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  17th 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

 

  1. Production is assumed for 312 days per year.
  2. Depreciation assumes 4 year life of assets written off at 25% per year for all assets.
  3. 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

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.

Sources of Raw Materials and Equipment

Raw materials are readily available in  markets in the chemicals industry and equipments are available in the market.

 

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