This business idea focuses on the establishment of a woolen knitting project, catering to the high demand for woolen knitwear. With a capital investment of $18,834, this venture aims to produce an average of 60 woolen knitwear products per day, totaling to 18,720 pieces in the first year of operation. This translates to a revenue of $121,680. However, it is important to note that the operating costs are estimated to be $104,342.

Production Capacity, Technology & Process

The production process involves winding yarn and knitting it in various styles as desired by the operator. The knitted pieces are then combined using a sewing machine and packed for distribution. The production capacity depends on factors such as the efficiency and experience of the workers, the type of machines used, and the project’s objectives.

General Costs (Overheads)

To evaluate the financial viability of the business, it is crucial to consider general costs and overheads. Production costs are calculated for 312 days per year, with a daily capacity of knitting 60 pieces of woolen knitwear. Depreciation is assumed based on a 4-year write-off period at a rate of 25% per year for all assets. Direct costs include materials, supplies, and other expenses directly related to production. The total monthly working days are assumed to be 26.

Conclusion

Investing in a woolen knitting business in Kenya presents an opportunity to meet the high demand for woolen knitwear products. With the right machinery, skilled workers, and efficient production processes, entrepreneurs can create cozy and fashionable knitwear items. The market for woolen knitwear is diverse and includes both domestic and international customers. By establishing a woolen knitting project, entrepreneurs can contribute to the textile industry in Kenya and offer high-quality, comfortable, and stylish knitwear options.