It was in the FRN news early morning today (24th March), as always, that the constant hike of cement price is soaring once again. The solution will definitely lie in matching up the demand with supply. This can be done if Nigerians will start thinking of making the cement themselves! How? By going into Small scale cement manufacturing.
India and China were able to survive the crunch of cement scarcity by doing the same. There are hundreds of mini cement plant in both countries. There has been a lot of suggestions in this regards for long - unfortunately no action. We have now broken the jinx by having a feasibility report after a long research and contacts. The executive summary is presented below ( However, we may not responsible for use of these information without our express permit). Needless to say here also that, it is a highly rewarding venture!
We are Nigerians with over 15 years of experience in cement manufacturing and equipment maintenance. If you feel you are interested and will be willing to either contribute or take up the project, please do not hesitate to make contact at enquiry@bb3tech.com
Executive Summary
Cement production business in Nigeria is a highly rewarding venture which is been exploited by only very few. The market is very much available to such an extent that only a fraction of the market is satisfied.
The major reason for non-exploitation of this business is the capital intensiveness of the venture. The small scale cement production plant (100 tons per day) is been proposed and presented to address this short-coming. The small scale cement plant is not a new technology and has been in practice in many parts of the world, including Africa. We have such plants in Ghana, Sierra Leone, Tanzania, Sudan, Gambia etc. It is quite unimaginable that with the much demand in cement, there has not been any in Nigeria until now. As a pioneer, any investor will have an edge before other investors get to know and exploit the business.
The following is the summary of the important high points of the feasibility studies.
ü Capacity of plant: 100 metric tons per day
ü Availability of raw material and fuel: Quite available locally
ü Total cost of plant purchase, erection and commissioning: between 500 – 800 million naira
ü Project Duration: 11/2 - 2 years (conception to completion)
ü Technical Competency: Technically competent engineers are available locally to run the plant
ü Projected Maximum Payback period: 2years
ü Total Gross income per year: Six hundred and thirty million naira (N630,000,000).
ü Total net profit: Three hundred and eighty three million, three hundred and ninety seven, five hundred naira (N383,397,500)
From the above, it must be said here that, any investor that pioneers the introduction of this small scale cement production into Nigeria, is going to benefit immeasurably. The feasibility study has shown that with available finances all other factors of production are positively available to ensure huge success and profitability.
In this study, suggestion on ways to further maximize net income have been analyzed and proven to be practicable.
Contact: enquiry@bb3tech.com
