Profitable Investment in Napkins, Diaper Producing Plant

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 of Nigeria at present is putting every effort to see that enabling environment for setting up and running of industries in the country is achieved.

The major problem of manufacturing industries today is power. Once power problem of Nigeria is resolved and enabling environment put in place the Nigerian industries will start doing very well. Another basic challenge is funds for investment. The cost of obtaining credit facilities from the banks is very high in Nigeria in comparison to other parts of the world. Nigeria banks find it very difficult to support start-ups. However, the market is in Nigeria. The population of Nigeria is huge and the demand for goods is always very high.

Having said so, there are some manufacturing investment projects which one can set up in small scale and medium 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 Potentials 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 & 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 bedroom 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 N23.0 million to set up. This amount many change depending on the capacity level the prospective investor intends to embark upon.
The breakdown of this amount on a small-scale level is as follows

Financial Estimates (take off)
Accommodation (rented) N1, 500, 000
Plants & machinery N15, 500,000
Utilities N 2, 500,000
Working capital N3, 000,000
Preliminary Expenses (including feasibility studies/Bus plan) N500, 000
Total N23, 000,000

If the project is going to be on medium or large scale, the cost will be higher than the above. Details will be presented via a feasibility studies reports.

Investment Analysis The payback period based on our preliminary projections will be about two years.
The return on investment is about 52% and there is positive NPV. Details will be discussed with the prospective investors.
The project is very profitable with about Gross Profit of N16million in the first year, N24million in the 2nd year, N38million in the 3rd year and N62million in the 5th 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. This 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.

For details on any project in the area of comprehensive & bankable feasibility studies, investment advisory services, sourcing of project funds, procurement & installation of your manufacturing project machines & equipment, training of your manpower, please contact the writer.
Uba can be reached via 08034494437