There is an alarming demand for packaging materials in Nigeria today. Packaging materials are needed by everybody without the exception of anybody.
We all use packaging materials in one form or the other – as cartons, polyethylene, and nylon disposable bags, as wrapping items, envelops, archive boxes, paper bags, pizza/ sandwich packs etc.
Establishing a packaging company in Nigeria is a welcome development. At least, you will be able to meet the ever-increasing demands and make good money off it.
One you can strike a balance between the cost of your packaging materials and quality, you are in for success. Although there is fierce competition in the market at present, ensuring the highest quality in your products and keeping the prices low will take you far in the business.
This guide is s sneak peek into what establishing a packaging company in Nigeria entails and how to make sustainable profits off it.
Common Packaging Companies In Nigeria
There are several kinds of packaging companies in Nigeria. Majority of them are located in Lagos and Abuja and are into:
1. Carton packaging
2. Nylon packaging
3. Plastic packaging
4. Paper packaging
5. Flexible packaging
6. Food packaging
8. Food packaging
A Few Key Players In The Industry
I like to mention a few successful businesses:
1. AutoPack Global, located at 397, Ikorodu Road, Ojota, Lagos.
2. Frigoglass, located at G Leventis Building, Iddo House, Iddo Ebute Metta, Lagos.
3. Hana Packaging Ltd located at Plot 8, Block H, Cowbell Way, Industrial Estate Isolo, Lagos.
4. Institute of Packaging Nigeria located at 28B Gbemisola Street, off Adeleke Street, Ikeja, Lagos.
5. Masterstroke Packages Ltd located at Plot 17 Iganmu Industrial Road (Former Abebe Village Rd), Iganmu, Lagos Nigeria Sonnex Packaging Nig. Ltd
Packaging Business Market Needs and Opportunities
There is a huge demand for packaging business in Nigeria given its multifarious uses. Some of the people who need Packaging products in Nigeria include:
3. Businesses of all sizes
6. Event centers
7. Shops and kiosks
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Packaging materials are used in different areas of goods’ packing such as Breweries, Glasswares, Cigarettes, Pharmaceuticals, Biscuits, Milk & Milk products, Soaps, Cosmetics, Tea & Coffee, food items, clothing industry, chemical, agro-chemical, leather etc.
People need packaging materials to conceal, wrap, convey, and transport goods from one place to another. Hence, the demand for this business is huge as virtually everyone needs them at certain points in time.
The business is highly profitable and has a daily patronage.
Knowledge and Skills Needed & How To Get Them
Before you embark on starting a packaging company in Nigeria, you must have experience in industrial packaging systems. You must have worked for a reputable company for some time and gathered sufficient experience.
One way out is to study Industrial production in school. Else or additionally, simply undergo targeted workshop training on industrial packaging processes. This will arm you with the skills of materials engineering and productions.
Choice of Business Location
Packaging materials company is best suited for a metro city or suburban city area like Lagos, Abuja, Port Harcourt. This is because goods of all sizes after manufacturing need packaging and a majority of the manufacturing companies are concentrated in the cities or towns.
So, positioning your company close to the source of direct patronage and raw materials goes a long way to enhance your business.
Also, it is easier to cushion, fabricate, store, and dispose of or recycle your products when you are located in the towns and cities.
Get A Functional Business Plan
You need a functional packaging company business plan to run this business successfully. This will give you a sneak peek into the cost of machinery, the required working capital, the cost of raw material, the financial breakdown, and the total capital investment required.
Packaging box manufacturing business required moderate capital to start. Your business plan will also show the mission statement of your company plus your intended promotional or marketing strategy.
Business Registration and Licensing
You need to register and get approval from the appropriate organs of government. To start with, you have to register your business name with the Corporate Affairs Commission of Nigeria (CAC).
Then, you register with the Nigerian Investment Promotion Commission (NIPC), the Standards Organization of Nigeria (SON), Manufacturers’ Association of Nigeria (MAN) amongst others.
Materials and Machinery
Your choice of packaging material and machinery depends on the kind of packaging you wish to go into. I have highlighted above eight (8) different sectors in products packaging in Nigeria. So, your materials and machine will be tailored to the kind of production you wish to go into.
However, some of the packaging machinery you will need includes Corrugators, Printing Machine, Rollers, Separating Machines, Cutting and Gluing Machines.
Most of these machines are not available locally. The locally fabricated ones available may not be strong. So, you must have a good knowledge of importation business so as to make orders overseas for these machines and materials.
But before you buy from any supplier, check the customer’s reviews about the company and the machine. These machines should also have a good warranty cover.
Promotion and Marketing
By now, you must have identified your clients and customers. So, upon production, you will simply contact them with your products’ catalog.
Ensure that your emblems and logos go with every one of your products. Also, advertise on all platforms to earn more patronage. You can run online ads, sponsor jingles on the radio and TV, distribute fliers and handbills etc.
Company structure and Staffing
Since we are talking about setting up a company, then you must have a team. So, your members of staff should include production/manufacturing engineers, detailing staff, decorators, drivers, accountants, receptionists etc.
Management and Sustainability
The best way to sell a business today is through word-of-mouth. Once you treat your customers very well, many more are likely to give you patronage. The reverse is the case where your customers’ relation is poor.
Also, focus on improving your designs and products are to the highest attainable standards and quality. Remember, aesthetics is the lifeline of any product today and this holds true for packaging materials too.
Thirdly, sustain your position among your peers by attending and showcasing your products at business expo and trade fairs. With this, you maintain market relevance and still remain in business for times and times to come.
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Demand for packaging materials in Nigeria is continuously increasing. The increase in consumer consumption rate to a great extent influences the continuous increase in the volume of packaging materials produced in Nigeria daily.
To succeed as a packaging company in Nigeria today, you must work towards satisfying three primary packaging need. These are the comfort of transportation, the ease of usage and convenience.
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