Dry cleaning uses non-water-based solvents to remove soil and stains from clothes. It involves cleaning of clothing and textiles using an organic solvent rather than water. The solvent used is typically Tetrachloroethylene (perchloroethylene), in the industry and “dry-cleaning fluid” by the public. Dry cleaning is necessary for cleaning items that would otherwise be damaged by water and soap or detergents. It is often used instead of hand washing delicate fabrics, which can be excessively laborious.
Scale of Investment & Capital Investment Requirements
From this scale of investment, it is estimated at least 100 garmentswill be cleansed in a day. The Fixed & Working Capital Investment Costs for the first year of operation is estimated at NGN 894,500 and the TR is estimated at NGN 6,240,000 for the first year of project operation The payback for this idea 40% and the pay is at most 3 years and 6 months.
Production Capacity
It is estimated that 100 garments will be cleaned per day.
Raw Materials
The Raw materials required is Solvents, i.e.: Tetrachloroethylene
Process
A dry-cleaning machine is similar to a combination of a domestic washing machine, and clothes dryer. Garments are placed into a washing/extraction chamber (referred to as the basket, or drum), which is the core of the machine. The washing chamber contains a horizontal, perforated drum that rotates within an outer shell. The shell holds the solvent while the rotating drum holds the garment load. The basket capacity is between about 10 and 40 kg (20 to 80lb). A typical wash cycle lasts for 8–15 minutes depending on the type of garments and degree of soiling
Equipment
The Essential tools and equipments required are;Dry cleaning machine, Flat Iron, Garment bags, Ironing board, Clothes’ hangers and; Chairs
Capital Investment Requirements (CBN exchange rate -$1 to 415.05 NGN) as of 22nd April 2022.
| Capital investment item | Units | Qty | Cost in
NGN |
Cost in USD | |
| Washing Machine | No. | 1 | 60,000 | 144.561 | |
| Flat Iron | No. | 1 | 10,000 | 24.093 | |
| Garment Nylons | No. | 20 | 3000 | 7.228 | |
| Ironing Board | No. | 1 | 13,000 | 31.322 | |
| Cloth Hangers | No. | 50 | 3,500 | 8.433 | |
| Chairs | No. | 2 | 7,000 | 16.865 | |
| Generator | No. | 1 | 90,000 | 216.841 | |
| Total cost of machinery | 186,500 | 449.343 | |||
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 |
| Detergents | liters | 1,500 | 5 | 39,000 | 468,000 | 1,127.575 |
| Sub-total | 39,000 | 468,000 | 55,989.401 |
General costs (overheads)
| Cost Per Month
NGN |
Cost Per Year
NGN |
Cost Per Year
USD |
|
| Utilities(water and power) | 3,000 | 36,000 | 86.736 |
| Labour | 10,000 | 120,000 | 289.122 |
| Rent | 2,000 | 24,000 | 57.824 |
| Fuel | 5,000 | 60,000 | 144.561 |
| Sub –total | 20,000 | 240,000 | 578.244 |
| Total Operating Costs | 59,000 | 708,000 | 1,705.819 |
- 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 |
TR
In NGN |
TR
In USD |
| Laundry | 100 | 31,200 | 200 | 708,000 | 1,705.819 | 6,240,000 | 15,034.333 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 20,000 | 520,000 | 6,240,000 | 15,034.333 |
| Less production and operating Costs | 2,270 | 59,000 | 708,000 | 1,705.819 |
| Profit | 17,730 | 461,000 | 5,532,000 | 13,328.515 |
Market Analysis
The demand for dry cleaning services is very high in the City and busy Urban & Trading Centres.
Source of Supply of Raw materials:
Tetrachloroethylene will be sourced locally in Super markets and Chemical Shops.
Risk
The business involved with this idea is risks of breakdown in machinery. This is can be solved by repairing equipment or
replacements.
