One of the best ways to tackle the ever increasing level of unemployment in Nigeria is for the Nigerian entrepreneurs to invest in industries with large markets but low production costs. Any type of manufacturing activity undertaken by individuals or group of individuals will go a long way towards contributing to the growth of the Nation’s economy, generate employment opportunities and invariably add to the GDP. The tissue paper production business in Nigeria is one of such viable but overlooked business opportunities and this article provides insight on how to start the right way.
The tissue production business in Nigeria needs more investments and factories to cope with the ever increasing demands. Its demand is influenced mostly by population explosion, rapid urbanization and social awareness.
Very many Nigerians consume toilet rolls. The consumption rate is over 1 billion units per annum whereas, the matching total local production rate is still less than 150 million. This huge gap between the tissue paper demand and supply thus offers a tremendous business opportunity for investors.
Any entrepreneur searching for a profitable, long-term investment could consider the toilet paper production business. The right steps on how to take advantage of this what venture has to offer are therefore aptly provided in this very post.
What is tissue paper production business?
Tissue paper production is all about the manufacturing, packaging and distribution of hygienic soft papers which can be used for various purposes.
The raw materials for the production of toilet papers are various quantities of whitened wood pulps or recycled papers which are processed into soft, bulky, and absorbent disposable paper.
The production process involves either manual / local or automated machines. The local process entails the use of locally made production machines to churn out the tissue / toilet rolls. The local machines are quite affordable though there is a limit to the production quantity it can undertake per day. A local production plant consists of machines such as the Jumbo rewinding machine, band saw cutter etc and can be set up at the price of 2 – 7million naira.
On the other hand, the automated process involves the use of heavy-duty machines for the production of the tissues and rolls. With the automated machines, you can produce as many as possible in their thousands on a daily. An automated production plant consists of ;
• Toilet paper roll rewinding machine
• Toilet roll cutting machine
• Toilet paper / sealing machine
• automated packaging machine.
The cost of these machines range from 15 – 25million naira and can either be imported directly from China or through Tissue Machine Importers in Lagos state, Nigeria.
Is tissue paper manufacturing profitable?
The profitability of the tissue production business goes without saying. Most Nigerians generally utilize tissue for cleaning and sanitary purposes in households, restaurants, hotels, social gatherings, canteen, maternity homes, parties, hospitals, churches, clinics, educational institutions, fast food centers, shops and you name it.
Thus, customers are readily available for consumption and the need for tissue paper use is always rising and never dropping.
We’ve seen that there’s a clear case of tissue demand being greater than the corresponding supply which points to the fact that it is lucrative venture and there’s room for entry of more production lines.
Opportunities also exists for the exportation of the manufactured products to our neighboring countries such as Ghana, Niger Benin Republic etc
Business Opportunities in tissue paper production business in Nigeria
1.) Toilet rolls production business –
Toilet rolls manufacturers have the largest tissue paper consumers in Nigeria and most parts of the globe. It is a sanitary product found in most homes, offices and public restrooms.
Every year, the consumption rates increase by 10% to 12%, adding to the GDP of most tissue paper export countries.
These yearly upturns provide an excellent business opportunity for potential entrepreneurs in Africa to tap from this goldmine.
2.) Table napkins production –
In recent years, the tissue table napkins production business has experienced remarkable market growth and increased profitability. This is because they are a more affordable and low maintenance form of table napkins.
Tissue napkins are used to clean up the mouth and fingers during and after a meal. And, they can be folded and bent into different decorative shapes.
The food service industry i.e. catering, eateries, hotels, restaurants, fast foods, and bar joints generate a huge market for this product. Event decorators also buy different types of these napkins and use them to enhance the beauty of table centrepieces.
3.) Paper towels production –
Tissue factories manufacture paper towels, package them in folded stacks or rolls and then sell them to wholesalers and retailers. These towels have the second largest consumer base in the tissue paper production industry. The market for paper towels is divided between domestic and public buyers.
A paper towel is an alternative and disposable form of kitchen/hand cloth towel. Unlike cloth towels, it does not require frequent washing, making it an easier and more hygienic option. Because of its lightly woven fibre structure, paper towels absorb liquid better than toilet rolls. Its uses include cleaning, dusting, wiping, and drying various surfaces.
Domestic buyers are consumers who buy directly from retailers and use these products in their homes or personal spaces. Commercial consumers buy in bulk from factories, wholesalers, or large retail outlets. Paper towels bought for commercial uses are found in public restrooms, hotels, restaurants, and their kitchens.
4.) Wrapping tissue production –
Wrapping tissues are lightweight, semi-transparent papers between 17 to 40 grammages. There are several kinds of wrapping tissues; soft, shining, hard, and rough. Some are a combination of textures and looks. An example are the soft and shiny tissues found in bags.
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Wrapping tissues are personalized with colours, logos, and brand names of the companies that buy them. This variety of tissues is usually mass-produced and supplied to businesses that package their goods by cushioning or wrapping them. Wrapping tissues are stuffed in bags/shoes, laid around delicate objects or wrapped around items to prevent damage. Clothing lines also use these tissues to protect garments from creases and keep them safe.
5.) Face wipes production business –
Facial tissues are the ultra-soft, absorbent, and disposable substitutes of cloth handkerchiefs. This variety of tissue rolls are used for facial cleansing, hands, and nasal wiping. Though it’s mostly a personal use product, facial tissues can also be found in offices and beauty salons. This business has a considerable market size; online retail outlets, supermarkets, shops, and pharmacies.
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A facial tissue has two to three plies and is lightly calendered to achieve a light, smooth surface. Some producers add fragrances, lotions, softeners, and liquefied herbs to give it a certain texture or scent. Also, facial tissues come in different boxes or portable sachet packs with partial openings as dispensers.
6.) Wet / baby wipe production –
Tissue factories make huge profits from producing and distributing wet wipes in bulk to wholesale or large retail outlets. Wet wipes are small, moist tissue paper used to clean surfaces and for personal hygiene. It also comes in small cardboard boxes or plastic packages with dispense openings at the top or sides.
Nowadays, parents use it to clean up their infant or toddler’s backsides during diaper swaps. Wet wipes are recommended by experts for other baby care activities such as cleaning pukes, and wiping dirty hands, or faces. Special baby wipes come with cleansing agents that are either mild or alcohol-based.
Other types of special wet wipes are industrial wipes, cleansing pads, and medical wipes.
7.) Customized wrapping tissue business –
The market for customized wrapping tissues is expanding due to the rising levels of demand. Customization companies make considerable profits from producing personalized wrapping tissues. Their client base includes boutique owners, fashion product companies, retail outlets, and domestic consumers.
Durable customized printed tissue wrapping papers are printed with soy-based ink on non-acidic tissue papers.
Equipments and materials for a tissue paper production in Nigeria
Below are some of the equipments and machines required to start tissue paper production business in Nigeria;
• Recycled fibre or pulps
• Embossing machine
• Tissue paper folding machine
• High-speed toilet paper machine
• Perforating machine
• Industrial roll rewinding and slitting machine
• Pulp and waste paper recycling jumbo roll machines
Core making machine.
• Jumbo rolls
• Toilet roll cutting machine
• Packaging machine
• Paper roll rewinding machine
How to start tissue production business in Nigeria – complete guide
1.) Choose a tissue paper variety –
The first step towards starting up this business is to decide on what variety of tissue paper to produce. If it’s a small or medium scale business, pick an option that fits into your available capital. A large-scale tissue paper production business can decide to manufacture more than one variety of tissue papers without financial issues.
2.) Registration of business name –
One of the first things you may want to do is to register a business name. This gives you a brand name to work with. To succeed as a production company you need a strong brand, something people can identify with. Most consumers who buy Rose tissue do so because they know and trust the brand. The benefits of registering a business name therefore cannot be over emphasized.
3) Training And Experience –
Effectively managing a tissue paper production process requires technical knowledge and hands-on experience. It would be very useful to obtain some training or hands-on experience on how to handle production equipment, raw materials, and manufacturing process.
4). Secure a good location –
Setting up a factory in the commercial hub of a town or city is the best way to secure a good site. Commercial hubs with access to enough power supply will boost productivity, bring in more market traffic, and increase profits.
The interior space of the factory should be large enough to store products/machines and accommodate employees.
5). Market survey –
To establish a successful toilet paper business, first organize a detailed market research. Inadequate information and knowledge will only result in business struggles or failures. Some aspects to focus on are machinery costs, technical operations, initial/working capital, production processes, capital, registration requirements, and cost of the required machinery.
6). Funding / capital –
Personal wealth or savings is an option if you choose to start small whereas a large scale business could require a large loan or investment. Commercial banks or co-operatives can provide loans with an good business plan and collateral.
The capital required for a tissue paper production business is determined by the scale and type of business you decide to start up. A market research would give you an idea of how much is needed and what execution is required to make the business successful. Making sure your business is not underfunded is critical at this point. Your business capital must cover the different financial aspects of the business from production to distribution.
7). Purchase the production equipments –
Buying the production equipment will not only take most of the capital, but also requires careful consideration. That’s because the success of your business depends on purchase durable, high-quality equipment.
The right set of machines and tools will enhance productivity. It would also reduce the workload of your workers which in turn increases their efficiency. Poor quality machines would definitely require constant repairs and lower the quality of your products.
Furthermore, the scale of your tissue paper production business will determine the number of equipment needed. Large-scale production would require larger scale automated machines while small tissue paper businesses would need less equipment and capital.
8.) Employ workers:
No doubt, the tissue paper production process requires more than on one person. Hiring skilled workers makes tasks easier to manage and is cost-effective. While in training, unskilled employees can handle other jobs like heavy liftings, transportation, packaging, and boxing.
9.) Packaging and distribution
A good and attractive packaging is necessary and would help in drawing customers to your products. because when the packing is good and attractive, it is sure to attract a lot of buyers to the product.
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Moreso, you will need to create and establish a good distribution network that will enable you to reach a large customer base. These two factors are very important in the business and must be properly managed.
A good marketing strategy basically outlines the achievable and effective ways to promote your business. Without that, the rate at which a venture grows its customer base will be slow and unstable. At this point, hiring a sales expert would be the best decision for start-up entrepreneurs.
On the other hand, using platforms such as social/print media, online websites, and blogs can create awareness for your products. Check out how to grow your business on social media in Nigeria. Discounts and promotional offers also are effective means of attracting customers.
Challenges of tissue paper production in Nigeria
Some of the few notable challenges hindering the tissue paper production business in Nigeria includes but not limited to the following ;
• Most entreprising prospective entrepreneurs are faced with the challenge of sourcing for funds to purchase automated, high-quality machinery. Moreso, obtaining loans from commercial banks without collateral is often problematic for budding entrepreneurs
• Lack of constant and stable electricity supply to power machines and reduce extra costs from daily diesel purchase.
• Numerous red tapes and protocols delay business registration process in Nigeria. This delay badly affects those that want to tissue paper production in Nigeria.
• Locally-produced tissue production machines produce low-quality tissue products in insufficient amounts.
Tissue is one of the Fast Moving Consumer Goods (FMCG) which are always in high demand and sells very fast. If you would like to start your own tissue paper production business in Nigeria, then this article would give you a head start.
Let’s know your thoughts in the comment section below.