Serviettes, also known as napkins, are essential table linens used to wipe the mouth and protect clothing while eating. Made from light-absorbent materials, serviettes are soft, absorbent, and hygienic. The market for serviettes in Kenya is diverse, encompassing individual consumers, hospitals, restaurants, homes, and hotels. In this blog, we will explore the potential of starting a serviette production business, catering to the needs of Kenyan readers.

Plant Capacity and Production Process

The proposed plant aims to produce 2,600 packets of serviettes per month, totaling 31,200 packets annually. A hand-driven knitting machine and a yarn twister are used in the production process. The raw materials required include cotton staple yarn, absorbent thread, cotton thread, cardboard boxes, and craft papers. The cotton staple yarn is knitted into loose fabric tubes, which are then cut into the required pieces of absorbent cotton. The ends of the napkins are tied with thread and packed in printed polythene bags.

Financial Viability

With a total capital investment of $3,635, the revenue potential of this business is estimated at $11,180 per month, translating to $134,160 per year. The net profit margin is estimated at 29%, and the payback period is just 3 months. The plant is expected to produce 40,560 units (each unit containing 10 packs of 50 pieces) annually, ensuring a steady supply to meet customer demands.

Market Analysis

The market for serviettes in Kenya is vast, with various potential customers including individual consumers, hospitals, restaurants, homes, and hotels. However, it is important to note that there is competition in the market. To thrive in this industry, entrepreneurs should consider exploring the export market and differentiating their serviettes through quality, design, and competitive pricing.

Conclusion

Starting a serviette production business in Kenya presents a lucrative opportunity for aspiring entrepreneurs. With a relatively low capital investment and high revenue potential, this business venture promises attractive returns. By focusing on producing high-quality serviettes, meeting the demands of different customer segments, and strategically targeting the export market, entrepreneurs can establish a strong foothold in the industry. With proper planning, efficient production processes, and effective marketing strategies, this business idea has the potential to be a successful and sustainable venture.