Investing in disposable plates, cups manufacturing plant

Plastics products such as household plastic items, gift items, plastic cups, toys, seats, tables, and bags among others are daily consumables. The demand is very and current supply is unable to satisfy the local market as imported brands from Asia fill gap.

Apart from local buyers, the entire ECOWAS sub regions rely wholly on Nigerians for their plastic wares.

This is not surprising because all the raw materials for production of quality plastic products are locally available and at affordable prices.

In this investment profile prospective investors are educated on how to invest successfully into this lucrative venture putting all the necessary inputs into consideration such as technical, marketing, operational and financial requirements into consideration

Plant & machinery

One of the economic efficiencies of measuring the mechanical productivity of plant and machinery of a firm, or a proposed venture, is not only a function of its life expectancy, rate of depreciation, energy consumption per unit of output, but also adoption of a simple plant to produce different quality products.

The plant in mind is capable of producing four varieties of plastic products of desired sizes. What is needed involves fixing different molds into the injection molding plant.

Competition

Survey findings have revealed that, most Nigerian industrialists and project promoters are not fully aware of these economic efficiencies of injection molding plant.

The few numbers of firms and industries utilizing injection-molding plant that can only produce single plastic product can justify this belief. It implies that the plant in mind would produce different products to meet seasonal demand. This means if there is any project to be considered for implementation in terms of production multiplicity of plant at all, plastic plates, cups, bowls and spoons production should be the one.

Read also: Lagos eyes eco-friendly materials to eliminate disposable plastics

Raw material

The major raw materials required are thermo-plastics of high fluidity such as high-density polyethylene and others. The beauty of this project is that both the injection molding plant and raw materials are available locally, which signals the easiness of sourcing both the fixed and variable inputs.

Location

Theoretically, this project may be sited in any state in the federation without location constraint of raw material procurement. Project implementation involves acquisition of factory house, purchase and installation of plant and machinery, recruitment of appropriate personnel and other accessories.

Projected cost of establishment

The initial cost of the project is estimated to be N55, 800, 000 only as shown below. The project can be scaled down depending on many factors that will be discussed with prospective investors.

Technical feasibility

The production technology of plastic products is simple, though mechanical. The materials suitable for injection molding are thermo-plastics of high fluidity.

The granules are introduced through a hopper, into the cylinder in which they are heated, above their softening pint, by means of a heating jacket.

Moving piston plasticizers forces the material through a nozzle into the mould. Different kinds of moulds are used to produce different plastic products. The extruded material is cooled and is taken off by means of suitable devices designed as to prevent any subsequent deformation.

The theoretical analysis of production technology of plastic products remains the same, but they differ only in terms of time consumption per output, weight and structure morphology.

The plant in mind has production capacity of 4000-4, 500 plastics cup per two shifts per day of 5,000-6,000 plastic plates per day. This may be packed in dozens for sales. Appointed distributors would be needed for products distributions and sales.

Implementation

There are two markets for plastic products; the domestic and foreign markets. Households in general, canteens, industries, hospitals, clinics and hotels form the domestic market, while the neighboring West African countries constitute the foreign markets.

The market viability shows that plastic plates, cups, bowls and keg are cheaper and durable when compared with sister glass products with high price disadvantage, and their fragility. More so, the cross elasticity of demand for plastic products shows a perfect elasticity of substitution for glass products in all ramifications of their uses.

For profitability 4, 000 plastic cups are assumed per day. Given 250 working days per annum, 83,333 dozen of plastic cups would be produced per year. Assuming a conservative price of N1, 500 per dozen, N125.0million would be annual gross revenue operating at small scale capacity. In view of the above theoretical facts and figures, this project is strongly recommended for investment.

For details on comprehensive & Bankable feasibility studies, Business Plan; procurement & installations of strong and durable machines, packaging methods, Export markets and funding arrangements, please contact on 08034494437, 08023664368 or email : [email protected]