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Over the years noodles have become an acceptable and domineering food component of most Nigerian homes because of its unique taste and ease of preparation, with the first noodle brand introduced into the country more than 20 years ago. It is a staple food which originated from Asia in the 9th century and then spread to Europe, the far east and the rest of the world with the major primary ingredient of production being wheat.
In the noodle industry of the country, there are about 17 players in noodle manufacturing with more than 30,000 people directly employed in the industry and more than 200,000 distributors employed. This has created a huge avenue for supplies for the flour milling companies, the refineries, the palm oil plantations, the packaging companies and the carton manufacturers with the consumption rate around 260 to 280 thousand tonnes per annum.
One of the challenges faced by the industry is the rising cost and availability of its primary raw material in this case which will be wheat powder. There is a global demand for wheat in the international market from the brewing industries, confectionary industries and also competition from the local industry. This places pressure on the commodity subjecting it to erratic price fluctuations.
However, The Federal Institute of Industrial Research Oshodi has researched into the use of roots and tubers as partial substitutes for wheat semolina in noodle production. The process technology developed has been perfected and is available for transfer to entrepreneurs.
PRODUCTION PROCESS (Courtsey of FIIRO)
PRODUCTION FLOW CHART
RESTING AND CONDITIONING
RAW MATERIALS SUPPLIES AND UTILITIES
The major raw materials for cassava-based noodles are cassava flour, wheat flour, salt, vegetable oil and noodle improver. The main items of supply are packaging materials and factory wears such as boots, coveralls, gloves etc. the major utilities are electricity, diesel and water. A 40KVA generator is needed as back-up for power supply.
LABOUR REQUIREMENS- Labour requirements consist of both skilled and unskilled. The manpower is made up of production, marketing, administrative and accounting personnel. About twenty-nine (29) personnel are required.
MACHINE AND EQUIPMENT-
The machinery and equipment for cassava noodle can be fabricated locally. The equipment list is as follows:
The total cost of machinery and equipment is N5, 650, 000.00 including 10% installation.
The estimated total initial investment is N13, 666, 720.00. this is made up of N10, 363, 750.00 initial fixed capital, N2,750, 000.00 initial working capital and N552,970.00 pre-production expense.
One plot of land is required for this project. The actual space required for factory construction is about 15m X 15m.
Production Days/Week 5
Production Week/Annum 50
Production Days per Annum 250
Production Volume /day 2 tonnes
Production Volume /annum 500 tonnes
Sales revenue from 325T (team) N60, 937, 500.00
Total production cost N51, 097, 860.00
Profit before Tax N9, 839, 640.00
Tax@ 30% N2, 951, 892.00
Net profit N6, 887, 748.00
Gross profit 16.1%
Net profit to sales 11.3%
Return on investment 50.4%
Return on equity 126%
NPV @25% N6, 045, 318.00
Break-even point (team) 39.8%
Payback period 1.4 years
Profitability index 2.1
The figures presented above is credited to Federal Institute Of Industrial Research, Oshodi (FIIRO)
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