Industrial Safety Glove Production Project

My project aims at supplying these safety gloves across the country. Specifically, I will target three primary markets:

• Large Manufacturing Industries in Nairobi, Mombasa and other cities
• Large Super Markets in Nairobi and other Cities.
• Access to high value global markets abroad for safety products.

With the diverse market choices above, you can be assured that your money will finance a project with realistic chances of succeeding because there are sufficient buyers.

Value for Customers

With this project, I hope to satisfy my customers fully in that I will have a variety of glove production. Thus giving my customers an opportunity to make better choices suitable for their type of work. e.g. Mitten glove style are a unique type that is lined with flannel material which is heatproof for handling extra hot items. We shall have long and short sleeves type, five fingers type, leather types and many more, suitable for any condition under which one is working. We shall have to import the plastic ones in order to increase the choice capacity for our customers.

Marketing Plan

At the moment, my product is single and consumed by one customer who is a heavy producer of glass products. Since production process in many industries involve handling extreme hot surfaces, my new quality products will take advantage of that situation and be able to exploit the market effectively.

Furthermore, unlike before, variety choice should no longer be a limiting factor to me and my customers. Also, in every manufacturing industry, there is always a need for safety products including gloves and clothes. And my products will always be at hand through your fund. My marketing will be through various medias available and will be able to supply local and overseas markets. Our sales projection for the first year will be around Ksh.1.2million and we project a growth rate of 10 – 15% per year for the first four years.

Project Cost Structure

My project is scheduled to succeed in that it will provide not only the needed quality, but also the needed quantity to satisfy customers’ orders. With new provisions of automatic sewing machines and over-locking machines and available textile materials, we will improve the quality to reach international standards.

Although my plan is to start with 3 machines, the business can scale up to even 10 or 20 machines as time goes. This will of course increase the cost of running the business which will form a significant portion of the budget. We will be needed to add more workers, spend more on textile materials and maintenance cost.

However, for the budgeted 3 automatic machines and 1 overlocking machine, the project can breakeven within the first year at a market price of ksh200.00 per pair. This price is fair, though at the moment we are selling at Ksh.160.00 per pair and get orders of 1000 pairs every month. There is a potential of doubling the orders to supply every month.

Profit Margin

Presently, selling our products at Ksh.160.00 per pair leaves me with a profit of 35%. In next year production, the profits will be higher because the costs of machines will not be there and the quality will definitely call for a higher selling price.

Results

This funds will help to achieve the following results:-

Achieve Improved quality of my products.

Achieve Improved quantity to satisfy market demand.

Achieve financial status and be able to eradicate poverty.

Be able to access high-value export markets with international quality products

My fervent prayer is that my Proposal will meet your favorable consideration. I must assure you of my continued efforts to manage my business profitably.