PALM KERNEL OIL (PKO) EXTRACTION BUSINESS PLAN IN NIGERIA
INTRODUCTION
Palm kernel oil is vital for the production of many products such as soaps, chocolates, chewing gum, washing powder, lipsticks, margarine, coating, ice cream, noodles and bio-diesel.
It is also widely used for cooking by some people and is not only cheaper than vegetable oils nuts also has a higher saturated fat content which allows it for a better and longer shelf life.
PKO is not just a newly discovered business but has existed for a long time, and is a real money spinner to entrepreneurs who are in it.
The market for this business is not only steady but it is a market that can never be saturated as there are no close substitutes to its use in many of the products that it is widely used for its production.
EXECUTIVE SUMMARY PALM KERNEL OIL(PKO) EXTRACTION BUSINESS PLAN IN NIGERIA
ACA Palm Kernel Oil Company leading palm kernel oil extraction companies in Ekiti State Nigeria.
We cater to mostly domestic, commercial and industrial clients.
We in ACA deal in the extraction of palm kernel oil from crushed palm kernel nuts into a crude or refined state depending on the request of our teeming clients.
We also sell the by- products obtained after extracting and refining the crude oil, while also offering consultancy services to start-ups who want to venture into the palm kernel oil extraction business as well as for research purposes.
We have procured the best crushing, extraction, and refining machines available that makes our extraction machines the best.
We also have processes and structures in place so as to be able to extract our palm kernel oils under the best standards possible.
Our packaging methods will be done with the hygiene of our customers in mind, as there are plans in place to ensure that we become the ACA Palm Kernel Oil Company established and owned by one of the biggest names in entrepreneurship here in Nigeria, Mr. Richard Akinyemi.
Mr. Richard bagged a B.Sc in Agricultural Economics and a Masters Degree in Business Administration from the prestigious Obafemi Awolowo University Ife.
He has the required experience of over 15 years to run this business along with his well experienced and vast knowledge team that will help him to successfully run the business.
Our business Objectives
- The aim of establishing this business is to favorably compete with other palm kernel oil extracting companies both in Ekiti state and in Nigeria as a whole.
- To be able to achieve a revenue of N 125, 000,000 in the next 3 years.
- To offer the best attainable service and make available wonderful services at reasonable prices.
- To maintain a positive image and give the satisfaction of our customers the best shot by exceeding their expectations.
OUR VISION STATEMENT
- To be among the first 3 palm kernel oil producing company in Nigeria and to compete favorable with our international competitors
OUR MISSION STATEMENT
- To achieve healthy returns in the first year of operation.
- To have a mid range gross margin throughout the entire operation.
- To give our customers the satisfaction of buying the best products and providing excellent customer service to earn their retention and referrals.
Our products and services include the following:
- Palm kernel oil (PKO)
- Crude palm kernel oil (CPKO)
- Crushed palm kernel shell for bio-fuel
- Palm kernel cake for animal feed production
- Training and consultancy services
SUCCESS FACTORS
- ACA palm kernel oil company is set to succeed because of the under-listed reasons
- There is currently no company with mechanized Equipment for palm kernel oil extraction in the region of the country. They use local methods for their oil extraction which makes productivity quite low. In addition, we have surveyed the local population and received extremely positive feedback from the community saying they will frequent our business before we launch.
- The business owner and the management team has a track record of success in the palm kernel oil business.
- Low operating cost and efficient processing technique
- We have efficient and highly motivated distributors on board.
- Our working environment is safe and conducive for both our clients and also our employees.
BENEFITS OF OUR PRODUCTS
We deliver quality and we’ll packed palm kernel oil products
We engage the help of competent hands and large machinery as well
We sell our products at fair and best possible Prices and we offer discounts as well.
COMPETITIVE EDGE
- Marketing By Packaging: Our products will be of great quality and our packaging will be top notch. This means that ACA PKO company will pay close attention to the final packaging. Quality products don’t just cut it alone, our packaging will be of equal high standard.We will imbibe international quality of packaging for our export activities.
- Our second competitive edge is the vast experience of our management team. We have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon. So also the wide varieties of other complimentary services and products that we offer and of course our excellent customer service culture will definitely count as a strong strength for the business.
- Procurement And Use Of Complete Equipment: For continued and uninterrupted production ACA Palm Kernel Oil (PKO) company uses complete equipment and these equipment are in the best condition and they can be obtained overseas.
MARKETING ANALYSIS OF OUR PALM KERNEL BUSINESS PLAN IN NIGERIA
We have identified up to 500 clients to supply Crude Palm Kernel Oil (CPKO) on weekly basis at market price of N 920 per Kg in a month yielding N 11,040,000 monthly and annual revenue of N 100,480,000.
In Ogun state our Palm Kernel Oil will be serving 300 customers on weekly basis at N 1,200 per keg and yielding N 12,120,000 on monthly basis and annually its N 110,440,000.
We will be selling Palm Kernel cake for animal feeds to 112 feed mills on monthly basis at N 10,000 per sack and in a year that’s is N 13,440,000.
For more detailed marketing analysis get our template or customized business plan today.
OUR TARGET MARKET
- Soap Manufacturers (small, medium and large scale organizations)
- Confectioneries
- Cosmetic industries
- Food industries
- Animal feed industries
- Bio-diesel industrial plants
SWOT ANALYSIS OF OUR PALM KERNEL OIL BUSINESS PLAN IN NIGERIA
STRENGTHS
- Very high gross margin
- Highly experienced owner-operator
- Large machinery built to withstand numerous demands from Customers
WEAKNESSES
- Limited business experience of book keeping
- Competitors offer similar products swiftly
- Limited startup fund
- High transportation cost
- Increase in insurance policy
OPPORTUNITIES
- Innovative entrepreneurs entering the market from time to time
- Continued expansion for online sales
- Development of wholesales/ retail distribution relationships
- Affiliate relationship with vendors and online marketers
THREATS
- Unfavorable government policies
- Stiff competition from competitors
- Increase in prices of raw materials
For the full details of our template or customized business plans which contain standard business plan table of contents such as Executive summary, business description, industry overview/trends, products and services, marketing analysis, sales and marketing strategy, organizational/ management structure, SWOT and PEST analysis, financial plan.
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