MAKING CARD BOARD CARTONS FROM RECYCLED CARDBOARDS
Introduction
This business idea is for making
card board cartons from recycled cardboard. Cardboard boxes (cartons) are
industrially prefabricated boxes, primarily used for packaging goods and
materials. This box uses regular cardboard that usually gets thrown away. It
makes a sturdy box for storing small things; you can basically make it any size
you like. They have the inherent advantages of being light in weight, easy to
fabricate and store. Cardboard boxes are used for packing TVs, Fridges, and
bulky things like soap, toothpastes and garments. The market potential covers
the entire packaging industry. The business idea aims at production of 62,400
boxes annually. The revenue potential is estimated at $, 968 per year with a
sales margin of 10%. The total capital investment for the project is $ 9,456.
Plant Capacity
The envisaged project has a minimum plant capacity of 200 boxes per day on
the basis of 8-hour single working daily shifts. Output can then be increased
with time depending on demand as operations gain experience.
Production Process
The process description involves, deciding the size and dimensions of your
box,(drawing and cutting), gluing the pieces together, sanding the pieces to
see if they are even, let the pieces dry, join them all and the product is
ready for use. Generally, boxes are prepared to customer specifications and the
boxes/cartons can be prepared indifferent sizes, designs and colors.
Market Analysis
There is a high demand of Cardboard Cartons due to rapid industrial growth
and trade. The key players are MULBOX of Jinja and RILEY industry in Mukono
district in Uganda.
Scale of Investment
1. Capital Investments Requirements
|
Capital Item |
Units |
Qty |
Unit Cost |
Amount |
|
Box Cutter |
No |
1 |
16 |
16 |
|
Carton Stapler |
No |
1 |
240 |
240 |
|
Stitching machine |
No |
1 |
200 |
200 |
|
Delivery Van |
No |
1 |
9,000 |
9,000 |
|
TOTAL |
9,456 |
2. Production and Operating Costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct costs3 |
||||||
|
Card Boards |
No |
0.5 |
200 |
100 |
2,600 |
31,200 |
|
Staples |
Boxes |
0.3 |
5 |
1.5 |
39 |
468 |
|
Fixing |
Boxes |
0.19 |
10 |
1.9 |
49 |
593 |
|
Ruler and Pens |
No |
0.2 |
10 |
2 |
52 |
624 |
|
Sub-total |
2,740 |
32,885 |
||||
|
General costs (Overheads) |
||||||
|
Labor |
400 |
4,800 |
||||
|
Utilities (Electricity) |
200 |
2,400 |
||||
|
Selling and Distribution |
100 |
1,200 |
||||
|
Administrative expenses |
100 |
1,200 |
||||
|
Repairs |
75 |
900 |
||||
|
Shelter |
150 |
1,800 |
||||
|
Depreciation (Asset write off) Expenses |
||||||
|
Plant and Machinery |
197 |
2,364 |
||||
|
Sub-total |
1,222 |
14,664 |
||||
|
Total Operating Costs |
3,962 |
47,549 |
Production is assumed for 312 days
per year. Depreciation assumes 4 year life of assets written off at 25% per
year for all assets. A production Month is assumed to have 26 days.
3. Project product Costs and price Structure
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total/rev |
|
Small boxes |
60 |
18,720 |
0.25 |
4,680 |
0.4 |
7,488 |
|
Medium |
60 |
18,720 |
0.75 |
14,040 |
1 |
14,040 |
|
Large Boxes |
80 |
24,960 |
1.50 |
37,440 |
2 |
37,440 |
|
Total |
200 |
62,400 |
56,160 |
58,968 |
4. Profitability Analysis Table
|
Profitability Item |
Per |
Per |
Per Year |
|
Revenue |
189 |
4,914 |
58,968 |
|
Less: Production and Operating Costs |
152.4 |
3,962 |
47,549 |
|
Profit |
37 |
952 |
11,419 |