Profitable Investment in Napkins and Diapers Producing Plant

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, under President Muhammadu Buhari is expected to put every effort to see that enabling environment for setting up and running of industries in the country is achieved. There are great hopes that Nigeria will have all the necessary facilities for more favorable business/manufacturing environment in the near future. 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, sanitary pads and Diapers production. This project can ensure regular provision of daily cash for you and your family. You can introduce this project 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 centers.

The arsenals of any mother/lady are not complete and properly assembled without a napkins and diapers. Consider the number of newborn 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 centers 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. Our 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 Nigerian

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 producers 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 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 N35.5 million to set up. The 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) N3,000,000, Plants & machinery N18, 500,000, Utilities N 2, 500,000,
Working capital N10, 000,000

Preliminary Expenses (including feasibility studies/Bus plan) N1,000,000.
Total N35, 500,000.
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 N19million 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.

Adapted from Thisday