Why do consumers continue to rely on imported sub-standard LPG cylinders? Why spend billions of dollars importing LPG cylinders from somewhere where they result in explosions?

It’s time now for our ambitious entrepreneurs to set up with courage and passion to ensure the era of Tanzanians depending on substandard cylinders from Asian countries is over for Tanzanians and East African households.

The demand for LPG is growing in the country. Inadequate infrastructures have been the biggest obstacles that hinder liquefied petroleum gas(LPG) adoption and other wider range of petroleum products that power industries.

That’s where you come in. You will be buying producing numerous pieces of different sizes of safest, affordable, and strong LPG cylinders locally, and starting looking for orders from oil and gas marketing companies as well as from aspiring LPG plant owners in Tanzania and East Africa.

Starting an LPG manufacturing plant is economically viable. But it requires huge start-up capital. 

If you can afford this or there is any way you can pull together investors who are ready to shell out huge funds go for this.

I think some of the successful East African entrepreneurs do not want to invest in this because they prefer to earn commission by introducing international LPG cylinder manufacturers in the local market 

                               What’s the Market Size For LPG cylinders 

It is hard to estimate the market size for LPG cylinders because you have an unlimited market, You are reaching out to LPG marketing companies operating in Tanzania. 

But you are also reaching out to distributors. You are also reaching out to companies and entrepreneurs who own small and medium-sized LPG plants. 

You are also exploring export business in landlocked countries like Uganda, Malawi, Zambia, etc. So it’s hard to put an exact number on this together.

The simple truth is that the market is huge and the market is lucrative. One of the reasons I think this idea is a winner.

Project Budget

The capital investment for setting up an LPG cylinder manufacturing plant is estimated at $ 1.6 million.  

This capital will cover construction works which include, land and building, machinery and equipment, furniture working capital, and pre-operating costs. 

You will need $ 1.6 million to successfully set up an automated LPG cylinder manufacturing plant in T

                                                                

Back of the napkin math

Now, let’s help you understand just how much money is at stake and how much money you could generate if set up an LPG cylinder manufacturing plant.

Below are sales projections for the LPG cylinder manufacturing plant in Tanzania and East Africa.

First-year $ 600,000

Second-year $ 1.2 million

Third year $2.5 million

 Key to Success in Operating Successful LPG cylinder operations 

1.Don’t depend only on the local market, try to explore export business

2.Safety and compliance with national and international standards are key to the successful operation of this project.

3.There are no reasons why Tanzania be going in search of LPG cylinders in Asia where they can lead to explosions. 

 

Hussein Boffu is a business consultant with experience in the oil and gas(energy)industry, business strategy development, business planning, research, due diligence, sales and marketing, project coordination, supplies and equipment procurement. He has a passion to help entrepreneurs and businesses in the energy sector to build, grow, and develop sustainable, profitable enterprises. So that they can create more employment and provide a good life for their families, employees, and communities. He can be reached via Hussein.Boffu@Tanzaniapetroleum.com or Text/Call/WhatsApp +255(0)655376543