Scented Candles are made with fragrant oils mixed into the wax, gives 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 ambiance of healthfulness and well-being. Unlike incense, scented candles do not add smoke to the air.

The business idea aims at production of 1300 wax candles per month which translates into 15,600 wax candles per year.

The revenue potential is estimated at NGN 1,300,000 per month, translating into NGN 15,600,000 per year. The total investment capital for this project is NGN 115,000. 

Technology and Process Description:

The equipments used are 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 in the yet to be solidified candle and the molten mass is poured in the cylindrical mould and it is cooled by water and poured on the floor. When completely dry, the wick threads are trimmed and then packed.

Scale of Investment, Capital Investment requirements and equipment:

The scale of investment depends on the market available, but most especially the manufacturer produces on orders.

Capital Investment Requirements (CBN Exchange rate – $1 to NGN 410 as of 28th of May, 2021)

Capital Item  Qty  Price Per One NGN Amount (NGN) Amount (USD)
Candle Moulds  1 100,000 100,000  243.9
Charcoal Stove 1 15,000 15,000 36.6
Total Cost 115,000 280.5

 

Production and Operation Costs

Direct Materials, Supplies and Costs

Cost Item Unit Cost NGN Qty/ Day Pdn Cost/Day NGN Pdn Cost/Mth NGN Pdn Cost/Year NGN Pdn Cost/Year USD
Direct Costs:
Wax (25KG) 25,000 1/2 12,500 325,000 3,900,000 9,512
Stearic Acid (25KG) 30,000 1/4 7,500 195,000 2,340,000 5,707
Candle Wick (100 Pcs) 1500 1 1500 39,000 468,000 1,141.5
Sub-Total 559,000 6,708,000 16,361

 

General costs (Overheads)

Cost Per Month NGN Cost PerYear NGN Cost PerYear USD
Utilities 2,000 24,000 58.5
Sub-Total 559,000 6,708,000 16,361
Total Operating Costs 561,000 6,732,000 16,420

 

Project Product Costs and Price Structure 

Item Qty/Day Qty/Yr Unit Price TR/YR NGN Total Revenue(USD)
Scented Candle 50 15,600 1,000 15,600,000 38,049

 

Profitability Analysis Table

Profitability Item  Revenue Per Year NGN Per Year

Revenue Per Year USD

Revenue 15,600,000 38,049
Less Prod & Operating Cost 6,732,000 16,420
Profit 8,868,000 21,629


Market Analysis

The market for scented candles is available throughout the year. 

 

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