Introduction
Chili sauce is hot in taste and eaten either raw or cooked for its hot flavor. Chili or Pepper is used to make a variety of sauces and chili pickles.
Production Capacity
The Rated Plant capacity is 500ltrs/day
Production Process of chili sauce
Chili sauce is made following the steps outlined below:
- Cut chilies roughly
- Peel & chop garlic
- Measure the capacity of your bottle with the jug & water
- Add chilies and garlic to the jug & enough vinegar to make the
- volume you need
- Transfer these to a pan
- Add 5 teaspoons of salt, and a teaspoon of sugar
- Heat to boil
- Blend this mixture until smooth
- Re-heat in the pan & pour into your bottle using the jug.
Raw Materials/Ingredients
Hot Paper, Salt, Mustard oil, Vinegar, Chilies and Garlic
Equipment
The Essential tools and equipment required for Chill
Manufacturing includes: Food-blender, a saucepan, graduated jug & clean bottles.
Capital Investment Requirements and Equipment
The project will be operated locally on a small scale, i.e., producing at least 500ltrs of processed Chili per day (15,000ltr/month). The total Fixed and Working Capital Investment required to start this project is estimated at NGN 519,800
Market Analysis:
Chili may be sold locally in Supermarkets, Wholesale shops, Groceries, and Hotels. It can also be exported.
Capital Investment Requirements (CBN exchange rate -$1 to 411.39 NGN) as of 14 Jan 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD |
| Food Blender | No. | 1 | 7,000 | 17.02 |
| Sauce Pan | No. | 1 | 6000 | 14.58 |
| Gas Cooker | No. | 1 | 10,000 | 24.30 |
| Jug | No. | 1 | 3000 | 7.29 |
| Total | 26,000 | 63. 20 |
Production and operating costs
| Cost Item | Units | Qty/
day |
Pdn Cost/Day NGN | Pdn cost/ month in NGN | Pdn cost/ year
In NGN |
Pdn cost/ year
In USD |
| Hot pepper | kg | 1.3 | 2000 | 60,000 | 720,000 | 1750.16 |
| Vinegar | litres | 3 | 3000 | 90,000 | 1,800,000 | 43,488.77 |
| Garlic | kgs | 4.8 | 1000 | 30,000 | 360,000 | 875.08 |
| Packaging Bottles | pieces | 24 | 10,000 | 300,000 | 3,600,000 | 8,750.82 |
| Salt | kg | 0.4 | 100 | 3000 | 36,000 | 87.50 |
| Sub-total | 483,000 | 6,516,000 | 15,838. 98 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 2000 | 24,000 | 58.33 |
| Labour | 5000 | 60,000 | 145.85 |
| Rent | 2000 | 24,000 | 58.33 |
| Gas | 1800 | 21,000 | 51.05 |
| Subtotal | 10,800 | 129,600 | 315.03 |
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yr
NGN |
Pdn cost /yr
USD |
TR
In NGN |
TR
In USD |
| Chili sauce | 24 | 8,640 | 1000 | 6,516,000 | 15,838. 98 | 8,640,000 | 21,001.97 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 24,000 | 72,000 | 8,640,000 | 21,001.97 |
| Less production and
operating Costs |
16,100 | 483,000 | 6,516,000 | 15,838. 98 |
| Profit | 7900 | 237,000 | 2,124,000 | 5162,99 |
Sources of Supply of Raw Materials
Raw materials will be supplied from Uganda’s hot pepper growing areas, especially in the North and Central regions.
