Paper Cup Production In Nigeria; The Feasibility Report

Paper is one of the most important products ever invented by man. Widespread use of a written language would not have been possible without some cheap and practical material to write on. The invention of paper means that more people would be educated because more books would be printed and distributed. Industry would grow because all the plans, blueprints, records and formulae it uses would be written down and saved, together with the printing press, paper provided an extremely important way to communicate knowledge.

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.

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.

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.

Table of Contents

Table of Contents: 1.0    Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start -up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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