Description

The bakery industry is a huge market across the world. Population growth spurs rapid growth in baked goods in Nigeria since bread is a major staple and pastries have become the on-the-go snack of choice for urban commuters. And as consumers (whose incomes are generally growing) seek better quality products than the artisanal products that they are typically used to, value growth is driven by increase in demand for higher-quality products (such as Shoprite’s bread, which many people queue up for due to its perceived high quality).

Therefore, packaged/industrial products continue to show faster growth in retail volume sales than unpackaged/artisanal alternatives thanks to rising disposable incomes, the growing desire for convenience among consumers leading increasingly busy lifestyles and improvements in distribution via chained supermarkets and hypermarkets outlets. There is also intense competition in the baked goods industry, which helps to drive growth; as more quality products are desired by consumers, there is an increasing variety of products being made available.

With a population of over 165 million people and an estimated national population growth rate of 5.7% per annum, an average economic growth rate of 3.5% per annum in the past five (5) years, Nigeria has a large market for bakery product hence bakery equipment.

This report examines the financial viability of establishing a bakery equipment importation company in Nigeria.
The company would import five (5) pieces of Spiral Mixer (200/kg Capacity), three (3) pieces of Water Chiller (200 Ltrs Capacity), one (1) pieces of Rotary Oven (Electric & burner 2 bags capacity), one (1) pieces of Dough Moulder (Moulding capacity from 20grms – 2500 capacity), four (4) pieces of Bread Slicing Machine (Table top slicing machine) and four (4) pieces of Hydraulic Dough Divider (20 Cut capacity from 20grms – 1000grms) per cycle of three (3) months. The lead time from purchase to arrival at the showroom is one (1) month and it is expected that all the equipment’s would be sold after three (3) months of arrival.