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How to Start a lucrative Paper Cup Production In Nigeria
Paper cups is made from mill board, grey board, kraft paper,
grease proof paper and other papers, printed and given the
desired shape and are extensively use. The disposable nature of
these cups not only obviates the need for washing and cleaning
but also save loses due to breakages that normally occur while
using porcelain or glass wares.
Paper cups find extensive usage for serving eatables in parties,
functions, social gatherings, etc., catering departments of
railways, airlines and other establishments also amount for a
major share of the demand of cups. There are several inherent
advantages in using paper cups as compared to cups of other
materials. These paper cups are gaining popularity all across
Nigeria as a beautiful and stylish way of minimizing exposure to
food borne infections.
Paper cups have numerous advantages like; they are manufactured
in a very simple process using food grade raw materials with
least waste and are easiest to recycle. They are ideal for
individual servings at all kinds of parties, functions, picnic
occasions, marriages, chat, tea & food joints, etc. Non-toxic in
nature, the shapes and surface designs on these paper cups are
attractive and present an inviting look.
The product ranges from 150 ml to 300 ml. Available in a wide
variety of designs, textures, colors and sizes, disposable paper
cups are gorgeous, stylish and eloquent.
The market for paper cup is national. 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 paper cups.
Justification for investment: The abundant and availability of
paper and its usages in several production and the standard of
living contributes in no small measure to the increasing demand
for Disposable paper Cups in Nigeria. With an estimated
population of over 180 million people, the market for the
products expands with urbanization and population growth.
Disposable paper Cups is the close substitute for disposable
plastics Cups in Nigeria because of its low cost pricing and
wider application for servings in parties offices and occasions.
The Raw materials usage are 100% locally sourced
The market is expanding and the market for the product is
nationwide with opportunities for export to the African
countries.
Profitability: Net margin before tax is projected at
N5.3million, N6.7million and N7.6 million in the first, second
and third Year respectively. Balance of cash flow at the end of
2nd year is N17M Naira which indicates that investment would be
paid back at the second year of operations. Net asset of
investment at N26
million indicating asset recovery is possible at the end of
second Year. Cost of building structure would push recovery and
investment payback at the third year,
Get our Practical Training Guide on How to set up a lucrative PaperCup Production Business in Nigeria. This report is to examine the financial viability or otherwise of establishing a paper cup production plant in Lagos using double PE coated paper and bottom paper {white} as the raw material. The proposed plant comprises of one ZBJ-X12 Medium Speed Ultrasonic Paper Cup Machine, one Die Cutting Machine, one Printing Machine, one Generator and one Project Vehicle. This Business Plan describes the investment, cost and benefits for setting up our proposed Disposable Paper Cups production factory. The Factory will produce Disposable paper Cups using Eco-friendly materials in 7oz size and 183grams Polyethylene White Cut Paper. The proposed Disposable Paper Cup Machinery would consist of the die cutter presser machine and the shrink wrapping machine to wrap and pack the papers in 50 Pieces per and with capacity to produce 3,000 Cups per hour or 24,000 Cups per day.
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