Rexene, a versatile and cost-effective material, finds numerous applications, from seat covers to covering materials. This business idea focuses on producing and marketing Rexene products, specifically bicycle carrier seats. With their durability and flexibility, Rexene seats offer a reliable and comfortable transportation solution. Currently, there is untapped demand for Rexene products in the market. With a production capacity of 140 seats per day, this venture has the potential to generate an annual revenue of $213,988, with total operating costs estimated at $142,827.

Production Process

The production process for Rexene bicycle carrier seats involves creating patterns and stitching suitable cloth lining along with necessary fittings such as sisal roll plywood, sponge, and glue. The Rexene material can also be utilized for making two-wheeler seat covers using the same machines. This cost-effective process allows for the efficient production of high-quality seats.

Production and Operating Costs

To understand the profitability of the business, production costs and operating expenses need to be considered. Assuming a production capacity of 150 bicycle carrier seats per day for 312 days per year, the direct costs include materials, supplies, and other expenses directly related to production. Depreciation is calculated based on a 4-year write-off period at a rate of 25% per year for all assets.

Market Analysis

Rexene products have tremendous market potential due to their affordability and high demand. Preferred by many, Rexene works are cost-effective and offer a reliable alternative to traditional materials. With the growing transportation sector in Kenya, there is a significant market opportunity for Rexene bicycle carrier seats.

Sources of Raw Materials and Equipment

Raw materials for Rexene production are readily available in local markets, ensuring a consistent supply. Equipment for the production process can be sourced from China, offering a range of options to choose from.

Conclusion

Investing in the production and marketing of Rexene bicycle carrier seats in Kenya presents an opportunity to cater to the growing demand for cost-effective transportation solutions. With their versatility, durability, and affordability, Rexene products have a wide range of applications. By sourcing quality raw materials and equipment, entrepreneurs can establish a successful business that meets the market demand for Rexene works.