SMALL BUSINESS SOLUTIONS
Uba Godwin highlights the benefits of setting up toilet roll, serviettes, napkins producing plant
Nigeria ranks 126 of 198 countries on the global Poverty Index and 6th poorest country in Africa with 70% of its population below poverty line. The rate of unemployment is growing higher. As the rate of unemployment continues to worsen by the day, the CBN has introduced an intervention fund known as Agriculture, Small and Medium Enterprises Investment Scheme (AGMSMEIS). A total sum of N26Billion facility will be given to investors at a single digit interest rate of 5% per annum.
The funds to be disbursed to prospective investors is meant to create employment opportunities through establishment of small and medium scale enterprises such as Toilet rolls, Serviettes, Napkins.
You can benefit from this scheme today.
When you are looking for a project to invest into, one of the fundamental issues to look into is the market for the envisaged products. Another thing is the legal considerations surrounding the proposed project.
Yet another is the technology and the experienced manpower to manage the project.
Having put all these important issues into consideration during a comprehensive feasibility studies carried out by the writer and his team of consultants, this project are here under discussed.
The envisaged project
The envisaged project is the production of quality well packaged and neatly prepared serviettes & Napkins (both table, face napkins etc.) that can be used by consumers in any part of the world.
Those to invest
Those people that have been working for so long but have not thought of retirement date (which will eventually come), politicians, retired workers, state & local governments, bankers and oil workers, who may want to have additional income and as di-investment.
This project can be established by anybody. Those that are already into Toilet roll production can comfortably integrate these products into their existing plant.
This project can be located in any part of the country (both rural and urban settings). However, it is advisable to set it up where there is electric power supply. The space requirement is very small.
A spacious three (3) bed room flat can comfortably accommodate the production machines, the administration/sales unit and the packing of the finished goods. It is always better to get a more spacious place to put the raw materials.
The major raw materials are Jumbo Reels, Nylon/Polyethylene sheet or well-designed boxes for packaging. It should be noted that no core paper is required like in the production of Toilet roll.
A good designing and quality products can be produced to create a difference from what is in the market for now. This will be a market niche to the envisaged products.
The raw materials are all available within the country. You do not need any importation.
The major machines required, like that of toilet rolls are rewinder, band saw machine, the cutter and packing machines. The packer has an in built nylon sealing device that does the clean finish-up.
These machines can be procured locally. Prospective importers can as well import the machines from oversea countries. Details will be given to prospective investors on contacting the writer.
The writer can procure and install these machines on turkey basis if it is acceptable to the prospective promoters.
The market for the envisaged products are both locally and foreign.
Locally, the target market will be all and sundry, rich and poor, urban and semi-urban areas, Food centres, offices, Homes, Hospitals, Super Markets, Distributors, Wholesalers and Retailers.
In the foreign market there are good market for Nigeria toilet rolls, serviette, diapers, napkins within the ECOWAS Sub-region and Africa as whole. Prospective investors will be given details.
Legal and legislative advantages
The present Government felt that products like Serviette, Napkins, Diapers, Toilet Roll and Facial tissues can be comfortably produced within the country. This is because all the raw materials, technology and manpower can easily be sourced within the country.
As a result, the government imposed a total ban on the importation of these types of products from overseas producers. This is therefore an advantage to the project.
Moreover, though there is need to operate in a very clean environment, the control and regulations by NAFDAC is not as intense as if you are into Foods & Beverages. Therefore promoters can curtail the pressure of the NAFDAC regulations.
The project can be comfortably established with the sum of N16.0 million and above depending on the type of machines you want to apply (the breakdown is as follows).
From financial analysis, the promoters are sure of making profit after tax of N46.6 million in the first year of operation. The Profit after Tax will increase to N155.3 million within the first 5 years of operation. The return on investment is about 52 per cent.
Other projects to be integrated into this project
Toilet roll, Facial tissue, Mouth wiper, Table napkin production etc can be integrated into this project as product ranges.
The Jumbo reels are cut carefully to required dimension.
The packing machine does the packing and carefully sealed them into 50 cuts per pack.
Details of the production techniques and packaging will be taught in the process of the test running and training session of the proposed plant.
Prospective investors will contact the writer for detailed and bankable feasibility reports, procurement and installation of quality & durable machines, Training of manpower and setting up of very good accounting and marketing structure for the proposed project.
Practical Training programme
We will give you a practical training on how to successfully set up the plant and professionally manage and market the project for huge profits
Financial EstimatesÂ (Nâ€™000)
Preliminary ExpensesÂ 350
Plants & MachineryÂ Â Â 6,500
Accommodation (varied) 1,500
Working capital (varied) 5,500
UtilitiesÂ Â Â Â Â Â Â Â Â Â Â Â 1,500
MiscellaneousÂ Â Â Â Â Â Â Â 500
TotalÂ Â Â Â Â Â Â Â Â Â Â Â 15, 850
Global Trust Consulting,
56 Ishaga Road (1st floor), Surulere, Lagos
Tel: 08023664368, 08034494437