SERI-CULTURE
Introduction
This business idea is for Seri culture. Seri culture is the rearing of
silkworms for silk. Seri culture is a major income generating activity based on
cocoons cultivation in rural areas. The process envisages
silk production through disease resistant high yielding strain of mulberry
silkworm. The business idea aims at production of 31,200 yarns of silk
annually. The revenue potential is estimated at US $ 600 annually. The total
capital investment cost for the project is US $ 14,277.
Production Capacity
The envisaged project is production of 31,200 yarns of silk
Technology and Processes Description
The technology needed is as in the table for fixed capital investment
requirements below. The raw materials include silk worms and mulberry leaves. Silk
worms are reared in trays in rooms with controlled and humid temperatures and
regularly fed on mulberry leaves. At a certain stage the silkworms convert
themselves into cocoons. These cocoons are made from a single filament of
material secreted by the
pupa and wrapped around itself for protection. These filaments upon hardening
constitute silk. Reeling is then done by first cooking them in water to remove
the gum, which holds it together, and then unwinding the filaments. Prior to
weaving, the raw silk is boiled in water to remove remaining gum, dyed and
bleached, and then woven into the garment usually on hand loom.
Market analysis
The Demand for Silk Yarn is assured on foreign market.
Scale of Investment
1. Capital Investment Requirements
|
Item |
Qty |
Unit |
Amount |
|
|
Trays |
10 |
68 |
680 |
|
|
Stands |
100 |
43 |
4,300 |
|
|
Feeding Stands |
50 |
15.6 |
780 |
|
|
Leaf chambers |
50 |
30 |
1,500 |
|
|
Leaf chopping boards |
5 |
69.8 |
349 |
|
|
Thermometers |
10 |
59.8 |
598 |
|
|
Hygrometers |
10 |
34 |
340 |
|
|
Foot operated sprayers |
1 |
3242 |
3,242 |
|
|
Mats |
No |
332 |
|
|
|
Reeling machine |
No |
1 |
250 |
250 |
|
Hand looms |
No |
266 |
||
|
Twisting machine |
1 |
1000 |
1,000 |
|
|
Warping machine |
No |
1 |
640 |
640 |
|
Total |
14,277 |
2. Production and Operating Expenses
|
Cost Item |
Units |
Unit |
Qty/day |
Prod |
Prod |
|
Direct costs3: |
|||||
|
Mulberry Leaves |
Kgs |
1.5 |
50 |
77 |
2,000 |
|
Medicine |
Ltrs |
8 |
1 |
8 |
200 |
|
Packaging Materials |
Pieces |
0.25 |
3 |
0.75 |
20 |
|
Sub-total |
2,220 |
||||
|
General costs (Overheads) |
|||||
|
Labour |
700 |
||||
|
Utilities |
700 |
||||
|
Selling and Distribution |
200 |
||||
|
Administrative expenses |
200 |
||||
|
Shelter |
700 |
||||
|
Depreciation (Asset write off) Expenses |
297 |
||||
|
Sub-total |
2,797 |
||||
|
Total Operating Costs |
5,017 |
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/day |
Qty/yr |
Unit cost |
Prod/ yr |
Unit price |
Total/revenue |
|
Silk |
100 |
31,200 |
2 |
59,303 |
3 |
93,600 |
4. Profitability Analysis Table
|
Profitability Item |
Per day |
Per Month |
Per Year |
|
Revenue |
300 |
7,800 |
93,600 |
|
Less: Production and Operating Costs |
190 |
4,942 |
59,303 |
|
Profit |
110 |
2,858 |
34,297 |