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Investing in Ballpoint, Biro Production
The importance of establishing manufacturing industries in Nigeria cannot be over emphasised. Through the establishment of manufacturing industries, jobs will be created, there will be increase in GDP, generate products for local consumption as well as export market to generate foreign exchange.
With the rapid increase of schools and institutions of higher leanings in Nigeria, there has been need to increase the availability of learning materials. One of the vital leaning materials is pen or biro as it is popularly called. Recently, the Federal Government of Nigeria approved the establishment of six new universities within the six geo-political zones in Nigeria.
There are also over 50 new private universities approved by Nigeria University Commissions (NUC) to establish and operate in the country. There are also many private Nurseries, Primary and Secondary Schools established in many parts of the country. There are many information technology institutions established all over the country. Moreover, the population of Nigeria is constant increase with estimated projected population figure of about 160million with over 40% of the population in the student category.
The demand for ballpoint pen and biro increases everyday nationwide. Survey carried out has shown that apart from Nigeria markets, some foreign buyers within ECOWAS sub-region do come to Nigeria to purchase these items in bulk for sales in their Countries.
Despite the increase in demand for ballpoint pens or biro and other writing materials, there is no government policy to increase the supply of the academic materials including biros. From our survey, despite the large number of schools in the South-South and South-East geo-political zones, there is no ball point or biro manufacturing plant in the two zones. All the biros or ballpoint pens used in these areas are either imported or purchased in bulk from South-West geo-political zone, particularly Lagos State.
It is of the writer’s view that for any country to achieve success in the area of education, academic materials, including biros or ballpoint pens must be made available and at affordable prices.
It has been considered because all the raw materials required for this project are locally available. It is only machines that could be imported from overseas.
The choice of this project also rests on the promoter’s intention to add to the efforts of the Government in reduction of unemployment in the Country through establishment of small and medium scale enterprises.
Having seen the present high demand and importance of biros or ballpoint pens in human lives, it becomes imperative that the supply base be increased.
The promoters have therefore decided to contribute to the enlargement of the supply base for the enhancement of the standard of living conditions of Nigerians.
A ballpoint pen is a writing instrument which features a tip that is automatically refreshed with ink. It consists of a precisely formed metal ball or plastic seated in a socket below a reservoir of ink. As the pen is moved along a writing surface, ink is delivered. Ballpoint pens dominate the writing instrument market, selling over one hundred million pens each year worldwide. It is proposed to establish ballpoint pen production plant for the purpose of producing quality writing pens or biros for Domestic and foreign Consumptions.
Raw Material Input and Availability
Based on our preliminary studies, all the raw materials for establishment of this project are locally available and details will be provided to prospective investors
The plant and machinery required to set up the project can be sourced within the country. The machines can also be imported direct from oversea manufacturers.
The production technology is very simple, since the machines to apply are easily operating.
The total number of people needed to run one shift of production is 10 and includes workers of various skills. Being a consumption product the promoters should ensure quality and adequate recruitment and training of the relevant skilled line staff will be very essential.
The cost of the project depends on the capacity the promoter wants to take. It is also advisable to embark on fresh feasibility works before the actual cost would be established considering the capacity and the proposed location of the project.
On a very small scale capacity, project can be comfortably established with the sum of N25.4 million.
From financial analysis, the promoters are sure of making profit after tax of N15.0 million in the first year of operation. The Profit after Tax will increase to N105.3 million within the first 5 years of operation. The return on investment is about 82 per cent. Details will be given to prospective investors.
Prospective investors will contact the writer for detailed and bankable feasibility works, procurement and installation of quality & durable machines, Training of manpower and setting up of very good accounting and marketing structure for the proposed project.
Uba, can be reached either on 08023664368, 08034494437 or via firstname.lastname@example.org