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  4. > Serviette Production in Nigeria; The Feasibility Report

One major achievement of the present civilian administration in Nigeria in the past eleven (11) years is the growth of middle class which has been witnessed in the country. These growths continues to drive the increasing social and sanitary awareness of the need for hygienic and good quality living standard of people coupled with the geometrically exploding population and continued rural-urban drift continues to fuel the demand for serviette in the country.

Extensive market research has revealed that serviette is 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.

This report is to examine the financial viability or otherwise of establishing serviette production plant in Nigeria sourcing for jumbo reels and then convert them into rolls of serviette.

Serviette is one out of the three products that can be produced from jumbo reels. Others include kitchen towels and toilet roll. It is a rectangle of cloth used at the table for wiping the mouth and fingers while eating. It is usually small and folded sometimes in intricate designs and shapes.

Serviette is the second largest tissue products category in Nigeria, accounting for 12.5 % of the overall market, which reflects its necessity status. The category registered 14 % value growth in 2011, driven by growth in population.

The Federal Government has banned the importation of serviettes thereby leaving local manufacturers with great opportunity to tap into the consumers needs. With the recent and continued increase in the popularity of eateries, restaurants and Hotels in Nigeria, the demands for serviettes have never been more. With our culture of celebrations such as weddings, parties and numerous social events, serviettes will always be in high demand.

The market for serviette 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 serviette.

Serviette 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 serviette 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.

Table Of Contents

Serviette Production in Nigeria; The Feasibility Report
Table of content:

Table of Contents:
EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Business Objective
1.4 Value Proposition
1.5 Critical Success Factor of the Business
1.6 Current Status of Business
1.7 Description of the Business Industry
1.8 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 Milestones

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
5.6 Profit and Loss Account
5.7 Cash Flow Analysis
5.8 Viability Analysis
6.0 Business Risk and mitigation factor
6.1 Business Risks
6.2 SWOT Analysis

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