Profitable Investment in Toothpicks Production


Uba Godwin

When one wants to select the best small and medium scale project to invest into, two major important considerations to make apart from location and nearness to market are one; the projected daily turnover and two; acceptability of the products(s) in the market. In Nigeria we have all the basic raw materials and technology to produce and package quality toothpicks which investors are yet to harness.

Experience has shown that any product that is consumed by many and on regular basis always assures profitable investment. Market survey has shown that toothpick has very high demand and always record very high consumption rate and of course high turnover.

The market for toothpicks exists and also expanding. The market is sustainable and above all the relevant raw material inputs are 100% locally available and handy.

In a country in Nigeria where there is lack of employment, one can establish the project as family business to accommodate the unemployed in the family. Let us look at some important issues that place the project as one to invest into.

Market for the Products
The daily uses of toothpicks in homes, hotels, and various institutions are well known virtually everybody uses toothpicks on daily basis to remove unwanted food leftovers that stick to the teeth. Toothpicks when well produced and packaged can be sold locally to satisfy the needs of the market or can be exported to earn foreign exchange because of its high export potential.

From our market survey, there are very few plants producing toothpicks in the country currently and the number is still and the number inadequate to produce for a growing population of about 160million people. Therefore more local producing plants are needed in the country.

The raw materials for making them are either hard wood or bamboo, light round plastic containers, to which the company’s logo printed on paper can be glued or preprinted small light paper cartons are used to package the finished product.

The whole of these inputs are sourced locally which is one big advantage this project has assurance of regular supply of the raw materials, steady production and profitability.

Machinery & Equipment
The machines and equipment required for the project are locally available. They include round cross-cutting machine, slicing machine, slitting machine; stick making machine, skewer sizing machine, polishing machine, sharpening machine and packaging/arranging machines and dust collector.
We have complete set of these machines for sale. The machines will be supplied to a prospective investor(s) within nine (9) weeks of commissioning. It will be supplied with warranty. It will be installed, test run recruit and train your manpower as well. A complete set of the machines will go for N5.5 Million exchanges the cost of installation.

The project can be financed by Cooperative societies, Local Government Councils or State governments, individuals and corporate organizations in the form of owner’s equity. The writer will give further information on how to raise finance for the proposed project.
This is an export oriented value added project that has a short payback period and therefore should attract ready financing.

Investment Analysis
The project can be started with the sum of about N13.0Million as shown below. The payback period is within two (2) years of operation. The rate of return on investment is about 59%. Projected turnover of about N47million will be generated within the 1st year of operation. Details will be given to prospective investors.

To implement this project, a minimum of 12 people are required to ensure a smooth take-off. Though the project could be located in any part of the country, however the promoters are advised to ensure that the project is cited where bamboo or hard wood can easily be obtained at least cost. This will help reduce the cost of transporting the raw materials. He should put up the needed building, conduct a comprehensive feasibility studies to act not only as a guide for professional implementation and monitoring of the project but also as a handy requirement to facilitate fund attraction from co-promoters or finance organizations; in-stall the plant and machinery and buy the start-off raw materials. The importance of good quality products, attractive packaging; proper management structure and of keeping proper and timely records of the projects operations cannot be over emphasized.

Estimates of the Project take off Cost
Accommodation (rented) 1,500,000
Pre-investment 500,000
Office Equipment 500, 000
Plant and machinery 5,500,000
Utilities (including generator) 1,500,000
Working capital 2,500,000
Contingency 1,000,000
Total 13,000,000

For details on preparation of comprehensive & bankable feasibility studies/ report, sourcing & installation of quality & durable machines; Recruitment & Training, Sourcing of Investment funds, please contact the writer.

Uba at Global Trust Consulting,
56, Ishaga Road (1st floor), Surulere, Lagos
Tel: 09093939140, 08034494437, 08023664368