Investing in Sanitary Towel, Diapers Manufacturing

Godwin Uba

The only way to reduce unemployment in this country is to embark on establishment of small, medium and large-scale industries. The federal government at present is putting every effort to see that enabling environment for setting up and running of industries in the country is achieved.

With the dwindling price of oil Nigeria should look inwards to develop agriculture, manufacturing and other real sector-based projects.

From research, many Nigerians are willing to go into manufacturing and invest in other agricultural value chain projects, but due to lack of funds, they have their plans and objectives dashed along the line.
With the new Central Bank of Nigeria (CBN) loan policies to assist the start-ups, new ventures and expansion of manufacturing, agricultural value chain related projects and other vital service projects; the sky is the limit for Nigeria investors.

The Central Bank of Nigeria, as part of the efforts to unlock the potential of the real sector to engender output growth, value added productivity and job creation established a Real Sector Support Facility (RSSF).

The Facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion. The real sector activities targeted by the scheme are manufacturing, agricultural value chain and selected service sub-sectors. These guidelines relate to the operational modalities of the RSSF.
The objectives of the scheme include to improve access to finance by Nigerian SMEs to fast-track the development of the manufacturing, agricultural value chain and services sub-sectors of the Nigerian economy.

Secondly to increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.

The activities to be covered under the scheme are new, start-ups and or expansion projects in the following sub-sectors:
i.Manufacturing: Any entity is adjudged to be a “Manufacturer” if it Is involved in the production and processing of tangible goods, Fabricates, deploys plants, machinery or equipment to deliver goods or provide infrastructure to facilitate economic activity in the real sector; and such entity must not be involved in the financial services industry.
ii. Agricultural Value Chain
iii. Services (hospitals, schools and hotels)
Details will be given to prospective investors.
One of the projects that will benefit from the proposed CBN loan plan isNAPKINS & DIAPERS manufacturing
Having said so, there are some manufacturing investment projects which one can set up in small scale level with the intention to expand in the near future. The writer is readily available to guide prospective investors in this regard.

One of them is Napkins and Diapers production. This is a project that can ensure regular provision of daily cash for you and your family.
This is a project that you can introduce after related products like serviettes, toilets rolls, facial tissues, face towels etc.

In this write up brief information is provided on how to set up and run the project. For further, detailed information please contact the writer.

Project Concept
The envisaged project will be able to produce quality napkins and diapers to be well accepted in Nigeria and other parts of the world.

Marketing Potential and Strategies
Napkins & Diapers are consumed on daily basis by all and sundry irrespective of age, social class or religious. Napkins and Diapers are device for sanitary and cleansing purposes. They enjoy high aggregate demand in places like households, schools, hospitals. Others are maternity homes, shopping centres.

The arsenals of any mother/lady are not complete and properly assembled without a napkins and diapers. Consider the number of new born babies and children under the age of 6 in the country. The number is also rising every day.

Napkins and Diapers have a high repeat sales tendency which is fuelled by such factors as increasing sanitary awareness of the need for hygienic and good quality living standard, geometrically exploding population, continued drift from the rural to the urban centres in search of the better things of life and job opportunities, after ability of the product price etc. The markets for napkins and diapers have been well established and developed. It is large, expanding and sustainable.

My recent research findings revealed that supply is inadequate to meet up with the increase in demand, thus creating a large gap yearning to be filled.
This enormous demand supply gap translates into a viable venture for Nigerians.

Raw Materials
The essential raw materials needed for this project are the jumbo reels and cotton lint and packaging materials like the wrapping with the producer’s name logo, address and brand name conspicuously printed. Each of these is obtained locally from suppliers and producers. Details will be given to prospective investors.

Plants and Machinery
The machines for the project are not locally available. They are all imported machines. The writer has reputable producers and suppliers of quality machines from South Africa, China, Taiwan and Germany. Details will be given to prospective investors.

Packaging Machines
The project can be located in any part of the country particularly where the market lies and nearness to the source of raw materials. The writer will discuss this issue with prospective investors.

Accommodation
The project does not need much space. It can be comfortably set up in a rented building of three bedrooms flats. This will take care of the production room, the storage and raw material rooms as well as the administration/accounting rooms

Financial Implications
The project will take an estimated sum of about N33 million to set up a small-scale plant. This amount many changes depending on the capacity level the prospective investor intends to embark upon.
If the project is going to be on medium or large scale, the cost will be higher than the above.

Investment Analysis
The payback period based on our preliminary projections will be about two years. The return on investment is about 52 per cent and there is positive NPV. Details will be discussed with the prospective investors. The project is very profitable with about gross profit of N20million in the first year, N27 million in the second year, N38million in the third year and N62 million in the fifth year of operation. The turnover is also very impressive.

Conclusion
This project is very profitable. The market is wide, and the supply demand positions keep on elongating. There is need for Nigeria to set up small medium and large-scale industries to reduce the level of unemployment in the country.

Think out of any manufacturing industry of your interest and discuss with us today.
You will not regret your actions.

Uba can be reached on 08034494437, or e-mail: ubagodwin@yahoo.com