Business Plan on Groundnut Oil Executive Summary in Nigeria

Introduction

Groundnut Oil Production Business Plan in Nigeria is a business plan for groundnut oil production. Therefore, it’s very relevant for small and medium-scale groundnut oil processing mills. In fact, it’s very suitable for all sorts of vegetable oil. In fact, other related extraction business plan in Nigeria needs it too.

Furthermore, we develop a groundnut oil production business plan for vegetable oil manufacturers. We do the same too for distributors and marketers. So, if you fall in this category of business, this business plan is for you.

Overview

NCS Groundnut Oil is a start-up groundnut oil production and processing farm that is involved in the sales and distribution of quality and affordable groundnut oil (varieties), groundnut cake, and other groundnut oil derivatives targeting consumers in Northern Nigeria and also the international market. We are located in Barnawa Kaduna State.

The Company

NCS Groundnut Oil is established as a limited liability company owned by Jude Okon, Adebayo Tijani, and other investors. The farm is managed and directed by Jude Okon, a veteran in the Agric. industry with 8 years’ experience and Adebayo Tijani, an experienced Agro-allied specialist with over 15 years’ experience.

VISION

To be among the first 3 largest Groundnut oil producers/distributors in south-south Nigeria by 2024.

MISSION

To give our customers the very best products and provide excellent customer service so that we may earn their trust and ensure continued business transaction.
To provide an excellent, healthy and safe environment for groundnut oil milling, processing, packaging and distribution.

Related Business Plan:

OBJECTIVES

Increase revenue from the sales of crude palm oil to N30,000,000 over 2 years.
To maintain profit margins at 20-25% through close attention to expenses and cost of groundnut oil production.
To drive awareness and generate sales through mentions in both local print and digital media.

KEYS TO SUCCESS

Financial stability for purchase of dried groundnut.
Low operating cost and efficient processing techniques.
Ensuring an efficient and highly motivated distribution team.
Maintenance of Hygienic, safe and human friendly processing facility.
Acquire necessary regulatory licence for our processing mill.
Offer consistently quality processed products.
Outstanding customer service and faster processing duration.

Products and Services

NCS Groundnut Oil will sell groundnut oil products, including groundnut cake. We’ll also be offering hiring services of equipment to other business. We produce, process and package to meet standard organization of Nigeria and international standard. We are concerned about providing products that suit the many use of groundnut oil either for edible or industrial uses.

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The Market

According to United State Department of Agriculture, the groundnut oil production in Nigeria is 920,000 metric tonnes (MT) (2012), which is far below 1,315 MMT domestic demands in 2012, within the period a deficit of 470,000 were imported the same year to supplement the domestic production. This large deficit is definitely a huge market potential for small and medium scale local groundnut oil. What is more interesting about this fact is that the groundnut oil processed locally are cheaper and of higher quality provided the right condition are ensured.

Competition

Competitors for NCS Groundnut Oil are Sharada Oil Mills, Starlex oil and Agon Bello Global Services. NCS Groundnut Oil’s competitive edge includes the use of modern milling equipment which turns out high quality products, excellent customer service, the expertise of its founders, unique branding and penetrative marketing etc.

Management Team

Jude Okon

I have over 10 years’ experience in the Groundnut Oil production and sales. I have B. Agric from Obafemi Awolowo University Ile-Ife. I also have a master’s degree in business administration MBA from same school. I am in charge of strategic planning and management for the business.

Adebayo Tijani

I have worked with my father for over 15 years from childhood in which I consistently helped in co-running or managing his groundnut farming and sales business. I’ve also attended several training and organized workshops where I learnt how to run a Groundnut Oil production, processing and distribution firm.

We will manage the firm to profitability by strategic production, marketing and sales. We will provide quality assurance in our business by always upgrading our product and services to the taste of time. We will ensure excellence delivery of both products and services by employing more people with production, marketing and exemplary interpersonal communication skill. Our target is to build a team of exceptional goal getters and keep a steading assent of excellent performance.

Executive Summary of Groundnut Oil Business Plan in Nigeria

Financial Considerations

NCS Groundnut Oil seeks N10 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital. Funding for the launch of the business is provided primarily by equity from the partners and investors.

The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners. Revenue will top N174,880,000 with gross margin of 31% in the 1st year of operation.