The fight against smoking with high excise taxes, unfortunately, does not deter smokers. Today, only in our country, more than thirty percent of the population smokes.
The demand for cigarettes is quite high. However, cigarette business scares entrepreneurs away with high costs. But you need to know that high income is always risky, so it’s worth a try.
Cigarette making
Even though the state tightly controls the production of cigarettes, and the presence of a large number of excise taxes, which it is taxed, this business has a high profitability. A possible success in this area is evidenced by at least the factor that all the leaders of this market started with tiny factories that delivered their goods to small shops. However, today, having passed all the tests, competition and other troubles, these corporations, which are based on the production of cigarettes, cover the whole of Russia, and sometimes abroad.
Cost-Effective Filter Cigarette Production
Any businessman is primarily interested in the profitability of the enterprise that he decides to do. The situation in the tobacco production and sale of cigarettes is somewhat different from other areas. Many people are frightened by the fact that tobacco products and all related activities are a complex and expensive enterprise. In order to start production of cigarettes, it is necessary to purchase equipment, the cost of which reaches seven million dollars. Not everyone is able to allocate a similar amount.
In addition, you will have to purchase a conveyor machine for the production of cigarettes, which is also not cheap.
For those who do not have such amounts, there is the option of a less costly opening a business for the production of tobacco products, which is possible when acquiring equipment that was already in use.
In this case, the risk of monetary loss due to failure is minimized. In addition, the equipment can be resold in order to return the almost completely spent amount.
Profitability calculation is as follows. A kilogram of tobacco will cost about a hundred rubles, and in a pack of twenty grams. It turns out that on average one ton of two hundred kilograms of raw materials will be required per day, which will cost one hundred twenty-six thousand rubles. Taking into account monthly income, the number of working days, productivity and cost of tobacco, the cost of each pack will be a little more than two rubles. Added to this are excise taxes.
As a result, another five and a half rubles will be added to the cost. And if we add to them the costs of filters, paper, packs, workers' wages, foil, utility costs, etc., it turns out that each box of cigarettes to the manufacturer will cost 22.4 rubles. Moreover, the average price per pack in our country is about fifty-five rubles. As a result, the manufacturer will have about thirty percent profit.
How to make cigarettes
The room in which the production of cigarettes will be organized should not be rented. Building your own plant is also expensive, so the option of buying an area will be the best option, especially since in every city you can find many empty production buildings that will need to be converted later.
Those who have long been in the cigarette business say that tens of millions of investments in this area when starting from scratch. The minimum amount that a small business will pour out with an existing building is about twenty thousand rubles to buy used lines. A kit for such a price will allow you to produce seven thousand packs per hour.
The line carries out the bulk of operations in automatic mode. Its first machine grinds dry tobacco sheets and transfers them to the next device, which is wrapped in special paper and glues filters. Packing cigarettes in packs also occurs without the participation of human hands. The next machine glues excise stamps, and the last machine packs the bundles in film.
The production of cigarettes implies the presence of two or three cars that will deliver products. It will also require minimal vehicles for other household needs. After the purchase of fixed assets you need to purchase inventory. These are mainly raw materials - tobacco, as well as aromatic additives and workwear for workers.
Labor resources
To create a tobacco factory will need a certain number of employees. This personnel will have to order, deliver raw materials, service cars, premises, ensure sales, monitor operational and accounting. For starters, it will take about forty people.
The cost of labor after the costs of equipment for the production of filter cigarettes, which after a while will pay off, is the largest. Most of the employees will be maintenance staff, since the tobacco line is almost always automated, and many people are not required to work on it.
Tobacco Requirements
On the territory of the Russian Federation, a law is in force prohibiting the use of those substances for which tobacco products are not permitted in the country. In addition, cigarettes are subject to excise duty labeling, while excluding the possibility of falsification. The sale in Russia of tobacco products without them is not allowed.
Package of documents
To obtain a license permitting the production of cigarettes, the company must collect and submit a fairly impressive package of documents. It should include:
- application for granting a license, written in duplicate;
- A copy of the constituent documents of the company, including the articles of incorporation, charter, etc .;
- copy of certificate of state registration;
- A copy of the certificate of registration with the tax authorities;
- payment orders or receipt of license fee for consideration of this application;
- the conclusion of the sanitary and epidemiological authorities that all conditions for the production of cigarettes at the established enterprise are organized in accordance with sanitary rules;
- certificate of qualification of factory workers.
All copies, including the constituent documents and certificates, it is better to certify with a notary.
Last year, a draft law was registered that amended the law governing the production of tobacco products regarding the procedure for issuing permits.
According to him, from mid-2013, the following were excluded from the list of documents provided:
- permission to admit the organization to the production of products, which was issued by the central executive authority that implements the state policy on fire or industrial safety issues;
- permission for work issued by bodies regulating labor protection.
The same bill also reduced the terms for issuing a license or deciding a decision to refuse from ten to seven days. In addition, it was proposed to establish payment for the right to retail tobacco products not in quarterly equal shares, as was done before, but in one payment each year.
Equipment for the production of
The choice of equipment for organizing the production of cigarettes in our country is quite large. This is due to the fact that today already used foreign machines are available, which will cost novice businessmen one hundred and fifty or one hundred and sixty thousand dollars. Similar domestic equipment with the same functionality costs about fifty thousand.
Raw materials
During the production of cigarettes, many large companies use several varieties of tobacco, which are mixed using certain technologies.
This is done primarily to satisfy the different tastes of smokers.
The taste and aroma, as well as the strength of cigarettes, directly depend on the type of tobacco used.
The most popular are Virginia tobacco, which is a heat-dried tobacco with a sweet taste and pleasant aroma, “burley” with a low sugar content and oriental with arrow-shaped leaves of yellowish-green color.
Cigarette paper
In the manufacture of cigarettes, special breathable paper is used, which directly affects the formation of ash and the level of constituents that enter the smoker's lungs. For tobacco products with a low tar content, a material with high porosity and good breathability is used.
Cigarette Making Machines
From a technical point of view, tobacco products are produced as follows. Initially, the prepared raw materials are dried and fed to a special tobacco-cutting machine, which, in turn, turns it into particles of the desired fraction.
The cigarette making machine is equipped with several components: a filter assembly, an installation for making inserts, foil packaging, stacking in packs and blocks. In addition, units manufacturing boxes are also involved in the production process. Also, for gluing a special excise stamp a separate machine is needed.
The cigarette machine itself looks like an ordinary cabinet, equipped with a receiver on top where the tobacco goes. As a rule, one operator is engaged in its maintenance.
Its main task is to fill up the raw materials in the receiver, charge the cartridge with cigarette sleeves, place it in the desired compartment, install the program and deliver the finished product.
But this is only when the machine in a small production is used as an independent unit, so you need to pay attention to other equipment that is part of the line.
