This article will examine the question: “How to open cigarette production? ” Choosing your business idea is always a time-consuming work, which must be approached with all seriousness. In this article, we will discuss the production of cigarette products. Although at the moment the world market is literally filled with various tobacco brands, you can still make good money on this business. After all, even the largest world companies once started from scratch, while they also had to fight with other firms. Next you will learn how to open a cigarette production.
Product Popularity
Despite all the warnings coming from the Ministry of Health and all government agencies that promote the fight against smoking, cigarettes occupy a leading position in popularity among all products. For example, in the Russian Federation, the total number of smokers (based on social surveys) is approximately 45 million people.
Tobacco companies are not even stopped by the fact that this business is completely controlled, and that a special excise tax is imposed on it. For those who do not know: the last item increases the total cost of production by setting additional taxes.
Production principle
If you do not focus on the individual details of production, then the technology for producing cigarettes has the following steps: a special pre-dried tobacco enters the machine for cutting individual parts, after which the finished product appears at the exit. But now let's take a closer look.
The cigarette making machine itself consists of the following parts: a department for assembling and installing a filter, a mechanism for inserting (a collar is needed to fill the filter), an assembly for final complete assembly. But naturally, production does not end there. For a complete set, it is necessary to additionally purchase automated devices that perform the following steps: packing all manufactured cigarettes in a pack, packaging products in foil (this is a mandatory process), manufacturing a box, wrapping goods in cellophane.
Of course, this is not a complete list of the necessary equipment. There are a number of specific devices that will vary depending on the country of production, the location of the factory and other characteristics. For example, if you expect to produce goods in Russia, then you need to purchase a machine for gluing an excise stamp. It should be noted separately the production of cigarettes at home. Based on the opinions of most people who have tried to do this, nothing good will come of it. Even if you throw away all the problems with the legitimization of this process, the profit is negligible.
Cost of equipment
Many novice entrepreneurs are trying to bypass this business. Since all the equipment for the production of cigarettes costs a lot of money. At present, the approximate cost of all machines for the factory will cost you $ 7 million. Plus, you need to add the price of the conveyor line, which is 800 thousand dollars.
All these numbers look very scary, especially for young businessmen. But you can always use alternatives, for example, rent all the necessary tools for production or buy used equipment.
It will cost several times cheaper than a new one, thereby squeezing the start-up capital. With used equipment there will also be less risk if the whole undertaking with the tobacco business seems unacceptable to you. In an extreme case, you can try to sell all units with minimal losses.
Profitability
Earlier, the approximate cost of new equipment was already provided. Now let's talk about used cars. A cigarette factory with a fully equipped former-use factory line costs 12 million rubles. Such equipment will be able to produce 125 packs (and this, in turn, 2500 cigarettes) per minute. One point worth noting here.
Today you can find even cheaper equipment that can make cigarettes without a filter. At the same time, the price of such factories is markedly reduced. This is due to the fact that modern states pay special attention to cigarettes that do not have a filter. And there is a high probability that soon they will be banned altogether. Therefore, you should not show this kind of savings on equipment. Now consider the numbers. The cost of one kilogram of tobacco is 76-105 rubles.
One pack requires 20 g of pure raw materials, taking into account all the possible losses that result from imperfections in the equipment. Total we receive that in one working day leaves 1200 kg, and this is 126 thousand rubles. After conducting simple computational operations, we can calculate that 2.08 rubles (this is only for raw materials) should be spent on 1 pack of cigarettes.
Taking into account all excise taxes and other additional taxes, the cost of one pack increases to 7.5 rubles. To this amount it is necessary to add the costs of paper, foil, wages to workers, payment of electricity, etc. All these numbers vary greatly, so it makes no sense to give an accurate calculation. And the above calculations are only for reference.
Profit calculation
At this point, you should already understand roughly how to open a cigarette production. Or at least have a general idea of this process. In fact, it’s almost impossible to calculate the exact profit and payback period. Real numbers will always differ from those on paper. But you can at least do all the calculations.
So, the cost of one pack of premium cigarettes can exceed 100 rubles. But in the real world, things are more complicated. Therefore, the price goes down to 50-60 rubles. In our calculation, we will use 55 rubles per pack. Here it is necessary to mention the wholesale purchase, which will reduce the overall profit. If we take as an example that the cost of one pack will be reduced by 25%, then the price of our cigarettes will drop to 41.25.
It follows that the profit will be 16.25. All figures are indicated in rubles. If we make additional calculations, we will find out that the net profit will be 23.4 million rubles (not including taxes and other expenses). But as I said earlier, this number is almost unrealistic and much overpriced.
Conclusion
Business is the most profitable business. But at the same time, this is the most risky occupation. Since it is difficult to calculate all the possible events that may occur in front of you on your path of elevation. Once again, I note that the figures and calculations provided in the article are approximate and serve to familiarize and indicate the main points. As for the main question: “How to open the production of cigarettes?” - it is impossible to fully disclose it even in dozens of such articles. And today you have gained general knowledge on this topic.
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