One of the ways to address Nigeria’s economic challenges is to increase local production, exports to boost foreign exchange earnings. This will create jobs for the country’s youthful population.
One of the methods to increase production is to embark on establishment of small, medium and large-scale industries. The federal government is working around the cloak to see that some basic infrastructures and enabling environment is put into place.
At present telecommunication problem is resolved, further bank consolidation is being carried out to ensure that adequate capital is provided by commercial banks.
The only worry at the moment is the level of government taxes and levies being imposed on the businesses which have created lots of operational challenges. Another major challenge FX volatility which is seriously affecting business planning and budgeting.
However, the consolation factor is that Nigeria has a very huge market with a population of estimated figure of 220 million people. There are hopes that Nigeria will have all the necessary facilities for a more favorable business and manufacturing environment in the near future.
Having said so, there are some manufacturing investment projects which one can set up in small scale level with the intention to expand in the near future. The writer is readily available to guide prospective investors in this regard.
One of them is Napkins and Diapers production. This is a project that can ensure regular provision of daily cash for you and your family.
This is a project that you can introduce along with related products like serviettes, toilets rolls, facial tissues, face towels etc.
In this write up brief information is provided on how to set up and run the project. For further, detailed information please contact the writer.
Project concept
The envisaged project will be able to produce quality napkins and diapers to be well accepted in Nigeria and other parts of the world.
Marketing potentials and strategies
Napkins & diapers are consumed on daily by all and sundry irrespective of age, social class or religious. Napkins and diapers are device for sanitary and cleansing purposes. They enjoy high aggregate demand in places like households, schools, hospitals. Others are maternity homes, shopping centers.
The arsenals of any mother/lady are not complete and properly assembled without a napkins and diapers. Consider the number of new born babies and children under the age of 6 in the country. The number is also rising every day.
Napkins and diapers have a high repeat sales tendency which is fuelled by such factors as increasing sanitary awareness of the need for hygienic and good quality living standard, geometrically exploding population, continued drift from the rural to the urban centers in search of the better things of life and job opportunities, after ability of the product price etc. The markets for napkins and diapers have been well established and developed. It is large, expanding and sustainable.
My recent research findings revealed that supply is inadequate to meet up with the increase in demand, thus creating a large gap yearning to be filled. This enormous demand supply gap translates into a viable venture for Nigerians.
Raw materials
The essential raw materials needed for this project are the jumbo reels and cotton lint and packaging materials like the wrapping with the company’s logo, and address conspicuously printed. Each of these is obtained locally from suppliers and producers. Details will be given to prospective investors.
Plants & machinery
The machines for the project are not locally available. They are all imported machines. The writer has reputable producers and suppliers of quality machines from South Africa, China, Taiwan and Germany. Details will be given to prospective investors.
Packaging machines
The project can be located in any part of the country particularly where the market lies and nearness to the source of raw materials. The writer will discuss this issue with prospective investors.
Accommodation
The project does not need much space. It can be comfortably set up in a rented building of three bedrooms flats. This will take care of the production room, the storage and raw material rooms as well as the administration/accounting rooms
Financial implications
The project will take an estimated sum of about N82.5million to set up. This amount is subject to change depending on the capacity level the prospective investor intends to embark upon. The breakdown of a small-scale level is as follows
Financial Estimates (take off)
Accommodation (rented): N5, 000, 000
Plants & machinery: N45, 500,000
Utilities: N15, 500,000
Working capital: N10, 000,000
Preliminary Expenses: N2, 500, 000
Total: N82, 500,000
If the project is going to be on medium or large scale, the cost will be higher than the above. Details will be presented via a feasibility study.
Investment analysis
The project is very profitable with about gross profit of N24million in the first year, N38million in the 2nd year, N58million in the 3rd year and N74million in the 5th year of operation. The turnover is also very impressive.
The payback period based on our preliminary projections will be about two years. The return on investment is about 72percent and there is positive NPV. Details will be discussed with the prospective investors.
Conclusion
This project is very profitable. The market is wide and the supply demand positions keep on elongating. There is need for Nigeria to set up small medium and large-scale industries to reduce the level of unemployment in the country and increase local production
Think out of any manufacturing industry of your interest and discuss with me today.
For details on any project in the area of comprehensive & bankable feasibility studies, investment advisory services, sourcing of project funds, procurement & installation of your manufacturing project machines & equipment, training of your manpower. For any enquiry contact Uba Godwin on e-mail: ubagodwin@yahoo.com
