Pure
Water Production Project.
SUMMARY:
ASSUMPTIONS
Borehole with three (3) overhead tanks available
Building with 4 rooms built to Nafdac Standard. Includes:
1. Mini laboratory-Quality control 2. Cloak room (Rest room). 3. Production
Room. 4. Finished Product room.
Table 1.EQUIPMENTS:
1. Treatment plant N200,000.00
2. Ultraviolet
light Water sterilizer N
50,000.00
3. Ultraviolet
light material sterilizer N 20,000.00
4. Surface pump N 50,000.00
5. Automated
sealing machine N900,000.00
6. Nafdac
Advisory inspection N 10,500.00
7. Nafdac
Production Inspection (Legal) N 37,500.00
8. Installation
of equipments and test running N350,000.00
Total N1,618,000.00
Table 2.Certificates Required by
Nafdac:
Certificate for Food handling N
25,000.00
Certificate for Fumigation N
15,000.00
Certificate for health approval N
25,000.00
Certificate for Water Analysis N
50,000.00
Certificate for workers Health
fitness N
25,000.00
Total N135,
000.00
Table 3. Packaging materials for 2
months
Packaging Bags (1000 bags =
N5,000.00) 10,000bags N 50,000.00
Packaging water sachets
N1,260.00 per kg (N50kg) N 63,000.00
Total N113,000.00
Note: Packaging materials purchased from Lagos are more durable and give
better yield.
Table 4. Sales Van.
One (1) Utility vehicle –
Mitsubishi Canter (Fairly Used) N1,500,000.00
Table 5. Staff Salary and Wages per
Month
1. Manager/Supervisor/Accountant N100,000.00
2. Production
Staff (2) at N25,000.00 Each N
50,000.00
3. Technician N
30,000.00
4. Driver
N
30,000.00
5. Sales
boys N
25,000.00
6. Security
Night N
20,000.00
7. Security
Day/Gateman N
20,000.00
Total N275,000.00
Table 6. Variable Cost per Month
Fuel (Generator + vehicle) 20 litres/day
at N150.00 per litre for 26 days (a month) N
78,000.00
Engine Oil – 2 gallons a month
at N3000.00 N
6,000.00
Sanitizers and Detergents N 5,000.00
Servicing of Engines per month N
10,000.00
Local Government levy N
10,000.00
State Government levy N
10,000.00
Total N119,000.00
ANALYSIS
Building and furnishing cost
(ESTIMATE) N3,000,000.00
Fixed Infrastructure and test
running of machines
Table 1+2+3 N3,366,000.00
Production materials and
salary/wages for one year
Table 4 *6months (N113,000.00 x
6) N678,000.00
Table 5 * 12months (
N275,000.00 x 12) N3,300,000.00
Table 6 * 12months (N119,000.00
x12) N1,428,000.00
TOTAL N11,772,000.00
Sales Analysis
1. Daily
production and Sales of 1000 bags @ N120.00 per bag N37,440,000.00
Profit (N37,440,000.00 - N11,772,000.00) N25,668,000.00
2. Daily
production and sales of 500 bags @ N120.00 N18,720,000.00
Profit (N18,720,000.00 - N11,772,000.00) N
6,948,000.00
CONCLUSION.
The
sales are realizable therefore it’s a profitable venture only the initial
capital might be a problem. There are still other ways of scaling down initial
capital investment and take out expenses from sales.
Prepared
by Engr. Cyril C. Elevoh B.Sc. tech. 31st march, 2016.
PHONE: +(234) 8068757431(08068757431)
PHONE: +(234) 8068837443(08068837443)
