Cement Production Business

How to Start a Cement Production Business in Nigeria

Business Overview:

The Nigerian cement industry was one of the earliest import-substitution industries in the country, itis the building block of the nation's construction industry. Few construction projects can take place without utilizing cement somewhere in the design.

What is Cement Production?

This is the process employed in the manufacturing of cement, which  is majorly made from limestone and clay. These raw materials are extracted from the quarry crushed to a very fine powder and then blended in the correct proportions.

Types of Cement

1.      Portland cement: Portland cement is the most common type of cement. It’s a mixture of limestone and clay.

2.      Blended cement:the  blended cement contains certain natural or man-made compounds such as pozzolona, slag, and sandstone  mixed with portland cement clinker and ground together.

3.      Specialty cement: It’s used in specific applications like urgent repairs and super high strength applications.

How Profitable is Cement Production in Nigeria

Demand for cement is literarily insatiable making cement production in Nigeria  a lucrative business especially for those with the required capacity to run it.

House  is a scarce necessity and its demand has been on a steady rise in recent times especially among the young corporate class.

Is there a Market Demand for Cement Production in Nigeria ?  What is the Competition and Opportunities Like

With a population of over 140 million people and growing, the demand for and consumption of cement is expected to increase. Government however remains the largest consumer of cement in the country.

Even though the industry is a competitive one, maintenance costs and inconsistent government policies makes it extremely difficult for aspiring manufacturers to gain entry into the market.

However,  provided you can withstand the existence of high initial set up costs, and other government bottlenecks,with a standard business plan, there exist a mast wealth  of opportunities in this business.

How to start a Cement Production Business  in Nigeria

Follow the steps if you wish to start a Cement Production Factory:

1.      Source for Capital: Just like any other sector in the manufacturing industry, the cement manufacturing process is highly capital intensive. This is due to the heavy automation and machinery deployed in running the business as well as the construction of high capacity plants.

2.      Register Your Business name: Before you launch your cement company, you have to first of all contact the Government regulatory agencies. These includes the Standards Organization of Nigeria, National Health Insurance Scheme and CAC. These bodies will provide you with the necessary registration and licensing you need to operate your  business in Nigeria.

3.      Get The Equipment/Machinery Needed to Produce Biscuit:

The raw materials are the substances used in the production of the

cement. The materials include:

ü  Limestone

ü  Gypsum

ü  Water

ü  Jaw crusher-s

ü  Raw mills

ü  Kilns

ü  Coal mills

ü  Cement mills

ü  Packing plant (Silos)

4.      Choose  Your Location: This is important as a factory close to source of raw materials and the market will give you an upper edge.

5.      Provide a means of Transportation of raw materials: The presence of factory trucks or wagons to transport Raw material from the mining site to factory and then to the market is of paramount importance.

6.      Have a Price index: Your product price must not be too high so that it will not discourage potential clients.

Management

This covers staffing and advisers for Cement Production Business  in Nigeria

1.      Staffing: Due to the nature of the cement making process, the industry is highly labor intensive.

2.      Advisers: The advisers here are the veterans in the industry,  the big names that has been in the business for a long time, supplier of raw materials.

Marketing

Let us now consider how to market and boost the Profitability and sustainability of Cement Production Business in Nigeria.

1.      Advertisement Strategies:-  Below are some of the available options you might use:-

ü  Television and Radio adverts

ü  Billboards and Signboard

2.       Profitability/Sustainability Tips for Cement Production Business in Nigeria:-

The CEO should begin by acquiring comprehensive market intelligence  and developing a clear view of the micro markets the company competes in as well as its own position within them.

Understanding market dynamics is also important to help cement companies avoid  errors common to the industry.

Summary and Conclusion :