This Business Idea is about the manufacturing of paper from agro-waste and cotton waste. It is popularly known as hand paper because the production process is labour oriented. Paper and paper products are of great value to mankind in modern times. Paper is a basic means or medium of communication, and of great use in dissemination, capture, and storage of information. This is an ideal project because the demand is immense and all paper used in this country is imported.
Secondly, the paper produced is cheap and the raw materials are readily available locally. Thirdly it could be located in rural areas where the raw materials are in plenty, and where the end users are found instead of transporting it long distances.
The project requires estimated fixed capital of US$ 12,300 and operating costs of US$ 325,635 generating revenue of US$ 499,200. This venture is estimated to yield a net profit margin of 35% and a payback period of 3 months.
Production Process and Capacity
This process produces paper between 150 to 600 grams and about one to two tons could be produced every day. Waste paper as well as grass, jute, rice straw and other agro-wastes are made into pulp by cutting them into small pieces that easily dissolve in water and turn into a paste form which is the pulp. This is then refined and colour and chemicals are added. A wet sheet is formed on the mould and is transferred to felt. The cylinder moulded paper is dried and polished over a roller and the paper produced is taken in form of sheets.
Capital Investment Requirements in US$
|Capital Investment Item||Units||Qty||@||total|
|Drying Chamber equipment||No||1||1,000||1,000|
|Paper cutting machine||No||1||1,500||1,500|
|Furniture & Fittings||No||–||–||500|
Production and Operating Costs in US$ General Costs(Overheads)
|Cost Item||Units||@||Qty/ day||Pdn Cost/ day||Pdn Cost/ mth||Pdn Cost/ yr|
|Agro waste &waste paper||Tns||25||3||75||1,950||23,400|
|Dyes &other chemicals||kgs||0||–||–||500||6,000|
|Cleaning and Toiletries||100||1,200|
|Selling & distribution||325||3,900|
|Total Operating Costs||27,136||325,635|
As far as paper is concerned, any amount or tonnage that is produced would find market. Currently all sorts of paper in this country are imported. Thus, the potential is inexhaustible. Secondly, this is a project which would easily be located where the consumers are since the major input raw materials are everywhere.
Project Product Costs and Price Structure
|Item||Qty/ day||Qty/yr||@||Pdn Cost/ yr||UPx||Total Rve|
Profitability Analysis Table
|Profitability Item||Per day||Per Mnth||Per year|
|Less: Production and Operating Costs||1,044||27,136||325,635|