Sawdust Briquettee Production In Nigeria And Export Market; The Feasibility Report.

One major achievement of the present civilian administration in the past twelve (12) years has been the revival and growth of the non-oil export market in Nigeria. Non-oil export has recorded a tremendous increase of one hundred and twelve point four percent (112.4 %) in nine years spanning 2001 to 2010 with annual average growth figure of ten point thirty-four percent (10.34 %).

Hardwood charcoal is one of the key export commodities in Nigeria. Though a viable business but the rate at which new entrant are coming into the business is increasing depleting the rate of return on investment and also the recent announcement by the Government on a possible ban of the export of hardwood charcoal in order to control the effects of deforestation creates the need to diversify to a product with less competition and good rate of return on investment.

Sawdust briquette is compressed sawdust and just like hardwood charcoal is used as fuel. It has a greater advantage over charcoal and firewood because it is smokeless and combusts for longer hours. The export market for sawdust is also large, sustainable and expanding.

This report seeks to examine the financial viability or otherwise of establishing sawdust briquette production plant in Nigeria with the aim of exporting same to international buyers. The briquette would be produced from sawdust, a waste product gotten in the processing of woods.

The proposed capacity of the plant is four hundred (400) kg per hour and the plant would operate a double shift of eight (8) hour per shift and operate at seventy-five percent (75%) of the installed capacity for three hundred (300) working days per annum.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production and Export Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start Up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis 7.0 Managing Export Operations

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