Investing in Tissue Paper Production Business

Investing in Tissue Paper Production Business

The Nigerian economy is in a very devastating position today.  As of March 2021Nigeria’s total public debt was N33.1 trillion ($87.24 billion) and huge debt profile of over 38.9trillion as at end of March.2022.

Compare the exchange rate today with the exchange rate in early 80’s. In 1980’s the exchange rate between Naira and Dollar was $1: 0.78k. Today as at March 28th 2022, the exchange rates of three major currencies are One Pound to N783; one US Dollar to N600 and one Euro to N690.

There will be no solution to stopping rapid borrowing and devaluation of Naira unless we go into local production of our needs. Increasing local production through establishment of small and medium scale manufacturing industries will reduce massive importation of foreign goods; reduce pressure on demand for foreign exchange, increase more employment opportunities for our young school leavers, increase the Nation’s Gross Domestic Products and increase exports as well.

In 1980s Nigerian were more into production. Nigeria was net exporter of refined petroleum products. Today we import all the refined petroleum products consumed in the country. Nigerians rode on locally assembled vehicles (cars), buses and trucks assembled by Peugeot in Kaduna and Volkswagen in Lagos, Leyland produced trucks/buses in Ibadan and ANAMCO in Enugu, Steyr in Bauchi produced agricultural tractors. It was not assembly plants only, but producing many of the components parts of the vehicles. Vono products in Lagos produced the vehicle seats; Exide in Ibadan produced the batteries, not just for Nigerian consumption only but for the entire West Africa. Isoglass and TSG in Ibadan produced the windshields. Ferrodo in Ibadan produced the brake pads and discs. Dunlop produced the tyres in Lagos and Mitchelin tyres were produced in Port Harcourt. I mean tyres produced from rubber plantations located in Ogun and Rivers States. There are rubber plantations in many parts of Nigeria then. Nigerians were using refrigeration, freezers and Air conditioners produced by Thermocool and Debo. The number of closed industries is countless. That will tell us the level our dear country has derailed in terms of productivity.

All eyes are now on oil revenue and how to steal Government funds. Those in Governance are not thinking of how to establish functional industries, they are thinking of how to give populace N10, 000 cash as poverty alleviation fund that will not be enough to feed a family in a day. We have to grow.

The purpose of this write-up is to educate Nigerian businessmen and enlighten potential investors on the commercial viability and profitability of tissue paper (toilet Rolls & serviettes) production in Nigeria and to key in .

Most Nigerians consume toilet roll. Its demand is influenced by population explosion, rapid urbanization and social awareness. It is generally used for cleaning and sanitary purposes in households, restaurants, hotels, canteens, social gatherings, parties, maternity homes, clinics, hospitals, educational institutions, churches, night clubs, shops, fast food centers and offices.

Research findings indicate that Nigeria alone now needs over 1,950 million tones of tissue papers per annum. While our total local production output is still less than 250 million tones, the supply gap offers a tremendous opportunity for Nigeria investors.

With the estimated sum of N11.00million (as shown below), an investor can conveniently take off. The project can be established in any part of Nigeria. Anybody can invest into this business, particularly workers that want extra income, families to establish for unemployed graduates, retiring or retired workers, politicians as community projects; traders that want to diversify etc.

Nigerian investors can now go into this lucrative business using locally made machines. Though there are imported machines as well, our local investors do not need to waste their scarce foreign exchange for the importation. The writer will assist you in procuring and installing quality machines that can compete with imported machines in terms of speed, quality production and stand the test of time at moderate and affordable prices. The attractiveness of this project is that both the raw materials and equipment are locally available and the technology involved is very easy to understand and master.  The essential equipments are: –

(1)       Core making machine

(2)       Rewinding System

(3)       Band Saw / Log cutter

The complete set of the machine will come with important features like the Embossing Unit and Perforating Unit which will add to the quality of the end products. The machine also has timing, so you can monitor the quantity of your production. The end product of our machine when packaged very carefully with attractive wrappers can sell in any part of the world. These equipments are portable, simple to operate and durable.  The machines will be produced and installed by our highly experienced and well trained technical department.

The machinery being introduced here is rugged, reliable and high performing with a capacity of 2,000kg of Jumbo rolls per day. It can also do two (2) shifts in a day. Operating on a single shift of 8 hours for a minimum of 250 days per annum, a total of 500MT of tissue paper will be procured and processed into quality tissue products (toilet rolls & serviettes).

Raw materials required are jumbo reels and glue. Packaging materials include printed labels and nylon rolls. All these are 100 per cent available locally. Since the machine will process 500MT per annum, the total sales revenue is N750.5million from which we deducted our total inputs of N315. 5million thus realizing a gross profit before tax of N435.0million in the first year.

Many Nigerians have burnt their fingers while sourcing local machinery from some inexperienced and dishonest fabricators who produce machines with very low efficiency. Many investors have been deceived. They also tell big lies about the efficiency, performance, capacity and life span of these machines. We advise that you go for quality locally made machines, because the costs of imported machines have hit the roof. Before COVID-19 Pandemic, the cost of importing a set of imported machines from China was between N6Million and N7.0Million. Today it costs over N13Million. The same quality, capacity you can get it here at N4.0Million – N4.5Million. The maintenance costs are reduced since our technical team is readily available to see that there is no problem. To guard against this industrial fraud, prospective investors can contact this writer for free investment advisory services.

The issue of availability of raw materials should not disturb any investor because we have so many options to handle it.

On the whole, a toilet roll project is a very good small-scale industry, which can launch a small investor into the world of billionaire within one year if well managed. It is consumed on daily basis in all the hotels, homes, corporate organizations to mention but few

A three-bedroom flat or warehouse of the same size can serve as accommodation; while staff strength of eight is required for effective production, marketing and administration.

Bigger or smaller plants are also available at competitive prices.

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

Estimated Cost Implications

                                                                                     (N’000)

Preliminary Expenses                                                       250

Machinery                                                                     5,000

Other Equipment (utilities)                                            1,500

Working (Variable)                                                        3,000

Accommodation (Rented) (variable)                                 500

Contingencies                                                                   750                                                

Total                                                                            11,000

For further enquiries, please contact the writer

 

Uba Godwin

Global Trust Consulting,

56, Ishaga Road (1st floor),Surulere, Lagos

Tel: 08034494437(whatsApp), 08023664368

E-mail: ubagodwin@yahoo.com

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