BUSINESS IDEA FOR MAKING OFFICE GLUE

Introduction:

This profile envisages the establishment of a plant that will manufacture

office glue based on the capacity of 500 litres per day. The simplest glue
is that made from a paste of flour and water.

Production Process

1. Put plain white flour and water into a bowl depending on how much
glue you need.
2. Mix the flour and water together until a smooth paste is achieved. It
should not be too thick or too drippy.
3. Use it soon after creating it. It can be used to stick paper together.

Scale of Investment, Capital Investment Requirements

The total capital investment cost to start this project is estimated at USD
8,300

Market Analysis

The market for office glue is very high in the paper products industry,
schools, offices, and craft projects. The major key player in this industry
is NOBLE Synthetics (U) Limited

Project Cost

1. Capital Investment Requirements in US$

Capital Units Qty Unit Costs Amount
Investment Item $ $
Delivery Van No 1 7,000 7,000
Mixer No 1 500 500
Gas Cooker No 1 500 500
Boiler No 1 100 100
Bowls No 2 100 200
Total Amount 8,200

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2. Operating Costs in US$
Item Units Unit Qty/ Pc/ Pc/ Pc/
costs day day Mont Year
Direct Costs
Manioc Powder Kgs 0.5 250 125 3250 39000
Vinegar Litres 2.5 100 250 6500 78000
Water Litres 0.05 200 10 260 3120
Subtotal 385 10,010 120,120
General Costs (Over heads )
Rent 400 4,800
Packaging Material 500 6,000
Labour 800 9,600
Utilities (Power and Gas) 1,000 12,000
Repair and Servicing 500 6,000
Fuel 500 6,000
Depreciation (Asset write off) Expenses 173 2,075
Sub-total 3,873 46,475
Total Operating Costs 13,883 166,595

3. Project Product Costs & Price Structure in US$

Item Qty/ Qty/ Unit Pdn Unit T/rev
day yr Cost $ cost/yr$ Price
Item 500 156,000 1.06 166,595 1.5 234,000

4. Profitability Analysis in US$

Profitability Item Per day Per Month Per Year
Revenue 750 19,500 234,000
Less: Production & Operating 385 13,883 166,595
Cost
Profit 365 5,617 67,405

Sources of Supply of Equipment and Raw Materials

Raw materials are readily available in Kenya, Tanzania and Uganda.

Government Facilities and Incentives Available

The Government is willing to support industrialization through tax

exemption, basic infrastructure, grants, long term loans and liberalized
market.

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