FEASIBILITY REPORT ON THE EXTRUSION OF PACKING BAG NYLON


Content

DISTRIBUTION TECHNIQUES

We shall purchase motor vehicle (Trucks) for the distribution of our products to various locations both within and outside Ifako town.

REGULATORY REQUIREMENTS

We shall comply with the regulatory requirements of NAFDAC, Standards organization of Nigeria (SON) and other regulatory agencies in the local government area. This will facilitate effective distribution of the product to give us competitive edge over our competitors.

 

FACTORS AFFECTING THE DEMAND FOR PURE WATER (PURE WATER)

a.      Poor weather

The demand for packing bags  is always at its lowest ebb during the raining season and the harmattan.

b.      Incessant power failure may affect the demand as cost of diesel consumption may be too high.

BREAKDOWN OF COST ITEMS IN TABLE 1.0

Fixed Costs:

1.      Land and building: A land will be acquired and the factory will be built. Both land and building are estimated at   N7,500,000

2.      Furniture and fittings: It includes office tables and fittings, air conditioners, tanks and taps. It is estimated at N 350,000

3.      Vehicles 2 bus/trucks:  will be bought at the total cost of    N1,500,000

4.      Generator plant: This will be bought at the cost of    N650,000

5.      Cutting machine: It has been estimated to cost 2,500,000 each hence 2 cutters shall be bought at N5,000,000

6.      Extruder machine : Extruder machine will be bought at the cost of N8,000,000

7.      Miscellaneous: This expenses includes the cost of installing the machine and compressors and other ancillary equipments needed to make the packing bags to be standard. Both cost have be estimated at  N150,000.

ESTIMATED COST FOR FIVE YEARS

TABLE 1.0

FIXED COST        YR.0              YR.1                        YR.2                YR.3                YR.4                YR.5

1.        Land & building      7,500,000             -                      -                              -                              -                              -

2.       Furniture & fitting     350,000              -                      -                              -                              -                              -

3.       Vehicles                     1,500,000           -                        -                              -                              -                              -

4.       Generator plant         650,000            -                       -                              -                              -                              -

5.       Extruder machine  8,000,000            -                       -                              -                              -                              -

6.       Cutting machine     5,000,000           -                        -                              -                              -                              -

7.       Miscellaneous            150,000            -                        -                              -                              -                              -

Total                       23,150,000

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