Investing in PVC Pipes & Fittings Producing Plant
Godwin Uba
PVC or Vinyl as it is commonly called is used in variety of commonly consumer products. Vinyl is used in building products such as vinyl ceiling, PVC pipes, windows and doors, roofs etc.
It is established amongst scientist that there is no other plastic that possesses such direct environmental and human friendly as PVC throughout its entire product lifecycle.
The world all over has moved towards PVC products such as PVC pipes, PVC windows and doors and ceilings because it is rated as the most environmental friendly. It requires no painting, it is also termite proof, fire proof, and typhoon rated, excellent security and above all excellent value for money.
Apart from PVC pipes and fittings, an investor can diversify into PVC windows, doors and ceiling production.
PVC windows, doors and ceiling have been proved to give house its distinctive look.
From outside, they give the house its personal characteristics and inside they give the house the right it needs and the aesthetic appearance.
It has been established facts that PVC products are easy to maintain, anti-fungi, economical, easy to install, excellent endurance to varying weather conditions and also 100% mechanically recyclable.
Due to all these advantages, PVC products are used widely by different industries ranging from construction industry, automobile industry, electrical industry, advertising industry, civil industry, woolen industry, air-conditioning and refrigeration to mention but few.
From research conducted, Nigerians have fallen in love with PVC products and the demand has gone up tremendously. As a result, many of these products are imported from oversea producers, since very few Nigerian producers cannot meet up with the rising demand for the products.
Many more investors are required in the country to boost supply and cushion the effect of huge, expanding local demand.
According to international plastic pipe and fittings Association (PPFA), the international acceptable standard must be applied in any part of the world. Based on their recommendation, the proposed project must maintain the internationally acceptable standard.
This recognition is vital to manufacturers because it provides some assurance of consistency amongst regulatory authorities referencing these standards for compliance purposes.
There are various stipulated standard for production of water pipes, drain, waste & vent pipes, process pipe, sewer pipe, folded PVC pipes etc. The colors are usually used for PVC pipes and there are recommended color codes.
The implication of this standard requirement is that any prospective investor in Nigeria needs professional advice of consultants.
To invest in this project prospective investors needed to have at least 2 plots of land for takeoff.
The machines required for the setting up of this project include- Hot/Cooling mixer, automatic loader, twin screw extruder and calibrating system, vacuum & calibrating tank, water cooling tank printer, Haul off, cutter and stacker.
Details of the machines, sources and prices will be given to prospective investors.
There are various sizes of the pipes in the market. However, based on our market research, not all of them are marketable. Some are more in demand than others. Details will also be given to prospective investors.
The project needs constant power supply, therefore there is need to make arrangement for standby power generating sets.
Moreover in the feasibility studies carried out, a large amount of money is earmarked for powering of the generator set, yet huge profits are recorded.
Generally, any investor into this venture should not entertain any fear of loss, since the market is available I Nigeria and other ECOWAS sub regions.
The basic raw materials for the project are PVC Resins and master batch. All these raw materials are locally available. Details will be given to prospective investors.
The production technology is also very easy to operate. Briefly, the thermoplastic PVC powder (PVC Resins) is compounded, melted add stabilizers and extruded into the size(s) and colors of pipes required.
Detailed production processes will be made available to prospective investors.
For the required manpower, the number depend on the following departments-research & product development, design & manufacturing department, testing/inspection & quality control department, marketing, accounts & administration and production delivering & installations. There should be other supporting staff. Details will also be given to prospective investors.
Based on the cost evaluation, the sum of about N75million will be required to set up the project and make provision for working capital & other operational expenses for minimum of six (6) months. Details will be given to prospective investors.
The profit margin is very encouraging with over 68% return on investment within the first three years of operation.
The payback period is within two (2) years if well managed.
For success of this project, any prospective investor (s) should make sure that the following conclusions are met-manufacture products of quality exactly as per customers specification and requests; offer products that meet varied preferences of customers; provide accurate, quality dimensions; assist customers from initial design, to final production and also installations as well as offering advice on any modifications where and when necessary. Other important factors to consider will be given to prospective investors.
Implementation: For successful implementation of this project, the prospective investor9s) needs to work with a consultant, conduct a comprehensive and bankable feasibility studies, site the project in a very good location, and ensure that customers’ needs are met.
For details on the comprehensive and bankable feasibility studies, sourcing of funds for the project, site planning and recruitment of highly experienced personnel please contact the writer.
Implementation:
To handle the implementation of this project professionally, prospective investors should embark upon a detailed bankable feasibility studies which the writer (project consultants) will be available to carry out the feasibility studies reports/business plans.
The writer will also be on hand to guide prospective investors professionally to ensure good packaging, quality products, efficient/effective management and marketing teams installed for profits.
The writer can also assist in implementing the project on a turnkey basis if contacted. For details, please contact the writer