This business idea is for the manufacturing and marketing of Scented phenyl. Scented phenyl is used as a disinfectant to clean wash basins, toilets, kitchen sinks etc. It is used in residential houses and commercial establishments such as hospitals, offices and shops etc., as a disinfectant and also for some pleasant smell. It is used in most households and other institutions like hotels and thus has good market potential. The business idea is premised on the production of 2,600 litres of scented phenyl per month which translates into 31,200 litres per annum. The revenue potential is estimated at NGN 1,300,000 per month translating into NGN 15,600,000 per annum with a sales margin of 58% and the total investment requirement is NGN 12,527,729 for the first year of project operation.
The production capacity depends on the number of raw materials and technology used in the production process. But for this case, the plant has a minimum capacity of 31,200 litres of scented phenyl per annum and this is on the basis of 312 working days in a year and 8-hour single work shifts in the working days.
The raw materials are weighed and put separately. After preparing the caustic soda solution, required quantities of resin, castor oil, light creosote oil and caustic soda solution, are mixed together in a reactor. After obtaining the final product from the storage tanks, the final product can be packed into bottles and ready for market.
Capital Investment Requirements (CBN exchange rate -$1 to 415.13 NGN) as of 14th june 2022.
|Capital investment item||Units||Qty||Cost in
|Cost in USD|
|Total cost of machinery||265,000||638.35|
Production and operating costs
|Pdn cost/ month in NGN||Pdn cost/ year
|Pdn cost/ year
|Light creosote oil||liters||
General costs (overheads)
| Cost Per Month
|Cost Per Year
|Cost Per Year
|Utilities(water and power)||3,000||36,000||86.736|
|Total Operating Costs||1,022,066||12,264,729||29,544.31|
- 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
|Pdn cost /yr
|Profitability Item||Per day||Per month||Per Year
|Less production and operating Costs||38,541||1,022,066||12,264,729||29,544.31|
Market for scented phenyl is growing due to good fragrance and also because of almost the same cost as that of ordinary phenyl.
The wide application in commercial establishments, hospitals, hotels, nursing homes and restaurants, etc., has carved a good market niche for this product.
Supply of Raw Materials and Equipment
Raw materials and machines can be imported from India or sourced locally .