The making of paper towels is one of the profitable businesses you can do in Nigeria and paper towels are among indigenous products.
This product is consumed in shops, schools, hotels, offices, homes and restaurants. The government of Nigeria banned the importation of this product sometime ago and this have enabled production in Nigeria.
This is one of the fastest ventures in Africa. It can be used in many ways and its demand makes the business profitable. The following points are the points to note about paper towel production:
The products does not take a lot of space and it sells fine when they are properly wrapped.
Many of the consumers of the paper towels are ready to purchase what they see in the market.
Requires a simpler administration
An accountant, marketer, machine operator and a delivery personnel is okay for a start.
Simple process of production
The production process is simple and does not involve complex systems.
What Are The Opportunities In Nigeria?
Nigerians need up to 1 billion units of paper towels on an annual basis but the Nigerian local production produces only hundred million units. It shows that there is need for more production of paper towels in Nigeria and this is one of the reasons to start this business.
You can also export the products to other countries like Benin Republic, Ghana and Niger. One can recycle waste paper into jumbo rolls which are raw materials for making toilet rolls and tissues.
The Process Of Making Paper Towels
2 grades of machines to use are:
Automated Production Method
This uses heavy duty machines for making rolls and tissues. You can make many of the products with an automation in a day. Automated production plant is made up of:
a. Toilet paper roll machine (rewinding)
b. Toilet roll machine for cutting
c. Sealing machine
d. Packaging machine (automated). The price of these machines are from N7 million to N15 million and you can get this from Foreign Tissue Machine Importers inside of Lagos. A heavy duty generator of 15-25 KVA can serve for power generation.
Raw Materials For Production
Paper towels are made from rolls called jumbo rolls and you can get this from dealers in Lagos.
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What Is The Difference Between Local And Foreign Machines?
- The spare parts are readily available for repair and replacement.
- The local machines are not as efficient as the foreign ones.
- More companies in Nigeria market foreign machines but local ones are cheaper.
Cost For Investing
You can start with a medium or small scale which ranges between N2m and upwards. The cost is dependent on the category of toilet rolls, the process and mode of distribution. Manual methods may reduce cost but may require more hands.
The cost above does not include the accommodation which can be between 2 and 3 bedroom flat. Profit starts coming from the first year and the income statement and cost of investment helps to estimate the payback period. The initial investment of the project will pay back after 1 year.
Steps To Make Paper Towel In Nigeria
1. Get the knowledge and training
You have to know how to make what you intend to make, in this case paper towels. Get the necessary knowledge and training before you proceed. You can go for internship in a production factory or receive any other formal or informal training.
2. Your business plan
This plan will tell you what you need to get for the business. It should tell you the cost, materials and other information for starting the business.
This business is capital intensive and requires some funds to start. You can start with up to N10m for medium scale. Banks like the Bank of Industry or the Central Bank can offer you loans to start this business.
4. Obtain equipment and raw materials
You need equipment and raw materials like packaging machines, bandsaw cutter, core making machines, recycled pulps, perforating machine, industrial roller and recycling machine, slitting and pulp machines. Other include paper roll rewinding machine, packaging machine, toilet roll cutting machine and jumbo rolls.
You can get these machines from Lagos or China or you can become an importer yourself and sell the machines to those that need them. Nevertheless there are local machines even though they are not as efficient as the foreign ones.
5. Your location
Choose an area with dense population where many people use paper towels so that you market them once they are produced in your factory.
6. Register your business
Business registration helps to tell your customers you are into genuine business. Register with a unique name.
You will have to employ people who will run the machines and market and distribute. 10 to 15 workers can do that for a start.
8. Distribution and packaging
This will enable customers to have an attractive and efficient package. When you package the product properly it becomes attractive to customers. You may also form a network for distribution that will help you get more customer base.
9. Promote your business
You need to promote your business and you can do this through word of mouth or advertising with flyers, signboards and social media. This lets you tell people what you do.
Read Also: How To Produce Bathing Soap In Nigeria
The making of paper towels is one of the profitable businesses you can do in Nigeria since there is a huge demand for paper towels in Nigeria. It is a capital intensive business and you have to get the capital first before starting the production.
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