HOW TO MAKE MILLIONS WITH FLOUR BUSINESS ANYWHERE
written and edited by GT Igwe Chrisent
One of the best ways to
develop any nation is through investment in the real sector. The real investor
is the development of the productive areas that will generate employment for
the unemployed youths, increase the nations’ GDP, encourages exports and
generation of foreign exchange and at the same time create self reliance.
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Any nation that neglects
Agriculture, technology and manufacturing is not moving towards economic
development. For the nation to accomplish the vision 2020, there is need to
develop the real sector.
The manufacturing/productive
sector can only be developed by provision of the basic infrastructures such as
electricity, provision of good roads and other basic amenities. The rural
development is very important because when you talk of Agricultural
development, you cannot achieve that in the cities.
Nigeria is blessed with vast
natural resources. Apart from oil, there are other agricultural products that
can be processed and exported to generate more foreign exchange like oil. Most
of the crops such as cassava, yam rice etc are grown in abundant in most parts
of the country.
The topic in this investment
profile is production, processing of these crops into flour for local
consumption and export.
The Federal Government has
been working very hard to promote the growth and development of cassava and
other economic products such as rice. Apart from cassava flour, one can process
yam, plantain, rice etc into yam flour, plantain flour, rice flour etc, which
can be packaged carefully for both local and export market.
Taking Investment
Considerations
Some of the fundamental
considerations to make when looking for any investment areas to embark upon so
as to increase local production are
(1)
Availability of local raw materials
(2)
Technology convenience
(3)
Human Resources
(4)
Capital availability
(5)
Infrastructural adequacy
Of all these factors,
availability of local raw materials seems to be the most vital. It is based on
these factors that the writer has carried out research and market survey for
setting up of this project.
Flour has recorded a very
high importation level in this county. Despite the input of few companies like
Nigeria flour mills and others, the demand has overgrown the supply, hence some
Nigerian companies resort to importation.
The Market Analysis
From statistics about 60 per
cent of the total demands are sourced from overseas countries.
Looking at the applications
of the flour generally the demand for the envisaged products of the proposed
project remains dutiful.
Flour is used in various
projects as inputs or raw materials. It is used in making of bread, biscuits
(cookies), cakes, chin-chin, puff-puff, pudding, pancakes and as a substitute
to baking wheat flour. With the growth in the numbers of bakery firms, fast
food industries, Biscuits producing firms and other end users of the product,
the demand increases every day.
Our research indicated that
this product could be sold to overseas countries located at America, Europe and
Asian countries. Nigeria starch and flour are regarded as one of the best in
the world today and have international demand and respect too. Also some
foreign companies within the ECOWAS region do come to Nigeria to purchase in
bulk.
It should be pertinent to
mention at the same time that anybody that wants to succeed in this business must
not compromise on the internationally acceptable quality.
Raw Material Inputs and
availability
Flour could be produced from
cassava etc. The machines are made to use any of these products as raw
materials. There is abundant cassava in all the parts of the country.
There are also various varieties of these products, therefore adequate care
must be taken to use the appropriate variety for this project.
The main machinery and
Equipment recommended for this project are: Peeling machine, Grater, Fermentation
tank, Grinder, flash Dryer, Siever, Sealing or Hand Sewing machine,
international scale and other miscellaneous Equipment. All these machines can
be fabricated locally for any capacity needed.
This plant can produce 2500MT
of flour for a year or10MT per day, working for 250days days in a year at 8
hours per day.
By estimation, 624MT of wet
tubers would be used as inputs to produce the same quantity.
Apart from locally made
machines, there is provision for the use of foreign made machines by prospective
investors. These machines are produced in Europe and can be procured and
installed on agreement.
Production Processes and
Charts
The production process for
production of flour generally is summarized below purchase and weighing of the
raw materials; Sorting the tubers and washing them; Peeling & Slicing the
raw materials into smaller units or pieces; Washing these sliced pieces;
fermentation of the sliced pieces and washing thereafter; Grating to get mash
either before or after fermenting; Drying and sieving, packaging and bagging
into 2kg, 5kg, 10kg, 25kg, and 50kg packs.
The sizes can be varied to
cater individual foreign consumers according to agreed specifications.
Proposed Location
The project can be sited in
any part of the country, since the inputs are grown in virtually all the states
of the federation.
Estimated Number of Personnel
In a small scale staff
strength of about 12 would be needed. The number can be more than this if it is
planned to operate on a medium scale.
Projected Financial Implications
and Analysis
The project can be started
with an estimated sum of N16, 750,000. The cost may be higher than this
if the project is to be of a medium or large scale.
Based on the investment
analysis carried out, the project has very high returns. The projected return
on investment is about 53 per cent. It is more if the products are exported.
The payback period is about 2 years depending on the level of dedication and
experience of the employees.
to the account information below.
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