The opportunity involves the sale of an operational soap business that manufactures and markets its own brands of laundry, toilet and multipurpose soap in the low-end segment of the northern Nigerian soap market. Its brands of soap are already household names in the northern market and market leaders in the low-end segment of the Nigerian soap market. It manufactures its soaps through its sizeable ultramodern soap and noodles factory spread across 8 acres of space in Kano state. Some of the key facilities of the plant include the following:
- Steam generation – Thermax (LPFO) Boiler of four tons capacity per hour and two wood fire boilers of 4 tons and 6 tons per hour.
- Mihir cooling tower
- Tank farm with a total capacity of 1,500kl in 6 tanks for major raw materials.
- One weigh bridge with a capacity of 60 metric ton.
- One silicate digester plant with a capacity of 24 tons per day
- Sophonification plant for manufacturing laundry soap and soap noodles
- Toilet soap plant
- Packing machines
- Fully equipped laboratory with pilot plant for Research and Development
- Automatic Noodle Handling System – Available but not installed
- Automatic Talc Handling System – Available but not installed
- 3MT capacity lift for material movement – Available but not installed
- 40MT load shell for second weigh bridge available
The soap manufacturing plant has an installed capacity of 72, 50, and 72 tons of laundry soap, soap noodles and toilet soap respectively per day and its installed capacity is approximately 5% of the total laundry and toilet soap installed capacity across Nigeria.
The business opportunity presents the potential investors with the following amongst others:
- Potential to grow the business (installed capacity is more than 5x of existing sales) and become a top player in the personal care & hygiene market which is a 2 billion market according to CIUCI consulting.
- Potential forward integration opportunity for palm oil producers.
- Opportunity to double capacity with minimal civil works
- Opportunity to own one of the 3 competing plants in the whole northern market
- Potential to diversify into hand wash liquid soap with minimum investment by using existing infrastructure and utilities.
For more details, kindly contact Phoenix Global Capital Markets Limited via the following channels:
Telephone number: +234 803 353 2896
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.