This business idea focuses on the production and marketing of bone china porcelain products, which are highly sought-after decorative items used in various settings such as hotels, recreation centers, events management enterprises, and office and home decoration enterprises. With a target output of 39,936 pieces of high-quality bone china porcelain products annually, the estimated fixed capital investment required is US$43,602, with operating costs of US$89,548. The projected revenue for the first year of operation is estimated at US$143,770, with a net profit margin of 38% and a payback period of 3 years.
Production Capacity, Technology, and Process
The manufacturing process of bone china porcelain involves several stages. The raw materials, including clay, feldspar, silica, and stone dust, are crushed and cleaned to remove improperly sized materials. The cleaned materials are then mixed in a mixer. The soft plastic method is used for production, involving manual molding, jiggering or ram pressing, and wheel throwing. After shaping, the products undergo bisque firing at low temperatures to eliminate contaminants and minimize shrinkage. The final firing takes place in an electric kiln at high temperatures between 1,000 to 1,500°C. The products are then cooled, packaged, and ready for selling and distribution.
General Costs (Overheads)
To evaluate the financial aspects of the business, it is important to consider general costs and overheads. Production costs are assumed for 312 days per year, with a daily capacity of producing 128 pieces of bone china porcelain products. Depreciation is calculated 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 the production process. A production month is assumed to have 26 days. The valuation currency used is the United States Dollar.
Market Analysis
The market for bone china porcelain products exists in Kenya, with major consumers including supermarkets, restaurants, wholesale shops, and retail shops. These elegant and decorative items have a high demand and can be found in various settings, making them a valuable addition to any space.
Conclusion
Investing in the production of bone china porcelain in Kenya offers an opportunity to create elegant and decorative products that cater to the needs of hotels, event management enterprises, and individuals looking to enhance their living spaces. With a well-established market and the availability of raw materials, entrepreneurs can tap into the demand for high-quality bone china porcelain products. This business idea not only generates revenue but also contributes to the aesthetics and ambiance of various establishments.
