Introduction
This business idea is for making and marketing of tooth brushes. Toothbrushes are important for safeguarding teeth and cleaning the accessible surface, which helps prevent tooth decay and maintain dental hygiene and freshness. They have a wide market structure especially in urban areas throughout the year and can be made in different shapes and sizes.
The business idea is premised on production of 260,000 toothbrushes per month which translates into 3,120,000 tooth brushes per annum and this is on the basis of 312 working days in a year and 8-hour single work shifts in working day. The revenue potential is estimated at US$528,321per month translating into US$6,240,000 per annum with a net profit margin of 92%. Total investment requirement is US$ 27,027 for the first year of project operation.
Production Process
In manufacturing toothbrushes, cellulose acetate is used in a multifamily injection-moulding machine to make handles. Mixed in a hopper of an automatic injection machine, cellulose acetate moulding powder is mixed together with a suitable dyestuff. The materials melt to take the shape of mould cavity after injecting this into multi-cavity moulds.
On opening the mould, the handles are ejected. Brush handles thus obtained are put into automatic toothbrush making machine for boring, bristle filling and then tightening of bristle is done by fine steel or brass. The bristle is trimmed and packed ready for sale.
Capital Investment Requirements in US$
| Capital Investment Item | Units | Qty | @ | Amount |
|---|---|---|---|---|
| Automatic Injection molding machine | No | 1 | 4,052 | 4,052 |
| Pre-heating Oven | No | 1 | 58 | 58 |
| Automatic Toothbrush making machine | No | 1 | 9,096 | 9,096 |
| Scarp grinder | No | 1 | 3,168 | 3,168 |
| Multi Cavity mould | No | 1 | 516 | 516 |
| Hand tools | Set | 1 | 541 | 541 |
| Packing Machine | No | 1 | 632 | 632 |
| Weighing machine | No | 1 | 132 | 132 |
| Other Equipments | Set | 1 | 1,212 | 1,212 |
| Delivery Van | No | 1 | 7,620 | 7,620 |
| Total | 27,027 |
Direct Materials, Supplies and Costs in US$ General Costs (Overheads)
| Cost Item | Units | @ | Qty/ day | cost/ day | cost/ month | cost/ year |
|---|---|---|---|---|---|---|
| Direct Costs | ||||||
| Cellulose acetate moulding powder | Kg | 1 | 500 | 500 | 13,000 | 156,000 |
| Nylon Bristle | Kg | 0.75 | 200 | 150 | 3,900 | 46,800 |
| Dyes in different colours | Kg | 0.75 | 100 | 75 | 1,950 | 23,400 |
| Gum | Liter | 1 | 100 | 100 | 2,600 | 31,200 |
| Packing materials | No | 0.05 | 10,000 | 500 | 13,000 | 156,000 |
| Sub-total | 10,900 | 1,325 | 34,450 | 413,400 |
| Rent | 270 | 3,240 |
|---|---|---|
| Labour | 2,150 | 25,800 |
| Utilities | 200 | 2,400 |
| Preliminary costs | 100 | 1,200 |
| Miscellaneous Costs | 100 | 1,200 |
| Deprecation (Asset write off)Exp | 6757 | 81,081 |
| Sub-total | 9,577 | 114,921 |
| Total Operating Costs | 44,027 | 528,321 |
- Production costs assumed are for 312 days per year with a daily capacity of 10,000 toothbrushes.
- This business unit can make tooth brushes of different colors and sizes.
- 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.
Project Product Costs and Price Structure
| Item | Qty/ day | Qty/Yr | @ | Pdn cost/Yr | UPx | T/rev |
|---|---|---|---|---|---|---|
| Tooth brushes | 10,000 | 3,120,000 | 0.2 | 528,321 | 2 | 6,240,000 |
Profitability Analysis in US$
| Profitability Item | Per day | Per Month | Per Yr |
|---|---|---|---|
| Revenue | 20,000 | 520,000 | 6,240,000 |
| Less: Production & Operating Costs | 1,693 | 44,027 | 528,321 |
| Profit | 18,307 | 475,973 | 5,711,679 |
Market Analysis
Due to the increasing awareness, personal dental care and dental hygiene is recommended by dental surgeons and is generally accepted by people in both urban and rural areas. Therefore, this product provides good scope for new entrants in the field and considering the growth in the total population coupled with the increasing awareness, the products are bound to find a good market.
Supply of Raw Materials and Equipments
Raw materials can be procured locally from chemical shops while Equipments can be imported from Japan and China.
