Starting a Tissue Manufacturing and selling Business In Kenya
Table of Contents
●
Prepare a business plan
●
Training and practical experience
●
Business registration and getting a quality standard license
●
Location required
●
Raw material and machinery buying
●
Cost analysis and research
●
Manufacturing, Branding, and Packaging
●
Understanding your competitors
●
Tissue Manufacturing and selling during the Coronavirus pandemic
Are you considering starting a tissue paper business in Kenya? If yes, this article will provide you with a
detailed business guide in manufacturing, selling, and distributing commercial and consumer tissue
paper rolls and napkins used daily across homesteads, hotels, beauty establishments, and offices by
administering particular hygiene practices or other natural processes.
Tissue Paper is a lightweight crepe type of paper prepared from treating recycled paper pulp derived
from lignocellulosic fibrous.
On a commercial basis, the tissue paper manufacturing business can potentially rake in big returns with
the right skills, personality, and business acumen since heavy investments are required to finance the
business.
Starting on the venture requires a well-researched business plan that highlights the current market trends
in the country, strategic business location, sourcing for skilled labor, and most importantly, acquiring
quality raw materials and marketing.
Getting Started
For starters, you will need semi-skilled labor with a range of minimal materials and as the business
continues to gain traction thanks to consumer demands increasing daily, you should consider buying
affordable high-quality equipment which saves you money whilst producing high-quality tissue papers.
Starting a Tissue Manufacturing and selling Business In Kenya
Some guidance on the same from an entrepreneur in the same field will prove valuable in setting up a
small-scale manufacturing plant and if the below guidelines are widely implemented, the business should
thrive in a few months.
Prepare a business plan and understand the market
Owing to a shift in consumer trends caused by the Coronavirus global crisis, the demand for the product is
expected to increase as more individuals are getting information on proper sanitation practices and
cleanliness.
Tissue paper consumption in the country is also expected to grow favorably due to inevitable factors like
urbanization, growing disposable income, and consumer spending.
Apart from having great marketing potential, tissue paper is biodegradable and recyclable therefore an
eco-friendly product and before starting the business, you need to decide on a market niche as listed
below.
·
Toilet tissue paper
·
Facial tissue paper
·
Tissue napkins
·
Paper towels
If you intend to grow your business to large-scale production, you may at first begin with two or more
types of products.
Presently, Chandaria Industries is Kenya’s largest tissue manufacturer by selling and distributing a wide
range of tissue brands and hygiene products with different quality parameters and prices.
Leading tissue paper brands with higher price points include Velvex, Nice & Soft, and Toilex Premium
which are made of virgin pulp, which is considered “whiter” whereas the likes of Toilex and Rosy are
manufactured from premium quality recycled paper.
Depending on the amount of money you intend to invest in the business, you can opt for “virgin tissue”
which is free from recycled paper thus more production costs.
Another alternative is an unused type of wood-based material, the pulp that is used to manufacture tissue
while remaining sustainable and environmentally friendly.
Option three is starting the venture with recycled materials manufactured from recycling paper from printers,
offices, archives, egg trays, and counter rolls.
Starting a Tissue Manufacturing and selling Business In Kenya
As a startup tissue manufacturing plant making wise investments, you can start the business with recycled
tissue paper by offering environmentally friendly options of collecting the waste and decreasing the
growth of paper waste in Kenya, thanks to the eco-friendly process.
The recycled papers are taken through a thorough ink removal and cleaning process. This cleaned paper
pulp is then safe for re-use as raw material in tissue paper production.
The result is similarly a strong, white, soft, and absorbent tissue paper which is why brands like Toilex,
Rosy, and Dawn Pekee are market leaders in their respective categories courtesy of Chandaria
Industries.
Training and practical experience
Primarily, tissue Papers are classified into two categories as follows;
Consumer Tissue Papers: They are mainly used for domestic purposes within the household.
Commercial Tissue Papers: Also known as “Industrial Tissue Papers”, they are used in the form of
napkins, facial tissues, paper towels, and toilet paper in places like hotels, parties, homes, restaurants,
offices, and beauty parlors.
As a prospective business, vital information on the coarseness, absorption, and porosity will determine if
the tissue papers you intend to manufacture will meet the quality standards of market demands.
Quality of the end-product is also a key factor as your prospective clients will be utilizing them solely for
hygiene practices and uniqueness can be incorporated into your tissue brand by embossing and printing
a signature pattern to yield higher profits.
It is important to note that as an entrepreneur, you ought to have a deep comprehension of the business
and we suggest attending workshops and visiting reputable tissue paper manufacturers for case studies,
training, and learning the ropes of the business.
Consulting an expert with a business plan will serve a great purpose in hiring employees, financing the
business, sourcing for raw materials and machinery as well as branding and selling the products.
Once you gain some practical experience and insights you can plan the business accordingly. Managerial
qualities are a plus for the industrial zone to run at full capacity.
Before launching your business, choosing the type of product you want to produce should be taken
seriously and toilet rolls are a good idea as it has more market demand in terms of consumer rates and
commercial value.
According to reports, urban and densely populated areas in Kenya are consuming around three times as
much tissue compared to rural areas.
Starting a Tissue Manufacturing and selling Business In Kenya
Financing the business
Before initiating the business, finances are needed and this can be materialized by applying for a loan
from a bank, or any other financial institution and in this case, your credit score should be top-notch.
Utilizing your savings is also a good way to start a business. Other ways of getting funding may include;
●
●
Pitching
Partnership
If possible, buy cheap high-quality equipment. You can save your money and at the same time, produce
high-quality toilet paper.
Scout for an ideal location required to start a tissue paper plant
The manufacturing unit is the most important in overseeing the production and success of the business.
Preferably, starting the production plant will require at least 500 sq ft area space to foster proper
arrangements, easy movement, packaging and should also be feasible for raw materials and finished
goods storage.
A quality machine will be 15 Ft x 5 Ft and this will take a big chunk of the working space. While scouting
for an ideal location; the area must be well equipped with facilities like water supply, drainage supply,
electrical supply as well as easy accessibility for transportation purposes.
Apart from the mentioned factors in your industrial zone, your tissue manufacturing plant ought to have
easy availability of skilled labor and the venue you opt for will entirely depend on how much money you
have to start your company.
To generate steady income as soon as you start, choose a location that your target market can easily
source for your products and raw material suppliers can bring you items at affordable rates.
In this new age and with the growing awareness, you can launch the business within your home as you
gear up to relocate, wait until the company is established, and later branch out into a more industrialized
production zone.
Business registration and getting a quality standard license
Notably, the business will require some pieces of documentation and you will need to register a quality
assurance license to launch the manufacturing plant.
To get such accreditation, you need the following documentation:
●
●
National Social Security Fund (NSSF) card
Kenya Revenue Authority (KRA) certificate
Starting a Tissue Manufacturing and selling Business In Kenya
●
●
National Hospital Insurance Fund (NHIF) membership
A national ID or passport
Additionally, you will need the following requirements to register your tissue paper manufacturing plant
in the country:
●
●
●
●
●
Create an E-Citizen account-To access government services, an E-Citizen account is mandatory
and your national id, email address, passport photo, and your phone number are required to make
an application.
Business Name -You can launch the business from small to medium tissue Paper making either a
Proprietorship or Partnership Firm and if you are starring it as an individual, register the
firm as a proprietorship whereas, for a partnership operation, you have to register as a limited
liability partnership (LLP) or Pvt. Ltd.
Company details such as directors -It is important to conduct a trademark search to ascertain
that your business name does not clash with an existing trademark.
Registration fee and payment methods- While applying for the business, a prescribed fee of
Ksh. 10,000 (registration fee), and Ksh 600 for company search fee plus an additional Ksh. 50
(Convenience fee) will be charged.
Company pin Registration- Like any other business, the tissue paper venture is taxable
following the Income Tax Act. This will also require you to register a company pin which is a
necessity for filing annual returns as well as registering for income tax or incorporation tax.
Licenses
Reputable tissue manufacturing and vending businesses must obtain a permit to use the standardization
mark from KEBS (Kenya Bureau of Standards).
The Kenyan Judicial system further states that the KEBS mark is also important for quality assurance
checks and purposes as this helps consumers to build trust in the quality of your product if they see it on
the package.
To acquire the quality standardization badge from KEBS, the annual certification fee is Kshs. 31,900 that
is handed over only after the manufacturing machines are installed and the quality of your tissue papers
are tried and tested.
Hiring employees for the business
While sourcing quality equipment and raw materials for the tissue manufacturing plant, a few suppliers
offer training and workshop services if the machinery and production units are brought from them.
You can contact them and acquire free training for yourself and your employees to run the industrial zone.
Starting a Tissue Manufacturing and selling Business In Kenya
Otherwise, you could request various suppliers and manufacturers for in-depth coaching services at a fee
in case you did not buy the start-up items from them.
Having a team of both skilled and unskilled employees to kickstart the business saves you a great deal of
time and money as skilled laborers reduce the training costs for newcomers because they will transfer
their skills from previous employers whilst training the newbies at the job.
A range of remuneration options need to be put in place, a bookkeeping system has to be considered, and
this all takes additional costs.
To minimize costs and additional expenses, start the business on a small scale since appointing every staff
across various departments like accounts, marketing, sales, and management takes a huge share of your
start-up allocation budget.
In this case, managerial skills on your part will assist in handling responsibilities in various departments
inclusive of practical skills hence an assurance of knowing the business alongside the will to work hard
until profits for a bigger team yield with time.
Raw material and machinery buying
For a successful run of the business and profit maximization, it is important to have a handful of raw
materials with the most important being core paper and jumbo reels.
King-sized jumbo reels are sold on bales and these items will need to be re-shaped and sized according to
the type of machine used and product niche you have opted for the business.
Coloring the tissue paper sheet is dependent on the types of dye used. Other important manufacturing
materials include wrapping paper, glue, and cellophane.
On a lighter note, the production process is less hefty as it will solely depend on the machine’s efficiency
and production capacity.
According to the production demand and the investment, below is a list of equipment that you will
need for the manufacturing process:
●
●
●
●
●
●
Band saw cutter
Jumbo Reel Winding Machine
Core Gluing Machine
Cutting Machine
Perforating unit
Embossing unit
Starting a Tissue Manufacturing and selling Business In Kenya
Manufacturing, Branding, and Packaging
For the production of quality tissue papers, the core, and success of your business is determined by the
scope of the production unit which in turn sets the tone of the business.
Processing pulp paper is the initial step in manufacturing tissue paper which either involves using
recycled material or deriving the fiber from fresh wood although they can also be obtained from straw or
sugar cane residue.
Afterward, the cleaned (bleached and washed) fiber is transferred into a mixing tank where dye is added
for coloring effects.
Since the cleaned pulp contains a significant amount of moisture, the materials are tightly pressed with
the machine to squeeze out the moisture content.
The press roll contains a perforated suction pump, which together with the felt, removes the water from
the paper web to a point of complete dryness.
Creeping is what follows whereby the paper pulp is ferried through a roller dryer which is heated by
steam. The roller dries up the treated paper pulps with extreme heat settings and the result is tissue blades
which are later trimmed to the desired thickness.
With the help of a wounding machine, the end product (Tissue paper) is reeled up into large jumbo bales
and the paper is now ready for further processing into products like toilet rolls, kitchen rolls, paper
tissues, or paper towels.
Depending on the production requirements, the jumbo reels will later be cut into smaller sizes and since
most tissue paper is predominantly white in color, an assortment of dye colors can be incorporated to get
colored tissue papers.
After cutting and embossing the processed tissue papers, they are packed into your desired product
niche, branded, and sealed as a final product.
To make your customers feel special while still standing out as a brand, custom tissue paper is the best
way to do so is designing something that will attract customers while they are at retail outlets.
Since custom elements make you stand out in the already competitive tissue manufacturing business,
packaging should also be waterproof, travel friendly, and comfortable for regular use, and the brand
graphics, the shape should also be done accordingly.
Customized and well-embossed tissue paper will require your attention to detail as it will add depth to
your story as well as making customers notice your efforts to personalize their shopping experience.
Consider hiring a designer for positive brand presentation and equity as it will amount to value addition to
the product and more consumers will largely perceive your brand as familiar and more trustworthy.
Starting a Tissue Manufacturing and selling Business In Kenya
The branding process includes; Conducting market analysis to determine your target audience,
coming up with a positioning statement and brand story, designing a distinct and creative brand
logo, and experimenting with creative elements to determine a well-done outcome.
Marketing and understanding your competitors
For a successful tissue manufacturing plant, a well-written marketing plan packed with ideas and
strategies comes in handy.
The document should analyze the current situation of the business, competitive strategies, and action
programs that will be utilized to introduce the tissue paper to a range of consumers.
Since you are not just competing with local manufacturers, your tissue paper brand should focus on how
to stay ahead of different small-scale manufacturers of toilet paper as you gain more recognition.
Therefore, associating your products with quality user-friendly attributes keeps prospective clients
curious to give the tissue papers a try, and if your brand produces quality tissue paper, selling them out
will not be a problem.
Try to expand your client base using your recent customers who will help you sell more by referring you
to other retailers and sellers about the tissue paper product.
Hence, it is important to package and design your products as catchy as possible. The marketing success
of your tissue brand will be determined by;
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Cost Leadership
Marketing and Distribution
Price
Location
Utilizing social media platforms and traditional advertising strategies
Exploring marketing materials
Using satisfied customer feedback
Building an attractive website that allows online purchases
Business networking and partnership
Referrals from retailers and wholesalers
Gain industry expertise and skills
Sell online on e-commerce platforms like Jumia and Kilimall
Use keywords and hashtags to promote your business
Be a part of tissue paper manufacturing Associations in the country
Presently, Cosy toilet paper has the largest market share of 26% as well as dominating shelves in retail
outlets, surveys have shown.
Starting a Tissue Manufacturing and selling Business In Kenya
According to recent data from consumer insights, other popular brands battling for a lion’s share in this
business include Rosy at 15%, Toilex 14%, Tena 13%, Sawasawa-7%, Flora %, and Velvex at 5%.
Surging manufacturing costs and expenses have also increased the retail prices of tissue paper units and
this forced manufacturers to offset the extra costs of production, packaging, and distribution by
passing them on to consumers.
Despite the mentioned factors, Cosy tissue paper still has the biggest mass-market share, and Velvex
tissue is the face of the overall appeal of the premium market.
Being Chandari’s cheapest brands, Velvex, Rosy, Cosy and Nice & Soft come in single packs, twin
packs, 4, packs, 8 packs, and also 12 packs.
Unlike other Kenyan tissue brands that are made from recycled paper, Velvex tissue is made from 100%
virgin pulp making it the most recognized premium tissue brand in the country.
The top brands also provide top-quality serviettes at low price points. As an upcoming tissue paper
business, you can start by dominating the market by fielding two product niches before seeking a presence
in other segments.
Tissue Manufacturing and selling during the Coronavirus pandemic
Taking into account the impact of the COVID-19 pandemic on the tissue manufacturing business, the
commodity’s market share has increased the country’s consumption of tissue paper products hence
diluting the chances of low sales across the country.
In comparison to other hygiene products, the tissue manufacturing industry heavily benefitted from the
global crisis owing to increased demands whereby consumers flocked to preferred retail stores to stock up
the item.
Starting a Tissue Manufacturing and selling Business In Kenya
Following the introduction of recycled tissue paper, start-up tissue manufacturing companies have seen
tremendous growth thanks to growing awareness of personal hygiene practices as well as contrast growth
in population and Covid-19 prevention measures making the business very profitable.
In conclusion, sanitation and infection prevention awareness especially during the current COVID-19
pandemic is expected to push the tissue manufacturing venture in Kenya to a greater scale and market
share as the demand for this product has increased thanks to a preference for disposable paper products to
curb the spread of the coronavirus infection.