HomeNigeriaHow to start nylon business in Nigeria? Business plan

How to start nylon business in Nigeria? Business plan

Nylon (polythene) materials have become essential in most Nigerian businesses as they are mainly used for packaging goods for both domestic and industrial use. The high demand for nylon materials, especially nylon bags, in a short time, produces a lot of profit for nylon business owners. This, therefore, makes the nylon production business in Nigeria a very lucrative one. The nylon business in Nigeria requires no stress to start thereby making a lot of young entrepreneurs that are innovative gain interest in the business. 

Nylon products are used daily all over the world. In Nigeria nylon is used to make bags and wraps to package food and non-edible goods like clothes, books, devices and the list goes on. Nylon products come in two major forms, thin (low density) and thick (high density) nylon forms. Thin nylon forms can be torn easily and are mostly used in local markets to package goods for customers. Thin forms are usually cheaper than thick nylon forms. Thick nylon forms are used for goods that require firmer packaging for protection. An example is edible goods that require to be shipped or transported from place to place. 

Nylon bags, a major product of nylon, are made in a variety of sizes and colours for different purposes based on the needs of the business. For instance, a waste collection company would most likely require large nylon bags that are black in colour and a crawfish seller at a local market would probably require small nylon bags that are transparent. 

Some disadvantages of nylon that one should know before starting a nylon business are:

  • Nylon is resistant to fire which makes it melt. Exposure to high temperatures would cause the nylon to melt. 
  • Nylon is not a breathable material, therefore, making it harmful to living things like humans and animals. 
  • Nylon is not biodegradable and can not be disposed of easily. The nylon waste products require recycling. 

Nylon Wholesale Business in Nigeria

Starting a nylon wholesale business in Nigeria is quite easy. With a strategic business plan and adequate finances in place, your nylon wholesale business in Nigeria can begin. 

Some things to know before beginning your nylon production business are the kind of raw materials needed, the cost of raw materials, the type and cost of machines required for production, the process required for your nylon products to be made, the human resources required, maintenance costs, your competitive environment, pricing of your nylon products and how to market your goods. 

The startup cost for a nylon wholesale business in Nigeria has become quite high due to the rapidly increasing exchange, however, the nylon production business can yield more than 50% in returns for investment once started. 

One can choose to sell one particular type of nylon product or a variety of them based on size, thickness, purpose and colour. 

The challenges faced by most nylon production companies is another thing entrepreneurs should be aware of before diving into the nylon wholesale business in Nigeria. A major challenge faced by nylon production companies in Nigeria is that of a low supply of electrical power. This issue leads to inconsistency and the slowing down of production. A solution to this is nylon business owners acquiring a means of power supply such as a generator that is suitable enough to power all the machines used in the nylon production process. In as much as this is a solution, it has the disadvantage of increasing the nylon production cost which leads to a decrease in profit. 

Another challenge is that nylon and plastic products, in general, are a hazard to the environment. Some consumers, after making use of their bought goods, do not properly dispose of the nylon bags. A lot of plastic waste is found in drainages, lakes and rivers, roadsides and so on. This is harmful and unpleasant to the environment. Some innovative nylon business owners resolved this issue by sorting out plastic waste and recycling them into nylon bags and other plastic products. This reduces the amount of plastic waste in the environment.

There is also the issue of machines being hard to find especially when going large scale in nylon production. Most nylon business owners resort to locally made machines.

How to Start a Nylon Wholesale Business in Nigeria

A few steps to starting a nylon wholesale business in Nigeria are:

  • Choose a nice – Decide on the kind of nylon products you would like to produce.
  • Do some research – Learn about the kind of products you would be making, observe your competitors and find out the total capital you would require for your business based on your choice of having either a large or small scale business.
  • Create a business plan – This is simply a strategic plan of your business objectives, goals, operations and summary of finances. This guarantees your business runs smoothly. 
  • Gather capital – Adequate funds required to buy machines, raw materials and all other costs should then be put together to start up the nylon production business.
  • Business registration – In Nigeria, registering your business is an essential step. This process gives you an insight into rules, guidelines and restrictions with regards to the running of your business. 

The machines required for a nylon production business are the extruder, cutting machine, blowing machine, printing machine, mixer and recycling machine.

The raw materials required are low-density polyethylene (LDPE), high-density polyethylene (HDPE) chips and colour pigments. 

The main procedures involved in nylon bag making are: 

  • Extruding – A machine called an extender is used to heat up and melt the polyethylene plastic pellets at a high temperature of 260°C or 500°F. After melting, colour pigments are added and the plastic is then rolled out flat with a die measuring out the desired thickness. 
  • Printing – The printing machine cuts out the rolled out plastic into different sizes or designs and it is then given the desired texture. 
  • Bag Making – This final procedure involves giving the nylon bags the appropriate finishing based on the function of the bags. Nylon business owners choose from the options of giving the bags zip locking, handles, holes, vents and so on.

In just a few minutes, thousands of nylon bags can be made. The finished nylon products are then packaged and sent out to be distributed to wholesalers and retailers. 

Small Scale Nylon Production in Nigeria

Starting up nylon production in Nigeria on a small scale could cost as low as N200,000. The amount could be less or more. This startup cost should be able to provide a locally made nylon cutting machine, raw materials ( LDPE and HDPE chips with pigments) and any extra costs. 

Nylon products, especially nylon bags, sell on the market for thousands of naira. For instance, a medium-sized set of nylon bags could sell for about N3,000 for a hundred pieces. This price of course depends on the thickness, texture and design of the nylon bags. 

On a small scale, a nylon production business owner can make profits of thousands of naira on a daily basis. In a year, one can be making a total profit of about a million to two million naira for a small scale nylon production business in Nigeria. 

Locally Made Nylon Cutting Machine in Nigeria

Entrepreneurs with interest in nylon production in Nigeria usually make use of locally made nylon cutting machines as they are easier to find, efficient and save on cost. 

Locally made nylon cutting machines are made from iron that is light in weight, therefore, making the machine easy to move around. The cutting machine includes features capable of bottom and side sealing as well as bag punching. The machine consists of four parts which are:

  1. Sealing machine
  2. Cutting machine 
  3. Roller
  4. Punching machine

The locally-made machine is used to make different types of nylon bags for different commercial purposes whether to package edible goods or non-edible products. 

The locally-made machines are easy to use and do not require a large supply of power as a small generator can do the job of supplying electrical power to the machines without any fault or damage. 

Nylon Bag Making Machine Price in Nigeria

The price of nylon bag making machines in Nigeria can be from as little as N20,000 to hundreds of thousands for a small scale nylon production business. For medium to large scale nylon production businesses in Nigeria, nylon bag making machines cost around a few million to tens of millions of naira. 

Nylon Production Companies in Lagos

In the last decade, the number of nylon production companies in Lagos has increased. There are now dozens of these companies in Lagos contributing a lot to the economy of the state. 

These nylon production companies, on a larger scale, produce not just nylon products but other products of plastic. They produce a variety of plastic products and distribute them within and outside the country. 

Thousands of job opportunities have been created by these companies in the last couple of years. 

The most popular of these companies are Veepee Industries, Kannie Plastic Limited and Poly Products Nigeria Plc. The oldest of them, Poly Products Nigeria Plc, was founded in 1965 and currently runs with a staff of about 2,400 people. 

Jakub Borowiec
Jakub Borowiec
Financial markets enthusiast. I studied management at the University of Economics in Wroclaw.
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