Post: STARTING A SCREEN PRINTING BUSINESS IN UGANDA

STARTING A SCREEN PRINTING BUSINESS IN UGANDA

Introduction

This project is for making and marketing of screen printing units. Screen Printing Unit is a type of printing done by using designs developed on nylon silk cloth by chemical method, which is used for printing items like cards, stickers, file covers and also used for textile printing. Different types of press that may be private or public sector undertakings are buyers of screen printing units therefore there is a high demand in the market. The idea is premised on production of 385 screen printing units per day which translates into 120,120 screen printing units per annum. The revenue potential is estimated at US$231 per day, translating into US$72,072, per year with a profit margin of 28%; and total investment is US$ 3,850 for the first year of project operation. The payback period is estimated at 5 months.

Production Process

Screen printing units involve developing the design on the nylon screen. After that, the screen is stretched on the wooden frame and the printing work taken up after cleaning the screen.

The screen is left to dry through application of a mixture of screen coating solution and a sensitizer along with a chlomolyne film backside. The coated room is left to dry in a darkroom. The dried screen is then exposed to the positive film of the design with the help of sunlight. Later with a jet of water, the screen is washed thoroughly till such a time when the design is clear on the screen. Subsequently, it is left to dry again. Finally printing is done with a squeeze using the desired printing ink.

 

Capital Investment Requirements in US$

Capital Investment Item Units Qty @ Amt
Exposed Cabinet fitted with electrical fittings No 1 1,310 1,310
Exposure frames fitted with glass No 2 520 1,040
Flat Screen printing machine No 1 300 300
Screen printing tools 1,100 1,100
Wooden frames No 4 25 100
Total       3,850

 

Production and Operating Costs

Direct Materials, Supplies and Costs in US$

  1. Production costs assumed are for 312 days per year with a daily capacity of 385 printed cards. Apart from printing cards like business cards, Christmas cards, the business Unit can also make other printed items like textiles, file covers etc. therefore, the business project aims at production of more than one item.
  2. 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.
A production month is assumed to have 26 work days.

Cost Item Units @ Qty/ day Pdn cost/day Pdn cost/ mth Pdn cost/ yr
Printing Chemicals Liter 2.5 5 12.5 325 3,900
Nylon bolting cloth roll 2.5 5 12.5 325 3,900
Printing Inks No 35 2 70 140 1,680
Sheets No 2.5 20 50 1,300 15,600
Sub-total     32 145 2,090 25,080

General Costs (Overheads)

Rent 150 1,800
Labour 1,225 14,700
Utilities(Power) 400 4,800
Preliminary Costs 250 3,000
Miscellaneous Costs 150 1,800
Depreciation(Asset write off)Exp 80 963
Sub-total 2,255 27,063
Total Operating Costs 4,345 52,143

Project Product Cost and Price Structure in US$

Item Qty/ day Qty/ Yr @ Pdn cost/Yr UPx T/rev
Screen Printing Unit 385 120,120 0.4 52,143 0.6 72,072

Profitability Analysis in US$

Profitability Item Per day Per Mth Per Yr
Revenue 231 6,006 72,072
Less: Production &Operating Costs 167 4,345 52,143
Profit 64 1,661 19,929

Market Analysis

Screen printing is popular and used by almost all people in the printing sector and product manufacturers. There is a high demand for printed materials, in both rural and urban areas.

Availability of Raw materials and Equipments

Raw materials like screen printing chemicals and screen printing inks can be imported from Dubai or procured locally while Equipments can be imported from China and Japan.

Government Incentives Available

There are Government institutions such as: Private Sector Foundation Uganda which serves as a channel through which subsides and free advisory services are given to investors.

 

John Doe
John Doe

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Hi, jenny Loral
Hi, jenny Loral

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