PROFILE ON PRODUCTION OF CERAMIC TILES

BACGROUND

 Ceramics tiles are used to cover walls and floors and are formed typically using clay and a range of other raw materials. Wall and floor tiles can be shaped, sized, styled and finished (glazed) in a variety of ways to enhance the final product, as well as being  physically strong, long-lasting and aesthetically pleasing. Wall and floor tile used for interior and exterior decoration belongs to a class of ceramics known as white wares. Tile is a manufactured piece of hard-wearing material such as clay, ceramic, stone, metal or even glass. It is a surfacing unit, used for covering roofs, floors, walls and countertops. Ceramic and porcelain tiles are manufactured by pressing clay and other materials into shape and firing it at high temperatures, giving it the hardness it is known for. The bisque (body) of a tile may then be glazed, or left unglazed depending on its intended use. In the 80s, there were notable ceramic industries that included few among others, Richware Ceramics Industry, Ilupeju Lagos; Nigergrob Ceramics Industry, Abeokuta; Quality Ceramics Industry, Shagamu; Modern Ceramics Industry, Umuahia; Ceramics Manufacturer, Kano; and another located at Ifon, Ondo State. Today, Nigeria’s ceramics import bill is over N130 billion (US$600 million).

 

FINANCIAL EVALUATION

 

According to the projected income statement, the project will start generating profit in the first year of operation. Important ratios such as profit to total sales, net profit to equity (Return on equity) and net profit plus interest on total investment (return on total investment) show an increasing trend during the life-time of the project.

The income statement and other financial indicators show that the project is viable:

The project is financially viable with the following profitability indices:

 

Average Return on Assets

15.20%

Average Return on Equity

87.10%

Average Return on Sales

42.80%

Average Debt service coverage

15.8

Average proportion of Debt

0.129

Average proportion of Equity

0.871

Average Debt/Equity Ratio

12.9:87.1

Average Operating ratio

30.90%

Average current ratio

20.09

UnDiscounted Pay back period (yr)

2.3

Net present Value (N000)

76491

Internal Rate of Return

97.80%

Profitability Index

3.3

Break Even point(Based on year1)(Sales)

7338.8

Fractional capacity utilization

0.176

Selling Price N000.00

22

 

 

I.                 PRODUCT DESCRIPTION AND APPLICATION

 

This project envisages production of Ceramic Glazed Tiles which is having a very bright prospect in bathrooms and kitchen in modern housing and in Analytical Laboratories and toilets attached to Railway stations. Ceramics tiles are used to cover walls and floors and are formed typically using clay and a range of other raw materials. Wall and floor tiles can be shaped, sized, styled and finished (glazed) in a variety of ways to enhance the final product, as well as being  physically strong, long-lasting and aesthetically pleasing. Wall and floor tile used for interior and exterior decoration belongs to a class of ceramics known as white wares. Tile is a manufactured piece of hard-wearing material such as clay, ceramic, stone, metal or even glass. It is a surfacing unit, used for covering roofs, floors, walls and countertops. Ceramic and porcelain tiles are manufactured by pressing clay and other materials into shape and firing it at high temperatures, giving it the hardness it is known for. The bisque (body) of a tile may then be glazed, or left unglazed depending on its intended use. In the 80s, there were notable ceramic industries that included few among others, Richware Ceramics Industry, Ilupeju Lagos; Nigergrob Ceramics Industry, Abeokuta; Quality Ceramics Industry, Shagamu; Modern Ceramics Industry, Umuahia; Ceramics Manufacturer, Kano; and another located at Ifon, Ondo State. Today, Nigeria’s ceramics import bill is over N130 billion (US$600 million).

 Ceramic tile is a type of tile that is typically made from red or white clay. Ceramic tile can be used in several areas throughout the house.  Ceramic tile is made of clay that has been fired in a kiln. Ceramic tile is similar to porcelain tile, and while some companies use the terms interchangeably, they are actually very different. Ceramic tile is not as dense and has a higher absorption rate. This means that it is not frost-proof, and it may chip or damage more easily than porcelain tile. Despite these differences, ceramic tile is a very popular choice for floors, counter-tops and walls. The tile is coated with a special glaze that protects and seals it. This keeps the tile from absorbing stains while improving the durability of each piece. The glaze is also what gives ceramic tile its color and pattern. Several ceramic tile designs and sizes are available.

 

·        MARKET STUDY

Given the strategic importance of many of the industry’s products, a competitive climate is essential to ensure the industry attains global competitive position. Nigeria is endowed with enormous mineral resources which when properly harnessed can lead to ceramics industry development. Ceramics’ wide ranges of electrical properties including insulating, semi-conducting, superconducting, piezoelectric and magnetic are critical to products such as automobiles, boat engines, lawnmowers, cell phones, computers, television, and other consumer electronic products. High voltage insulators make it possible to safely carry electricity to houses and businesses.

The market of ceramic glazed tiles is very bright since its demand is increasing at a faster rate. The reasons are not far to seek. The possible increase in housing projects will enhance the demand for these products. Side by side population growth is also creating a positive demand position of these products. These items form an essential and integral part of consuming sector like housing, educational and research institutions, hospitals, Industries, hotels, restaurants, cinema halls and other public places. The demands of these products also increase by the need of renovation works of the old above similar buildings.

The private sector which accounts for the lion’s share of the investment in housing and construction is bound to increase further.

 

 

·        RAW MATERIALS AND INPUTS

 

Some of the specific raw materials used for ceramics production such as clays, silica or quartz, feldspar, high-grade magnesia, bauxite, silicon carbide and graphite are readily available in Nigeria. Processing these for ceramics production can create a brighter future for us in the areas of socio-economic transformation, job creation and wealth creation. Ceramics manufacturing business can make people to develop their own capabilities, increase their assets, and move out of poverty. Zirconia is also becoming the material of choice for components in healthcare applications. The chemical inertness of ceramics is finding many uses in the medical field, where contact with body fluids is less of a problem than with most other materials.


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