Uganda Investment Authority

Making low dust chalk

Introduction
This business idea is for production and marketing of low dust chalk. Chalk is a soft compacted whitish calcite used as a writing aid in educational institutions. Low dust chalk reduces health hazards that result from excess chalk dust. The market structure for chalk cuts across academic institutions. It can be produced in a wide range of colours though white chalk is most preferred. The business idea aims at production of 3,900 boxes of chalk per month.

The revenue potential is estimated at US$655,200per year with a sales margin of 10%; the total capital investment for the project is US$2,588.

Production capacity
The profiled plant has a minimum capacity of 150 boxes of chalk per day and each box normally has 100 chalk pieces.

Production Process
To produce chalk, Plaster of Paris, French chalk and kaolin are mixed and made in a form of paste. The paste is cast in a suitable mould and dried. The dried material is then neatly packed for the market.

Capital Investment Requirements

Production and Operating Expenses

  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. A production Month is assumed to have 26 work days.

Project Product Costs and Price Structure

Profitability Analysis Table

Sources of Supply of Equipments
All materials needed can be got locally at fair Prices.

Government Incentives
The Government has liberalized the economy and encouraged people to invest in industrial set up through incentives like low tax rates and deferred tax payments.

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