SETTING UP A TISSUE PAPER MANUFACTURING BUSINESS
Nigeria’s struggle with economic development, unemployment, and various setbacks stem, partly, from its slow move towards a well-diverse economy. Since the public sector has failed in that regard, the responsibility falls in the hands of the local entrepreneurs to create the wealth that will grow the economy.
One of the ways Nigerian entrepreneurs can achieve this goal is to invest in industries with large markets but low local production costs. An example of such industries is the tissue paper production business.
There is a huge gap between tissue paper demand and supply which is a great business opportunity. In Nigeria, the consumption rate is over 1 billion units monthly; yet, production rates are less than 150 million. Before taking advantage of what this venture has to offer, knowing the right steps to take to start a tissue paper production business in Nigeria is important.
The raw materials for the production of toilet papers are various quantities of whitened wood pulps or recycled papers which are processed into soft, bulky, and absorbent disposable paper. The production process involves either manual or automated machines.
Some of the equipment and materials for a tissue paper production business are;
- Embossing machine
- Tissue paper folding machine
- High-speed toilet paper machine
- Perforating machine
- Industrial roll rewinding and slitting machine
- Bandsaw cutter
- Pulp and waste paper recycling jumbo roll machines
- Core making machine
Tissue production from recycled paper goes through a series of processes including : pulperization of the waste papers in which the papers are cooked with hot water and detergent to produce a liquid slurry. The slurry then goes through a number of screening and washing processes to remove all the embedded dirt and colours. The pulverized product then undergoes whitened and sanitising procedures with oxygen-based substances like peroxide. The other processes include the production of paper sheet from the pulp; Drying of the paper sheet from where it is then creped to produce a flexible / soft sheet. Loading of the flexible sheet onto converting machines from where a cheaper, less-white tissue paper is produced. Pulp from wood chips can also be used as raw material.
The envisaged plant can set up its own sales/marketing team to engage in a sustained one-on-one sales drive. Advertising options could be based on usage of flyers and referrals.
A total of 8 staff is required in the short-term operations of the plant. They are Skilled Worker -1, Semi-skilled Workers-2, Salesmen-1, Driver-cum-salesman-1 and Security Operative – 1
Estimated Start-Up Cost (Small Scale): –N10, 500,000 – N15,500, 000.00
Potential Net Profit:- N 6,500,000 – N9,000,000.00 per annum
Estimated Start-Up Cost (Medium Scale): –N35, 500,000 – N165,500, 000.00
Potential Net Profit:- N 24,000,000 – N53,000,000.00 per annum
This profile, or any similar one, can be developed into a bankable proposal for any interested investor.
Michael Stevens Consulting.