GOING into biscuit production is very profitable, especially at this time. This is because many of the various types of biscuits can be manufactured here especially where most of the raw materials are locally available and in abundance too. Biscuits are the most consumable wheat-based bakery product. They are highly nutritious, easy to digest, compact in size, can be preserved for a long time and are easily and cheaply transportable over a long distance because of their lightweight.The consumption of biscuits cuts across all ages and socio-economic classes. Biscuits are served with tea or coffee in offices and in homes. Children and the aged take them during parties everywhere and in all types of institutions. The domestic supply of biscuits consistently lags behind demand partly because their production has always tended to be on small scale and partly because hitherto most of the raw material inputs had been import-dependent. But with the harsh economic effects of austerity, the scarcity and high cost of foreign exchange and the forced need to look inwards for local raw material substitutes, there is hope today to fill part of the demand-supply gap by engaging in biscuit production using local raw material substitutes. One can engage in it on such a medium scale that will make investment in the project worthwhile once the finance for its execution can be arranged. On the other hand, however, it is also profitable to establish many small-scale biscuit factories to achieve the same purpose using not only locally fabricated machinery and equipment but also local raw materialsThe Market For BiscuitsBiscuits will never cease to be a favourite of both the young and the old especially, school children whose parents on the average spend between N80 and N100 daily on the products per child. Tea time is biscuit time and lunch time snacks.'Some of the factors that have helped promote high demand for biscuit as snacks in the country include the changes in people's eating habits, the ease with which these biscuits are picked up and consumed, the general working conditions operating in the economy, the increasing number of single workers, increasing population, greater urbanisation, improving standard of living and sophistication, the demand for bakery products etc. And with changing concepts of food and in lifestyles, the demand for the product has been on the increase.Bright prospects are therefore envisaged for new units to be set up in this area as research findings show that only about 50% of local biscuit demand is met by local producers. The balance is met by importation and smuggling. And now that there are bans here and there, there exists a nice opportunity to be exploited by those who are interested in this cash generator of a business.Biscuit TypesThere are many different types of biscuit imported and locally produced, which are available today in the Nigerian market. These include gem, malted, milk, coaster, digestive, sports, shortcake, marie, crackers, petitbuerre, chocolate, cabin, tea, cookies, coffee, trime, cones etc. Variation of the ingredients and flavour makes it possible for one plant to produce many of these varieties. There is a company in Nigeria known to produce about fourteen different kinds of biscuit. However, my recent survey showed that the average Nigerian biscuits producer concentrates on about three types at a time.The number and types of biscuits a prospective investor wants to produce depends on the amount of money he has to put in, the source and type of machinery and equipment, the number of moulds he has and the scale of operation he intends to operate.Raw And Packaging MaterialsThe major raw materials needed for biscuit production include fat, glucose syrup, corn flour, sugar, salt, ammonium bicarbonate, wheat flour, water, lecithin, sodium meta-bisulphate, butter essence, flavours etc. Of course these could be varied and in a bid to substitute most of the above standard raw materials with local inputs, such materials as coconut grits, cassava flour, plantain flour, etc. are being advocated and used. The packaging materials include cardboard, boxes, pre-printed nylon wrapping paper packets, glue, cello tape etc.Plant And MachineryThe machinery and equipment needed for biscuits production include different types of dough kneading and mixing machine, moulding machines, salt/sugar sprinkler, heavy duty oven moulder, stainless jacketed bowl for water cooling, conveyors, weighing scales, rack/collection tables, quality control laboratory equipment etc. The machinery and equipment listed above have very long life span and can produce up to 80% of its rated capacity in the first year once the relevant high performance conditions and good management practices are put in place.Production ProcessesProducing different types of biscuit mentioned above can be done by changing moulds, accessories and formulae because some production processes are common to them all. Generally, biscuit production involves processes like weighing and mixing the right quantities of the relevant ingredients, homogenising these into dough, compaction into the right measure and thickness, printing of the company's logo on the dough, cutting the dough into pieces, proofing, baking and colouring. Thereafter, the baked biscuits are arranged, cooled, packed, wrapped and packaged in cartons ready for delivery to the distributors and agents for sale to the ultimate consumers.Full details of the processes, the ingredients and their respective quantities per batch will be contained in a comprehensive and bankable feasibility the entrepreneur is well advised to have prepared on his behalf by an experienced industrial development consultant before he can safely and profitably embark on the establishment of the project.Manpower RequirementAbout 40 skilled, semi-skilled and unskilled people will initially be employed. Increase in the number of staff will depend on the scale of operation and the number of shifts to be operated. These will include all the relevant line staff needed for procurement, production, administration, sales and marketing. All these are locally available and in abundance.ESTIMATED PROJECT COSTN'000Machinery and equipment7,500Spare parts for three years 715Land and land development2,870Factory and office building15,000Furniture, fittings and equipment440Motor vehicle(s) and other utilities 8,790Pre-investment expenses750Working capital2,500Contingency 3,500 42,465The apparent high cost of this project as is shown here need not scare any determined investor because the figures are in line with the inflationary trend in the country and the current value of the Naira vis--vis the other world currencies. However biscuit manufacturing can profitably be undertaken on a smaller scale than is projected above and with the accommodation and machinery costs coming down considerably and competitively too. The appropriate feasibility report will be packaged in line with and to show the relevant costs of the scaled down components of the project.ImplementationTo implement the project, the investor needs a detailed, current and realistic feasibility report to enable him approach a bank for financial assistance. This is a very viable business. The machines are long lasting, need little maintenance, are reasonably cheap compared to the income they generate and have readily available spare parts. Most of the raw materials as well as the relevant categories of labour required to run the factory profitably are locally available. The market is assured and sustainable both locally and in the ECOWAS sub-region, Central and East African countries to which the project's products can be exported. It is highly recommended for visionary investors who are looking out for long-lasting, money-spinning business to invest in.ViabilityIf you have ever dreamt of joining the league of fast-track millionaires and you don't want your dreams to die with you then this is one project you should not think twice before picking up and implementing. Just take a hard look at the market alone both local and international. Any parent sending his child to school everyday without buying biscuits for him or her is certainly courting big trouble. The total cost of 'equipping' the kids with lunchtime snacks per month is high. It is conservatively estimated that the net sales in the first year will be N16,290,000 from which the net profit before taxation of N8,350,000 will be obtained. This gives a return of 51% on sale and of 23% on total investment. These figures are expected to increase in the following years as the project's brands get more popular and accepted and the manufacturing efficiency improves. The payback period of the project is short (about four and a half years ceteris paribus considering the level of operation, the profitability of the project and the high demand for the products.Success TipsThose investors who are seriously interested in knowing further what it takes generally to establish this project and indeed any other projects in terms of the details of sources an costs of equipment and other various assets, labour and acceptable management practices for optimum yield but who do not need a bankable feasibility report prepared for them can request from this writer for a copy of The Comprehensive IndustryProfile On Biscuits Production.For assistance in setting up this lucrative project, interested serious investors should please contact DON. ABRAHAM through P. O. Box 2919 , YABA 101011, Lagos , Nigeria .Emails : talk2dco@yahoo.com; wealthcreationideas@yahoo.com ; talk2dco@gmail.Telephones : 0812-478-3187 ; 0704-149-5314 ; 0803-725-1974 ; 01-8755-405) ; 0818 ' 555 - 1655
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