Setting Up Tissue Paper Production Plant
By Uba Godwin
The purpose of this write-up is to educate Nigerian businessmen and enlighten potential investors on the commercial viability and profitability of toilet roll production
Many Nigerians, on seeing the multitude of hawkers on our highways and streets, get the false impression that the indu- stry is saturated
Yet, there is another group who erroneously believe that at least N10 million will be required to establish such a project. This is untrue
Most Nigerians consume toilet r oll Its demand is influenced by population explosion, rapid urbanization and social awareness It is generally u sed for cleaning and sanita~:r 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 750 million tones of toilet rolls per annum While our total local production output is still les than 120 million tones, the supply gap offers a tremendou s opportu nity for Nigeria ~nvestors
Nigerian investors can now go into this lucrative business u sing locally made machines Thou gh there are imported machines as well, our local investors do not need to waste their scarce foreign exchange for the importation. The writcr will assist you in procuring and installing quality machines that stand the test of time
The machinery being introduced here is rugged, reliable and high performing with a capacity of 800kg per day. Operating on a single shift for a minimum of 250 days per annum, a total of 200 MT of toilet rolls will be procured and processed into quality tissue papers.
Using this machine 1 ton of jumbo yields about 450 bundles of toilet roll (250 double ply sheets each) and while it costs about N 170, 000 to purchase a ton of toilet roll (450 bundles), the products will be sold at a factory price of N55 per bundle (Grade A), realizing a gross revenue of N247, 500.
Raw materials include 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 200MT per annum, the total sales revenue is N49, 500, 000 from which we deducted our total inputs of N19, 300, 000.00, thus realizing a gross profit before tax of N4, 150, 000.00 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.
For instance, some machines yield only 15, 000 toilet rolls (250 double ply sheets) while some yields up to 24, 000 per ton, while some producers operate at a loss or minimal profit, some others are smiling to their banks. Prospective investors shou ld therefore beware of captivating adverts in the dailies . Some local fabricators u se scraps for their machines, which are then painted, advertised and sold to unsuspecting investors at a very 1057\7 price.
Many investors have been deceived. They also tell big lies abou t the efficiency, performance, capacity and life span of these machines. Some even go further to offer one to two years guarantee, even when the machines can hardly operate for three months. To guard against this industrial fraud, prospective investors can contact this writer for free investment advisory services.
On the whole, a toilet roll project is a very good smallscale industry, which can launch a small investor into the world of millionaires within one year.
A threebedroom flat garage or warehou se may 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 &s; bankable feasibility studies/ report, sourcing & installation of quality & durable machines, Recruitment & Training, Sourcing of Investment funds,
Mr Uba is of Global Trust Consulting Group, 56 Ishaga Road, (1st floor) Surulere, Lagos Tel: 4721550, 0823664368 Email: [email protected]
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