Dive into the realm of innovation with the production and marketing of power inverters, a business venture aimed at producing 15 inverters per month, totaling 180 inverters annually. With an estimated revenue potential of US $9,000 per month and US $108,000 per year, this project requires an investment of US $108,165. Power inverters play a crucial role in addressing power shortages and interruptions, catering to the growing demand for reliable energy solutions.
Production Process
The intricate production process of power inverters involves constructing a metallic box, ensuring its corners are sealed with solid welding, assembling isolators, inverter systems, charging systems, and automatic functions, and integrating switches and sockets for user convenience and functionality.
General Costs (Overheads)
To streamline operations, production costs are calculated based on a monthly capacity of 15 power inverters. Depreciation is considered over a 4-year period, with assets written off at 25% annually. Direct costs encompass materials, supplies, and expenses directly associated with the production process, ensuring efficiency and cost-effectiveness.
Market Analysis
The market for power inverters is on a steady rise, driven by the escalating power shortages and interruptions experienced in various regions. The demand for inverters extends beyond Kenya’s borders, with neighboring countries like Rwanda, Sudan, and Congo also presenting lucrative opportunities for market expansion and growth.
Availability of Raw Materials and Equipment
All necessary equipment, tools, and materials required for manufacturing power inverters can be readily sourced from the local market, simplifying the procurement process and enhancing operational efficiency.
In conclusion, venturing into the production of power inverters in Kenya not only meets the pressing energy needs within the country but also presents avenues for market expansion and regional outreach, positioning the business as a key player in the renewable energy sector.
