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The ever increasing deficit in housing supply in Nigeria which is estimated at over sixteen million {16,000,000} units and the need for the construction of other important infrastructure if the country is to meet up with the vision 20:2020 project of becoming amongst the top 20 economies in the world by 2020 continues to drive the need to cement, an essential construction raw material.
Cement is a binder, a substance that sets and hardens as the cement dries and also reacts with carbon dioxide in the air dependently, and can bind other materials together.Cement is the best known binding material. Over the period of time, different varieties of Cement have been prepared to accommodate all needs. Portland Cement is the most commonly used Cement and all other variants are derived from Portland Cement. Following are the types of Portland Cement Ordinary Portland Cement {Type I},Modified Portland Cement, Rapid Hardening or High Early Strength Portland Cement (Type III), Quick Setting Cement, Low Heat Portland Cement (Type IV), Sulphate Resistant Portland Cement (Type V), Water Repellent Portland Cement, Water Proof Portland Cement, High Alumina Cement,Portland Slag Cement, Air Entraining Portland Cement (Type I-A, II-A, III-A), Pozzolana Portland Cement, Supersulphated Cement, Masonry Cement and Expansive Cement.
Nigeria cement production capacity is between an estimated 26 million tons and 28 million tons per annum and the industry has witnessed 95.6 per cent growth in the span of 8 years, beginning 2005 to 2012.
Some of the cement producing company in Nigeria includes Dangote cement, Lafarge Cement, Wapco, Ashaka Cement, Northern Cement Company of Nigeria and United Cement Company Plc.
To secure dealership of any of the above one might need the following
1. Company Registration Certificate
2. Bank Reference Letter
3. Tax Identification Number (TIN) { which you require to open a bank account and secure the Bank Reference Letter}
4. Application Letter
5. Passport Photograph of the company's Proprietor/MD
6. Passport Photograph of the company's Representative
Cement are usually packaged in 50KG and minimum purchase of one trailer load that is 600 bags monthly is allowed.Ex factory price for the product differs from one producer to the other.
As dealer, your return on investment is a function of where and whom you decide to sell to. The average ex-factory price of cement in Nigeria is N1,000/ Bag and since one trailer load is 600 of 50kg bags each, the total investment required is N600,000 { Not inclusive of transportation}. Retailing at N 1,600, your grood profit will be N 600 x 600 bags = N360,000 . Selling to retailers at the cost of N1,350 would earn you N 350 x 600 bags = N210,000.
The cement should comply with NIS 444.1:2003. Strength class should be 42,5N or higher because the concrete must develop strength as rapidly as possible.
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At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.
Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.
You can order our detailed feasibility report on the supply of building materials [ Cement, Sand and Granite} in Nigeria by clicking on the link below.
Report Title: HOW TO MAKE HUGE PROFIT SUPPLYING BUILDING MATERIALS {CEMENT, GRANITE AND SAND} IN NIGERIA.
Report Code: FORA/2014/BUILDINGMATERIALS/88835542662
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