This business idea focuses on producing cardboard cartons from recycled cardboard. Cardboard boxes, also known as cartons, are widely used for packaging goods and materials. By utilizing regular cardboard that is typically discarded, this business aims to create sturdy boxes of various sizes. These lightweight and easy-to-fabricate cartons have a wide range of applications in the packaging industry, including the storage of electronics, appliances, toiletries, and garments. With an estimated production capacity of 62,400 boxes annually, the revenue potential for this business is estimated at $90,355 per year, with a sales margin of 28%. The total capital investment required for the project is $9,614.

Plant Capacity

The initial plant capacity is set at 200 boxes per day, based on an 8-hour shift. As the business gains experience and responds to market demand, the production output can be increased accordingly.

Production Process

The production process involves several steps. It begins with deciding the size and dimensions of the box, followed by drawing and cutting the cardboard pieces. The next steps include gluing the pieces together, sanding to ensure evenness, and allowing them to dry. Finally, the pieces are joined to complete the box. Customization is possible, allowing for different sizes, designs, and colors to meet customer specifications.

General Costs (Overheads)

To evaluate the financial aspects of the business, it is important to consider general costs and overheads. Production is assumed for 312 days per year, and depreciation is calculated based on a 4-year write-off period at a rate of 25% per year for all assets. A production month is assumed to have 26 days.

Sources of Equipment Supply

Equipment for this business can be sourced from India or fabricated locally at affordable prices. This ensures access to the necessary machinery and tools to support the cardboard carton manufacturing process.

Conclusion

Investing in the production of cardboard cartons from recycled cardboard in Kenya offers a sustainable and profitable business opportunity. By utilizing discarded cardboard and employing efficient production processes, entrepreneurs can contribute to waste reduction while meeting the packaging needs of various industries. Furthermore, the customization options and wide market potential make this business idea a promising venture.