INTRODUCTION:
The
abundance of palm tree plantation in different Local Government Areas in
Nigeria makes the area a good site for establishing the palm oil mill. The
proposed palm oil mill will be called SWAG Oil Mill. The oil mill will focus on
the production of palm oil, palm kernel oil and palm kernel proceeds needed for
the making of soaps, pomade and even snacks. The products for this oil mill
serve as raw material for cosmetic industries, food and snacks making
industries. In the oil mill, palm fruits will be processed into different
products such as palm oil, palm kernel and by products for fire making. In the
industry, there would be machines for crushing and pounding of palm fruits,
extraction of palm oil, kernel oil and other by products.
This is a
business plan for any/different Local Government Areas in Nigeria. We
are Professionals in writing business plans, proposals, feasibility
study, etc.
The
establishment of this mill industry will cost about Ten Million, Five Hundred
Thousand Naira (N10,500,000) [Please note that this is an estimation for the government only, the business starting capital can be smaller and affordable for personal/single business men]. Since the
project is a community based project that will bring about development in Nigeria,
there would not be any financial spending for land acquisition; the community
is willing to give out one of the community’s land for the project. The only
amount of money needed for the land acquisition is about N300,000 for compensating the owners of the land before the
community takes over the ownership of the land.
Keywords:
Palm oil mill, Palm nut cracker
Palm oil mill equipment machineryalm oil mill design
Palm oil mill effluent treatment
Palm oil mill effluent
Saratok palm oil mill
New lambir palm oil mill
Palm oil refinery
Palm oil mill effluent definition
EXECUTIVE SUMMARY
In
establishing this mill, three main objectives are targeted:
·
Creating
employment opportunities
·
Providing avenue
for growth and development
·
Raising the
standard of living of the people.
Among
the various villages that make up different Local Government Area, the oil mill
will be producing some products as palm oil, palm kernel oil, palm kernel
powder and other stuffs used as raw materials for subsidy industries in Imo
State within the south eastern region. Industries that will benefit from this
oil mill include; the soap industry, cosmetic industries, beverages industries,
food industries etc. the oil mill will generate most of the local government
revenue as the products will make the village very big market for raw materials
for the above named industries. Also, it is possible that the industry will
contribute up to 60% of the local government financial generation. It is
estimated that the revenue generated by the mill will be up to N3 million a month.
Considering
the financial need of the proposed oil mill, the local government stands to
benefit more as it will not spend up to N1,000,000
in a month for the mills maintenance and payment of worker’s salary.
Also,
given that, there is much soap, cosmetics, food and beverage industries in neighbouring
cities and state, the mill will experience increase in sales of its products.
Before now, these industries that depend on palm products for production go as
far as neighbouring countries for the raw materials but with the establishment
if an oil mill in different Local Government Area in Imo State, most of them
will divert to SWAG Oil Mill for their raw materials.
BUSINESS DESCRIPTION:
As
stated in the introductory page, the name of the enterprise is SWAG Oil Mill.
It is a partnership business owned by a group of 5 individuals in collaboration
with the Different Local Government. Nigeria community will be the major source
of raw materials for the mill. The major materials are the palm trees
plantation in the area. Though the community have abundant palm plantation
which is part of its natural endowment, the local government will establish
improved breeds or species of palm that can produce palm fruits very fast. This
is to ensure constant production of the palm products.
Also, the proposed oil mill industry in Nigeria
would be established in a new factory building in the community. The community
has large land mass and it will be easy for us to have enough space for the
location of the industry.
MACHINES:
Digestion
of the fruit:- Digestion is the process of releasing the palm oil in the fruit
through the rapture or breaking down the oil bearing cells.
BUSINESS ENVIRONMENT:
The
land proposed for the establishment of SWAG Oil Mill is located at Nigeria
community in Different Local Government. The community is known for its palm
plantation which is in abundance and the fertility of its soil. The land is
vast, measuring about 2 hectares. In the land, we would erect a building which
will serve as a hall for the materials. There will be lass transport cost since
the mill is near the source of raw materials. Warehouses will be built for the
storage of the already processed palm.
MARKETING ANALYSIS:
The
palm oil mill has a very good prospect for surviving in the raw material market
for industries. Firstly, most of the small scale industries in Different will
patronize the mill industry, hotels, palm kernel oil and palm oil sellers in the
area can buy directly from SWAG Oil Mill in bulk. Secondly, the various soap,
cosmetics and food industries within Imo State can come to SWAG Oil Mill for
their raw materials. Industries in Aba, Enugu, and Port Harcourt can easily
locate the mill and buy the products. This will thereby reduce the transport
cost. SWAG Mill will increase the production and sales of palm produce in its
environs. This will result to increase in profit and profitability since there
are no too many competitors in the south east region market. The cost of
production will be low because most of the staff will be recruited from the
community and the source of raw materials for the mill is gotten from the
natural endowment within the environs.
MARKETING PLAN:
SWAG
Oil Mills have a team of good marketers and sales forces who will create public
awareness of the mill’s products. There would be an integrated marketing
communication between the mill and its target market. The mill’s product would
be communicated to the public through advertisement, public relations, sale
promotion and publicity.
There
will be proficient marketing professionals recruited for this purpose. Again,
the industry will make use of customer based pricing one of its pricing
strategy. It will also emphasize on quantity discount as a pricing strategy
also. The industry will make use of sales representatives and agents instead of
middlemen to avoid hoarding of the products, excessive price hike and low
customer’s satisfaction.
OPERATING PLAN:
The
production process for palm oil making is very vital and the procedures of
making palm oil are of 2 patterns: the old or ancient pattern and the new or
modernized pattern. Both patterns will be used.
The
following stages in palm oil making using the old pattern include the
following:
a. The first stage: the palm will be cut
from the tree in a bunk.
b. The
second stage: cut it from the bunk and after few days it will be selected.
c. The third stage: cook the selected with
a very big pot.
d. The fourth stage: pound in a big
mortar.
e. The fifth stage: sieve out the oil and
turn into a container.
f. The
sixth stage: package the container and the oil is ready for sale.
After this process, the kernels and the chaff will be separated from others for domestic uses and consumption.
The
industry will have different departments which will be divided into sub
sections room such as crushing room, the cooking room, the extracting room and
the canning room. There will be administrative and personal department and
marketing department. There would be machines for cooking, crushing and
extracting of the palm products. The cooking, crushing and extracting units
will work hand in hand in order to bring out the end products of the industry.
The marketing departments would be concerned for sourcing customers for the
products. The industry will also have its own palm plantation from where it
gets its raw material and the palm plantation will be made up improved breeds
to ensure constant supply of raw materials. There would also be warehouse for
stoning the products.
MANAGEMENT AND ORGANIZATION:
The
management team works hard to increase the sales, market shares and profit by
understanding the customers and the competition. He team is collectively building cohesive
marketing strategies for the products and creating maximum impact.
The
business is partnership between five people and these people collectively run
the business.
1. Mr. A: A gentleman with class and a business mogul. He is a
well trained manager. With his vast experience in management and entrepreneur,
he assumes the post of the General Manager. His knowledge will lead to
efficient and effective management of the industry.
2. Mrs B: An elegant lady and a B. Sc holder in Management and
M. Sc in Marketing from the University of Ghana, Legron. She takes the role of
assistant general manager. Her skills when applied will take the industry to
greater height.
3. Mr. C: The business guru, versatile in all aspect of
business takes the post of the Production Manager. His skills are needed for
the development of the industry.
4. Mr. D: With his educational background and qualification on
Accounting and Finance, his skills will be needed in recording the business
operations and analyzing our financial prospect. He will be the Financial
Manager.
5. Miss E: A business oriented lady, she get all the skills
needed in the taking the business to the next level. Therefore, she will be the
Marketing Manager.
With
this team, we believe our collective efforts will take the industry to greater
heights, enabling we to have market power in the industry.
FINANCIAL PLAN:
The
financing and funding of the project will come from the collective contribution
if the partners and also from the local government. Subsequently, the revenue
generated from the industry will be re-invested into the business and some of
the income will be shared among the partners. Hence, the financial requirement
of the proposed industry is analyzed below:
PROJECT ESTIMATE:
1.
|
Compensation
given t owners of land
|
|
2.
|
Erecting
of industrial buildings
|
|
3.
|
Acquisition
of machines and equipment
|
|
4.
|
Payment
of workers for the 1st 3 months
|
|
5.
|
Palm
plantation and cultivation
|
|
6.
|
Miscellaneous
|
|
Grand Total
|
Interest
rate = N60%
NPV = pvif0
(In
millions “000”)
Year
0
|
Year
1
|
Year
2
|
Year
3
|
Year
4
|
Year
5
|
(16,750)
|
12,500
|
14,500
|
16,800
|
17,500
|
18,200
|
NPV = 12,500
(1+60%) + 14,600 (1+60%) + 16,800 (1+60%) + 17,500 (1+60%) + 18,200 (1+60%) –
16750 (1+60%)
12,500 + 14,600 + 16,800 + 17,500 + 18,200
– 16,750
1.6
1.62 1.6
1.64 1.65
1.60
7812.5 +
5703.125 + 4101.56 + 2670.1 + 1734.9 – 16750
NPV
= N5,272,185.
The
assuming rate of interest rate of returns is 82%.
CONCLUSION:
It
is clear from the foregoing that the proposed oil mill in different Local
Government Area of Imo State is an attempt to promote human development project
in the area, create employment opportunities for the youths and create means of
generating more revenue for the local government. Hence, it is clear that the
proposal presents a new dimension of development.
CONCEPTUALIZATION:
The
proposed palm oil mill in different Local Government Area will be a very big
industry specialized in the production of palm products such as; palm oil, palm
kernel oil, palm kernel powder and other by-products from palm, which
subsidiary industries can used as raw materials for their production. Up to 100
tons of palm oil will be ready for sales and distribution on daily basis.
Having established business contact with most of the soap, cosmetics, and
beverage industries in Aba, Port Harcourt, Enugu, Onitsha, Kano, Kaduna, Lagos,
Abuja etc, the mill will distribute to them at any quantity they want.
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