Excel-Wins Delicious Oil Nig Ltd

by Chigbundu Agbagbue in Aba, Nigeria

DESCRIPTION

We largely crack and separate Palm kernel Shells. Also extract Palm kernel Oil, Cake (PKO and PKC) and Sludge in Aba Abia State Nigeria. We have Palm Kernel processing factory in Aba, Abia State Nigeria . Our end products are Palm Kernel Oil (PKO), Palm Kernel Cake (PKC) and Sludge. All these products are in a high demand and already available demanding market in Nigeria. We have own newly built 70Ft by 50Ft warehouse on an eleven plots of land in a rural area about 2km away from Aba main town. We also acquired three used 15tons per day expellers and big Filter press. Also two fairly used 250KW Detroit generators for powering our factory, 45tons capacity tank for storage and more. Meanwhile we have ten employees currently working in our factory.

Me and project friends on meeting

THE PLAN

We have own newly built 70Ft by 50Ft warehouse on an eleven plots of land in a rural area about 2km away from Aba main town. We also acquired three used 15tons per day expellers and big Filter press. Also two fairly used 250KW Detroit generators for powering our factory, 45tons capacity tank for storage and more.

Meanwhile we have ten employees currently working in our factory.

Our Pressing Needs and estimated costs:

1. We need to connect to public power generation to reduce production cost to almost half. (Estimated $25,000 USD)

2. Four brand new 20tons Expellers from Malaysia to reduce cost and time in almost daily repairing and maintaining our existing three used ones. (Estimated $28,500 each plus $8,000 shipping = $122,000 USD)

3. Ripple Mill for Palm Kernel Shells cracking 6Tons per hour and Kernel Vibrator for Shells seperation from Malaysia ($23,800 USD)

4. About 65tons to 80tons Weighbridge to weigh vehicles supply us raw material and selling our products. (Estimated $25,000 USD)

5. To double our raw materials to at least 75tons to our existing 45tons to enable have double shift daily. (Estimated $30,000 USD)

6. Total estimations is $225,800 USD for now.

7. Our minimum monthly net income will be $30,000 USD. Breakdown will be forwarded immediately to you on a demand.

Meeting up with our Pressing Needs as stated above, will increase our workforce to twenty employees, place us on a high profit margin and make us to run daily without hindrance.

Our Future Projections Within 5 Years:

1. Increase our expellers to six in number within 24 Months as this is the current capacity of our warehouse, again this will increase the number of our employees to minimum of Thirty and increase our productive hence more profits.

2. Pay off our debts and all applicable interests within three years considering our agreement between us and lender.

3. (i) Establish refinery plant within five years to refine our Palm Kernel Oil PKO to vegetable cooking oil and our employees will not be less than fifty working in both plants.

(ii) Estimated budget to complete refinery plant as at March 2023 is $2,000,000 USD

Terms I will use here: Palm Kernel Oil is PKO and Palm Kernel Care is PKC. All amounts are stated on USD

1. Cost of 1ton of uncracked Palm Kernel is $106.67 and 3.5 tons of uncracked Palm Kernel is 1 ton of cracked Palm Kernels and the remaining are Palm Kernel Shells. Therefore the cost of uncracked Palm Kernel to a ton cracked is $106.67 x 3.5 = $373.35

2. 2.5 tons of cracked Palm Kernel yield 1 ton of Palm Kernel Oil (PKO) therefore a cost of cracked Palm Kernel for 1 ton of PKO is $373.35 x 2.5 = $933.37

3. A price of PKO currently is $1,333.33 therefore PKO gross profit is $1,333.33 - $933.37 = $399.96.

4. Our minimum productivity per daily considering the new equipment we are looking for ( 4 Palm Kernel expellers 20TPD each – 2 machines on both side of 1st and 2nd crushing) at least we will crushed and recrushed 15TPD of cracked kernels. Meaning daily minimum PKO will be 15 tons of cracked kernels divide by 2.5 = 6 tons of PKO x $399.96 = $2,399.76 PKO gross income daily.

5. Monthly PKO gross income is $2,399.76 x 5 days a week x 3 weeks a month = $35,996.40 (We are giving enough time for maintenances and unforeseen).

6. 2nd product is Palm Kernel Cake, seen on the video like dust. It is being use for many things in Nigeria and outside Nigeria but let us consider here the pig and poultry farms. These products are sold same or next day when the factory is ready to sell.

7. PKC is 50 – 55% of cracked Palm Kernel, meaning that 2 tons of Cracked Palm Kernel will yield 1 ton of PKC after processing.

8. Considering our minimum capacity of processing 15 tons of cracked Palm Kernel a day therefore we will have 15 divide by 2 = 7.5 tons of PKC daily.

9. 1 ton of PKC is sold at $133.33 x 7.5 tons daily = $999.97 as net income because it is 2nd product coming out during PKO production and PKO will take all the cost of production before considering its’ net profit.

10. PKC monthly net income will be $999.97 x 5 days in a week x 3 weeks in a month (Again I am considering enough time for maintenance and unforeseen) = $14,999.62 PKC monthly net profit.

11. PKC net annual income will be $14,999.62 x 10 months (considering bad weather and others) = $149,999.20

12. Going forward I will give you details costs of production but if I divide our PKO gross profit by 2 which is high, it means $35,999.40 divide by 2 = $17,998.20 PKO monthly net income

13. PKO annual net income is $17,998.20 x 10 months (considering bad weather and others) = $179,982 PKO annual net income.

14. Net income from 2 major products PKO and PKC (Sludge and Palm Kernel Shell will inclusive on this list) PKC $149,999.20 plus PKO $179,982 = $329,981.20 annual net income.

Above estimated profits are made at the lowest level. Our factory will be running daily and proper maintenance will be done. The said machines are strongly built and last so long (30 to 50 years and more), most parts are cast and we will have in stock the wearing parts (Baskets and Warms most specially). Our normal annual net income will be well over our estimated income stated above. We still have untouched opportunities here which I kept under future plan, like increasing 4 expeller to 6 which is the normal size of our current warehouse and establishing “PKO refinery” refining PKO to cooking vegetable oil and it will double our revenue. Depending on the size of the refinery, it is estimated between $1.5m to $2m USD.