Startup Requirement for wood/paper glue Production from Cassava

Wood/paper adhesive commonly called glue is capable of holding materials together. It is often used by the carpenter for furniture making and in almost all their carpentry works. It is also widely used by book publishers to bind books during book publication.

The use of glue cannot be over emphasized as it is generally used for numerous purposes. It is readily available either as ready-for-use as liquids or as dry powders or gums.

Production of glue from cassava-based involves a chemical reaction during which appropriate quantities of caustic soda, hydrochloric acid, calcium chloride and organic acid is added to the cassava starch for proper dissolution and the solution is later cooled. Solution of preservative such as formaldehyde is added to the mixture to obtain homogeneous product.

Cassava has the appropriate properties that are very important glue and adhesive making, such as viscosity, consistency, storage life, solid contents, PH, tack and penetration.

Availability of raw material 

Cassava starch is the major raw material, and it is readily available in large quantities in all the southern states of the country.

Market potentials 

Demand for glue in Nigeria for various uses including wood work, paper and packaging is quite enormous. Different types of adhesives can be formulated to meet the requirement of different end users. This makes the business very versatile. It therefore, implies that a producer can decide to specialise in producing a particular type of adhesive or may produce different types based on demand to meet the needs of different end users.

Large percentage of the nation’s adhesive need is met through importation whereas domestic production accounted for only few percentage of the total supply. It is estimated that the nation’s demand for various forms of adhesives is in excess of 450, 000 metric tons per annum.

The average retail price of adhesive depends on the type of adhesive and the quality. However, the retail price of 5kg wood veneer ranges between N2,500 and N5000 depending on the brand.

Required raw materials 

The raw materials for production of cassava starch adhesive are: Cassava starch/cassava flour, caustic soda, formaldehyde, hydrochloric acid and sodium silicate. These are readily available in various industrial raw materials markets all over the country. Also, the nation is currently encouraging industrial utilisation of cassava and cassava products. Nigeria being the largest producer of cassava in the world, sourcing the major raw material i.e. cassava starch or cassava flour for this project will not be a difficult thing.

Machinery/equipment 

The major machinery and equipment for production of cassava starch adhesive are the adhesive reactor and the filling machine.

Production process 

Production of glue involves the following simple processing steps:

Weighing 

The raw materials are weighed accurately according to the formulation

 

Gelatinisation

The base material i.e. the starch is gelatinized in the reactor using caustic soda.

Acidification 

The gelatinised starch is acidified to normalize its PH.

Mixing 

Preservatives and extenders are added and the mixture mixed thoroughly to obtain homogeneous product.

Packaging 

The product is packaged in plastic containers ready for sale.

Labour requirement 

Both skilled and unskilled personnel are required for the successful operation of this venture. These consist of the production, administrative/account and marketing personnel. Staff matters, finance/account, store management, security, purchasing and other administrative functions are handled by the administration/account division, while the production division takes charge of production.

Marketing activities are the responsibilities of all the staff especially the marketing division staff. About 20 personnel are required for the project to take off.

Total initial capital investment

Initial fixed capital N10,302,190.00 

Initial working capital N5,455,830.00 

Pre-production expenses N901,560.00 

Contingencies N777,979.00 

Total N17,437,559.00 

Note: The initial fixed capital includes factory building, machinery and equipment, generator, project vehicle, office furniture and equipment and bore hole.

Profitability 

Return on Investment (Year 1) 51.1%

Return on Equity (Year 1) 127.7%

Net Profit to Sales 16.5%

Gross Profit to Sales 23.6%

Profitability Index 2.1

Breakeven Point (Year 1) 46.4%

Payback Period 1.4Years

Source

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