I need a $53,000:00 grant to start a plastic recycling plant
Brief overview of Plastic Industry in Nigeria
Realizing that the plastic recycling industry is fast becoming an essential sector to the Nigerian Economy as it is projecting itself to becoming contributor to the nation's Gross Domestic Product (GDP) after the Oil & Gas and Agricultural sectors. The industry has tremendous capacity for employment generation and revenue creation. Plastic recycling is relatively a lucrative business and given the population of the country and waste of plastic materials from various occasions of domestic usage, there are tons of plastic bottles and plastic waste lying around to be picked and be used for recycling.
A venture into this industry has now been reviewed by Economic Projectors has a creator of wealth and empowerment, plastic products enjoy nationwide demand and patronage. In fact, it is one the fastest selling consumer goods in the country today. The product is demanded all year round and is not affected by season.
The demand for recycled plastic materials is very high and it has been on an increase, from our research, the price for crushed plastic materials is from N100 per kg to N300 per kg. This depends on the quality supplied. The average cost per kg paid to scrappers is between N50 to N75. Again, this is dependent on the quality of materials. The demand for raw materials for production of plastics has a correlation with the total demand for plastics. The higher the quantity of plastics demanded, the higher the quantity of raw materials (including recycled raw materials) required to sustain production.
There is a process between the manual gathering of plastic materials and the manufacturing of finished plastics products where Hemi Gates has identified has the starting gap of becoming a player in the industry. This process crushes the plastics that are manually gathered, crush and supply the crushed products to plastic manufacturers as plastic raw material. The essential necessary of this process is key in plastic production. This proposed project will therefore • Collect waste plastics from the public via scavengers • Treat & Recycle the waste plastics • Utilize the treated recycled wastes in production • Bag and Sell off the recycled plastics granules to other plastic production plants
Vision : -
To be the most reliable plastic crushing company within the next 3 years and extend to up grading to a full Plastic Recycling Company by 2024.
Building Waste to Wealth
Requirements for a Plant Recycling Plant
The model day Plastic Recycling plant require the following machines: -
ü Cleaning machine and Drying machine
ü Water Supply
ü Crushing Machine
Financial analysis carried out indicates that the project is very profitable producing at 4,000 kg of products per day. The monthly cost of production which includes cost of raw materials is estimated to be N5.7 million Naira ($14,250) while all other expenses is an estimate of N3 million Naira ($7.500). Sales is estimated to be N10 million Naira ($25.000) per month. The company propose a turnover of N120 million Naira ($300,000) and an income estimate of N17 million Naira ($42,500) before estimated tax in the first year of operation. This is expected to be the same turnover for the second year with an income of estimate N24 million Naira ($60,000) in the second year while the expectation for the third year is a turnover of N 132 million Naira (330,000) and income after tax of N34 million Naira ($84,000). The cost of production and other expeneses is estimated to be N92 million Naira ($230,000:00) N92 million Naira ($230,000:00) and N105 million Naira ($263,000) concurrently for the 3-year period in operations.
The cash flows are very impressive and the return on investment is between 18 to months of operations. The return on investment for the company is 280% within the first 3 years of operations
Cash Flow Analysis: -
The cash flow analysis is based on the following assumptions:
· That the machines working in full capacity and we no problems with readymade buyers
· That we produce a daily production of 4,000 kg crushed materials
· That cost per kg is N45/N50 Naira
· That selling price is N90/N100 Naira