How To Start a Banana Waffle Factory

Introduction:

Banana Wafers are a popular snack eaten world over. They are made by cutting bananas into thin slices. This project uses the banana variety and is readily available. Wafers can simply be eaten directly or as desserts and puddings. It is a cross cutting venture as it can be undertaken in both rural and urban settings. The project initial cost is NGN 3,683,500 producing 46,800kgs of banana wafers per year giving an estimated revenue of NGN 9,360,000 annually with a profit margin of 475 and a payback period of about 4 month.

Production,Capacity and Technology:

The Bananas can be peeled manually or using a peeling machine. They are then sliced and rapidly dehydrated to reduce the moisture content and then deep fried in cooking oil. Excess oil is extracted and the fried banana wafers are seasoned with salt and other spices as may be deemed necessary. The plant capacity is 150kg per 8 hours but there are also equipments with bigger capacity if needed.

The technology involved can be locally accessed , which makes it affordable.

Capital Investment Requirements (CBN exchange rate -$1 to 414.99 NGN) as of 25^th June 2022.

Capital investment item	Units	Qty	Cost in NGN	Cost in USD
Deep fat frying pans	No.	1	4000	9.639
Impulse sealer	No.	1	1500	3.615
Salt mixing drum	No.	1	4000	9.639
Weighing balance	No.	1	2000	4.819
Total cost of machinery			11,500	27.712

Production and operating costs

Cost Item	Units	@ NGN	Qty/ day	Pdn cost/ month in NGN	Pdn cost/ year In NGN	Pdn cost/ year In USD
Bananas	kgs	1,500	150	39,000	468,000	1,127.738
Cooking oil	litres	6000	5	156,000	1,872,000	4,510.952
Spices & Flavour	kgs	1000	1	26,000	312,000	751.825
packaging	packet	2500	150	65,000	780,000	1,879.564
Sub-total		11,000		286,000	3,432,000	8,270.078

General costs (overheads)

	Cost Per Month NGN	Cost Per Year NGN	Cost Per Year USD
Utilities(water and power)	3,000	36,000	86.749
Labour	10,000	120,000	289.164
Rent	2,000	24,000	57.833
Fuel	5,000	60,000	144.582
Sub –total	20,000	240,000	578.327
Total Operating Costs	306,000	3,672,000	8,848.406

Production is assumed for 312 days per year.
Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
A production Month is assumed to have 26 days.

Project product costs and Price structure

Item

Qty /day

Qty/yr

Pdn cost /yr

NGN

Pdn cost /yr

USD

In NGN

In USD

Banana Waffle

150

46,800

200

3,672,000

8,848.406

9,360,000

22,554.760

Profitability Analysis

Profitability Item	Per day	Per month	Per Year NGN	Per Year USD
Revenue	30,000	780,000	9,360,000	22,554.760
Less production and operating Costs	11,000	306,000	3,672,000	8,848.406
Profit	19,000	474,000	5,688,000	13,706.354

Market

Banana wafers are common among the urban population. With an increased shelf life, the wafers can be supplied to supermarkets, schools, hotels, hospitals, and with aggressive marketing, they can capture a lot of consumer attention even in the international market. They can also be produced in different styles or designs.