Setting up of Cube-Sugar Producing, Packaging Plant


Godwin Uba

The consumption of sugar all over the world in general and Nigeria in particular is very high.
It has been established that the consumption of granulated sugar has been on increase. Health wise it is not advisable and considered medically wrong to consume granulated sugar, which is made specifically for industrial use.

In the developed world it is widely discouraged to consume granulated sugar, instead of cube sugar carefully produced in a very hygienic condition.

Research has shown that here in Nigeria, the consumption of granulated sugar has been on increase due to the higher cost of carefully produced and packaged cube sugar.

From our market research, only two major companies produce cube –sugar in the country at the moment. This two are serving a population figure of over 150 million people in Nigeria and other African countries.
The high level of demand and cost of production has led to the increase in price of the well packaged cube sugar.

The supply therefore has not matched effectively with the very high level of demand. The demand has outweighed the supply position. Therefore more hands are required to increase the supply of cube-sugar production in the country.

Prior to our research on this project, we felt that the project requires billions of Naira to set up. After our studies, we found out that one can set up this profitable project at a very much lower cost.
It is therefore a project anybody can establish and run in either cottage, small, medium or even large scale depending on the available funds.

In this brief investment profile, we discussed on the technical, financial, marketing and investment appraisal for setting up and running this lucrative venture.

Location of the Proposed Project
The proposed cube-sugar production plant can be established in any apart of the country.
One can set up anywhere in the country provided that there is electricity and enough space of land for the project. Other factors such as good road networks, nearness to markets and related factors can also be considered.

Technical Issues
The most important aspect of this project is the technical issues that concern the project. In this case the investor should consider the type and quality of machines to be used for the project. The writer has carried out thorough research, consultations and collaborations with good dealers of the machines for the project.
Interested investors will be able to procure the set of the machines from the writer at the sum of N6 million.

The machine will be made up of full set of the cube-sugar producing line and associated packaging system. This cost will include the installations and training of your manpower.

The machines are available for inspection on contacting the writer.
The machines maintained all the NAFDAC compliance requirements, and the writer will assist in accomplishing all the laboratory test and analysis.

Capacity of the Plant
The proposed plant will be able to produce 50 cartons of cube sugar in every double shift.
This implies that the plant will be able to produce average of between 225,000 and 250,000 cubes in a day. Details will be given to prospective investors.

Brands of Products
Different products can be produced by prospective investors depending on the target markets. You can produce chocolate & orange flavor cubes. You can also produce low-diet cube sugar for those that are diabetic. Prospective investors will be educated more on this.

Raw Material Requirement
The major raw materials required for this project are locally available, so you do not bother about importation or running into shortage of supply.

The raw materials are granulated sugar which can easily be obtained from granulated sugar making companies all over the country. Details will be given to prospective investors.

Production Processes
The production processes are very simple and includes, mixing, heating, conveying, drying and packaging through a mechanized system which is very easy to operate.

Required Manpower
The project can comfortably be run by just five to ten people. The writer will assist in recruiting highly experienced personnel to manage the project.

Those to Invest
This project can be embarked upon by anybody in the society; however the politicians, workers in the offices who want to make extra incomes, retirees and those planning for their retirement, and every member of the society, who may wish to develop his community to generate more employment for the unemployed.

Financial Implications
The project can be set up with the sum of N15million on a small scale.
From investment analysis, the payback period is about one year, all things being equal. The Return on investment is about 68%. The Cost-Benefit Ratio analysis is very impressive. Details will be given to prospective investors.

Implementation Arrangement
Prospective investors should contact the writer for detailed/comprehensive bankable feasibility studies, reports, sourcing of the required funds, procurement & installation of strong, tested and very functional machines (machines are available for inspections), guidance on NAFDAC requirements, recruitment and training of experienced manpower. For details, please contact the writer

Uba, who is of the Global Trust Consulting, can be reached via 08034494437