Ceramic Tiles and marbles Manufacturing feasibility Report

This is a Business plan for a small scale ceramic Tiles and marbles manufacturing in Nigeria.

EXECUTIVE SUMMARY

The business plan is in to  investing in the Tiles and Marbles Industry in Nigeria. The proposed location of the business can be anywhere in the Country with easy access to the market both for the raw material and finished product.

Arguably one of the best investment vehicle in the world is housing development owning to a number of factors which includes the fact that shelter {housing} is one of the basic need of man, fixed supply of land and the ever increasing value of properties with time.

Nigeria with her current population estimated at over one hundred and sixty five million {165,000,000} growing at a rate of 3.5% per annum has a short fall in the supply of housing units that has been estimated to be between 16 – 17 million.

With an economic growth rate of 5.7% per annum in the past five {5}years ,Nigeria has witnessed a growth in the number of middle class families with the associated need to have a home of their own ,thereby further deepening the building and construction market in Nigeria.

It is on record that over 60% of the entire population of the country lives on rented accommodation. This indicates another latent market in the housing industry in Nigeria.

The global ceramics market is projected to hit $408 billion by 2018. Instead of tapping into this lucrative market, Nigeria is still importing over $600 million worth of ceramics products yearly.

The increasing need to build new residential houses, factories and offices to accommodate Nigeria’s large population has made production of marbles and tiles a very lucrative business in the country.

The market demand for quality tiles as obtainable in European countries such as Spain and Italy is rising on an alarming rate owing to the trends in the home, property, and real estate industry in Nigeria. The Proposed factory would produce Tiles in conformity to the European standards.

Industry drivers

West African Ceramics Ltd. (WACL) located in Ogun state in Nigeria, is the largest Ceramic Tiles manufacturing Company In Nigeria and recently with its  announced plans to invest over $50 million in the establishment of a state-of-art ceramic tile factory to improve productivity and capacity that would make it the largest in Africa.

Production plan

The production plant is expected to operate for 8 hours in a day and 300 days per annum. The plant is expected to produce   192 sq. meters of tiles in a day {working for 4 hours} and 192 sq. meters of marbles in a day {working for 4 hours}.

The Vision of the Company is to become the leading tiles and marble producer within the Southern Nigeria through the production of the finest quality product in the market.

The total manpower required to run the business is about ten {16} persons and Raw materials required for production would be locally sourced which includes, sand, water, cement, pigment and plasticizers.

 

Strategic Objectives

In other to meet all our target projections, We have created strategic objectives which are emboldened to:.

  • Achieve 100% high quality product that meet statutory and regulatory specification.
  • Achieve minimum customer satisfaction rating of 80% through constant monitoring and monthly feedback and analysis.
  • Ensure that at least 80% of the customer complaints are resolved within 3 working days.
  • Achieve minimum of 80% supplier performance evaluation annually.
  • Ensure productivity at established targets of 80% implementation of all actions.
  • Create at least 5 Super wholesalers with capacity for 100 packs monthly
  • Open an expansive market within the High Networth Dealership market
  • Work to get a market share of at least 5% within the 2 years of operation.

A number of risk as been identified in running a tiles and marbles production plant in Nigeria and we would attempt to proffer mitigation strategies to the identified risks. A major mitigation strategy is working with suppliers whose base of operations is close to ours in other to mitigate against Raw materials delivery breakdown

 

Machinery Requirement

Though We assume a slow-growth economy, without major recession but we do not foresee any changes in technology or market that would make our products and delivery obsolete.

Equipment Requirement
Machine Moulds
Mechanized Tiles materials Mixing Machine
Vibrating machine platform 
Weigh and Balances 
Material loaders 
Working Tools and Implements
 Finished Products Testing machine

Raw Materials

The raw materials required for production would be locally sourced and they include water, sand, cement, plasticizers and pigment.

Sand, cement, pigment and plasticizers are used for tiles and marbles production. Clinker or hard-burnt ash often contains harmful impurities and would not be used as aggregate unless it is found to be acceptable by laboratory test.

Sand and stone are fragments of rock and differ only in size. Sand particles will pass through a sieve with 4, 75 mm square openings while stone particles will not. All aggregates used would be clean and not contain organic matter such as roots or humus.

4 Production Process

Tiles and Marbles are  composite material composed of coarse granular material (the aggregate or filler) embedded in a hard matrix of material (the cement or binder) that fills the space among the aggregate particles and glues them together on the other hand provide a smooth and glassy surface.

Below is the production process for Tiles and Marbles.

  1. Batching – this is to ensure that the aggregate is well drained.
  2. Mixing – Following the batching, the aggregates together with the binder, as well as pigment if, required, are discharged into a mixer and thoroughly mixed and stored in the hopper ready for dispensing into the moulds.
  3. Filling of moulds – the mixed materials are set and filled in the mold with the help of the  vibrating platform machine.
  4. Compaction – This is  to enhance the quality and durability of the tiles and marble.
  5. Curing – the quality of tiles and marbles is improved by water curing.

Finance

The required startup capital estimate of the business is about  N9M million Naira of which includes production machine cost of about N6M.  lower scale of machinery would cost Less.

Projected Net profit before tax is  N9.8 million in the first year respectively with  Balance of cash flow and Net fixed assets at the same first year at N11.4 million and N.13.6million respectively. Payback is within the 18 months of operation. 

How to get the Business Plan

The detailed and comprehensive report according to scale of production cover can be made available to you on request. It will cover all the aspects of the project, from analyzing the market, confirming availability of various necessities such as plant & machinery, raw materials, manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the income statement, balance sheet and cash flow.

Terms and Policy

All Amanyyoung Consulting Feasibility reports, Business plans and Market research reports are not generic but customized and tailored to suit your requirement. They are produced after due consultation and production and cost baselines are mutually agreed with the users.

Customization of project is within 6 working days.

All reports and business plans are delivered through electronically means however client may require a hard copy be delivered in addition. This would be at a charge for delivery and printing cost.

Perhaps you need an assessment of the cost and timeline requirement for this particular Business  report you have read please complete the form below or drop us a line at

Call 0909 215 5870   or email your enquiry to youngoliki@gmail.com. you can also contact via the contact form below.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s