Description

Extensive market research has revealed that toilet rolls are an everyday consumer necessity used by everyone. Thus, the market is ongoing and is not dependent on economic cycles and can be described as a FMCG (fast-moving consumer goods) commodity market. There is also the opportunity of broadening and expanding the product offering to include disposable napkins, garage wipes, disposable baby and adult diapers as well as sanitary pads.

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 as been achieved in terms of local production, the market is still experiencing a deficit in supply.

The market for toilet roll is national .With a population of over one hundred and sixty five million (165,000,000) people and an estimated national population growth rate of 5.7% per annum , average economic growth rate of 3.5% per annum in the past five (5) years ,Nigeria is a large ,expanding and sustainable market for toilet rolls.

Toilet roll is consumed on daily basis by all and sundry irrespective of age, social class or religion for sanitary and cleaning purposes and the market for toilet roll is expected to grow along the population growth trend and the amount of disposable income.

The fact that over 60% of the over one hundred and sixty five million (165,000,000) population of Nigeria are youths which also constitutes a greater majority of the middle class ,two (2) group of consumers that seeks for hygienic and good quality living standard further deepens the market.

This report is to examine the financial viability or otherwise of establishing toilet roll production plant in Nigeria sourcing for jumbo reels and then convert them into individual rolls of toilet tissue by slitting the jumbo rolls into individual rolls/units.

The production capacity of the proposed business is one {1} ton per day.