There is no enough excuse to start a cooking gas business without a proper business plan. My simple advise is this, if you are willing to invest millions into a business, why not first risk a few hundreds of thousands to know if that business is worth investing your millions.Click to Order Mini Cooking Gas Plant Feasibility Report
I will show you want to do, how to do them and why you should do what I’m telling you to do. And it’s not because I want to control your life. Every business has secrets and strategies that work.
If you are looking for how to invest in the LPG business value chain, here’s your chance to the most profitable ones you can invest in right now with certainty of success. All of the 3 options requires government approvals or licensing. You need to confirm with DPR for the particular licence required for each of them.
The good news about cooking gas business is that it has enormous profit potential. The profit margin can make you go green in envy. The retail price for one kilogram (KG) of cooking gas sell as much as N400 in most cities.
While this same one kilogram of cooking gas is supplied to gas plants at around N165 to N230 per kilogram. Now calculate the profit margin for each kilogram. With this kind of margin, anyone would like to go into cooking gas business.
But some cooking gas businesses will soon be restricted for everyone to invest in, like the cooking gas plant setup. It’s not like that kind of restriction though. But they will need to stop more investors from building new cooking gas plants at some point in time.
Only those who are able to get into it now can actually be the monopoly of the future in cooking gas businesses.
How it Works
The cooking gas business offers the most important product in the market. Every family need to eat cooked food. Even the restaurants all need to prepare their meals before they sell. And the investor who makes this important cooking gas available smiles to the bank.
In the cooking gas supply chain there are three key investment potential you can tap into now. These three control how cooking gas gets to the final consumers in the country. And if you are interested in cooking gas businesses, these three are good way to start.
- LP Gas Refilling Plant
- LP Gas Cylinder Plant
- LP Gas Storage Plant
However, you may need the services of a consultant to help you in the setup process. Although, most Nigerian investors don’t understand the value of a consultant until they make giant size mistakes that cost them more money than they would have paid a consult to guide them.
We are going to look at these three cooking gas businesses and how you can start any of them. Note that the capital outlay provided here are all estimates. The cost might be higher or lower depending on some circumstances.
#1 – LP Cooking Gas Refill Plant
The cooking gas plant is the most profitable aspect of this business. It requires some bit of investment, but it has a higher return on investment. An average cooking gas plant can cost between N10 million to over N30 million to set up. But the profit margin is good enough to cover your cost within a short time.
Starting a cooking gas refill plant is one the easiest option in cooking gas business value chain. You can start an LPG plant in a location approved by DPR. The procedures for a startup are not complex.
All you need is the following:
- A land in a commercial location
- DPR LPG operating licence
- LPG plant of any approved size
- Site construction budget
- And some operation capital
Also, cooking gas plant by nature enjoys some form of monopoly that is as a result of government regulation and location requirements. This helps to eliminate competition and increases your profitability.
If you are looking at starting a cooking gas plant, I will advise that you first get some more detailed information, like How to Setup a Profitable Cooking Gas Plant Business Anywhere in Nigeria, by joining this free training online.
There are things you need to know about before starting the cooking gas plant. But you can get enough information from a business plan that outlays it for you everything you need to do about setting up your own mini gas plant.