLE CARRIER SEATS)
This business idea is for the production and marketing of Rexene products, Rexene finds a wide application ranging from being used as seat covers to covering material. Rexene works include: bicycle carrier seats that are used in transportation of people. As Rexene products are cost effective, flexible and long lasting, there is a good demand for Rexene products that is untapped. The production capacity is estimated at 140 seats per day, total operating costs are estimated at US$ 142,827 per year and revenue estimates at US$ 213988 per year.
After creating patterns, Rexene is put along with a suitable cloth lining stitched along with the needed fittings like, sisal roll plywood sponge and glue etc. The Rexene material can also be used for making two-wheeler seats covers, using the same machines.
Capital Investment Requirements in US$
|Capital investment item||Qty||@||Amount|
|Sewing machine with 1/4 horse power||3||1,850||5,550|
|TCs on Equipments||6,550|
Production and operating Costs in US$
|Cost Item||Units||@/ day||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/ year|
|Utilities (water and power)||50||600|
|Depreciation (Asset write off)Expenses)||136.5||1,638|
|Total Operating Costs||11,902||142,827|
- Production costs assumed are for 312 days per year with a daily capacity of 150
- bicycle carrier seats
- Depreciation (fixed assets 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
Project product cost nd Price structurein US
|Item||Qty/ day||Qty/ yr||@||Pdn cost /yr||UPx||TR|
|Bicycle carrier seats||140||43,680||2.13||93,038||2.3||213,988|
Profitability analysis in US $
|Profitability Item||Per day||Per month||Per Year|
|Less production and operating Costs||457.7||11,902||142,827|
A relatively low cost process, products made out of rexene have tremendous market potential. Preferred by many, Rexene products have high demand.
Sources of Raw Materials and Equipments
Raw materials are available in markets and equipment can be sourced from China North Machine (U) co.ltd. Plot 24 Jinja Rd opp. Bank of Africa.
Government Facilities and Incentive Available The Government is willing to promote this sector through provision of: Tax exemptions, Land, Basic infrastructure, Grants and long term Loans at relatively low interest rates and a liberalized market.