1.0 Executive Summary of jumbo roll manufacturing business.. 1
Chart: Highlights. 4
1.1 Objectives. 4
1.2 Mission.. 5
1.3 Keys to Success. 5
2.0 Company Summary.. 5
2.1 Company Ownership.. 6
2.2 Start-up Summary.. 6
Table: Start-up.. 10
Chart: Start-up.. 11
3.0 Products. 11
4.0 Market Analysis Summary.. 13
4.1 Market Segmentation.. 13
Table: Market Analysis. 14
Chart: Market Analysis (Pie). 15
4.2 Target Market Segment Strategy.. 15
4.3 Industry Analysis. 15
4.3.1 Competition and Buying Patterns. 15
5.0 Strategy and Implementation Summary.. 16
5.1 SWOT Analysis. 16
5.1.1 Strengths. 16
5.1.2 Weaknesses. 16
5.1.3 Opportunities. 17
5.1.4 Threats. 17
5.2 Competitive Edge.. 17
5.3 Marketing Strategy.. 18
5.4 Sales Strategy.. 18
5.4.1 Sales Forecast for waste paper to jumbo roll recycling business. 18
Table: Sales Forecast. 19
Chart: Sales Monthly.. 19
Chart: Sales by Year. 20
6.0 Management Summary.. 20
6.1 Personnel Plan.. 22
Table: Personnel 22
7.0 Financial Plan.. 22
7.1 Start-up Funding for waste paper to jumbo roll recycling business.. 22
Table: Start-up Funding.. 22
7.2 Important Assumptions. 23
7.3 Break-even Analysis. 23
Table: Break-even Analysis. 24
Chart: Break-even Analysis. 24
7.4 Projected Profit and Loss. 24
Table: Profit and Loss. 24
Chart: Profit Monthly.. 25
Chart: Profit Yearly.. 26
Chart: Gross Margin Monthly.. 26
Chart: Gross Margin Yearly.. 27
7.5 Projected Cash Flow.. 27
Table: Cash Flow.. 27
Chart: Cash.. 28
7.6 Projected Balance Sheet. 28
Table: Balance Sheet. 28
7.7 Business Ratios. 29
Table: Ratios. 29
WASTE PAPER RECYCLING TO JUMBO ROLL PRODUCTION BUSINESS PLAN
This Jumbo roll manufacturing business plan is a detailed business plan that will show you how to start a waste paper recycling into jumbo roll for the production of toilet tissue.
The business plan covers the production process of jumbo roll, the production process of toilet tissue
The Jumbo roll and toilet tissue business opportunities in Nigeria
Jumbo roll manufacturing equipment and machines and list of companies that manufactures this machines
Waste paper to jumbo roll recycling machine and equipment and list of companies that manufactures this machines
Toilet tissue manufacturing equipment and machines and list of companies that manufactures this machines
Where to buy the basic raw material – waste paper for the recycling process
List of potential buyers/ customers for your manufactured jumbo roll and toilet tissue
We carried practicable sales forecast of the manufactured jumbo roll and the toilet tissue. the sales forecast is broken down into months and 3 fiscal year analysis.
Cost analysis is carried out on both the jumbo roll production and toilet tissue.
Below are some assumptions of the business plan ( waste paper recycling to jumbo roll and toilet tissue production:
- Direct cost of jumbo roll 350,000 Naira per ton
- One ton of jumbo roll produces 12,000 units of tissue paper per ton
- 1.3 ton of waste paper produces 1 tone of jumbo roll
- 1 ton of waste paper sales at 50,000 Naira
- Jumbo roll produced in a day is 1 ton working 20 days in a month ( 20 ton X 350,000 = 7000,000 )
- 10 Ton of jumbo roll needed for the 120,000 toilet tissue per month estimate. While 10 ton remaining jumbo roll will be sold out to other toilet tissue producers
- Actual amount of toilet tissue produced per day 6000 units and working for 5 days ( 120,000 units per month )
Selling price of toilet tissue each 40 Naira - Unit cost of toilet tissue = 25 Naira
- Total units per month produced 120,000 costing 3,500,000 Naira monthly
- Toilet tissue packaging – branded waterproof for 7 Naira each, costing total of 840000 Naira
- Core for 7 Naira each, costing total of 840000 Naira
1.0 Executive Summary – Jumbo roll production
New Height Nigeria is a privately owned Company specializing in the production of toilet rolls with the long term view of recycling of waste paper into jumbo reels to be used for the production of toilet rolls.
New Height Nigeria will be in the business of converting used paper to Jumbo Roll. Jumbo roll is the basic raw material used in the production of tissue paper. The process is known as Paper Recycling. Our business will help the toilet paper industry to fulfil the rapidly increasing demand of jumbo rolls. Due to the inability for paper industry to meet the demand of jumbo roll, Nigeria have been importing over 54% of the jumbo rolls used in toilet tissue production from abroad.
Due to this demand-supply gap, prices of paper products are increasing day by day. Our business plan will not only decrease the import bill of the country but also will decrease the price of paper products which will increase the purchasing power of the individuals and hence it will increase their welfare.
1.1 Business Opportunity in jumbo reel production:
In 2004, the federal government of Nigeria banned the importation of finished toilet roll, serviette and face tissue in order to encourage local production of the product and create the much needed employment.
Though much has been achieved in terms of local production of toilet tissue, the market is still experiencing a deficit in supply of its basic raw material which is jumbo roll.
The nations annual toilet roll requirement has been estimated at 105 billion units out of which local production can only meet about 800 million units. The short fall in supply translate to a market gap estimated at about three hundred and seventy five million (N 375,000,000) annually in revenue and an investment opportunity for savvy investors to exploit.
Opportunities also exist for the recycling of waste paper into jumbo reels used as raw material for the production of toilet rolls.
The demand for toilet roll would continue to expand as the standard of living of the over one hundred and forty million (140,000,000) population growing at the rate of 5.7% per annum continues to grow.
In Nigeria, jumbo roll production capacities are low due to dependence on foreign inputs. Two of the three primary pulp and paper mills established in the 1960’s to 1970’s performed optimally till the 1980’s. In 1985 and 1986, capacity utilization in Nigeria paper mill reached 62.3% and 66.17% respectively. Also by 1988, the importation of newsprint had stopped.
However, in 1996, the mills stopped production leading to complete dependence on importation of paper and paper products. This resulted in the expenditure of an estimated amount of 500 billion naira annually on importation of paper products of which jumbo roll is one of them. To ensure optimal pulp and paper capacities, government need to deliberately promote investment in small scale pulp and paper mills, agro residues pulping and recycling of waste paper.
This business plan examines the financial viability of starting a jumbo roll manufacturing plant in Nigeria using waste paper as the raw material.
The proposed plant would comprise of the complete tissue making production line consisting of three main parts; stock preparation production line: which is used to convert sorted wasted paper into liquid refined pulp; tissue making machine; which is used to convert liquid refined pulp into jumbo tissue rolls and auxiliary parts: which are necessary parts for the complete production line. The plant would operate at 85% of the installed capacity working three (3) shifts of 8 hours each in 300 day per annum.
1.2 Product Description:
A jumbo is a big roll of tissue from which different tissue sizes are made. It is the most vital component of tissue production. Jumbo rolls are manufactured by paper manufacturing recycling companies. However, it can also be used for other purposes such as absorbing spillages or craft projects. It differs in composition somewhat from facial tissue, and is designed to decompose in septic tanks, whereas some other bathroom and facial tissues do not.
1.3 Financial Potential:
The company expects to generate ₦68,223,056 in net revenues within the first year of operation at a conservative rate of eight (8) hours of operation per day (51% installed capacity) based on sale of toilet roll only. Revenues and earnings are expected to increase if the production hour is extended into double shift operating for eight (8) hours each and eight (8) hours apart.
Some Environmental Benefits
1) Recycling can reduce water use in paper production by nearly 60% and energy
consumption by 40%
2) Air pollution can be decreased by 74% and water pollution by 35% (these figures
depend on factors such as transport distances and de-inking methods used)
3) Disposal problems are reduced by using waste paper to produce new paper. For
every ton of paper used for recycling, the savings are:2
- At least 30000 liters of water
- 3000-4000 KWh electricity (enough for an average 3-bedroom house for a year.
- 95% of air pollution
4) Recycling half the world’s paper would free 20 million acres of forest land3.
5) Recycling one stack of newspapers about six feet tall saves the life of one tree 35 feet
tall. Recycling approximately one ton saves 17 trees
Some Social and Economic Benefits
1) Recycling will help local industries grow and will also bring in more employment.
2) There is 28 – 70 percent less energy consumption in producing recycled paper
compared to virgin paper. Every ton of recycled paper saves approximately four
barrels of oil, 4200 kilowatt hours of energy
3) There is also less water usage. This is because most of the energy used in
papermaking is required for the pulping needed to turn wood into paper
4) Using recycled paper reduces the need for primary raw materials.