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Investment opportunity - Starting a profitable small-scale Laundry Starch manufacturing business

May 3rd, 2008, 12:45 am · No Comments?> --> · 61 views --> ·
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There are tremendous opportunities inherent in the production of laundry starch, which is made from juicing cassava. A domestic or commercial Laundry Starch manufacturing plant can be started on a small scale with just an initial capital investment of  about N200, 000.

Starch is just one of the several by-products that can be extracted from cassava. Although it also serves as staple food for people who hail from the South-South geopolitical region of Nigeria, it is noted for its use in laundry and treatment of fabrics.

The use of starch, whether for domestic or commercial purposes, has, however, created a significant market for many Nigerians.

Starch can also be used as animal feed in addition to being used for preserving and maintaining some types of fabrics, especially linen material.

Even though laundry starch production has been on for several decades, only recently did it emerge in a new form of cold water starch.

Hitherto, the varieties of laundry starch found in the market place include packaged spray starch and the dry powder starch prepared with hot water, both processed and packaged in commercial quantity by big organisations.

There is also the small scale locally produced type. Apart from the difference in price and fragrance, all type of laundry starch serve similar purposes.

Agro experts say once there is regular supply of the primary raw material that is cassava, a potential investor can choose whatever area of specialisation that suits him.

Mr. Philips Adeojo, the Managing Director, Philsamar Nigeria Limited, producers of laundry starch and related products, states the importance of starch.

He describes it as a commercially viable product, capable of improving investors’ fortune in the short term.

He notes that starch is a commodity that has suffered from poor branding until recently despite its importance.

He said, “The value of the product and its importance cannot be overemphasized.

“What can possibly be done in the maintenance of the types of fabrics and clothes that we wear here in this part of the world that is not starch based?”

He provides insight on how the cold water starch, a new innovation that allows starch to be used for fabrics without requiring hot water, is applied.

He said, “The Liverpool cold water starch is in a class of its own and I am willing to share the knowledge with Nigerians, so that everyone can benefit, especially those who might want to invest in the business.

“With this cold starch, you do not need to use hot water to treat your fabrics, neither is it difficult to apply as it comes in dry powder form.

“All you need to do when you want to use cold water starch is to simply add the quantity you want to use to a proportionate quantity of water, then put the clothes or fabrics you wish to starch in there and that is all.”

Asked if cold water starch production is lucrative enough to attract big investors, Adeojo says, “Yes, the business is very lucrative. Presently, it is quite difficult to meet up with the demands of suppliers and distributors all over Nigeria. The awareness level is also getting higher, so we need to increase our production.”

On what a small investor or entrepreneur requires before going into the business, he explains, “Once the technical know-how is there, the major part of getting into the business has been solved.

“An investor or entrepreneur can choose to enter the business at any level that he wishes. However, with about N200,000, any small scale investor can go into the business.

“This amount is mainly for the purchase of the raw material needed for the production, which is mainly cassava or other carbohydrate-based tubers and grains.

“Part of this amount is also for the engagement of employees and some level of marketing. You need to have an appreciable level of marketing and exposure, since the use of cold water starch in the maintenance of fabrics is yet to become popular in Nigeria, unlike what is obtainable in other developed countries.”

He adds, “Basically, inadequate exposure to the potential of the business has been responsible for the slow rate of development and investors’ collective attitude to it.”

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