Setting up tissue paper/serviette production plant

The level of unemployment in Nigeria is increasing on daily basis. One of the best ways to tackle it is to empower entrepreneurs to establish small and medium scale industries. Government should pay much attention to small-scale manufacturing, local industrial developments and agriculture. Any type of manufacturing engaged by individuals or groups of individuals or corporate organisations will go a long way in contributing towards the growth of the nation’s economy. It will generate employment opportunities and add to GDP.

The purpose of this write-up is to educate Nigerian businessmen and enlighten potential investors on the commercial viability and profitability of tissue paper/serviettes production.

Most Nigerians consume toilet rolls. Its demand is influenced by population explosion, rapid urbanisation 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 centers 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 tons, the supply gap offers a tremendous opportunity for 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 needed are: -

(1) Core making machine

(2) Rewinding System

(3) Band Saw cutter

(4) Embossing Unit

(5) Perforating Unit

These pieces of equipment are portable, simple to operate and durable. The machines will be procured from highly experienced local producers. You can go for either imported or locally assembled machinery. Any of the options is good depending on the budget of the investor. Secondly, the source of your locally assembled machines is very important. If you make mistake in this regard, it will hurt you forever and frustrate your plans. You can get the machines— both locally made and imported ones— from us.

The machinery being introduced here is rugged, reliable and high performing with a capacity of 5,000kg per day. Operating on a single shift for a minimum of 250 days per annum, a total of 1,250,000 MT of tissue paper will be procured and processed into quality tissue products (toilet rolls & serviettes).

Raw materials include jumbo reels and glue. Packaging mate- rials include printed labels and nylon rolls. All these are 100 percent available locally. Since the machine will process 1,250,000MT per annum, the total sales revenue is N437.5million from which we deducted our total inputs of N315. 5million, thus realising a gross profit before tax of N122.5million in the first year.

Many Nigerians have burnt their fingers while sourcing local machinery from inexperienced and dishonest fabricators who produce machines with very low efficiency. To guard against this, prospective investors can contact this writer for free investment advisory services. On the whole, a toilet roll project is a very good small-scale industry, which can launch a small investor into the world of millionaires within one year.

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

(N’000) Preliminary Expenses 300 Machiner y & Equipment 2,500( locally assembled machines)

Working (Variable) 3,500 Accommodation (Rented) (variable) 500 Contingencies 750 Total N7,550