A careful look at the 2020 budget presented by the Federal Government will reveal that government is paying attention to local manufacturers, and the agricultural sector. Any investor into these sectors will benefit from various government incentives. Any type of manufacturing by individuals or corporate organisations will go a long way to creating employment opportunities and add to the country’s GDP.
The purpose of this write-up is to encourage investors regarding the commercial viability and profitability of tissue paper/serviettes production.Many Nigerians use toilet paper/serviettes. Our increasing population, urbanisation and social awareness have influenced its demand. It is generally used for cleaning and sanitary purposes in homes, restaurants, hotels, social gatherings, parties, maternity homes, hospitals, educational institutions, churches, nightclubs, offices, among others.
Research indicates that Nigeria alone now needs over 950 million tons of these products per year. While our total local production output is still less than 150 million tonnes, the supply gap offers a tremendous opportunity for investors.
Investors can 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 to import these machines, as procuring and installing any of the machines at affordable prices is easy. Also, the raw materials for these products are available in the country. The technology of production is very simple; it is easy to understand and to handle.
The essential equipment and machinery are :-
• Core making machine
• Rewinding System
• Band Saw cutter
• Embossing Unit
• Perforating Unit
These equipment are portable, simple to operate and durable. With N2.5million the high quality local machine can be procured, while the imported type goes for N7million.The machines are rugged, reliable and have the capacity to produce 5,000kg of tissue paper per day. Operating on a single shift for a minimum of 250 days per year, a total of 1,250,000 MT of tissue paper will be procured and processed into quality tissue products (toilet rolls and serviettes).
The raw materials include jumbo reels and glue. The packaging materials include printed labels and nylon rolls. All these are 100 per cent available locally. Since the machine will process 1,250,000MT per year, the total sales revenue will be N437.5million from which a total input of N315. 5million is deducted, thereby making a gross profit before tax of N122.5million in the first year.
Many Nigerians have burnt their fingers while sourcing for local machines from some inexperienced and dishonest fabricators who produce machines with very low efficiency. To guard against this fraud, prospective investors can obtain free investment advisory services. The issue of availability of raw materials should not be a problem because there are different options available to any investor.
The production of toilet paper is a very good cottage business that can turn any investor into a millionaire within a year. A three-bedroom flat or warehouse could be used to start, while the staff strength may not be more than eight for effective production, marketing and administration.
Those To Invest
This business is open to people still in service, who hope to retire some day; politicians, retired workers, bankers, businesspeople who may want to have additional income.
This project can be located in any part of the country — rural or urban. However, it is advisable to set it up where there is adequate power supply. The space requirement is very small. A spacious three bedroom flat can comfortably accommodate the production machines, the administration/sales unit and the packing of finished products is key; but it is always better to get a more spacious place for the raw materials.
The major raw materials are jumbo reels, core paper, nylon/polyethylene sheet or well-designed wrappers for packaging. It should be noted that no core paper is required in production of serviettes like in the production of toilet paper.With a good design and quality materials one can make a difference in the market and smile to the bank. The raw materials are all available within the country. You do not need any importation.
The following is a comprehensive and bankable feasibility studies/report, sourcing and installation of quality and durable machines, recruitment and training, sourcing of investment funds, among others.
Estimated Cost Implications (N’000)
Preliminary Expenses 250
Machinery & Equipment 5,000
Working (Variable) 3,500
Accommodation (Rented) (variable) 500
Contingencies 750 Total 10,000
• For enquiries contact: 08034494437. E-mail: [email protected]