Investing into Tissue Paper Producing Plant for Daily Cash



In Nigeria some of the ways to adopt to increase the Gross National Product (GDP) is to develop Agriculture, establish more small and medium scale industries and diversifying to other mineral resources.

One of the most viable and profitable small scale industries to invest into is production of toilet tissues (toilet rolls, serviettes and facial tissue) 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 centres and offices.

Research findings indicate that Nigeria alone now needs over 950 million tons of tissue papers per annum. While our total local production output is still less than 150 million tonnes, the supply gap offers a tremendous opportunity for Nigeria investors.

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 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 equipment is: –

(1) Core making machine
(2) Rewinding System
(3) Band Saw cutter
(4) Embossing Unit
(5) Perforating Unit

Thesemachine components are portable, simple to operate and durable. The machines will be procured from highly experienced local producers of such machines. The writer will supply the machines at the sum of N3.5Million. However, the imported machines (as indicated below) can go as high as N10million.

The locally made machines being introduced here is rugged, reliable and high performing with a capacity of one to 2tons per day. Operating on a single shift for a minimum of 250 days per annum, a total of 500 MT of tissue paper will be procured and processed into quality tissue products (toilet rolls & serviettes).

Raw materials include jumbo reels, and glue. Packaging materials include printed wrapping paper and nylon bags. All these are 100 per cent available locally.

The total sales revenue is N437.5million from which we deducted our total inputs of N315. 5million thus realizing a gross profit before tax of N122.5million 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. 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 anybody because we have so many options to handle it.

On the whole, a toilet roll project can be done on a very good small-scale. It can also grow to a medium or large scale within few years if it is well managed. It can launch a small investor into the world of multi-millionaire within two to three years of operation. Anybody can invest into the business- those people that have been working for so long but have not thought of retirement date (which will eventually come); politicians, retired workers, state & local governments, bankers and oil workers who may want to have additional stream of income and as di-investment. You can also establish this project for unemployed young graduates in your family and community to manage and become fully employed and also generate income for all the stakeholders.

This project can be established by anybody. Those that are already into Toilet roll production can comfortably integrate these products into their existing plant.

A three-bedroom flat garage or warehouse 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 & bankable feasibility studies/ report, sourcing & installation of quality & durable machines; Recruitment & Training, Sourcing of Investment funds, Estimated Cost Implications

Preliminary Expenses 500
Machinery &Equipment (depending on the type of machines) 3,500
Working (Variable) 5,500
Accommodation (Rented) (variable) 3, 500
Utilities 3,500
Contingencies 1,250
Total 17,750

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