BUSINESS IDEA FOR MAKING SEALING WAX

 

Introduction

The manufacture and distribution of sealing wax is the focus of this business plan, which is based on the production of 13,000 pounds of sealing wax per month with a potential annual income of US$117,000 or US$9,750 each month.

 Production Process

Black sealing wax is most frequently used in post offices and railways. Rosin and shellac are melted, and then fillers including kaolin, soapstone, barites, colors, oxides, and oil-soluble organic dyes are added. The molten substance is then poured into aluminum or gunmetal-colored metal molds. Bee wax and castor oil are added in small quantities to sealing waxes to improve their plasticity. After that, the item is put into cartons with 500 grams of sticks.

 Market Analysis

In the postal system, the railroads, all corporate offices, academic institutions, and government agencies, among other places, sealing wax is in high demand. The product is in high demand, and there is a very small supply.

International market

Due to the COVID-19 pandemic, the global Bottle Sealing Wax market size is estimated to be worth USD 62 million in 2021 and is forecast to a readjusted size of USD 73 million by 2028 with a CAGR of 2.4Percent during the forecast period 2022-2028

Production costs assumed are for 312 days per year with a daily capacity of 500 Sealing Wax.

Depreciation (fixed assets write off) assumes 4 years life of assets write off of 25% per year for all assets.

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Source of Supply of Raw Materials and Equipment

Raw materials and Equipment can be imported from Liberia, China and India.

Government Incentive

Government is encouraging small scale establishments so as to eradicate poverty.