Feasibility Report on Artificial Hair Business

Topics: Net present value, Cost-benefit analysis, Cost Pages: 33 (9661 words) Published: October 3, 2012
Artificial hair is a general term used to describe the process of altering one's natural hair appearance by adding additional hair to the natural hair or by covering the natural hair all together with human or synthetic hair pieces. An artificial hair is made of a fiber including polyethylene and polythene products. Many young ladies of today and even married women are concern about their outlook and will stop at nothing in beautifying themselves. To this extent, many ladies now wear wigs or add artificial hair to their natural hair so as to increase its length. The production of artificial hair however is yet to be a wide spread phenomenon in the different states of the country, hence , this study seek to provide an insight into the production and processing of artificial hair as well as opportunities for prospective investors. 1.1JUSTIFICATION OF THE PROJECT

The main justification for the project is the ready availability of market for the various forms of the product. Our findings revealed that most ladies from all walks of life in Nigeria today, are concerned with their outlook; thereby making use of some artificial products such as artificial hair in order to meet their desires either in terms of length, color, luminosity and style in vogue. In addition to hair fashion, hair tangling, longevity of hair style and the time it takes to make or style their hair especially if they have to do it often (which will be the case if they keep their hair natural) are other sources of concern to women. The realization of these needs largely has made most ladies wear wigs and fix weave-on with the aim of enjoying the benefits of lengthen hair that add to the volume and or thickness of their hair, and to add fashion colours to their natural hair without damaging the natural hair. In this regard this project is targeted towards capturing the market of these ladies. In the Nigerian Human Resources report of 2006, it was reported that of the 64.4 million labor force in Nigeria, 9.4million are unemployed. This project, if executed will help to generate employment opportunities for some of the unemployed labor force and so reduce unemployment. Artificial hair can be synthetic or processed natural hair from another person. The synthetic hair has petro-chemical by-products such as polythene and polyethylene as its main raw material. The synthetic hair can also be made from waste polythene materials such as poly bags and sachet water nylons. Therefore the execution of this project has two other benefits. One, Nigeria has two petro-chemical plants at Kaduna and Warri. The availability of a local source of raw material will lead to lower cost of production as well as lower products prices. We therefore expect increase in demand for the product. Secondly, it is a known fact that most Nigerian cities contend with the problem of plastic waste disposal. These plastic materials can be used as raw material for the artificial hair production plant; thereby helping in reducing the incidence of plastic waste pollution. Lastly, the local production of artificial hair inevitably leads to the reduction of its import, thereby reducing our dependency on some of the countries currently supplying Nigeria. The overall effect of this is to increase net export as well as promote a favorable balance of payment. 1.2OBJECTIVES OF THE STUDY

The main objective of the study is to carry out a feasibility study on the production and processing of artificial hair in order to evaluate its profitability as well as to determine its viability. Specifically these objectives can be said to be:

To determine the modalities of setting up an artificial hair production and processing enterprise in Ibadan. To serve as a source of information and mini business directory for prospective business men in search of a reliable and profitable business idea.

This project work is based on primary data being collected...
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