This business idea focuses on the production and marketing of carbon paper, which is coated paper used for making multiple copies simultaneously with the creation of an original document. Carbon paper has a layer of loosely bound dry ink or pigmented coating, typically bound with wax. With a total investment requirement of USD 1,620 and an operational cost of USD 428,157 per year, this business has a revenue potential of USD 561,600 per year. The production capacity is estimated at 4 cartons per day, with each carton containing 100 pieces of carbon paper.

Production Process

The production process involves the preparation of a coating mix, which is then applied to the surface of the paper. The coated paper is then cut into sizes suitable for the market, resulting in the production of carbon paper.

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 5 cartons of carbon paper. 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.

Market Analysis

Carbon paper has a steady market, with a wide range of applications in banks, offices, microfinance institutions, and educational institutions. The demand for carbon paper remains consistent, making it a valuable product in various sectors. This presents a significant market potential for entrepreneurs in the carbon paper industry.

Sources of Raw Materials and Equipment

The raw materials required for carbon paper production are locally available. Equipment can be sourced from countries such as China or India, ensuring access to the necessary machinery and tools for manufacturing carbon paper.

Conclusion

Investing in the production of carbon paper in Kenya offers a viable business opportunity. With a steady market demand and the availability of raw materials, entrepreneurs can cater to the needs of banks, offices, and educational institutions. By providing high-quality carbon paper, this business idea not only generates revenue but also contributes to efficient document duplication processes in various sectors.