How To Start Air Freshener Business

Air fresheners are consumer products that mitigate unpleasant odors within indoor spaces. They can be in form of candles, sprays and gel and can also be used as a deodorant. They are an item that both household and public offices can’t seem to do without. The freshener is also commonly used in both public and home toilets.

The production capacity is estimated at 200 pieces per day, monthly production of 5,200 pieces and annual production of 62,400 which yields the TR NGN 31,200,000 per year, leading to net profit margin of 27% and payback period of 8 months.

Production Process

Air freshener cake is made out of Para dichlorobenzene, colour and perfume. These ingredients are properly mixed and moulded by using the fly press. The resulting gel of the freshener is packed to avoid the absorption of moisture, which weakens the freshener.

Capital Investment Requirements (CBN exchange rate -$1 to 415.40 NGN) as of 17^th July 2022.

Capital investment item	Units	Qty	Cost in NGN	Cost in USD
Drum mixer	No.	1	10,000	24.073
Bucket with Weighing scale	No.	3	6000	14.444
Packaging materials	No.	1,500	15,000	36.109
Total cost of machinery			31,000	74.627

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
Paradichlorobenzene	kgs	40,000	100	1,040,000	12,480,000	30,043.332
Perfume Color	kgs	10,000	10	260,000	3,120,000	7510.833
Sub-total		50,000		1,300,000	15,600,000	37,554.165

General costs (overheads)

	Cost Per Month NGN	Cost Per Year NGN	Cost Per Year USD
Utilities(water and power)	3,000	36,000	86.665
wages	10,000	120,000	288.878
Sub –total	13,000	156,000	375.542
Total Operating Costs	1,313,000	15,756,0000	37,929.706

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

Air freshener

200

62,400

500

15,756,000

37,929.706

31,200,000

75,108.329

Profitability Analysis

Profitability Item	Per day	Per month	Per Year NGN	Per Year USD
Revenue	100,000	2,600,000	31,200,000	75,108.329
Less production and operating Costs	50,000	1,313,000	15,756,000	37,929.706
Profit	50,000	1,287,000	15,444,000	37,178.623

Market Analysis

With increasing population and the need for improved living conditions, the demand for air freshener is also gradually increasing. The growing hygiene consciousness has attracted attention to this product. Hence, there is ready market in urban areas. Areas of target are: supermarket chains, retail shops, restaurants, hotels and tourist centers.