Investing in PVC pipes and fittings
PVC or Vinyl as it is commonly called is used in different ways, including the construction of ceiling, water and drainage pipes, windows and doors, roofs, among others. It has been scientifically established that the material is environmental friendly, which informed the reason many people across the globe are changing to it.
PVC requires no painting. It is also termite resistant, fire proof, and typhoon rated. It adds beauty and taste to any building.
Aside this, products made from it are easy to maintain, anti-fungi, economical, easy to install, endure varying weather conditions and 100 per cent recyclable.
It is due to its many advantages that companies in the construction, automobile, electrical, advertising, textile, air-conditioning and refrigeration, among others use it for their products.
Findings have shown that demand for the products in the country and other West African countries is huge. And because the few companies already producing PVC pipes and fittings are not meeting local demands, consumers in the country have to depend on imported ones to fill the gap created by the shortage.
More investors are required to boost supply and cushion the expanding local demand.
However, for any investor to excel in the market his/her products must meet internationally acceptable standard as recommended by international Plastic Pipe and Fittings Association (PPFA). There are different standards for the production of water pipes, drain, waste and vent pipes, process pipe, sewer pipe, folded PVC pipes, among others.
To invest in PVC pipes and fittings, the producing plant will require at least two plots of land for take-off. The machines required, include hot/cooling mixer, automatic loader, twin screw extruder and calibrating system, vacuum and calibrating tank, water cooling tank printer, Haul off, cutter and stacker. Some of these machines could be fabricated locally, depending on the investors’ choice and also fund available.
Although, there are different sizes of PVC pipes in the market, the demand for some sizes are higher than others.
Aside the machines, the project needs constant power supply, meaning there is need for a standby generating set. The basic raw materials, which include resins and master batch are available locally. The production technology is also very easy to operate or learn.
The number of employees needed depend on the following departments, some of which are research and product development, design and manufacturing, testing/inspection and quality control, marketing, accounts and administration, and production delivering and installations.
Based on the cost evaluation, the sum required to set up the business varies. But it is worthy of note for new investors into the sector to make provisions for working capital and other operational expenses for minimum of six months.
It is also important to state that the profit margin is very encouraging with over 68 per cent return on investment within the first three years. The payback period cannot exceed two years if business is properly managed.
For successful implementation of this project, investors need to work with a consultant that would conduct comprehensive and bankable feasibility studies, site the project in a good location, and ensure that customers’ needs are met.
The consultant will also be on hand to guide prospective investors professionally to ensure good packaging, quality products, efficient/effective management and marketing teams for profits. All of this could be got on a turnkey basis.
Godwin could be reached at E-mail: email@example.com. Tel: 08034494437.
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