Investing in Toothpick Manufacturing, Packaging Business

Godwin Uba

In Nigeria some of the ways to increase the Gross National Product (GDP) is to develop agriculture, establish more small and medium scale industries and diversifying to other mineral resources. One of the most recommended ways to create employment and empowerment of people is through the development of the real sector.

Setting up of manufacturing industries and Agro-allied industrial projects is one of the most effective ways of generating employment.

When manufacturing firms are set up (whether small, medium or large scale), the effect on empowerment is always tremendous. Apart from direct employment there are so many indirect employment opportunities.
It is also good to consider the establishment of industrial projects with total local content. The highly recommended project is the one with all the raw materials locally available.

One of the most viable and profitable small scale industries to invest into is production of toothpicks.
Toothpicks production has all the raw materials available locally. Also the technology is locally available.
When one wants to select the best small and medium scale project to invest into, two major important consideration to make apart from location and nearness to market are one; the projected daily turnover and acceptability of the products(s) in the market.

Experience has shown us that any product that is consumed by many and 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 per cent 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 wood or bamboo light round plastic containers, to which the company’s logo printed on paper can be glued or pre-printed 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 heeded for the project are locally available. They include round crosscutting machine, slicing machine, slitting machine, stick making machine, skewer sizing machine, polishing, packaging/arranging machine and dust collector.

We have complete set of these machines for sale. The machines will be to a prospective investor(s) within seven (7) 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 N16 million exchanges the cost of installation.

The project can be financed by cooperative societies, local government councils, state governments, individuals and corporate organisations. Banks such as Bank of Industries (BOI) can also fund the project. This is an export oriented value addition project that has a short payback period and therefore should attract ready financing.

To implement this project, a minimum of 12 people are required to ensure a smooth take-off. The promoter is advised to ensure that it is sited where bamboo or 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, prepare a comprehensive feasibility report to act not only as a guide for him to implement and monitor the project but also as a handy requirement to facilitate fund attraction from co-promoters or finance organisations, in-stall the plant and machinery and buy the start-off raw materials. The importance of good quality products and management and of keeping proper and timely records of the projects operations cannot be over emphasised.

Estimates of the Project Cost
Pre-investment                     500,000
Factory house and offices    7,000,000
Plant and machinery            16,500,000
Utilities (including generator) 3,500,000
Working capital                     6,000,000
Contingency                          5,000,000
Total                                      38,500,000

For further details, contact Uba on 08023664368 or via

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