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Tissue paper or Toilet roll is a consumer product used at home, offices, restaurants, hotels, schools, shops, almost everywhere majorly for hygiene purposes.
Some few years back, the Federal Government of Nigeria placed a ban on the importation of finished toilet rolls, serviettes, and facial tissues in order to encourage the local production of the product and create much-needed employment.
This policy has helped a lot of local investors setup toilet roll production plants in various cities around Nigeria.
The toilet paper manufacturing business has been reported as being one of the fastest-growing manufacturing industries in Africa today. Its multi-purpose use and its daily demand make it a lucrative venture for any entrepreneur.
Simple manufacturing process: The processes involved from start to finish is quite simple and straight forward.
Easy administration (Few staff needed): 2 machine operators, A marketer, A delivery personnel, and an accountant can get you up and running.
High demand for a product: Consumers necessarily do not care about the toilet roll/tissue brand. The majority do not have a favorite, as long as it is always available, of good quality and price reasonable, they will buy.
Easy to market: Finished products are not bulky, with a good and attractive wrapper, your toilet rolls and tissue papers will become hot cakes in the market.
Business / Investment Opportunities: Over 1 billion units of the product are required annually by Nigerians out of which local production can only meet about hundred million units. This wide margin in supply provides an investment opportunity for savvy investors like you and me to exploit.
Opportunities also exist for the exportation of the finished product to other neighboring countries like Niger, Benin Republic, Ghana, etc.
Also, one can also make money recycling waste paper into jumbo reels used as raw material for the production of the tissues/toilet rolls.
There are two different grades of production machines used.
- The Manual (Local) Production Machines
- The Automated Production Machines
The Manual / Local Production process makes use of locally made production machines to churn out the tissues/toilet rolls.
These local machines are quite affordable, but there is a limit to quantity produced per day. A local production plant consists of machines such as The Jumbo rewinding machine, band saw cutter, etc.
A local production plant can be set up for less than 2 Million naira excluding the cost of accommodation/rent and a suitable generator.
The Automated Production process makes use of heavy-duty machines for production of the tissues and rolls. With the automated, you can produce as many as possible in their thousands per day.
An automated production plant consist of the following:
1) Toilet Paper Roll Rewinding Machine
2) Toilet Roll Cutting Machine
3) Toilet Paper/Sealing Sealing Machine
4) Automated Packaging machine
These machines range from 7 – 15 Million Naira and can be gotten directly from Foreign Tissue Machine importers in Lagos Nigeria or from China directly.
For power generation purposes, you need a very good heavy duty generator of about 15-25KVA which can be ordered from Konga
Tissue papers / Toilet rolls are primarily produced from Jumbo rolls. Jumbo rolls can be sought to buy from dealers in Lagos, Nigeria. Here are some contacts:
BOULOUS IKEJA LAGOS
TRIPPLE GEE PLC LAGOS
EPESOK PAPER MILL LIMITED LAGOS
BEL IMPEX LIMITED LAGOS
Locally Fabricated Machines are easier to maintain in terms of availability of parts in the event of breakdown or repair.
Foreign Machines are more efficient than the locally fabricated ones that mean they produce at a faster rate.
There are more companies in Nigeria to my knowledge currently selling foreign machines than locally fabricated ones.
Locally fabricated machines are a bit cheaper than their foreign counterparts.
The Plant can be started on a small and medium scale with a total cost of setup starting at 2 Million Naira (for Local Machinery) and up to 20 million Naira for a fully equipped and automated plant. See how to raise capital for a new business .
Cost outlay would depend on the type of Toilet rolls being produced, (embossed or plain) the distribution mode and the process to be employed. The cost can also be lower where some of the processes are manually done but this would require more hands.
This cost excludes Factory accommodation of which a 2 to 3 bedroom flat can be adequate in a good location .
The project will generate profit beginning from the first year of operation. Relevant ratios such as the percentage of net profit to total sales return on equity and return on total investment shows a promising returns.
The Investment cost and income statement projection are used in estimating the project payback period.
The projects will payback fully the initial investment in 1 year depending on management Capability.
We have tissue paper feasibility study and business plan in a soft copy PDF format with pictures, prices of machines both local and foreign.
Also the relevant contact addresses for each fabricator in Nigeria and overseas.
We did a thorough job by also including where to get raw materials and how to make core paper.
We have just included a sales forecast for 3 years and 3 years projected income statement in the business plan