ICE BLOCK PRODUCTION IN NIGERIA
Poor electricity supply and harsh weather condition like extreme temperatures are the perfect conditions required for an ice block production business to thrive. This ensures that a lot of businesses, likewise traders who deal in perishable goods, and entertainment centers who require their drinks to be cold at all times have to go out in search of a cooling source, such as people producing ice blocks. Businesses where they sell frozen foods needs this type of business to survive, else their goods, and products will perish, resulting in losses for the business owners.
The ice block production business have been in existence in Nigeria for such a long time, and given the perfect economic conditions, they all thrive till date. As a matter of fact, it has made many entrepreneurs become millionaires. This is why it is one of the most lucrative business to engage in, as long as you have the capital, funds, and other prerequisite factors are put in place for the success of your business. In this article, we will discuss everything you need to know concerning Ice block production, ranging from startup capital, and other conditions to make a perfectly successful business.
ICE BLOCK PRODUCTION PROCEDURES
Ice, as we know is the solid form of water. This solid state help ice to retain its very low temperature (usually under 0 degrees centigrade), hence its cooling effect in whatever environment it is placed. In order to get your ice to that required solid state, there are equipment and materials that need to be in place. Some of these equipment/materials include:
- Ice making machine
- Diesel generator (leister)
- 5kva stabilizers
- A pair of Compressors
- Deep freezers
Since ice melts immediately it’s out of the freezer due to the absorption of temperature from the environment, getting a freezer that will produce ice that melts slowly is a great idea as it cools products for a much longer time compared to once that melts easily. One of the few freezers that produce ice with this characteristic is the Thermocool HTF-319H freezer. Another recommended freezer from established entrepreneurs in the business is the West Minister deep freezer.
Speaking of ice machines, there are varieties of machines our there which can meet the requirements of your ice block production business. These varieties have different advantages over the other. There are Nigerian-made Machines which are mostly used by Entrepreneurs in this business for many reason. It is cost-effective and lasts longer. Nigerian-made block making machines are of two types, first of which is the Aluminum winding compressor and the copper winding compressors. While Aluminum winding compressors are cheaper, they don’t last as long as Copper. This can be attributed to the electrical power of copper which is higher than aluminum.
There are also foreign ice producing machines whose costs are through the roof, especially in the current economic condition, which is why it is not advisable to go for this option unless you are already established in this business already. It is lasts longer, durable, and very efficient. Another disadvantage of getting this type of ice making machine is the scarcity of capable hands and personnel to make repairs once it develops a fault.
The price range of each of these machines are also available. When considering the type of machine to go for, it is important to consider your budget, prowess in the business, and other factors that ensure you don’t run into losses. Including installation fees, and other miscellaneous costs; you will spend a minimum of N400,000 to set up your ice production machine. The 15KV Ice making machine has a range of cost between N250,000 – N300,000. Cost of foreign machines from America, United Kingdom, and Germany cost more than N1 million to acquire.
For a better and improved condition of use, it is important to keep the machines in a well ventilated area, so as to disperse the heat generated from these heavy-duty machines as quickly as possible. Since the goal of the process is to produce ice, it would not be wise to keep your machines in the sun, would it?
This the raw material with which you produce the ice is your water. It is the material which your product is centered around. In order to successfully set up the ice production business, you need to have a steady, uninterrupted water supply whenever you need it. To be on a safer side, you could dig a borehole which contains an infinite reserve of water for your business use. Another option is to employ the services of water corporations, or government water supply. While they are good means of getting water, they can disappointing at anytime; hence the need for having a personal water source like a well or borehole.
This is another important material that you need for the business. Before water ends up in your ice production machine, it has to be packaged and the Nylon is a perfect material which come in different shapes, and sizes. You can easily buy this material in bundles from companies producing it, or better still have your own Nylon cutting machine that easily helps you to choose your own size of nylons and shape. The Nylon-cutting machine has a price range of N20,000 – N25,000.
Tips to Building a Successful Ice Production Machine
There are a lot of things you need to consider before finalizing your plans to start the ice production business. As required in any other kind of business, you have to come up with a plan with respect to how you want to execute your business. Without any clear plan on what you want to do, and how you want to go about it, it will most likely fail. So it is important to create a business strategy that works, do some feasibility studies on this business, check the supply and demand for your ice in a chosen area, and many other important things.
Other tips you need to successfully create your own empire of ice block includes:
- Build your business close to customers: Building your ice making business in a place in close proximity to your customers is one of the most important factors that will help you make it big in this business. It is advisable to build close to places like market place, busy roads, car parks, or any other location which can be easily accessed by businesses which need your products.
- Strategize on new ways you can evade competition. You can do this by subsidizing the price of your products for customers who come for your ice in bulk. This will help you gain grounds on lots of customers, after which you can decide to normalize the prize.
- The demand for Ice block is exponentially reduced in the rainy, cold & wet season. This is obviously due to the low temperatures experienced during this period. So you are advised to reduce your ice block output at this time, unless you receive a specific order from customers requiring you to produce in bulk. If that is not the case, then refrain from producing in bulk in order not to run into losses.
- Another factor that can give you an upper hand over competition is having a means to transport your ice directly to customers in need. This helps save time for customers, as they can simply place orders from the comfort of their homes, parties, or businesses.
- Another advantage you can utilize is that you can directly sell cold drinks, ice cream, frozen foods, water, alongside your ice production Business. Some Customers would rather buy already cold drinks in bulk, than buying ice block to cool drinks they bought from somewhere else.
- Diesel engine generators are preferable because it takes longer to consume, thereby saving costs.
Profitability in Ice Block Production Business
In order for you to have a perfect idea of how lucrative this business can be if it is set up in perfect running conditions, we have decided to give you a glimpse. This profit check is based on assumptions using the current price of ice block in the market today.
A huge block of ice is currently sold for N100. Assuming you produce a minimum of 400 blocks of ice (which of course, you are expected to make more), you will make N40,000 on a daily basis. Assuming the total expenses for the day on fuel, maintenance, etc., is N10,000, then you make N30,000 in profit on a daily basis, which results in as much as almost a million Naira every single month you run the business.
The ice block production business is a very lucrative business venture which only a few selected entrepreneurs are into. This can be attributed to the fact that it is capital intensive, and requires quite a huge amount of money to set up. However, once you are perfectly set up for this business and running, then in little to no time, you will surely get a good return on investment.