TISSUE PAPER / SERVIETTE MANUFACTURING BUSINESS PLAN

TABLE OF CONTENTS

Executive Summary

1.0 Executive Summary
1.1 Business Overview
1.2 Vision and Mission Statements
1.3 Objectives of the Business
1.4 Keys to Success
1.5 Summary of Financial Highlights

Company Overview

2.0 Company Overview
2.1 Business Description
2.2 Company Ownership and Legal Structure
2.3 Location and Facility
2.4 Vision and Mission Statements (Reiterated)
2.5 Business Goals and Objectives
2.6 Organizational Values

Products and Production Process

3.0 Products and Production Process
3.1 Product Description
3.2 Range of Products (Toilet Rolls, Facial Tissues, Napkins, Serviettes, Kitchen Towels)
3.3 Unique Selling Proposition (USP)
3.4 Raw Materials and Input Sources
3.5 Production Process Flow
3.6 Quality Assurance and Control Measures
3.7 Packaging and Branding

Industry Analysis

4.0 Industry Analysis
4.1 Overview of the Paper and Hygiene Industry in Nigeria
4.2 Size, Growth, and Structure of the Tissue Paper Market
4.3 Government Policies and Incentives
4.4 Technological Trends in Paper Manufacturing
4.5 Challenges in the Industry
4.6 Future Outlook of the Industry

Market Analysis

5.0 Market Analysis
5.1 Target Market Definition
5.2 Key Market Trends and Demand Drivers
5.3 Market Opportunities in Nigeria
5.4 Competitive Landscape
5.5 SWOT Analysis
5.6 Market Demand Projections
5.7 Market Entry and Growth Opportunities

Marketing Strategy

6.0 Marketing Strategy
6.1 Customer Segmentation
6.2 Go-to-Market Plan
6.3 Marketing and Distribution Channels
6.4 Pricing Strategy
6.5 Promotional Strategy
6.6 Sales Forecast (Units and Naira)
6.7 Branding and Customer Retention

Operations Plan and Management Structure

7.0 Operations Plan and Management Structure
7.1 Factory Setup and Location
7.2 Manufacturing Process Overview
7.3 Production Capacity Planning
7.4 Supply Chain and Raw Material Procurement
7.5 Equipment and Machinery Requirements
7.6 Staffing Plan and Job Roles
7.7 Management Hierarchy and Key Personnel
7.8 Production Workflow Diagram

Legal and Regulatory Requirements

8.0 Legal and Regulatory Requirements
8.1 Business Registration and Licensing
8.2 Environmental Regulations and Compliance
8.3 Health and Safety Standards
8.4 Quality Certification (SON, NAFDAC, etc.)
8.5 Tax Obligations and Regulatory Agencies

Startup Cost and Funding Plan

9.0 Startup Cost and Funding Plan
9.1 Summary of Startup Expenses
9.2 Breakdown of Capital Expenditure (Equipment, Factory Setup, Vehicles, etc.)
9.3 Working Capital Requirements
9.4 Funding Sources (Equity, Debt, Grants)
9.5 Funding Plan and Investment Proposal

Financial Plan and Projections (Part 1)

10.0 Financial Plan and Projections (Part 1)
10.1 Revenue Forecast and Assumptions
10.2 Projected Profit and Loss Statement (3–5 Years)
10.3 Cash Flow Projections
10.4 Break-even Analysis
10.5 Notes to Financial Statements

Financial Plan and Projections (Part 2)

11.0 Financial Plan and Projections (Part 2)
11.1 Projected Balance Sheet
11.2 Key Financial Ratios
11.3 Sensitivity and Scenario Analysis
11.4 Investment Return Summary (ROI, Payback Period, NPV, IRR)

Risk Assessment and Mitigation Strategies

12.0 Risk Assessment and Mitigation Strategies
12.1 Market Risks
12.2 Operational Risks
12.3 Financial Risks
12.4 Regulatory and Environmental Risks
12.5 Mitigation Strategies

Implementation Timeline and Milestones

13.0 Implementation Timeline and Milestones
13.1 Pre-Operational Phase
13.2 Factory Setup Phase
13.3 Production and Market Launch
13.4 Expansion and Growth Phase
13.5 Detailed Gantt Timeline

Conclusion and Recommendations

14.0 Conclusion and Recommendations
14.1 Summary of Key Findings
14.2 Strategic Recommendations
14.3 Final Remarks

1.0 EXECUTIVE SUMMARY

1.1 Business Overview

LagosSoft Tissue Manufacturing Ltd. is a proposed medium-scale tissue paper and serviette production company to be located in Ikorodu Industrial Estate, Lagos State, Nigeria. The business will specialize in the production and distribution of high-quality toilet tissue rolls, facial tissues, serviettes, jumbo rolls, and kitchen towels for both domestic and commercial use.

Nigeria’s tissue paper industry is currently experiencing exponential growth driven by population expansion, increased urbanization, and rising hygiene awareness. Lagos, with over 20 million residents and thousands of businesses in the hospitality, corporate, and retail sectors, represents the largest single market for tissue products in West Africa.

Our company aims to bridge the existing supply gap by manufacturing affordable yet superior-quality paper products using locally sourced raw materials and modern automated equipment. LagosSoft Tissue Manufacturing Ltd. will operate with a production capacity of 3,000 metric tons per annum in its initial phase and will expand gradually to meet nationwide demand.

The company will position itself as a leading Nigerian hygiene brand that emphasizes quality, sustainability, and value for money, offering customers a range of products that meet both household and corporate needs.

1.2 Mission Statement

To manufacture and distribute high-quality, eco-friendly tissue paper and serviette products that promote hygiene, comfort, and affordability across Nigerian households, businesses, and institutions.

1.3 Vision Statement

To become Nigeria’s leading brand in tissue paper and hygiene product manufacturing within the next five years, known for quality, innovation, and sustainability.

1.4 Core Values

• Quality: Delivering superior products that meet national and international hygiene standards.
• Integrity: Conducting business with transparency, honesty, and accountability.
• Innovation: Continuously improving processes and introducing new eco-friendly product lines.
• Customer Satisfaction: Building long-term relationships through consistent service excellence.
• Sustainability: Promoting green manufacturing practices that protect the environment.

1.5 Objectives

1. To establish a fully functional tissue manufacturing plant with an initial production capacity of 3,000 tons annually.
2. To achieve a minimum 20% market share in Lagos within the first two years of operation.
3. To maintain a gross profit margin above 35% through efficient production and sales management.
4. To expand into other Nigerian cities (Abuja, Port Harcourt, and Ibadan) by the third year.
5. To introduce biodegradable and recycled paper product lines by the fourth year.

1.6 Keys to Success

1. Efficient Production Process: Leveraging automated converting machines and quality control systems to minimize wastage.
2. Strategic Distribution: Partnering with supermarkets, wholesalers, and hospitality businesses to ensure consistent market reach.
3. Competitive Pricing: Balancing affordability with profitability by sourcing raw materials locally and optimizing logistics.
4. Strong Branding: Building consumer trust through attractive packaging and hygiene certification (e.g., NAFDAC approval).
5. Customer Loyalty Programs: Encouraging repeat business through incentives and discount structures for bulk buyers.
6. Sustainability Practices: Using recyclable packaging materials and environmentally friendly production methods.

2.0 Company Overview

2.1  Products and Services Summary

LagosSoft Tissue Manufacturing Ltd. will produce and market the following paper hygiene products:

All products will be available in different pack sizes and price ranges to accommodate both low-income and premium customers.

2.2  Industry Overview

The Nigerian tissue paper industry has shown steady annual growth of 10–12% over the past five years, fueled by population growth, urban migration, and increasing demand for sanitary products. The sector is moderately fragmented, with few large-scale producers (e.g., Bel Impex, Fynix Paper, and Rose Brand) and numerous small-scale converters.

Despite this, the market remains underserved, with the local industry meeting only about 60% of domestic demand, leaving room for new entrants like LagosSoft Tissue Manufacturing Ltd. to thrive.

Globally, tissue paper consumption correlates with hygiene awareness, and as Nigeria’s middle class expands, demand for premium-quality products is expected to surge. The government’s emphasis on local manufacturing under the Nigerian Industrial Revolution Plan (NIRP) further encourages local production, reducing import dependency and creating new employment opportunities.

2.3  Market Opportunity

Nigeria’s current annual demand for tissue paper is estimated at over 180,000 tons, while local production capacity stands at around 120,000 tons. This gap of 60,000 tons represents a huge market opportunity valued at over ₦120 billion annually.

Lagos alone accounts for 40% of total national consumption, given its dense population and concentration of commercial activities. Demand is particularly high among:

• Supermarkets and retail outlets.
• Hotels, eateries, and event centers.
• Corporate offices, schools, and hospitals.
• Households and individuals purchasing daily-use hygiene products.

2.4  Startup Capital Requirement

Based on market assessment and operational planning, the estimated startup cost is ₦85 million, covering:

Funding will be sourced through:

• Equity capital (40%) from shareholders.
• Bank of Industry (BOI) loan (40%).
• Microfinance/SME grants (20%) for equipment acquisition.

2.5 Ownership and Management

SoftTouch Tissue Manufacturing Company will be owned and managed by Mr. Adewale Okoro, an entrepreneur with over 10 years of experience in the paper products and FMCG sector. The management team will comprise:

2.6 Legal Structure

SoftTouch will be registered as a Private Limited Liability Company (Ltd), which allows for long-term capital growth, investor participation, and business continuity. This structure will also enhance credibility with distributors, banks, and suppliers.

2.7 Location and Facilities

The factory will be located in Ikeja Industrial Estate, Lagos, due to its proximity to raw material suppliers, ease of distribution, and availability of skilled labor. The facility will occupy a 1,000 square meter space, featuring:

·       A production area

·       Raw material and finished goods warehouses

·       Administrative offices

·       Packaging and labeling section

·       Staff rest area and restroom facilities

3.0 Products and Production Process

3.1 Product Line

SoftTouch Tissue Manufacturing Company will produce and market the following range of paper hygiene products:

3.2 Unique Selling Proposition (USP)

SoftTouch will stand out in the Nigerian market due to:

·       High-quality products that meet SON standards.

·       Eco-friendly production using biodegradable raw materials.

·       Attractive packaging suitable for both retail and wholesale distribution.

·       Competitive pricing and flexible supply options for large orders.

·       Efficient distribution network ensuring timely delivery across Lagos and beyond.

3.3 Production Process Overview

The production of tissue and serviettes will follow a semi-automated process to ensure efficiency, cost control, and consistent product quality. The key steps include:

1.     Raw Material Preparation: Jumbo reels (virgin pulp or recycled paper) are sourced locally or imported.

2.     Rewinding and Slitting: Jumbo reels are rewound into smaller logs of desired size and thickness using a rewinding machine.

3.     Embossing and Perforation: The rewound logs are embossed and perforated to create softness and tearing convenience.

4.     Cutting and Trimming: The perforated logs are cut into standard roll sizes using a band saw cutting machine.

5.     Packaging: Rolls are automatically wrapped and sealed in branded nylon packages (6, 10, or 12-roll packs).

6.     Cartoning and Storage: Packaged products are placed in cartons and stored in the finished goods warehouse for distribution.

3.4 Production Capacity

At full operation, SoftTouch will operate two production lines capable of producing:

3.5 Raw Materials

Key raw materials for production include:

·       Jumbo paper reels (virgin pulp and recycled paper)

·       Core paper (for roll center)

·       Polyethylene packaging films

·       Glue and adhesives

·       Printing inks and labels

·       Carton boxes

Suppliers will be sourced from local vendors in Lagos, Ogun, and Anambra States, and where necessary, imported from China through verified suppliers.

3.6 Machinery and Equipment

Major production equipment includes:

Total Estimated Machinery Cost: ₦22,800,000