Scented Candles are made with fragrant oils mixed into the wax, give off a pleasant aroma when burning. A Scented Candle is a nice touch in a bathroom, especially when guests are over, in a bedroom, or any room of the house.
A scented candle can create an ambience of healthfulness and well-being. Unlike incense, scented candles do not add smoke to the air.
The business idea aims at the production of 1300 wax candles per month which translates into 15,600 wax candles per year.
The revenue potential is estimated at NGN 1,950,000 per month, translating into NGN 23,400,000 per year. The total investment capital for this project is NGN 6,847,000.
Technology and Process Description:
The equipment used is simple and can be fabricated locally. The process involves wax and satiric acid which are melted in a mild steel mould.
The wick is inserted into the yet-to-be solidified candle and the molten mass is poured in the cylindrical mould and it is cooled by water and poured onto the floor. When completely dry, the wick threads are trimmed and then packed.
Capital Investment Requirements (CBN Exchange rate – $1 to NGN 414.72 as of 23rd of July, 2022)
| Capital Item | Qty | Price Per One NGN | Amount (NGN) | Amount (USD) |
| Candle Moulds | 1 | 100,000 | 100,000 | 241.138 |
| Charcoal Stove | 1 | 15,000 | 15,000 | 36.169 |
| Total Cost | 115,000 | 277.296 |
Production and Operation Costs
| Cost Item | Unit Cost NGN | Qty/ Day | Pdn Cost/Day NGN | Pdn Cost/Mth NGN | Pdn Cost/Year NGN | Pdn Cost/Year USD |
| Wax (25KG) | 25,000 | 1/2 | 12,500 | 325,000 | 3,900,000 | 9,403.935 |
| Stearic Acid (25KG) | 30,000 | 1/4 | 7,500 | 195,000 | 2,340,000 | 5,642. 361 |
| Candle Wick (100 Pcs) | 1500 | 1 | 1500 | 39,000 | 468,000 | 1,128.472 |
| Sub-Total | 21,500 | 559,000 | 6,708,000 | 16,174.769 |
General costs (Overheads)
| Cost Per Month NGN | Cost PerYear NGN | Cost PerYear USD | |
| Utilities | 2,000 | 24,000 | 57.870 |
| Sub-Total | 559,000 | 6,708,000 | 16,174.769 |
| Total Operating Costs | 561,000 | 6,732,000 | 16,232.639 |
Project product costs and Price structure
| Item | Qty /day | Qty/yr | @ | Pdn cost /yrNGN | Pdn cost /yrUSD | TRIn NGN | TRIn USD |
| Scented Candles | 50 | 15,600 | 1500 | 6,732,000 | 16,232.639 | 23,400,000 | 56,423.611 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year
NGN |
Per Year
USD |
| Revenue | 75,000 | 1,950,000 | 23,400,000 | 56,423.611 |
| Less production and operating Costs | 21,500 | 561,000 | 6,732,000 | 16,232.639 |
| Profit | 53,500 | 1,389,000 | 16,668,000 | 40,190.972 |
Market Analysis
The market for scented candles is available throughout the year.
