Introduction
This business idea is for cutting and polishing synthetic gem. . Synthetic gems are widely used in preparation of imitation jewelry and also in decorative jewelry, fancy articles, mirrors, slip-ons, ready-made garments and bitenge. The business idea aims at production of 5,000 units per month which translates into 60,000 units annually. The revenue potential is estimated at $US 10,055 per month, translating into $ 120,660 per year with a sales margin of 15%. The total capital investment for the project is $ 6,860.
Technology and Production Process
The Tools and Equipments used include: a slicing machine, a performing machine, faceting machine, tools and other items and office furniture. The raw materials are cutting plates and synthetic gems.
The rough gem crystal is cut on a thin steel plate and is fed with real diamond dust mixed with water. The work done in cutting the rough gem crystal gives deep horizontal and vertical cuts on the rough gem which are chiseled and hammered out to get a fine gem.
Due to its fragile nature, it breaks into rough coned pieces. The rough pieces are mounted with a pitch and shell on the edge of bamboo stick, which is pressed against rough carborundum wheels. Finally, proper facing and polishing of rough-cut pieces is done by using grinding lap made of gun metal, copper, lead, etc.
Capital Investment Requirements
| Capital Investment item | Qty | @ | Amount |
|---|---|---|---|
| Slicing machine | 1 | 1,280 | 1,280 |
| Performance machine | 1 | 700 | 700 |
| Faceting machine | 1 | 3,380 | 3,380 |
| Office Furniture | 4 | 800 | 3,200 |
| Others | 1 | 500 | 500 |
| Total | 9,060 |
Production and operation costs in us $ Direct materials, supplies and costs
| Cost item | Units | @/ day | Qty/ day | Cost/ day | Cost/ month | Cost/ yr |
|---|---|---|---|---|---|---|
| Direct Costs Cutting plate | pcs | 12 | 19 | 228 | 5,928 | 71,136 |
| Synthetic Gems | pcs | 10 | 19 | 190 | 4,940 | 59,280 |
| Other Materials | pcs | – | – | 0 | 1,708 | 20,496 |
| Subtotal | 22 | 38 | 418 | 12,576 | 150,912 |
General Costs
| Admin.expenses | 500 | 6,000 |
|---|---|---|
| Labour | 2,500 | 30,000 |
| Utilities | 650 | 7,800 |
| Rent | 1,000 | 12,000 |
| Selling & Distribution | 542 | 6,500 |
| Depreciation | 189 | 2,265 |
| Miscelleneous | 375 | 4,500 |
| Subtotals | 5,755 | 69,065 |
| Total operating Costs | 18,331 | 219,977 |
Projected Monthly Revenue
Project product costs and Price structure in US$
| Item | Qty/ day | Qty/yr | @ | Prodn/ year | UPx | Revenue |
| Jewerly Rings | 150 | 46800 | 4.7 | 219,977 | 5.5 | 257,400 |
Market Analysis
Synthetic gems are widely used in preparation of imitation jewelry, decorative/fancy articles, mirrors, slip-on and ready-made garments. Apart from domestic market, synthetic gems can also be exported.
Sources of Supply of Equipments and Raw Materials
The equipments and raw materials can be imported.
