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    Date submitted
  • 19-Apr-2017

Extration of soya oil, from soy bea

Abstract

The main purpose of this business is to setup a Soy Bean processing plant that will produce edible and refined Soy Bean oil and large amount of Soy Bean cake, a high protein-content substance used in livestock farming. The impurities from the refining process is a veritable raw material in the aggro allied industry. The basic raw material for this project is Soy Bean, Concrete arrangement has been put in place for the purchase of adequate raw materials directly from the farmers.

The production capacity of the factory is 2MT of Soy Bean per Day. This will yield 1.9MT of cake stock, 160Ltrs of refined vegetable soyoil and other impurities. The average projected production capacity for a year is 23,040Ltrs per annum of refined oil, 2,736MT of cake stock per annum + impurities. The derivable income per day is N306,000.00 from the two major products, while an annual gross income of N88,272,000.00 is derivable.

The total cost required to kick start financing this project is N4,985,940.00, made up of N3,485,000.00 for acquiring the equipment/machines and their installation. Another N1,500,940.00 is required as the working capital. The working capital suffices for one week and will revolve until it accumulates and the business stands firmly. Profitability and viability analysis was carried out and the net profit margin is 18% while the return on investment is 84% using both fixed asset and current assets.

At the end of the first year operation, The Profit after tax stands at N16,227,000.00. While at the end of Three (3) Years of operation the Company cumulative Profit After Tax stands at N34,614,082.00. The company can conveniently pay back its borrowed capital after operating for two years. At full capacity, this project will employ 4 people initially directly and another 120 indirectly that would be involved in raw materials sourcing, supplying goods, finished product sales and marketing and other services, etc. the provision of these jobs at a time the domestic rate of unemployment is high will be a positive contribution to the national economy.

The financial, economic and market analysis shows the viability of this business plan even under high raw material cost, high utility cost and low capacity utilization.

Additional Questions

Who is your customer?

Scanning the market environment to identify the opportunities and threats to assist the company in its marketing policy is of immense benefit to this project. Soya Bean is an essential raw material both in the food and agro allied industry. It’s one of the basic ingredients that enhance urban growth and development. Vegetable oil, the basic product of this project is in great demand in Minna and in the adjoining towns and villages

What problem does this idea/product solve or what market need does it serve?

Sequel to the above market survey and upon realization of the fact that the refined oil and soybean cakeare in very high demand in the market, the products of TIMZAC NIG. ENTERPRISES . will be required by all and sundry both for private consumption, livestock and industrial use. TIMZAC NIG. ENTERPRISES . market segmentation includes but not limited to wholesale customers, individual/retail consumers, poultry/animal farm owners, and hotel/catering services providers. TIMZAC NIG. ENTERPRISES .

What attributes will make this idea/product successful? Why do you believe that those features will create success?

Establishing Soya Bean Oil Refinery in Minna, Niger State should be seen as a way of utilizing the abundant resources in the State. Soya Bean is grown in all areas in the State as there are well-over a 500,000 Ha available land area for its cultivation. The utilization of these areas has not been much before and now, This project will undoubtedly have a spill-over effect on the economy of Niger State as it has the potential to improve both the economic well being of Urban and rural dwellers.

Explain how you (your team) will execute to make this idea/product successful? What gives you (your team) an advantage over others already in the market or new to this market?

The company will recruited staff of eligible Management Personnel including skilled, semi skilled and unskilled labour with proven integrity and good working experience.