Directory of project profiles on building materials and chemical industries for small-scale industries

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UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

DIRECTORY OF PROJECT PROFILES ON

BUILDING MATERIALS AND CHEMICAL INDUSTRIES FOR SMALL-SCALE INDUSTRIES

ECAC

334.713:66

D5985

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im

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

DIRECTORY OF PROJECT PROFILES ON

BUILDING MATERIALS AND CHEMICAL INDUSTRIES

FOR SMALL-SCALE INDUSTRIES

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Chemicals Industry

Liquid insccticidcs 45

Powdered insecticides 49

Margarine 53

Toilet soap 57

Bituminised water proof paper 63

Rubber erasers 67

Polyester sheets 73

Plastic buttons 79

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I . I N T R O D U C T I O N

In any nation, technological culture can be acquired through the development of small-scale industries as they can serve as sources of trained manpower for heavy and complex industries. It could therefore be more advantageous to set up line of small-scale industries in various sectors rather than having one heavy industry, which might require a huge amount of money calling for specialized expertise in every field of operation. This might be beyond the capacity of human and material resources of most developing nations particularly those of Africa. For this reason, UNECA is trying to encourage African business entrepreneurs by availing project profiles, such as this ones, of small scale industries which do not require huge investment in financial and human resources. These small projects have proven to be very useful in improving the living conditions of the people in the continent and at the same time they are economically viable.

As a matter of fact, building materials and chemicals dominate the modem economies in the world. Development of any country is largely based on the development of modem living facilities such as adequate shelters, sufficient food, creation of hygienic environment, etc. A high priority has been accorded in the 2nd IDDA programmes to improve human settlement conditions in Africa. Several programmes have been embraced upon in the continent aiming at a consistent and consolidated growth of building materials and chemical industries to make the continent self-supporting in food and other commodities to make the life of the ordinary individual comfortable. Among the strategies designed to attain these goals, specific programmes in research, extension services, improved building materials and availability of affordable chemical products are expected to play pivotal roles in the process of development.

The realization that the improvement of residential and commercial buildings for a sustained economic development of the continent and the growing awareness to use improved building materials, detergent including pesticides, has imparted a new dimension and an urgency to the continent's search for improving the availability of building materials and chemical industries and to find a viable basis for the local manufacture, utilizing maximum indigenous raw materials as far as feasible.

Presently, except bricks, cement and few other things, the requirement for building materials, chemicals and pesticides are made available through imports exposing most of the countries to heavy debt burden. Many of the raw materials are available with in each member country. To this end African entrepreneurs should be motivated to establish such facilities to cater local needs on selective basis.

This directory deals with building materials and chemical industries by giving brief description on the source of financing, technical assistance and profiles of sixteen selected projects.

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A. Financing

Financing a project from one's own source could be advantageous as the project could pay back its investment shortly and payment of interest could be avoided. This could make the financial position of the project quite strong at the initial stage.

Considering the case in the African context, however, self financing could be difficult in most cases. In such circumstances, one could approach development banks, development finance corporation or commercial banks, as the case may be.

To encourage the development of small-scale industries, some countries have developed a system of capital participation scheme (venture capital). Such partici

pation, could entail profit sharing as well as participation in the management of the enterprise. Saving cooperatives and the so-called "tontines" are also found to be other possible source of finance in some countries.

It is therefore, necessary to examine the source of finance and the advantage to the entrepreneur, before he or she makes decisions to take loans.

B. Assistance

Individuals planning to start up small-scale industry or established ones who may find themselves in difficulty should approach small-scale industry development institutions or chamber of commerce for detailed information or what may be available in each country.

Regional institutions such as Preferential Trade Area for Eastern and Southern African States (PTA) in Lusaka, Zambia, the Economic Community of west African State, (ECOWAS) in Lagos, Nigeria, can provide valuable information on trade, industrial opportunities and resource availabilities. The Continental Organizations, the United Nations Economic Commission for Africa in Addis Ababa, Ethiopia.

Periodically issues small-scale industry project profiles such as this one which are intended to provide basic information for further investigation in each local condition.

UNIDO in Vienna, Austria, the ILO, in Geneva, Switzerland have been involved in assisting small enterprises in developing countries for many years. UNIDO operates a technology inquiry services through which individuals in developing countries could reach for solutions to technical problems or to seek cooperation with small industries in other countries. Various training and consultancy services are provided by the ILO. Individuals could contact these agencies directly or through the UNDP offices found in each country.

The African Development Bank (ADB) headquartered in Abidjan, Cöte d'lvoire, with its department of small-scale development is one of the sources of assistance.

ADB and ECA are actually setting up a South-south partnership centre which will provide all necessary information and data on the promotion of small-scale industries.

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The African Project Development Fund (APDF) created by the World Bank is helping African Entrepreneurs in setting up viable project, finding financial means and eventually foreign partners. The APDF offices in Abidjan and Nairobi could be contacted for any information on individual project implementation. APDF envis

ages to open regional offices in Harare, Zimbabwe; Duala, Cameroon and Lagos, Nigeria

The "Caisse Centrale de Cooperation Economique" (CCCE) is an establishment which provides support to private investments. Its branch, "La Societe de Promotion et de Participation pour la Cooperation Europeenne (PROPARCO) is helping in the creation of small-scale industries providing expertise and financing under proper funds, French Embassies installed in most African countries could give any infor

mation on the CCCE and its branch.

The governments of African countries should encourage the development of small-scale industries to enterprising individuals by providing financial incentive at least for the initial stage, such as exemption from duties and taxes, tariff protection and loans at subsidized interest rates.

C. Brief description on the determinant of project profiles

Under this directory, we have picked sixteen projects which are thought to be economically attractive to newly emerging African small-scale entrepreneurs and socially beneficial to the livelihood of African people.

In considering each project we have dealt with the following topics:

1. Product and its use

In this heading, we have tried to explain what the product is, and for what purpose the product is intended.

2. Market potential

This directory of project profiles envisages the whole African continent in general.

Hence, no specific market potential can be sighted for a given product. However, anticipation is made on the marketability of each product considering the economic and social conditions of the continent.

3. Production and manufacturing proccss

Under this heading the major process involved in the manufacturing of a product are described in a simplified manner.

4. Production target

This heading deals with economic scale of production.

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5. Land and building

This part suggests the required plot and covered area for office premises and workshop.

6.

Machinery and equipment

The machinery and equipment required for the manufacturing of any given product are listed under this heading. Indicated prices do not represent the actual value.

They are used for computation only.

7. Raw materials

The source and type of raw materials for any given product is listed under this heading.

8. Staff and labour

The personnel, both technical and clerical, are listed under this heading. However, salaries and wages quoted are only for computational purpose, because earnings vary from country to country depending on the standard of living and availability of trained manpower, etc.

9. Capital investment

Under this heading fixed and working capital requirements are given. As this directory is intended to give a general guideline, any entrepreneur in any African country who wants to establish a business from the listed project profiles must collect the necessary data from reliable sources and fill in the appropriate places of this directory to determine the viability of the project.

10. Cost of production

All costs incurred for the production of a certain product are given.

1 1 . P r o f i t a b i l i t y

This shows the gain which the entrepreneur derives from sale of his product vis-a-vis the cost of production.

12. Break-even point

It is a methodology for measuring the volume of production (rate) at which an entity neither gains nor loses (breaks even) on its operational activities. If the break even analysis of a company indicates that the volume of production at this point is lower than the volume expected from full capacity, the difference could be taken as its profit margin. If for example, BEP is 65% of the full capacity of the machine, the profit margin would be 35% assuming that all other factors such as availability of raw

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material, market, etc., are favourable. Therefore, the lower the rate (volume) of BEP is, the more profitable^s the business.

13. Suppliers of machinery and equipment

Under this heading sources of suppliers of different machineries and equipment have been illustrated. These suppliers are selected from U.S.A., Germany, Italy, Sweden and Egypt. However, machinery suppliers given in this directory are set as example, and any potential small-scale entrepreneur can choose the services of suppliers he would like according to the prices and standards of the technology he or she wants to adopt. Detail information on machinery suppliers and their addresses can be obtained from chamber of commerce in every country, or diplomatic repre

sentatives of supplier countries or subregional organizations.

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II. BUILDING MATERIALS

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BURNT CLAY BRICKS

1. Product and its uses

Burnt clay bricks are a major element for the construction of houses in urban and rural areas. Burnt clay bricks are made from clay, sand and water.

2.

Market potential

There is always a big demand for burnt clay bricks that are made available at affordable prices.

3.

Production target

Production is targeted at 12 millions burnt clay bricks/year.

4. Production and manufacturing proccss

Production and manufacturing includes clay digging, mixing, moulding, extruding, cutting, hand-firing and drying.

5.

Land and building

Covered area 2000m^ and 2000m' open area rented at US$ 400.00/month.

6. Machinery and equipment

1. Milling 95,000.00

2. Mixer 48,000.00

3. Extruder 119,000.00

4. Construction of kiln 72,000.00

Total US $334,000.00

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Raw materials/year

1. Clay 37,000.00

2. Sand 16,000.00

3. Heavy oil 24,000.00

4. Electricity 23,000.00

5. Water 1,000.00

Total US$ 1,010,000.00 Staff and labour/month

1. General manager (1) 250.00

2. D/General manager (1) 250.00

3. Clerk (1) 100.00

4. Salesman (1) 120.00

5. Supervisors (2) 120.00

6. Technicians (2) 120.00

7. General service (2) 100.00

8. Production workers (15) 900.00

9. Technical manager (1) 180.00

Total Staff =26 Total US$ 2,140.00

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9. Utilities/month

Electricity and water 10. Other expenses/month

150.00

1. Consumables 2. Lubricants

3. Freight, cortage etc.

4. Miscellaneous 5. Rent

6. Sales

70.00 50.00 200.00

300.00 400.00 100.00

1 1 . W o r k i n g c a p i t a l f o r 3 m o n t h s

Total US$ 1,120.00

Raw materials 2. Staff and labour 3. Other expenses 4. Utilities

25,250.00 6,420.00 3,360.00 450.00 Total US$ 35,480.00 12. Total capital investment

1. Machinery and equipment 2. Working capital for 12 months

334,000.00 141,920.00 Total US$ 475,920.00

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13. Production costs/ycar

1 Machinery and equipment 334,000

2. Interest on capital investment 15% 71380.00 3. Depreciation on machinery/equip. 10% 33,400.00

4. Other costs 13,440.00

Total US$ 472,228.00 14.

Profitability/year

Profit = sales - cost of production

Selling price = US$ 0,05/pcs 0,05 x 12,000,000 = 600,000.00 Profit = 600,000 - 472,228 = 127,772.00

a) Percentage of profit on sales:

127,772*100

600,000 "

2l

'

29/<

'

b) Percentage of return on capital investment 127,772 x 100

475,920 15.

Brcak-cvcn point

( A ) Fixed c o s t s

= 26.84%

1. Rent 4,800.00

2. Description 33,400.00

3. Interest on investment 71,380.00

4. 40% of salaries 10,272.00

5. 40% of other expenses 5,376.00

Total ,US$ 125,228.00 ( B ) B . E . P

Fixed cost x 100 125,228 .v 100

Fixed cost + Profil 125,228 + 127,772 = 49.49%

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16. Suppliers of machinery and equipment 1. Keller GmbH

Geschacflsbereich Keramik - Maschinen und Anlagen, postfach 34 4530 Ibbenbueren (Laggenbeck), FRG, Fax(05451)85310

2. Hans-D. Hoffmann Maschinenbau GmbH, fur die Keramik - Indus

trie, Krugbackerstr. 4,5431 Mogendorf, FRG 3. Teka - Maschinenbau GmbH.

Postfach 220, 6732 Edenkoben, FRG 4. AUF Group

6 Najeb El Rahim Str.

Safia Helmi, Alexandria P.O. Box 536 Alexandria

Telex CECMUM 54620 Alexandria, Egypt 5. Maier Josef

Grefer-Mendelstr 13 8440 Straubirg, FRG

(Salaries, cost of machinery and equipment do not represent actual values)

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CLAY PIPES

Clay-pipes are produced with small diametres as a substitute to PVC and cement pipes where low pressure sewers are present. Clay-pipes are made from clay, sand and water.

There is a high demand for clay-pipes made from selected materials and fired properly because they are more affordable than PVC and cement pipes.

Production is targeted at 9000T/year..

4 Production and manufacturing process

Production and manufacturing includes digging, crushing, milling, mixing and extruding the clay.

A total area of 8000m' would be required out of which lOOOrrT should be covered area on rental basis at US$ 600.00/month.

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Machinery and equipment

1 . Hammer type crasher 8,000.00

2. Double shaft mixer 5,000.00

3. Cylindrical miller 8,000.00

4. Furnaces(2) 90,000.00

5. Lathe, grinding and drilling machine 30,000.00

6. Trucks(2) 90,000.00

7. Fork lifts (2) 20,000.00

8. Extrudes (2) 25,000.00

Total US $276,000.00 Raw materials/year

1 . Clay 10,000.00

2. Salt 1,000.00

3. Water 100.00

Total US$ 11,100.00

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8. Staff and labour/month

1. Owner manager (1) 500.00

2. Engineer (1) 400.00

3. Clerks (2) 400.00

4. Technical workers (15) 4,500.00

5. Labourers (25) 2,500.00

6. Supervisors (2) 400.00

7. Guards (3) 300.00

8. Drivers (3) 450.00

Total Staff = 52 Total US$ 9,450.00 9. Utilities/month

Electricity 48,000kwh 2,500.00

Fuel and furnace oil 1,040.00

Total US$ 3,540.00 10. Other expenses/month

1. Consumables 250.00

2. Lubricants 100.00

3. Freight and cartage 300.00

4. Miscellaneous 400.00

5. Rent 600.00

6. Sales 200.00

Total US$ 1,850.00

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1. Raw materials 2775.00

2. Stalland labour 28,350.00

3. Other expenses 5,500.00

4. Utilities 10,620.00

Total US$47,295.00 12. Total capital investment

1. Machinery and equipment 276,000.00 2. Working capital for 12 months 189,180.00 Total US$ 465,180.00 13. Production costs/ycar

1. Machinery and equipment 276,000.00 2. Interest on capital investment 15% 69,777.00 3. Depreciation on machinery/equip. 10% 27,600.00

4. Other costs 22,200

Total US$ 395,577.00 14. Profitability/year

Profit = sales - cost of production

Profit = 425,000 - 395,577 = US$ 29,423.00 15. Percentage of profit on sales

29,423 x 100 _

425,000 -6-9 2 / o

16. Percentage of return on capital investment 29,423 x 100

395,577 = 7.44%

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17. Brcak-cvcn point ( A ) F i x e d c o s t

1. Rent 7,200.00

2. Depreciation 27,600.00

3. Interest on investment 69,777.00

4. 40% of salaries 45,360.00

5. 40% of other expenses 8,880.00

Total US$ 158,817.00 ( B ) B . F . P

Fixed cost x. 100 _ 158,817 .v 100 _ 8 4 ^ Fixed cost + Profit 158,817 + 29,423

1. Cottbuser maschinen-und Stahlbau GmbH Dissenchener str. 50

0-7500 Cottbus, PRC 2. Keller GmbH

Geschäftsbereich Keramik - Maschinen und Anlagen, Postfach 34

4530 Ibbenbueren (Laggenbeck), FRG 3. Egyptian Comapany for refractories

23 Talaat Harb St., Cairo, Fourth Floor Telx 945059 Eggrun, Egypt

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CEMENT FLOOR TILES

Cement floor tiles are used for indoor and outdoor flooring in residential and commercial buildings. They are made from cement and sand mixed with water.

Cement tiles are less costly than ceramic tiles. Therefore, cement tiles are always in big demand where the construction industry is growing.

Production is targeted at 200,000m"/year 4. Production and manufacturing process

Production and manufacturing includes mixing the cement and sand and then forming tiles.

Covered area being 2000m' and open area 1000m' on rental basis at US$ 400/

month.

1. Rug mill 45,000.00

2. Crusher 50,000.00

Mixer 35,000.00

4. Tile press 50,000.00

Total US$ 180,000.00

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1. White cement 1,000T 105,000.00

2. Grey cement 1,100 66,000.00

3. Desert or river sand 20,000m^ 60,000.00

4. Aggregate 3,000T 15,000.00

5. Marble powder 2,000 12,000.00

6. Water 12,000m³ 200.00

7. Electricity 450,000kwh 27,000.00 Total US$ 285,200.00 Staff and labour/month

1. Managers (2) 3,600.00

2. Technicians (2) 3,250.00

3. Clerks (2) 717.00

4. Supervisors (3) 3,230.00

5. Production workers (10) 10,750.00 6. Maintenance technicians (2) 1,800.00

7. General service (2) 1,200.00

8. Guards (2) 1,200.00

Total Staff-25 total US$ 25,747.00

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Telephone and electricity US$ 1,140.00 10. Other expcnscs/month

3. Freight and cortage 320.00

5. Rent 400.00

6. Sales 120.00

Total US$ 1,290.00 11. Working capital for 3 months

1. Raw materials 1,300.00

2. StafTand labour 6,437.00

4. Utilities 285.00

Total US$ 11,892.00 12. Total capital investment

1. Machinery and equipment 180,000.00 2. Working capital for 12 months 47,568.00 Total US$ 227,568.00

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13. Production costs/ycar

1. Machinery and equipmenl 180,000.00 2. Interest on capital investmenl 15% 34,135.00 3. Depreciation on machinery/equip. 10% 18,000.00

4. Other costs 15,480.00

Profit = sales - production cost

Profit = 284,204 - 247,615 = 36,589.00 15. Pcrccntagc of profit on sales

36,589 x 100 _

284,204 12-87/o 16. Pcrccntagc of return on capital

36:5^'00 = 16.07%

ZZ /,J06

17. BrcaK-cvcn point (A) Fixed costs

1. Rent 4,800.00

3. Interest on investment 15% 28,784.00

4. 40% of salaries 123,586.00

Total US$ 197,497.00 (B) B.E.P.

F a e d c o s / x l O O 1 9 7 , 4 9 7 x 1 0 0

Fixed cost + Profit 197,497 + 36,589 = 84.37%

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Suppliers of machinery and equipment

1. Gerhards Maschinenbau GmbH Abt. W, Postfach 2028,

5412 Ransbach - Baumbach, FRG.

2. Hans-D Hoffmann Maschinenbau GmbH fuer die Keramik - Industrie

krugbackerstr 4

5431 Mogendorf, FRG 3. LAIS BUCHER GmbH

Postfach 2560 5500 Trier. FRG

(Salaries, and cost of machinery and equipment do not represent actual

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C E M E N T B L O C K S

Cement blocks are a major building material in the construction industry. Th#y are made from cement, sand, aggregate and water.

The demand for cement blocks is very high throughout the continent in areas of construction industry growth.

Production is targeted at 5,000,000 blocks/year.

4. Production and manufacturing process

Production and manufacturing includes mixing, moulding, shade-drying and storing.

2 2

Covered area being 1000m and open area 1000m on rental basis USS 350.00/month

1. Mixer 15,000.00

2. Moulding machine 22,000.00

3. Loader 35,000.00

4. Fork lift 25,000.00

Total US$ 97,000.00

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7. Raw matcrials/vcar

1. Cement 3,9607 236,418.00

2. Aggregate 14,2561 142,560.00

3. Sand (desert) river 7128T 35,640.00

4. Water 6000m3 800.00

5. Electricity 45,OOOkwh 13,433.00 Total US$ 428,851.00 8. Staff and labour/month

1. Owner/manager (1) 250.00

3. Clerks (2) 120.00

5. Guards (2) 70.00

Total Staff =20 Total US$ 1,130.00 9. Utilities/month

Telephone and electricity US$ 1,440.00 10. Other cxpcnscs/month

3. Freight and cortage 2,160.00

5. Rent 4,800.00

6. Sales 720.00

Total US$ 9,480.00

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1. Working capital for 3 months

2. Staff and labour 3,390.00

4. Utilities 360.00

1. Machinery and equipment 97,000.00 2. Working capital for 12 months 453,332.00 Total US$ 550,332.00 13. Production costs/ycar

1. Machinery and equipment 97,000.00 2. Interest on capital investment 15% 82,550.00 3. Depreciation on machinery/equip. 9,700.00

Profit = 250,000 - 198,730 = 51,270.00 15. Percentage of profit on sales

51,270 .t 100 ,A r n /

250,000 = 2 0 5 / 0

16. Percentage of return on capital investment 51,270 x 100

550,332 = 9.32%

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17. Brcak-cvcn point

(.A) FiÄed costs

1. Rent 4,800.00

3. Interest on capital 82,550.00

4. 40% of salaries 5,424.00

Total US$ 111,339.00

Fixed cost x 100 1 11,339 JC 100

= 68.47%

Fixed cost + Profil 11 1,339 + 51,2 70 18. Suppliers of machinery and equipment

1. Gerhards maschinenbau GmbH Abt. W,

Postfach 2028,5412

Ransback-Baumbach, FRG 2. Hans-D Hoffmann Machinenbau

GmbH fuer die Keramk - Industrie Krugbackerstr. 4

5431 Mogendorf, FRG

3. Lais Bucher GmbH, Postfach 2560 500 Trier, FRG

(Salaries and cost of machinery and equipment do not represent actual values)

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K I T C H E N S I N K S

Residential buildings with kitchens are normally equipped with kitchen sinks.

Kitchen sinks are used for washing and as a source for running water.

Kitchen sinks are in high demand in areas of residential construction industry growth.

Production is targeted at 5,760 pieces/year.

4. Production and mamiracturing proccss

Production and manufacturing includes blanking, forming, mining and trimming.

Built area 600m2 and 1000m" open area at a monthly rent of US$ 600.00/year 6. Machinery and equipment

1. Module press

60,000.00

2. BPC 450 press 80,000.00

3. Seam welder 30,000.00

4. Angle grinder

6,000.00

5. Argon tig welder 4,000.00

6. Polishing machine 20,000.00

Total US$ 200,000.00 7. Raw materials/year

Stainless steel A1S1 304 of 0.7 & 0.5m/m = US$ 1,200,000.00

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1. General manager (1) 2. Technical manager (1) 3. Clerks (2)

4. Secretary (1)

5. Production personnel (10) Guards (2)

600.00 400.00 400.00 200.00 ,500.00 300.00 Total StafT= 17 Total US$ 3,400.00 9. Utilities/month

Telephone, electricity and water US$ 200.00 10. Other cxpcnscs/month

Consumables 2. Lubricants

3. Freight and cortage 4. Miscellaneous 5. Rent

6. Sales

200.00 200.00 300.00 200.00 600.00 300.00 Total US$ 1,800.00 1. Working capital for 3 months

Raw materials 2. Staff and labour 3. Other expenses 4. Utilities

300,000.00 10,200.00 5,400.00 600.00 Total US$ 316,200.00

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12. Total capital investment

1. Machinery and equipment 200,000.00 2. Working capital for 12 months 1,264,800.00 Total US$ 1,464,800.00 13. Production costs/year

Profit = 519,000 - 461,320 = US$ 57,680.00 15. Percentage of profit on sales

57,680 x 100 _

519,000 " 11-14/o

16. Percentage of return on capital investment 57,680 jc 100

,464,800 = 3.94%

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17. Break-even point (A) Fixed costs

1. Rent 7,200.00

4. 40% of salaries 16,320.00

Total US$ 271,880.00 (B)B.E.P.

Fixed cost x 100 271,880 ,v 100 = 82.5%

Fixed cost + Profil 271,880 + 57,680 18. Suppliers of machinery and equipment

1. Lagan press produkter AB S-340 14 Lagan, Sweden

2. Hans Schoen GmbH Hydraulische Pressen, postfach 800425,

4320 Hattingen, FRG

3. Rocher GmbH Maschinenbau, postfach 3160,

5902 Netphen 3 (Deuz), FRG

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T U R K I S H T O I L E T S

1. Production and its use

Turkish toilets are better alternatives where the turnover of W.C visitors is high.

The use of turkish toilets in schools, public places and military barracks has hygienic significance over other type of toilets.

With the development of economic and public service infrastructures, the demand for turkish toilets for new public buildings both in urban and rural areas will be high.

Production is targeted at 5600 pieces/year.

Production and manufacturing includes blanking, forming and trimming.

Built area 450rrr and open area of 1000m' on rental basis at US$ 400.00/month.

6. Machinery and equipment TD - 400 - S

(1 OOOx 1000)+(1400x1400) = 36,000.00

2. Hydro mechanical unit

80,000.00

3. B.P.C.- 450 press 3 Seam welder 30,000.00

4. Angle grinder

6,000.00

5. Decoiler 15,000.00

Total US$ 167,000.00 Raw materials/year

Stainless steel A1S1 304, of 07 & 05m/m coil = US$ 850,000.00

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3. Secretary (1) 200.00

4. Clerk (1) 150.00

5. Production workers (12) 1,440.00

6. Guards (3) 360.00

Telephone and electricity US$ 250.00 10. Other cxpcnscs/month

3. Freight and cartage 250.00

5. Rent 400.00

6. Sales 200.00

Total US$ 1,300.00 Working capital for 3 months

4. Utilities 750.00

Total US$ 226,600.00

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12. Total capital investment

1. Machinery and equipment 167,000.00 2. Working capital for 12 months 906,400.00 Total US$ 1,073,400.00 13. Production costs/year

Total US$ 360,310.00 14. Profitability/year

Profil = sales - cost of production

Profit = 41 8,500 - 360,310 = US$ 58,190.00 15. Percentage of profit on sales

58,190x100 _

418,500 - l3•9/<,

16. Percentage of return on capital investment 58.190.x 100

,073,400 = 5.42%

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17. Brcak-cvcn point (A) Fixed costs 1. Rent

2. Depreciation

3. Interest on investment 4. 40% of salaries

5. 40% of other expenses

(B) B.E.P.

Fixed cost x 100 Fixed cost + Profit

1 8. Suppliers of machinery and equipment

1. Lagan pressprodukter AB S-34014 lagon, Sweden

2. Hans Schoen GmbH Hydraulisch Pressen, postfach 800425,

4320 Hattingen, FRG

3. Rocher GMbH Machinenbau, Postfach 3160,

5902 Netphen 3 (Deuz)

(Salaries, cost of machinery and equipment do not represent actual values) 4,800.00

16,700.00 161,010.00 15,120.00 6,240.00 Total US$ 203,870.00

203,870 .v 100

203,870 + 58,190 = 77.79%

(38)

S H O W E R S T A N D S

Shower stands are widely used in schools, gymnasiums and army barracks 2. Market potential

With the development ofthe building industry the demand for shower stands will increase.

Production is targeted at 5,600 pes/year.

Production and manufacturing includes blanking, forming and trimming.

Built up area of 350m and 500m of open space on rental basis at US$400.00/month 6. Machinery and equipment

BPC-450 press 80,000.00

TD-400 Hvdromechanical unit 36,000.00

3. Seam welder 30,000.00

4. Angle grinder 6,000.00

5. Hand grinder (12 pes) 3,800.00

6. Decoiler 15,000.00

Total US$ 170,800.00 7. Ka» materials/year

Stainless steel A151 304, of 07 & 05m/m coil = US$ 900,000.00

37

(39)

3. Secretary (1) 200.00

4. Clerks (2) 300.00

6. Guards (2) 240.00

Telephone and electricity US$ 250.00 10. Other expenses/month

3. Freight and Cortage 250.00

5. Rent 400.00

6. Sales 200.00

Total US$ 1,400.00 Working capital for 3 months

4. Utilities 750.00

Total US$ 238,770.00

38

(40)

1. Machinery and equipment 170,800.00 2. Working capital for 3 months 955,080.00 Total US$ 1,125,880.00 13. Production costs/year

1. Machinery and equipment 170,800.00

2. Interest on working

capital investment 15% 168,882.00 3. Depreciation on machinery/equip. 10% 17,080.00

Total USS 373,562.00 14. Profitability/year

66,438 jc 100 , c , o/

—, ^ = 1 J. 1 /0 440,000

(41)

16. Pcrccntagc of return on capital investment 66,438 x 100 _

1,125,880 " ⁰ 17. Break-even point

( A ) F i x e d c o s t s

1. Rent 4,800.00

2. Deprecialion 17,080.00

3. Interest on investmenl 168,882.00 4. 40% of salaries and wages 14,112.00

Total US$ 21 1,594.00 ( B ) B . E . P .

Fixed cosi x 100 21 1,594.v 100 = 76.1%

Fixed cost + Profil 21 1,594 + 66,438 18. Suppliers of machinery and equipment

1. Lagan pressprodukter AB"

S-34014 Lagon, Sweden

2. Hans Schoen GMBH Mydraulisch pressen, Postfach 800425,

4320 Hattingen, FRG

3. Rocher GMBH Maschinenbau, postfach 3160,

5902 Netphen 3 (Deuz).

40

(42)

H O L L O W B R I C K M A K I N G M A C H I N E

These machines make solid and hollow bricks.

The demand for these machines will increase as urbanization programmes expand and the desire lo build with non-wood materials increases.

Production is targeted at 10 hollow brick making machines per year.

Production and manufacturing includes culling, drilling, welding, assembling and painting.

Plot area 500 m at of which 150m built up area rented at US$400.00/monlh 6. Machinery and equipment

1. Guillotine (1 pes) 600.00

2. Power hacksaw (1 pes) 1,500.00

J . Drilling machine (1 pes) 1,200.00

4. Grinding machine (3 pes) 600.00

5. Welding machine (2 pes) 1,300.00 6. Milling machine (1 pc) 1,800.00

7. Lath machine (1 pc) 1,300.00

8. Electric motor (10 pes) 6,000.00 Total USS 14,300.00

41

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7. Raw matcrials/ycar

1. Angle iron 35 x 35 x 4m/ni - m.s 2. Round bar 14m/m mild sleel 3. Iron plate of 87m mild sleel 4. Bolls and nuls m 16.

5. Eleclrodes for welding size 2,5 - 3.25

Raw malerial 560 kg/monlh = Tolal USS 1,680.00 8. Staff and labour/month

1. Owner manager (1) 400.00

2. Sales clerk (1) 250.00

3. Produclion workers (6) 900.00

4. Guards (2) 260.00

Tolal SlafF= 10 Total US$ 1,810.00 9. Utilities/month

Waler, eleclricily and telephone US$ 150.00 10. Other cxpcnscs/month

1. Rem 400.00

4. Sales 50.00

Tolal US $600.00

42

(44)

1. Rent

2. Staff and labour Other expenses 4. Utilities

5. Raw Materials

1,200.00

5,430.00

1,800.00

450.00 420.00

1. Machinery and equipment 2. Working capital

13. Production costs/ycar

1. Machinery and equipment Interest on capital 15%

Total US$ 9,300.00

14,300.00 37,200.00 Total US$ 51,500.00

14,300.00 7,725.00 3. Depreciation on machinery/equip. 10% 1,430.00

Profit = 35,663 - 30,655 = US$ 5,008.00 1 5 . P c r c c n t a g c o f p r o f i t o n s a l e s

5008 jc 100

35,663 = 14.04%

16. Percentage of return on capital 5008 .v 100

51,500 = 9.72%

43

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(A) Fixed costs

1. Rent 4,800.00

3. Interest on capital 7,725.00

4. 40% of salaries 8,688.00

5. 40% of other costs 2,880.00

Total US$ 25,523.00 (B)B.E.P,

Fixed cost x 100 _ 25,523 x 100 _ ^ .^0 /

Fixed cost + Profit 25,523 + 5008 18. Suppliers of machinery, and equipment

1. Eisen -und Hammerwerk GmbH, Postfach 1120,

7835 Teningen 1 (Baden) Germany

2. Otto Klein GmbH & Co, Simensstr. 8,7302, Ostfilderin 3 (shamhausen), FRG

3. Rumag Roth & milier GmbH

Postfach 10,7300 Esslingen (Neckar)

4. CALOW Werkzeugmachinenfabrik GmbH, Babenhauser Str. 235,

4800 Bielefeld 1, Germany

5. ESAB-MAS1NG GmbH Automatisierte Schweiftechnik, Postfach 2045,

6057 Dietzenbach 2 (Steinberg) Germany

(Salaries, cost of machinery and equipment do not reflect actual values)

44

b

(46)

III. CHEMICALS INDUSTRY

(47)

LIQUID INSECTICIDES

Insecticides in liquid or powder forms are widely used to combat insects harmful to humans and animals.

Insecticides are always in great demand both in rural and urban areas.

Production is targeted at 300 T/year.

4 Production and manufacturing process

Production and manufacturing includes mixing and bottling 5. Land and buildings

Built up area of 500 m" and open area »f 500 rrT on rental basis at US$ 300.00/

month.

1. Mixer 19,000.00

2. Filling machine 38,000.00

Total IJS$ 57,000.00 7. Raw materials

1. Propoxur 1 % 2. Cyfluthrim 0.04%

3. Telramenthirm 0.02%

4. Solvents and propelamts 98.7%

Total chemical worth = US$ 1,088,569.00

45

(48)

1. General Manager (1) 600.00

2. Technical Manager (1) 500.00

3. Chemist (1) 500.00

4. Secretary (1) 200.00

5. Clerk (1) 150.00

7. Guards (2) 240.00

Total Stall = 20 Total US$ 4,010.00 9. Utilities/month

Telephone and electricity US$ 300.00 10. Other expenses/month

1. Consumable 200.00

3. Freight and Cortage 300.00

4. Miscellaneus 150.00

5. Rent 300.00

6. Sales 200.00

Total US$ 1,300.00

46

(49)

11. Working capital for 3 months

4. Utilities 900.00

1. Machinery and equipment 57,000.00 2. Working capital For 12 months 1,155,892.00 Total US$ 1,212,892.00 13. Production costs/year

Profit = sales - production Cost:

Profit =295,441 - 260,234 = US$ 35,207.00 15. Percentage of profit on sales

35^Q7 jC'QQ = 13.52%

260,234

1,212,892 ' 0

47

(50)

( A ) F i , \ £ d c o s t s

1. Rent 3,600.00

Interest on investment 181,934.00 4. 40% of salaries and wages 19,248.00

Total USS 216,722.00 ( B ) B . E . P .

Fixed cost v 100 216,722 .v 100 0, n/

—. 2 -

Fixed cost + Profil 216,722 + 35,207 I 8. Suppliers of machinery <& equipment

1. URSCHE Laboratories Incorporated 2503 Calumet Road

P.O. Box 272, Valparasso, Indiana 46383, USA

2. ABG - Apparatebau GmbH Dipl. ing. Guenter Kirschenmann, Postfach 41 01 10,

7500 Karisruhe, Germany

3. ABS Pumpen AG, Postfach 1220, 5204 L.ahmar 1, Germany

48

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POWDERED INSECTICIDES

1. Product and it5 use

Insecticides are used to combat agricultural pests.

There is always demand for pecticides in the green and tropical areas ot the continent.

Production is targeted at 300 T/year,

4. Production and nianufacturing process

Production and manufacturing includes mixing and dosing.

Built up 400 m2 and 600m" open area would be required on rental basis USS 300.00/ month.

6 Machinery and equipment

Mixer 19,000.00

2. Filling Machine 15,000.00

Total US$ 34,000.00

7. Raw materials/year 1. Permethnm 0.5%

2. Carbaryd 2.5%

3. Filler 97%

Total US$ 913,000.00

49

(52)

2. Chemist (1) 500.00

3. Techmcian(l) 400.00

4. Secretary (1) 200.00

5. Clerk (1) 150.00

6. Production workers ( 8) 1,040.00

7. Guards (2) 240.00

5. Rent 300.00

6. Sales 150.00

Total US$ 1,140.00

50

(53)

1. Raw material 228,250.00

4. Utilities 750.00

Total US$ 241,810.00 12. Total capital investment

1. Machinery and equipment 34,000.00 2. Working capital for 12 months 967,240.00 Total US$ 1,001,240.00 13. Production costs/ycar

Profit =226,000 - 204,266 = US$ 21,734 15. Percentage of profit on sales

21734x100 ⁼ 226,000

16. Percentage of return on capital investment 21,734 jc 100

1,001,240 = 2.17%

51

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17. Brcak-cvcn Point ( A ) F i x e d c o s t s

Rent 3,600.00

4. 40% of salaries 15,024

5. 40% of other costs 5,472

Total b'S$ 177.682.00 (B) B E.P.

Fixed cost x 100 177,682 jc 100

Fixed cos! + Profit 177,682 + 21,734 = 89.1%

1 8. Suppliers of machinery and equipment

URSCHE Laboratories Incorporated 2503 Calumet Road

P.O. Box 272, Valparasso, Indiana 46383, USA

2. ATOMA Gesellschaft fur automatische Waagen GmbH, Postfach 1369,

8264 Waldkraiburg (OBB), Germany 3. Fritz Collischan GmbH & COKG,

Postfach 450162,

8500 Nürnberg 45, Germany.

52

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M A R G A R I N E

1. Product and its use-

Margarine is one ol the cooking fats widely used in families of the medium and high income group.

Margarine is in high demand throughout the African continent.

Production is targeted at 3000 P/year. _o _J 4. Production and manufacturing process

Production and manufacturing includes mixing and tonning the product.

Built up area of 1000 n r and open space of 1000 rrT would be required on rental basis at US$ 450.00/month.

6 Machinery and equipment

1. Mixing tank 5,500.00

2. Emulsfying tank 8,000.00

3. Continuous sterilization equipment 12,000.00 4. Continuous cooling and mixing 35,000.00 5. Forming and packing machine 65,000.00 Total US$ 125,500.00

7. Raw materials/year

Dehydrogenated oil 2,400 \

t Milk 30 T

53

(56)

3. Emulsifying material 5 T 4. Packing

Total US$ 1,254,500.00 8. Staff and labour/month

3. Chemist (1) 500.00

4. Secretary (1) 200.00

5. Clerk (1) 150.00

6. Production Workers (16) 2,080.00

7. Guards (2) 240.00

Total Staff =23 US$4,270.00

Water and electricity US$ 300.00 10. Other cxpcnscs/month

2. Lubricants 50.00

5. Rent 300.00

6. Sales 150.00

Total US$ 1,050.00

54

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1. Working capital for 3 months

2. SlafTand labour 12,810.00

4. Utilities 900.00

Total US$ 330,360.00 12. Total capital investment

1. Machinery and equipment 125,500.00 2. Working capital for 12 months 1,321,440.00 Total US$ 1,446,940.00 13. Production costs/ycar

Total US$ 367,691.00 14. Profitability

Profit = sales - production cost;

Profit = 395,600 - 367,691 = US$ 27,909.00 15. Pcrccntage of profit on sales

27,909 x 100

395,600 = 7 05/o

16. Percentage of return on capital investment 27,909 .r 100

1,446,940 = 1.93%

55

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17. Brcak-cvcn point

1-

R

ent 3,600.00

2. Depreciation 12,550.00

3. Interest on capita! investment 217,041.00 4. 40% of salaries and wages 20,496.00

5. 40% of oilier costs 5,040.00

Total US$~258J27TÖÖ (B) B.E.P

Fixed cost a 100

258,727 .v 100 _ ,

_ 90.36%

Fixed cosl + Profil

258,727 + 27,909

1. G. Maz/.oni Spa.

Vialle Trentino 10/12 BUSIO ARSIZIO - Italia Telex: 330576 GMAZZI; Tel. 331 - 684064.

2. BEPEX GmbH (Hütt), Postfach 1162, 7105 Leingarten, Gennany.

3. Gebr. Bindier Maschineufabrik GmbH

& Co. KG. Postfach 1 153, 5275 Bergneustadl, Germany.

(Salaries, cost o!" machinery and equipment do not represent actual values)

56

(59)

TOILET SOAP

This is a daily-used product for bathing in modem societies.

Good quality toilet soap is always in demand.

Production is targeted at 900 T/year.

4. Production detail and manufacturing process

Production and manufacturing includes mixing, moulding, shaping and packing.

5. Land and buildings

Built up area of lOOOrrT and open space of 1000 rrT on rental basis at US$ 400.00\

month.

6. . Machinery and equipment 1. Screw conveyer 2. Mixer

3. Automatic weighing machine 4. Dosing machine

5. Packing and rapping machine

57

(60)

0. Peletizer

7. Moulding and cutting machine 8. Belt conveyer

9. Lab. equipment 10. Electric control panel

Total cost including erection US$ 550,000.00 Raw matcrials/ycar

1. Fatty acid (600) 299,000.00

2. Soda ash (180) 60,000.00

3. Esence (flavour) (20) 165,000.00

4. Packing & wrapping material 224,000.00 Total US$ 748,000.00 Staff and labour/month

2. Technician (1) 500.00

3. Chemist (1) 500.00

4. Secretary (1) 200.00

5. Clerk (1) 150.00

7. Guards (3) 360.00

Total Staff = 26 ÜS$ 4,650.00

(61)

2. Lubricant 150.00

5. Rent 400.00

6. Sales 150.00

Total US$ 1,400.00 1 1 . W o r k i n g c a p i t a l f o r 3 m o n t h s

4. Utilities 900.00

1. Machinery and equipment 550,000.00 2. Working capital for 12 months 824,200.00 Total US$ 1,374,200.00

59

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13. Production costs/year

102,720^100

930,650 - "•^04/o

16. Percentage of return on capital investment 87,942 X 100

756,050 ^{= 11}-^6/o 17. Break-even point

(A) Fixed costs

1. Rent 4,800.00

3. Interest on capital investment 206,130.00

4. 40% of salaries 22320.00

Total US$ 294,970.00 (B) B.E.P.

Fixed cost x 100 _ 294,970 x 100 _ ^ Fixed cost + Profit 294,970 + 102,720

60

(63)

!8. Suppliers of machinery and equipment 1. BEPEX GmbH (Hütt), Postfach 1152,

7105 Leingarlen. Germany 2. Magchineufabrick Gustav Eirich

Postfach 1160,

6969 Hardheim, Germany

3. Weber & Seeiaender Maschineufabrik.

Postlach 1520

3330 Helmstedt, Germany,

61

(64)

B I T U M I N I S E D W A T E R P R O O F P A P E R

1. Product and its use

Biluminised water proof paper is used for packing ready-made garmenis, chemi

cals, pesticides, handicrafts etc. for domestic or export markets.

2. Market potential

Retailers, wholesellers, industries and laundries are in need of this material tor packing goods.

3. Production target

Production is targeted at 120 T/year

4. Production detail and manufacturing process

Production and manufacturing includes passing paper rolls through a betumen application roller, cooling and chilling rolls and Iben passing rolls through delivery for slitting and unwinding

5 Land and buildings

Built up area 200 rrT and 300 m open space rented for US$ 450.00/month.

6. Machinery and equipment

1. Bitumen lamination plant (1) 16,000.00 2. Paper sheering machine (1) 800.00 3. Slitting and rewinding units 1,600.00 4. Office furniture and tools 25,000.00 Total US$43,400.00

63

(65)

7. Raw materials/year

1. Kraft paj)er in roll (96) 84,480.00

2. Bitumen (36) 11,520.00

Total US$ 96,000.00 8. Staff and labour/month

1. Manager (1) 600.00

3. Accountant (1) 400.00

4. Clerk (1) 150.00

6. Guards (3) 360.00

Electricity, water, fuel and telephone US$ 160.00 10. Other expenses/month

2. Lubricants 40.00

3. Freight and conage 100.00

5. Rent 450.00

6. Sales 150.00

Total US$ 920.00

64

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11. W o r k i n g capital f o r 3 m o n t h s

!• Rent 1350.00

4. Utilities 480.00

Total US$ 13350.00 12. Total capital investment

1. Machinery and equipment 43,400.00 2. Working capital for 12 months 53,400.00 Total US$ 96,800.00 13. Production costs/year

1. Machinery and equipment 43,400.00 2. Interest on capital investment 15% 14,520.00 3. Depreciation on machinery/equip. 10% 4340.00

Profit = 95,000 - 73300 = US$ 21,700.00 15. Percentage of profit on sales

21,700 x 100 o^in/

95,000 = 22 84/o

96,800 = 22.42%

65

(67)

7. Brcak-cvcn point ( A ) F i x e d c o s t s

1. Rent 5,400.00

3. Interest on capital investment 14,520.00

4. 40% of salaries 14,016.00

Total US$ 42,692.00 ( B ) B . E . P ,

Fixed cost x 100 42,692jc100 = 66.3%

Fixed cost + Profit -42,692 + 21,700 8. Suppliers of machinery and equipment

1. BHS - Werk, Weiherhammer, Postfach 107,

8481 Weiherhammer, Germany 2. Billhofer Maschinenfabrik GmbH,

Markgrafenstr 20,

8500 Nuerenberg 40, Germany 3. Herbert Olbrich GmbH & Co. KG.,

Postfach 1964,

4290 Bocholt, Germany.

66

(68)

RUBBER ERASERS

Rubber erasers are used in schools, universities and businesses world-wide.

With the increasing number of schools, colleges, technological institutions and offices the requirement for erasers is expected to increase.

Production is targeted at 30 million pes of eraser/year.

Production and manufacturing includes mixing various ingriedients of rubber compound and then moulding in the desired forms and sizes.

Covered area of 200 m" and open space of 300 rrT rented at US$ 300.00/month.

1. Mixer mill 10,400.00

2. Hydraulic press 8,000.00

3. Power operated cutter 960.00

4. Grinder 1,600.00

5. Marking hand-operated press 320.00

6. Boiler of 140 Kg/hr 4,000.00

Total US$25,280.00

67

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7. Raw materials/year 1. Palecrepe 450Kg 2. Sulphur 27Kg 3. Accelerators 18"

4. Zinc oxide 36"

5. Stearic acid 4.5"

6. Light calcined Mg0160Kg

7. Ammonium oleatel60Kg 8. Eraser crumbs 75Kg 9. White factice 1300 "

10.Whiting 1100 "

11. Anti-oxidant 6.75"

12.Titanium dioxide 25 Kg,

13. Fast colour 18 Kg

In case of ink erasers, glass and pumice powder of suitable quantity would be added.

Cost of raw materials Total US$ 51,600.00 8. Staff and labour/month

1. Manager (1) 2. Chemist (1) 3. Accountant (1) 4. Clerk (1)

5. Production workers (10) 6. Guards (2)

600.00 500.00 400.00 150.00 ,200.00 220.00

Total Staff = 16 US$ 3,070.00

68

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Utilities/month

Telephone, electricity and water US$ 200.00 Other cxpcnscs/month

2. Lubricants 40.00

5. Rent 300.00

6. Sales 150.00

Total US$ 840.00 Working capital for 3 months

1. Rent 900.00

4. Utilities 600.00

Total US$ 13,230.00 Total capital investment

1. Machinery and equipment 25,280.00 2. Working capital for 12 months 52,920.00 Total US$ 78,200.00

(71)

13. Production costs/vcar

1. Machinery and equipmenl 25,280.00 2. Interest on capital investment 1 5% 1 1,730.00 3. Depreciation on machinery/equip. 10% 2,528.00

Total US$ 49,618.00 14. Profitability/vcar

Profit =69,000-49,618 = US$ 19,382.00 5. Percentage of profit on sales

19,382 .v-100

69,000 = 28.09%

16. Percentage of return on capital

9,382 .y 100

78,200 = 24.78%

17. Break-even point ( A ) F i x e d c o s t s

Rent

2. Depreciation

3. Interest on capital investment 4. 40% of salaries

5. 40% of other costs

3,600.00 2,528.00 I 1,730.00 14,736.00 4,032.00

( B ) B . E . P .

Total US$ 36,626.00

Fixed cost x

¹⁰⁰ 36,626.x: 100

Fixed cost + Profit

36,626 + 19,382 = 65.39%

70

(72)

1 8. Suppliers of machinery & equipment

1. ABG - Apparatebau GmbH Dipl. Ing. Gunter Kirschenmann, Postfach 41 Ol 10,

7500 Karlsruhe, Germany

2. ABS Pumpen AG, Postfach 1220, 5204 Lohmar 1, Germany

3. Draiswerke GmbH

Specialmashinenfabrik Abt. WM, Postfach 310220,

6800 Mannheim 31 (Waldhof), Germany

(73)

POLYESTER SHEETS

Polyester sheets are used in the production of buttons, bangles, decorative panels, fixtures, housing for instruments, components and various other allied applications, wherever costing considerations permit.

Polyster sheets are always in demand as long as there is a requirement lor the above-mentioned products.

Production is targeted at 2400 polyester sheets, size 74 cm x 22 cm x 3mm/year.

Production and manufacturing include production on centri fugal casting machines.

After straightening they are cut into the desired size before curing.

Covered area being 200 nT and open 300 rrT on rental basis at US$ 350.00/month.

Mixer 1,000.00

2. Centrifugal machine 30,000.00

Sheet cutting machine 1,500.00

4. Laboratory equipment for testing 4,000.00

5. Dies and tools 1,000.00

Total US$ 37,500.00

73

(74)

1. Polyester resin 1200 Kg 2. Pearl essence 12 Kg 3. Catalyst 12 Kg 4. Accelerator 6 Kg 5. Packing material 6 Kg

Total Kg = 1236 Staff and labour/month

1. Manager (1) 2. Chemist (1) 3. Accountant (1) 4. Salesman (1)

5. Production workers (6) 6. Guards (2)

6,000.00

360.00 300.00 50.00 40.00 Total US$ 6,750.00

600.00

500.00 450.00 450.00 780.00 240.00 Total Staffs 12 Total US$ 3,020.00

(75)

Electricity, water and telephone 10. O t h e r c x p c n s c s / m o n t h

1. Consumables 2. Lubricants

3. Freight and cortage 4. Miscellaneous 5. Rent

6. Sales

US$ 100.00

50.00 40.00 50.00 30.00 350.00 100.00

Total US$ 620.00

1. Rent

2. Staff and labour 3. Other expenses 4. Utilities

1,050.00 9,060.00 1,860.00 300.00 Total US$ 12,270.00 12. Total capital investment

1. Machinery and equipment 2. Working capital for 12 months

37,500.00 49,080.00 Total US$ 86,580.00

75

Directory of project profiles on building materials and chemical industries for small-scale industries

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

DIRECTORY OF PROJECT PROFILES ON

BUILDING MATERIALS AND CHEMICAL INDUSTRIES FOR SMALL-SCALE INDUSTRIES

ECAC

334.713:66

D5985

im

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

DIRECTORY OF PROJECT PROFILES ON

BUILDING MATERIALS AND CHEMICAL INDUSTRIES

FOR SMALL-SCALE INDUSTRIES

TABLE OF CONTENTS

Chemicals Industry

I . I N T R O D U C T I O N

6.

II. BUILDING MATERIALS

BURNT CLAY BRICKS

Burnt clay bricks are a major element for the construction of houses in urban and rural areas. Burnt clay bricks are made from clay, sand and water.

2.

There is always a big demand for burnt clay bricks that are made available at affordable prices.

3.

Production is targeted at 12 millions burnt clay bricks/year.

Production and manufacturing includes clay digging, mixing, moulding, extruding, cutting, hand-firing and drying.

5.

Covered area 2000m^ and 2000m' open area rented at US$ 400.00/month.

1. Milling 95,000.00

2. Mixer 48,000.00

3. Extruder 119,000.00

4. Construction of kiln 72,000.00

Total US $334,000.00

7

1 Machinery and equipment 334,000

2. Interest on capital investment 15% 71380.00 3. Depreciation on machinery/equip. 10% 33,400.00

4. Other costs 13,440.00

Total US$ 472,228.00 14.

Profit = sales - cost of production

Selling price = US$ 0,05/pcs 0,05 x 12,000,000 = 600,000.00 Profit = 600,000 - 472,228 = 127,772.00

a) Percentage of profit on sales:

127,772*100

600,000 "

'

'

b) Percentage of return on capital investment 127,772 x 100

475,920 15.

( A ) Fixed c o s t s

= 26.84%

1. Rent 4,800.00

2. Description 33,400.00

3. Interest on investment 71,380.00

4. 40% of salaries 10,272.00

5. 40% of other expenses 5,376.00

Total ,US$ 125,228.00 ( B ) B . E . P

Fixed cost x 100 125,228 .v 100

Fixed cost + Profil 125,228 + 127,772 = 49.49%

CLAY PIPES

CEMENT FLOOR TILES

C E M E N T B L O C K S

K I T C H E N S I N K S

60,000.00

6,000.00

T U R K I S H T O I L E T S

80,000.00

6,000.00

S H O W E R S T A N D S

H O L L O W B R I C K M A K I N G M A C H I N E

1,200.00

1,800.00

III. CHEMICALS INDUSTRY

LIQUID INSECTICIDES

POWDERED INSECTICIDES

M A R G A R I N E

17. Brcak-cvcn point

1-

ent 3,600.00

2. Depreciation 12,550.00

3. Interest on capita! investment 217,041.00 4. 40% of salaries and wages 20,496.00

5. 40% of oilier costs 5,040.00