HOW TO START A PAINT PRODUCTION BUSINESS IN NIGERIA
How To Start A Paint Production Business In Nigeria . Nigeria is dominantly a ‘consumer’ nation. Now, more than ever, Nigerian entrepreneurs need to be more aware of the present state of the economy as against global economy, so as to come up with ways to industrialize the nation. This is the perfect time to establish a manufacturing company of your own, which will not only contribute to the country’s gross domestic products, but will also help generate employment for the nation’s unemployed and can lead you to financial freedom.
Starting a paint production business is not as difficult as it sounds. This is a business you can easily start from small and then watch it grow steadily into relevance in the industry.
Here’s how to start a paint production business in Nigeria;
Even when you may not be the one actively involved in the paint production, it is still necessary that you know how to make paints. Everything from the chemicals to be uses, raw materials, tools and equipments etc, should be well studied before you even start out.
There are a lot of training centres around you that provide training on industrial chemicals; such as paints. It is your duty to get affiliated with them, get enrolled and immediately start the training process. Usually this may not even last up to three months. Alternatively, you can decide to learn on your own, by enrolling for online courses that show you how to make paint, using videos. However, it is better to opt for physical training.
Learn how to produce different kinds of paints like:
- Emulsion paint
- Textcoat paint
- Flextured paint
- Textured matte paint
- POP emulsion paint
- Marble trowel paint
- Satin or nylon paint
- Matte eggshell
- Graffittex paint
- Gloss or oil paint
- Anti-rust paint
- Flex coat paint
- Base coat paint
- Varnish paint
- Undercoat paint, etc
Conduct a market survey
To start your business on sure footing; go ahead and run a market survey to help you study your various customers capabilities, such as buying potential and spending habits.
Your market survey will help you understand your target customers, their characteristics, and help you tqo know what exactly they expect from your business. The number one purpose of your market research is to gather quality information about your customers and potential customers. The information gained and data collected will be used in decision making of your business. With this, you can easily know what your customers want and how best to present it to them.
Write a business plan
Starting your company without a detailed business plan in place can be a disaster. Don’t do it. After conducting your market survey; even before running another project; you should first come up with an effective business plan for your startup. Why? Well, first and foremost, a business plan is to be used to enhance the smoother running of your company with a more cohesive vision. It is your roadmap. By truly analyzing your plan for marketing, sales, manufacturing, etc, you greatly increase your chances for success.
The second reason is that you may need financial aid from financial institutions, and without a well-written business plan in place; that may seem futile. This means that a financial institution or lender will not invest in your company, unless you can demonstrate that you have a clear roadmap to success. Banks want to mitigate their risk of default and private investors, like Angels, want a realistic forecast for when they will be reaping a return on their capital.
Registering your business
Once your business plan is in place, you should go register your business with the Corporate Affairs Commission of Nigeria (CAC). Your registration should be done as a limited liability company (LLC). You should visit the CAC official website www.cac.gov.ng for more details
Once this is done; you’re ready to formally start your business
Siting your factory
Your factory has to be located closer to your target market. Proximity to the target market is very important because you want to be able to deliver your products on time. So, wherever you choose to site your business; you should ensure that it is closer to your target customers. Now, the size of your factory will largely depend on the scale of production
Equipments required for paint production
These are some of the most basic equipments you will need to get for your paint factory:
- An electric powered grinding or milling machine. This is used for the grinding of pigments and processing of any solid particle to be used as additives in the paint making. You can either choose to buy this machine, or have it manufactured locally for a price of between N40,000-N65,000 depending on the size.
- An electric powered mixer. A good mixer should be able to mix liquid that has up to 50% of the thickness of grease or engine oil. A good quality mixer is required for mixing substances into paste. They cost around N20,000-N40,000, again depending on the size.
Materials for production
The basic components required for paint production are these;
- The solvent: Some of the major paints we use in Nigeria are usually oil-based paints which are usually shiny and glossy; or water-based which are not
- The pigment: This gives the paint its colour
- Customized container: Prepare in advance, for a unique branding and customizing of your storage container. You can easily contract a plastic company for this and negotiate a price with them for the mass production of storage containers for your paints. Doing this will give your appearance and boost competitive pricing as well.
Paint production chemicals
These are the chemicals to be used for the production of many types of paints. They are readily available in the market and can be found where chemicals are sold in markets.
Here’s a list of some of the chemicals you will be working with:
- Titherm( used exclusively for producing white paints)
- Calcium carbonate
- Marble dust
Start up costs and requirements
Your startup costs and requirements largely depends on the scale of production of your business.
Small scale production For this type of production, your equipments will range from;
- A mixing tank
- Sand mill, and
- Paint filter
You have to hire workers to man the equipments and deliver the paints. Start up costs should be between N2,000,000-N10,000,000
Large scale production for large scale production, you have to buy an automated paint plant,which is very expensive actually ( although you can recover that easily, once you start supplying). With this type of production scale; you’re looking at a startup cost of N18 million and above
Profitability of paint production business
Is paint production business profitable? Absolutely!
The cost of producing a 20-litre bucket of paint is N400 and is sold for N4000. So if you produce 1000 litres on a daily basis; you can generate up to N4000×50= N200,000 in revenues everyday
With this kind of profit margin, I don’t see what should stop you.
List of paint manufacturers in Nigeria
Infinity paints international Ltd
Intercolour industries Ltd
Precious paints Nigeria Ltd
Premier paints PLC
President paints Nigeria Ltd
Sloak paints Nigeria ltd
Risks involved in paint production business
Every business has risks, it is your ability to manage them that will determine your success. The paint industry likewise has a number of problems facing it, among them are;
- Inadequate capital and resources
- Frequent breakdown of machines
- Incompetency of workers
- Lack of access to distribution channels
- Delay of payment by the distributors
- Lack of support from the government
- High numbers of paint manufacturers
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