Metacloud Store - BUSINESS IDEA FOR MAKING HERBAL DEODORANT

Introduction The business idea is to set up a plant to make liquid deodorant that can be used in kitchens and bathrooms, etc. This business idea is premised on production of 13,000 Deodorants per mon

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BUSINESS IDEA FOR MAKING HERBAL DEODORANT

Introduction

The business idea is to set up a plant to make liquid deodorant that can be used in kitchens and bathrooms, etc. This business idea is premised on production of 13,000 Deodorants per month which translates into 156,000 Deodorants per year. The revenue potential is estimated at US $ 26,000 per month which translates into US $ 312,000 per year. This project cost is US $ 3,073. Production Process

1 1/2 tablespoon of beeswax (yellow is best) 

1/2 tablespoon cocoa butter 

1 tablespoon coconut oil 

15 drops white thyme essential oil 

15 drops rosemary essential oil 

25 drops lavender essential oil

3 drops castor oil

Melt beeswax in a glass jar standing in hot water, add the cocoa butter, and when it has melted, add the oils. Stir to mix thoroughly, and then pour into a clean container. Discard deodorant stick case and leave to cool and set. Market Analysis

The business has a great market demand in both rural and urban areas throughout the year and a higher demand during festive seasons. Dama Herbal Consultants, Mukwano Arcade – Kampala Uganda

Capital investment in US $

Item                        Unit  Qty  Unit Cost Total  
Emulsifier stirrer  No.     1     500 500
Storage vessel  No.  1       50          50
Hot plates  No.    3       8     23
Delivery van  No.    1 2,500 2,500
Total cost of Machinery

3,073

Production and operating Costs in US $ Direct materials, supplies and costs

                                    Unit        Cost/ Qty/ Cost Item Units dayday  rod. cost /day  Prod. Cost/ month  Prod. Cost/ year 



bee wax Kgs 0.5 20 10 260 3,120

Coacoa butter Kgs  5   10 50 1,300 15,600

Cocoa Nut oil Kgs  0.2  5    1      26   312
white thyme essential oilLtrs 0.2  5  1  26 312
rosemary essential oil Ltrs 0.2  5      1     26     312
lavender essential oil  Ltrs 0.2  5      1      26 312

castor oil  Ltrs 0.2     5      1  26 312

Sub-total
1,690 20,280




General costs (Overheads) 







Deodorant sticks
    13    156




Utilities (power)
150 1,800




(Utilities (water)
   15  180




Salaries
300 3,600




renting
150  1,800




Misc. costs
 100 1,200




Depreciation (Assets write off) Expenses
 64    768




Sub-total
779 9,348




Total Operating costs 2,469 29,628





Production costs assumed are for 312 days per year with a daily capacity of 500 Herbal Deodorants.

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project product Cost and price structure in US $

Item  Qty/ day  Qty /yr Unit cost  Prod. Cost /yr  Unit price  Total Revenue

Herbal deodorant         500             156,000           0.19 
29,628            2.0 
312,000 

Profitability Analysis in US $

Profitability item  per day per month per year 
Revenue    
Herbal deodorant 1,000 26,000 312,000 
Less Prod & Operating Costs      95  2,469 29,628 
Profit  905  23,531282,372 

Source of Supply of Equipment and Rawmaterials

The equipments and Raw materials required to start this business are locally available in Uganda. Government Incentives

Government is encouraging small scale businesses and income generating activities to eradicate poverty through “Bonna Bagagawale Programme”. Government lab, the Chemothary Centre and National Drug Authority Labs at Wandegeya help to analyse the chemical contents of the herbs.  


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