A FREE BUSINESS PLAN/FEASIBILITY REPORT FOR THE SET-UP OF NYLON AND POLYTHENE BUSINESS IN NIGERIA

A BUSINESS PLAN FOR THE SET-UP OF A NYLON AND POLYTHENE BUSINESS IN NIGERIA

1. INTRODUCTION

Nylon printing business is one of the most commonly known businesses and it has stood the test of time as a result of the growing demand for nylon bags for a wide range of domestic purposes such as shopping, bagging, and covering, manufacturing businesses require nylon in large quantities for wrapping and packaging their products.As the world is going corporate, the need for packaging is increasing every day. 

Packaging improves image and branding of a product, hence the need for shopping bags. Almost every business uses shopping bags these days ranging from supermarkets, eateries, banks (cash bags), boutique, and bookshop to road side shops thereby creating large demand for the product. Polyethylene products enjoy both national and international patronage. In fact, it is one of the fasted selling consumer goods in the country today. This is because its demand has a relationship with the level of demand for other goods. The product is demanded all year round and not affected by season; nevertheless, it has a greater demand during the raining season.

2. SUCCESS FACTOR OF THE BUSINESS

Polyethylene products enjoy both national and international patronage. In fact, it is one of the fasted selling consumer goods in the country today. This is because its demand has a relationship with the level of demand for other goods. The product is demanded all year round and not affected by season; nevertheless, it has a greater demand during the raining season.

3. CAPITAL AND RAW MATERIALS REQUIRED

Basically there are two types of nylon namely the low and high density nylons. The low density nylon is the nylon used for wrapping bread. It is also used by dry cleaners and in pure water production. Generally, low density nylon because of their thickness does not make noise when squeezed. It varies in thickness depending on the purpose for which it is being used and what the customer wants.

As a matter of fact the capital involved depends largely on the financial capability of the investor. If you have small capital, you can start with the locally fabricated machines, semi-automatic machinery or better still you can start with buying the raw materials while the extrusion/blowing of the raw material, cutting, punching and printing aspect of the production process would be taken care of by other companies. The only thing to be done is marketing of the finished goods and a significant mark-up will still be achieved. On the other hand, if you can afford the cost, it is best to acquire a fully-automatic machine, which is much more efficient and profitable because aside your own productions, you can as well get jobs from outside.

The machines required to start nylon processing plant includes but not limited to:-

1. EXTRUDER FILM BLOWING MACHINE: - This is the machine which turns the raw materials (Master Berg, Escorene, DOW, B.A.S.F, etc) into a liquid form and later to polythene sheets in whatever color or thickness desired.
   

   
2. CUTTING  AND SEALING MACHINE:- This is the machine which cut the polythene into various sizes, it also seal the nylon according to specifications.
   

   

   
   

   
3. PUNCHING MACHINE:- This machine is used to create holes, handles and specific carrier shapes of the polythene.
   

   
4. A Generating set (40-60kva).

The major raw materials are petroleum products and master Berg. Master-Berg is the color matter added to the polyethylene by products to give its various colors. The production process of polyethylene sheet is simple but technical. The raw material (either B.A.S.F or Escorene or DOW) is poured into the heating and melting unit of the extruder machine. This is heated, melted and converted to a liquid substance, which is blown under pressure through a passage and simultaneously cooled in the process by an air generating apparatus. Producing polyethylene sheets directed by a series of rollers converting it into bales in the output unit of the extruder. The sheets are now taken to cutting and sealing machine and subsequently to the handle-cutting machine.

4. MARKET FEASIBILTY

The demand for polythene shopping bags has been identified to continue to expand as the standard of living of the over 160 million population growing at the rate of 5.7% per annum continues to surge. The supply gap situation in Nigeria has created a market gap estimated at N 2.7 Billion annually in revenue. A growing market exists for the production of polythene in Nigeria because of the relative high demand for other goods. The product
is packaged at the production stage and its delivery is usually straight to the buyer. A lot of opportunity abounds in the nylon business. The pricing is determined by the quality and quantity demanded by the buyers as well as the cost of production and mark-up expected.

The target market for nylon or shopping bags includes:-

1. Supermarkets
2. Pure water companies
3. Pharmacy
4. Market traders
5. Banks
6. Eateries
7. Telecommunication shops
8. Hospitals
9. Fashion outfits
10. Laundry outfits
11. Waste management companies
12. Government agencies
13. Schools
14. Bukateria
15. Bakeries
16. Packaging Companies
17. Courier and Logistics Companies
18. Etc.

The strategy to be adopted in marketing the product is through word of mouth and providing samples to the prospective buyers. Marketing of nylon should not involve heavy budget as it is already a fast moving consumer goods that has over the time defy all age, gender, class or nationality. Also, the competition in the nylon making industries is a healthy one due to supply deficit in the Nigerian economy.

5. PRODUCTION PLAN

The location for nylon plant could be sited anywhere as long as it meets relevant factory laws and regulations, except that if you are starting on a big scale adequate provision must be made for the spaces to be occupied by the machines depending on their sizes, otherwise, you might not really need a physical location if you are starting with little capital, just a call card and minimum capital of N100k-N200k, you are good to go. The production process of polythene shopping bags {the extrusion part only}, The raw material is poured into a heating and melting unit of the extruding machine. This is heated, melted and converted to a passage (extrusion) and simultaneously cooled in the process by air generating apparatus. What passes through the cooling chamber is the polythene sheet being directed by some rollers, converting it into bales in the output unit.

In addition to location, you must ensure the area where the nylon factory is to be sited experiences power supply at least averagely as this will reduce the cost of buying diesel, saves turnaround time and reduces wastage arising from intermittent power outage. The finished product in nylon processing is not a perishable good so it can be stored just anywhere that is cool but not in an inflammable area because its raw material is a petrol-chemical by-product.

CAPITAL EXPENSES

1. FACTORY LOCATION
2. EXTRUDER/BLOWER :-

1. Foreign (dual Hd /Ld Extruder blower) N4,400,000M - N9,500,000M
2. Locally fabricated or Fairly used  (Hd or Ld) range is between N1.5 –N2.0M

Watch Nylon Production Process here.....https://www.youtube.com/watch?v=M_0Xfv6iVws

3. CUTTING AND SEALING MACHINE

1. Double decker machine (foreign) N4,580,000M - N9,500,00M
2. Locally fabricated/Fairly used  machines ranges between N0.7M-N1.2M

4. PUNCHING MACHINE

1. Foreign (Hydraulic ) N720k-N1.2M
2. Locally fabricated N400K-N650K
   

   

5. PRINTING

1. High Definition (one or two color) price ranges N1.5M-N2.5M
2. Low Definition (one or two color) price ranges N0.5M - N1.5M

N.B: Prices of machinery and materials are subject to change by the manufacturers,therefore the prices given here are is quoted when the research was conducted.

OPERATIONAL EXPENSES

RAW MATERIALS

1. Low definition material per bag (25kg) N19,000
2. High Definition material per bag (25kg) N20,200
3. Exxon-Mobil per bag (25kg) N24,500
4. Master Berg per kilo N1000 - N1300(depending on color)

LABOUR

1. Operator man (@ N1,875 per/day for 24 days) N45,000
2. Extrusion, cutting and punching of 7 bundles/25kg N1,500
3. Transportation of raw materials and finished goods N5,000
4. Marketers per day(N0,000)/per month N35,000
5. Utilities N10,000
6. Promotions N20,000

There are various market prices of Nylon Polythene bags depending on some factors such as:

Thickness

Sizes

Quantities

Markets

Buyers

Payment terms

Transportation cost

Frequency of orders and other variables as situation demands.

The prices I have given here is not to be taken hook,line and sinker rather a would be investor should conduct adequate market research,feasibility and viability studies,mathematical project analysis and financial management of the business.

Market prices of Nylon.

N2,000/pack of Fashion (0.6/0.7mm)

N3,500/pack of fashion (0.8mm)

N2,000/pack of stationeries (0.6mm)

N3,500/pack of stationeries(0.8mm)

N10,000/pack of snacks (0.6mm)

N1,500/pack of singlet (0.2mm)

N3,500/pack of poly-thick (0.8mm)

N.B: Before embarking on production and supply of nylon materials to your clients,ensure due diligence in areas highlighted above.

For further inquiry on how to start this business call Prospective on +2348034201291 or +2347080175560

E-mail: ideasandprospects@gmail.com

https://www.youtube.com/watch?v=M_0Xfv6iVws