Making wax candles can earn you a living

The market for candles is relatively high since they are used in hotels, religious establishments, households and for decorative purposes elsewhere.
Cylindrical in shape, candles are usually made of wax and are used for illumination. They are available in ordinary, fancy shapes and various sizes.
To invest in this kind of business is not very difficult as one can begin with relatively low capital especially for the cottages at home.

Big producers
Experts say for those with intensions of becoming big producers, the total investment capital for this project can take about $17,586 (Shs62 million) to try satisfy the demand for this product.
Mr John Musajjakawa, Uganda Investment Authority senior investment officer, shares: “This business idea aims at production of 14,612 wax candles per month which translates into 175,344 wax candles per year.”
The revenue potential is estimated at $1,753 (Shs6.2 million) per month, translating into $21,041 (Shs75.3 million) annual turnover with a sales margin of about 20 per cent.

Market
The market for candles is available throughout the year both in rural and urban areas.
Mr Musajjakawa says: “The government has put up youths training projects to improve on their skills in candle making and there are non-government organisations based in, particularly, Kampala and Pader districts which support people with capital for making wax candles.”
In an interview with Prosper Magazine, Mr Charles Ocici, the executive director Enterprise Uganda, says before going big on this investment, one should do a comprehensive survey.
“Visit the major outlets for candles such as in Kikuubo trading centre and major supermarkets across the country where wholesaling of candles in done. Find out the volumes they sale daily to ascertain the demand,” he said.
The production capacity for the project depends on the size of a mould used. For example, a medium mould can produce 70 wax candles per hour and a single 8-hour working shift per working day would then produce 562 candles.
But in a period of one month the machine can produce 14,612 wax candles and each candle costs a minimum of between Shs300-Shs600.

Process
The tools used are simple and can be fabricated locally. They include: Aluminum mould, charcoal stove, knife, saucepan and firewood. The process involves wax and satiric acid which are melted in a mild steel mould.
The wick is inserted in the candle-moulding machine and the molten mass is poured in the cylindrical mould and it is cooled by water and poured on the floor. When completely dry, the wick threads are trimmed and then packed.
Mr Daniel Joloba, the chief executive officer Big Finance, a firm that does advisory and consultancy for Small and Medium Enterprises, says candle making is a viable investment idea to venture into especially if one first gets to know their customers.
“Before you start this kind of investment know your market. The notion that all candles serve the purpose to everyone is a wrong assumption,” Mr Joloba shares.
He adds the market for candles is in the hospitality industry and one making candles for this market should look out for the fragrance, colour and shape.

Experience
Ms Eva Mirembe, who makes candles as a side business in Entebbe Town, sharing with Prosper Magazine the challenges of the business, said: “Many times customers delay to pay while others don’t pay at all. This coupled with expensive raw materials and the moulders eats into my operating capital.”
She added that with candle making, electricity must be available all the time for her to stay in operation; otherwise load-shedding affects her.

This article’s ideas and more investment concepts can be accessed on the Uganda Investment Authority website.