By Tope Babatope
Start up cost:
N800,000 – N1.8m,N2m
Word of mouth,advert on radio/TV,newspaper, complimentary cards, personal contact.
Why it’s a good business
Toilet roll is a product that is consumed daily by every household. People generally make use of toilet roll. It is a basic requirement needed for cleanliness. Besides its usage at homes, toilet rolls also known as tissue papers are equally used in hotels, organizations, etc. The usefulness of toilet roll cannot be overemphasized, meaning that a venture into it as a business will bring good dividends. Investigation revealed that in view of its importance, an average family of ten uses over three toilet rolls weekly. Definitely, there is much to make from this business because the market is already established .
Skills Neccessary / Staff Requirement:
The one starting the business must be energetic , skillful , must have zeal for marketing. It does not need any particular professional qualification before you can embark on the project. You can start the business with six or seven people to meet up with customers’ demand. When the business becomes a large scale one , there may be the need to employ more hands.
Equipment / Materials Needed:
Tube winder, log winder and cutting machines. The raw materials used in the production are core-board or craft paper, gum for the core, polytene for packing, labels for wrapping jumbo reels.
With a capital of about N700,000-N800,000 you will be in a good position to start up especially if you are the type that is serious minded. What comes to mind first is sourcing raw materials,fortunately, the raw materials for producing toilet rolls are available in unlimited quantities within the country.Earmarking between N300000 and N400,000 for take off will take care of core board or craft paper, gum for the core, polytene for packing, labels for wrapping and jumbo reels. However, the issue of raw materials can be settled after you must have secured an accommodation of a three bedroom flat costing between N100,000 and N120,000. In view of the machines that you will use, go for the ground floor in seeking for accommodation.
On equipment, Business start up learnt you will need about N400000 to N600000 but a conservative sum of N400000 will meet up your intention . It was gathered that the equipment needed can be fabricated locally. A source explained that the locally fabricated toilet roll plant was as good as that fabricated overseas
Speaking on the technology involved our dependable source stated that three automatic machines which are produced locally are used in the process as follows:
The tube- winder uses the core board or craft paper to produce the paper tubes; the log winder uses the tube to reel paper into smaller logs and the band saw or cutting machine cuts the logs into smaller pieces or rolls.
Our source explained that there were two classes of toilet rolls, class A and class B. Class A is white while class B is called off-colour. We learnt that class A sells for about N1500 per bundle for distributors while class B sells for about N2250 per bundle for distributors. Business start up investigation revealed that a toilet roll made from newspapers, pool coupons, examination scripts and all kinds of papers sell for N80. While the first class ( white one),sells for about N120.
Bottom Line Advice:
Our source disclosed that the issue of capital should not frighten any investor because the reward will justify investment . The estimated cost for the project is not fixed since there are variables which could bring down the cost of setting up the factory. An investor into the business must have a vision and be equipped with good feasibility study, which Business start up always assist in summarizing on this page always.
It may appear to the ordinary observer that the market for jumbo roll is saturated, but this is not so at all. The demand far outstrips supply. Any entrepreneur who ventures into the production will definitely reap immense rewards. The expected returns from the project is fantastic, for instance the payback period is less than one year, while return on investment is over 100 percent, another dependable source disclosed.