Tissue paper manufacturing is a lucrative venture because
of the huge market base. The industry n Nigeria is thriving due to the ban of
importation. Although the locally made products lack quality, they are getting
better each day.
Why start
a Tissue Paper Business
As stated earlier tissue paper major attraction is its
high demand. They are used in parties, restaurants, fast food outlets, hotels
and homes.
They are common in schools, offices and hospitals. Some
more reasons include few staff, easy management and simple manufacturing process.
There are also export opportunities to neighboring countries and ready supply
of raw materials.
- high demand
- huge market base
- good profit making potential
- few staff
- easy management
- simple manufacturing process
- export opportunities
- ready supply of raw materials
- availability of locally fabricated machinery
Challenges
There are some challenges associated to the business. The
major difficulty is electricity. Power is a major challenge in Nigeria including
utility bills.
The machine needs regular maintenance and startup is
huge. The locally fabricated machine breakdown easily and require constant
repair. Others are huge competition, working capital and tax.
- power
- large utility bills
- huge startup
- competition
- working capital
- tax
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Register
the Business
Try to choose a good business name and register the
company. Make it a limited liability company. Find a production site in an
industrial or commercial area. Make sure the shop has adequate space to
accommodate machinery and inventory.
Tissue
Paper Machinery
The entrepreneur could purchase either a locally
fabricated machines or automated machines. The local machines are usually
manual and semi-automated.
The local machines are low cost with low production
capacity. The machine have lots of replacement parts and is easy to maintain.
The automated machine produces huge amount of papers
daily. The machine consists of tissue sealing machine and cutting machine.
Other machinery is air compressor machine, tissue paper
rewinding machine. The local machines are fragile and consist of core making
machine and rewinding machine. The machine also includes a rugged band saw
cutting machine.
Equipment
- locally fabricated machines or automated machines
- tissue sealing machine
- cutting machine
- air compressor machine
- tissue paper
- rewinding machine
- core making machine
- rewinding machine
- band saw cutting machine
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The Raw
Material
The raw material is abundant and easily sourced. The
primary raw material is the jumbo roll. Find a trustworthy supply and purchase
at competitive price.
Funding
The amount of money invested depends on the size of the
operation. The cost of a plant ranges from N3 – N25 million naira. Approach a
commercial bank or bank of industry for loans.
Marketing
and Staffing
You need to hire qualified and experienced staff. The
staff includes machine operator, cleaner, driver and apprentice.
The best marketing strategy is networking and building
customer base. Use electronic and print media to spread the word.
Use yellow pages, website and social media networks. There
is no serious brand awareness because people generally purchase alongside other
essentials.
The manufacturer needs to reach out to wholesalers and
retailers. They should offer discounts, bulk purchase, and promotions. The
company can hire sale representative to work on commission per order.
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