How to Start / Open A Nail Making Business in Kenya

Nail Making Business Plan (Kenya)



Introduction & Overview

This guide focuses on making nails. Nails as used in construction, carpentry or other industry where fastening is required.

Nail manufacturers in Kenya can be loosely classified as:

Large Manufacturers - These dominate the steel industry. In addition to nails they manufacture a range of items like steel bars and iron sheets. These include the likes of Devki and Tuffsteel.

Mid Level Companies – These either manufacture nails at a relatively smaller scale or import nails from countries such as India or China. These include Kifaru Enterprises, Jubilee Jumbo Hardware and a host of other independent importers

Small Scale Manufacturers – These manufacture nails at a comparatively small scale. Think of them as a sort of cottage industry some operating from home. Because of their scale and the fact that they get their raw materials from the bigger steel companies their costs are relatively high. Some could struggle to price in the same range as the large and mid level companies. Hence they will often sell directly to retail hardware shops or contractors. These are the focus of this guide.

Related to the small scale manufactures are also small scale independent importers. These too import nails and distribute at a small scale level. Often importers specialize in one or several types of nails. Presently roofing nails are some of the most imported.

For years nail manufacturing was dominated by the large highly capitalized manufacturers. This was mainly because of the then barriers in entry in terms of the cost of machinery, raw materials and skill.

However that has now changed. A thriving cottage industry in manufacture is emerging. This has largely been triggered by the availability of affordable nail making machines. In the market now are machines starting at Kshs.500, 000; an amount which a significant number of entrepreneurs can afford.

Gradually steel companies are opening up to supply raw materials to the cottage industry and although this is still partially a challenge it’s no longer a total hindrance. Most of the machinery present in the market does not require steep learning curves, thus technical knowledge is not much of a problem.

A big percentage of nails are used in the construction industry. And if the construction industry is growing then it means that the demand for nails will also increase. That has been the case in the last ten or so years. The higher demand means that there are greater chances of a nail making business succeeding since the market has been big enough to sustain new entrants. And although the construction industry has slowed down a little bit it’s not to the level that the demand for nails has considerably gone down.

The growth of small and medium scale nail making business has also been contributed by the increase in the number of hardware stores. Hardware shops are now some of the most ubiquitous; found in every corner and in all sizes. This has eased the headache of distribution. With so many hardware shops there is a chance of a number of them stocking your product?

Another factor that has encouraged the growth of the cottage nail making business is the low brand loyalty among nail consumers. Often consumers will ask for “nails” rather than EFG company’s nails. Thus as much as there is

some level of brand loyalty it’s not so entrenched. This makes it easier for new manufactures to gain a foot in the

market. This will become clear in the course of this guide.

As much all the above factors are in favour of a nail making business success is not automatic. Realities in the market you are targeting matter and so does your skill in managing the business. Competition in the business is also increasing at all levels and especially from the importers. Still opportunity exists in the business but requires good strategy to seize.

Types of Nails

There are numerous types of nails which can be classified by shape, purpose, size among other attributes. Here are some of the most common nails:

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Product

Representative Image

Details

Wire Nails

 

These have a round head.

(Normal /

 

They are the most common

Roundhead Nails)

 

types of nails. They are jack

 

 

of all trades in nails used for

 

 

a variety of purposes from

 

 

construction to carpentry.

 

 

They range from half an inch

 

 

to six inches.

 

 

 

Masonary Nails

These are used to join wood,

(Concrete Nails)

or such other material with

 

concrete or stone. Because

 

concrete is relatively hard

 

these nails are made of

 

tougher or hardened steel.

 

The equipment used to make

 

these nails and the nails

 

themselves are relatively

 

more expensive.

 

 

Finishing Nails

These are like round head

 

nails but with a much

 

slimmer head. Just like their

 

name they are used to for

 

finishing say a piece of

 

furniture where the nail sinks

 

in , giving a more smoother

 

finish.

Tack Nails

They are used for upholstery

 

and even in making shoes.

Roofing Nails

These are used for roofing

 

purposes often to fix iron

 

sheets and other forms of

 

roofing. They have a wider

 

head, and the trend nowadays

 

is to have them with a rubber

 

stopper to prevent rusting

U - Nails

They are also referred as

 

fencing nails. They are

 

commonly used to nail wires

 

to posts during fencing.

Other types of nails include:

Annular Nails – These have kind of spirals in the shank. They are used when a rather tight grip is required.

Oval head – Think of this as a round head nail but with an oval cross section. It’s used when a wood is likely to split.

Drywall Nails – These are used to hang boards such as gypsums say for interior designs. The nail is made such that it does not cut the gypsum.

Casing – They are used on thin boards such as plywood.

Upholstery Nails – These are used to fix upholstery say to sofa sets or other such material.

From a survey we did the following were the types of nails stocked by a sample of wholesalers and retailers in Nairobi:

Siding Nails

Annul

Types of Nails

2%

ar

Drywall Nails

Ring

U Nails

Shank

4%

14%

2%

 

 

Casing Nails

 

 

8%

 

Finishing Nails

Masonary

13%

13%

 

Roofing

Roundhead

19% Ovalshape

(Normal Nails)

6%

19%

The most common types of nails that retailers stock are normal nails masonary, and roofing. These are the type of nails that are in high demand by contractors who are the majority of customers. ‘Normal’ nails are considered general purpose. From other conversations with retailers the more purposes a nail can serve the more it sells. Thus normal round headed nails move the fastest.

Finishing nails which are of a wide variety are stocked by retailers in areas with a high population of carpenters.

Specialty nails such as casing, drywall nails are not stocked by most of the retailers. This is because their demand is relatively low. Comparatively they are more expensive so retailers avoid them so as to free capital.

Despite stocking concrete nails at least one retailer quoted them as the slowest moving. The reason given was that because masonary nails are relatively expensive some contractors use normal nails even when dealing with concrete. Still they have to stock because there will be the occasional contractor who buys in significant quantities.

Roofing nails are also popular because unlike the other kind of nails they don’t have proper substitutes.

Which Nails to Make

Nail manufacturing equipment, as will be seen in the next section, is specific to the type of nail that you would like to manufacture. Accordingly if you have limitations in terms of capital you have to decide on the kind of nails that you are going to manufacture. Remember to consider capital not only in terms of the cost of equipment but also in light of other setting up costs like premises, manpower, licenses, raw materials and related items.

If limited then you can start with the fastest moving nails which are the normal nails of 2-4 inches and specifically nails of 3 inches nails which the most widely used. There are small scale nail making companies which make only the normal 3 inch nail. You can start with these then as you understand the market, the process and become more stable diversify to other types of nails such as 2 inch, roofing and concrete nails. You will also note that equipment for the specialist nails is more expensive.

Nails are also classified according to their diameter; thickness. For instance the 3 inch nail above could fall within a range of diameters say 2mm – 4.1mm. Even if you check in the market you will find nails of the same length but different thickness.

So what diameter should you go for? This will depend on your target market. For instance if you are targeting the Kawangware area which has many carpenters then it’s advisable to product thinner nails to fit the furniture industry. The construction industry could also demand nails based on the stage in construction or the kind of materials that

they are using say the softness or hardness of the stones. When in doubt you can go for standard size nails of 2.8mm. In the end you are likely to find yourself making nails of a range of diameters as per demand. The market will guide you.

All this is not to discourage you from making the other kind of nails, but then if you have limited resources you have to make a choice which will best utilize the capital you have to maximize profits.

The Nail Making Process

The image above which we have borrowed from a nail making equipment best illustrates the process of making nails. Nails as we have pin pointed are made from a special kind of wire. This wire can be acquired when it’s of the right thickness to be made to nails or it can be ‘raw’ meaning that it has to be ‘processed’ to the required thickness for nail making. That is the purpose of the wire drawing machine. Think of it as the machine that ‘slices’ a thick rod say of 5cms into thinner wires of 2mm. But drawing the wire is not a mandatory stage; it’s possible to acquire nail which is already drawn and feed it into the nail making machine. We will come back to this in the raw materials section.

Once the nails are of the right diameter they are then fed into the nail making machine. This is where the actual nail making happens. The main parts of a nail are the head, the shaft and the pointed end. Basically the machine has dies which grip the wire as it is fed. The dies have been designed to form the shape of the head. While still gripped the wire is hit by a mechanical hammer to form the head. While still held by the dies a pair of cutters positioned at the desired length hit the nail on the opposite end forming the point and cutting the now formed nail from the rest of the wire. The die open and the nails fall into a collection pan. There will be slight differences to this based on the machine but the process is making the head, cutting the nail off while making the pointer, collecting the finished nails.

The finished nails have some roughness around them. They could be dull and with some rough edges. Thus they need to be cleaned ‘”polished”. The polishing happens in the polishing drum. The polishing drum could contain saw dust or an equivalent material. Nails are put in the drum and rotated for 30 – 45 minutes. They come out shiner and with a smoother finish. After the nails are polished they can be packaged for the market. This is the very basic process; there could be slight differences due to the equipment

Equipment

From the above process let us look more into the nail making equipment.

Nail Making Machine

This is the key equipment in the nail making process. Like we just mentioned above this is where wire is converted to nail. Nail making machines are categorized variously.

By Size - This refers to the size of nails that a machine can make say 0.5 - 1.5 inches, 2 -4 inches, 1-3 inches and so forth.

By Capacity – This refers to how many nails a machine can make within a given time. The standard measure is usually nails per minute.

By Diameter – This refers to the diameter of the nails that a machine can make.

By Power – This refers to the size and power of the motor running the machine.

All this will become clear in the next section where we give actual examples of equipment.

Polishing Drum

Just as the name suggests this is a rotating drum which gives the nails a final touch and shine after they are made. Polishing drums are largely classified by their capacity; the number of nails that they can polish at a particular time. For instance 300kgs / hour, 500kgs / hour and so forth. They can also be classified by the power of the motor. This is a must have equipment.

Wire Drawing Machine

This is used to get ‘raw’ wire to the required diameters. Wire drawing is optional equipment since you can buy ‘ready’ wire. However considering the price differences between the ready and raw wire if you have enough resources this will be a worth investment in the long run. Purchasing raw wire will greatly reduce your costs and give you wider options for raw materials in times when the ready wire is not available.

Equipment Accesories

There are other tools that play a key part in the operation which are crucial though not mandatory.

Sharpening Tool – This is used to sharpen the cutting parts of the nail making machine which become blunt after a while say producing 1000 – 1500 kgs of nails. Blunt machines are slower and end up producing low quality nails.

Wire Load – This is a con shaped gadget used to hold the roll of wire as it is fed into the machine.

Dices for Wire Drawing Machine – These help the wire drawing machine achieve desired sizes.

Wire Drawing Powder – This is used to make the drawing run smoothly.

Butt Welding Machine – Wire could break during drawing or feeding into the machine. The butt welding machine is used to weld together the wire after such breakage.

Equipment Summary

The core equipment to get you started is the nail making machine and nail polishing drum. A wire drawing machine is great because of the cost savings but you can start without it. A sharpening tool is also good but you can find substitutes. Same with items like wire load and but drawing powder. However if you have enough capital you should have all the equipment: they will make your operation more efficient.

Most equipment used by small scale nail manufactures in Kenya comes from China. Other major sources are India. There are also a few jua kali machines but these are yet to get a proper footing. Subsequently the business is dominated by the imported machines. There are no proper dealers of nail making machinery in Kenya. You will find when a machine it’s being sold it’s an independent importer buying from China and reselling locally, or a second hand machine by someone who has quit the business for one reason or another. You should not be intimidated by the importation process; it’s not as complex.

To help better understand the equipment here are some examples from a few reputable suppliers in China and India.

Example: Supplier One: Machines, Features, Prices

(This is a supplier in China)

Z94-1C Nail Making Machine:

Model

Z94-1C

 

 

 

 

Max. dia. of nail

1.6mm

 

 

 

 

Min. dia. of nail

0.9mm

 

 

 

 

Max. length of nail

25mm

 

 

 

 

Min. length of nail

9mm

 

 

 

 

Output

450pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 1.5kw

 

 

 

 

 

 

Dimension

150x130x120cm

 

 

 

 

Weight

1200kg

 

 

 

 

FOB Shanghai China Price

US$2,300

 

 

 

 

Z94-2C Nail Making Machine:

Model

Z94-2C

 

 

 

 

Max. dia. of nail

2.8mm

 

 

 

 

Min. dia. of nail

1.2mm

 

 

 

 

Max. length of nail

50mm

 

 

 

 

Min. length of nail

16mm

 

 

 

 

Output

350pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 2.2kw

 

 

 

 

 

 

Dimension

170x130x140cm

 

 

 

 

Weight

1450kg

 

 

 

 

FOB Shanghai Price

US$2,900

 

 

 

 

Z94-3C Nail Making Machine:

Model

Z94-3C

 

 

 

 

Max. dia. of nail

3.4mm

 

 

 

 

Min. dia. of nail

1.8mm

 

 

 

 

Max. length of nail

75mm

 

 

 

 

Min. length of nail

30mm

 

 

 

 

Output

310pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 3kw

 

 

 

 

 

 

Dimension

200x140x140cm

 

 

 

 

Weight

1800kg

 

 

 

 

FOB Shanghai Price

US$3,600

 

 

 

 

Z94-4C Nail making machine:

Model

Z94-4C

 

 

 

 

Max. dia. of nail

4.5mm

 

 

 

 

Min. dia. of nail

2.8mm

 

 

 

 

Max. length of nail

105mm

 

 

 

 

Min. length of nail

50mm

 

 

 

 

Output

260pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 4kw

 

 

 

 

 

 

Dimension

220x160x165cm

 

 

 

 

Weight

2000kg

 

 

 

 

FOB Shanghai Price

US$5,200

 

 

 

 

Z94-5C Nail Making Machine

Model

Z94-5C

 

 

 

 

Max. dia. of nail

5.5mm

 

 

 

 

Min. dia. of nail

3.0mm

 

 

 

 

Max. length of nail

150mm

 

 

 

 

Min. length of nail

70mm

 

 

 

 

Output

200pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 5.5kw

 

 

 

 

 

 

Dimension

260x165x175cm

 

 

 

 

Weight

2500kg

 

 

 

 

FOB Shanghai Price

US$6,800

 

 

 

 

Z94-6C Nail Making Machine:

Model

Z94-6C

 

 

 

 

Max. dia. of nail

6.0mm

 

 

 

 

Min. dia. of nail

4.1mm

 

 

 

 

Max. length of nail

180mm

 

 

 

 

Min. length of nail

100mm

 

 

 

 

Output

160pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 11kw

 

 

 

 

 

 

Dimension

360x205x214cm

 

 

 

 

Weight

6500kg

 

 

 

 

FOB Shanghai Price

US$15,800

 

 

 

 

Umbrella Nail (Roofing Nail) Making Machine

Model

WZ94-4C

 

 

 

 

Max. dia. of nail

4.5mm

 

 

 

 

Min. dia. of nail

2.8mm

 

 

 

 

Max. length of nail

100mm

 

 

 

 

Min. length of nail

50mm

 

 

 

 

Output

220pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 4+0.75kw

 

 

 

 

 

 

Dimension

200x150x200cm

 

 

 

 

Weight

2600kg

 

 

 

 

FOB Shanghai Price

US$7,000

 

 

 

 

Product:

U Shape Nail Making Machine

Model

UZ94-4C

 

 

 

 

Max. dia. of nail

4.5mm

 

 

 

 

Min. dia. of nail

2.8mm

 

 

 

 

Max. length of nail

100mm

 

 

 

 

Min. length of nail

50mm

 

 

 

 

Speed

930rpm

 

 

 

 

Output

150pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 4kw

 

 

 

 

 

 

Dimension

245x135x135cm

 

 

 

 

Weight

1800kg

 

 

 

 

FOB Shanghai Price

US$7,200

 

 

 

 

Product:

Double Cap Nail Making Machine

Model

SZ94-4C

 

 

 

 

Max. dia. of nail

4.5mm

 

 

 

 

Min. dia. of nail

2.8mm

 

 

 

 

Max. length of nail

100mm

 

 

 

 

Min. length of nail

50mm

 

 

 

 

Speed

930rpm

 

 

 

 

Output

150pcs/min

 

 

 

 

Power of motor

380V, 3-phase,

 

50HZ, 4kw

 

 

 

 

 

 

Dimension

245x135x135cm

 

 

 

 

Weight

1800kg

 

 

 

 

FOB Shanghai Price

US$6,900

 

 

 

 

Product:

To help compare the above different machine let us tabulate the key features:

 

Z94-1C

Z94-2C

Z94-3C

Z94-4C

Z94-5C

Z94-6C

WZ94-4C

UZ94-4C

Max. dia. of nail

1.6mm

2.8mm

3.4mm

4.5mm

5.5mm

6.0mm

4.5mm

4.5mm

Min. dia. of nail

0.9mm

1.2mm

1.8mm

2.8mm

3.0mm

4.1mm

2.8mm

2.8mm

Max. length of

25mm

50mm

75mm

105mm

150mm

180mm

100mm

100mm

nail

 

 

 

 

 

 

 

 

Min. length of

9mm

16mm

30mm

50mm

70mm

100mm

50mm

50mm

nail

 

 

 

 

 

 

 

 

Output

450pcs/min

350pcs/min

310pcs/min

260pcs/min

200pcs/min

160pcs/min

220pcs/min

150pcs/min

Power of Motor

380V, 3-

380V, 3

380V, 3-

380V, 3-

380V,

380V,

380V,

380V, 3

 

 

phase,

phase,

phase,

phase,

3-

3-

3-

50HZ, 4kw

 

 

 

50HZ, 1.5kw

50HZ, 2.2kw

50HZ, 3kw

50HZ, 4kw

phase,

phas

phas

 

 

 

 

 

 

 

 

 

 

 

 

50HZ, 5.5kw

e,

e,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50HZ, 11kw

50HZ,

 

 

 

 

 

 

 

 

4+0.75kw

 

Dimension

150x130x120cm

170x130x140cm

200x140x140cm

220x160x165cm

260x165x17

360x205x2

200x150x2

245x135x135c

 

 

 

 

 

5cm

14cm

00cm

 

Weight

1200kg

1450kg

1800kg

2000kg

2500kg

6500kg

2600kg

1800kg

FOB Shanghai

US$2,300

US$2,900

US$3,600

US$5,200

US$6,800

US$15,800

US$7,000

US$7,200

Price

 

 

 

 

 

 

 

 

Equipment Terminology

From the above you can observe the key features that differentiate nail making equipment. Let us look at them closely:

Diameter of the nails – Basically this is the thickness of the nails. A machine will have a range of nail diameters that it can produce. For nails of the same size there will be slight differences in the thickness. For

diameters outside what the range then you have to go for a different machines. As you shop have an idea of the thickness range you want.

Length of Nails – Like we mentioned nails are of various sizes say 1 inch, 2 inch, 3 inch and so forth. Machines are set to make nails of a range of lengths say 2-4 inches. Look at this metric to make sure that you are purchasing equipment that can produce the range of lengths that you require depending on who your target market is.

Output – This refers to how many nails that a machine can produce within a given time say a minute. This figure can be converted to weight nay kilograms depending on the size and thickness of the nail. For instance 300 nails of greater length and diameter will weigh more than those that are shorter and thinner.

The output will help you estimate your production in a day. Look at the production in a day, demand available and costs to help determine what capacity you need to break even and make profit. In the lower ranges of the machines the difference in output might not be so significant, however seemingly small differences of say 50 nails per hour will have a comparatively bigger impact on the amount of nails that you can produce in a day.

Power of motor – This will determine how powerful the equipment is. A motor is a key part of the nail making machine. Keeping everything constant a ‘weak’ motor will mean lower production. On the other hand the more powerful a motor is the higher the production and electricity consumption.

Dimension – This refers to the physical size of the equipment. It includes the length, width and height. Consider the dimension when hunting for your premises. You need space that will fit the main nail making equipment and accessories such as nail polishing drum, wire drawing, packaging among other. You also need working space too. We refer back to this when looking at the premises.

Weight – This refers to the physical weight of the machine. This becomes a factor when determining the premises. Is the floor and structure strong enough to handle the weight of the equipment?

Price – This is the price of the equipment at the port of Shangai in China but exclusive of transport, insurance and other charges up to the port of Mombasa. We will come back to this.

Now in addition to the above core equipment there are also accessory equipment. In the case of the above supplier; the package of accessory equipment will be as follows:

Nail Polishing Machine

Model

Capacity/2h

Motor

Dimension

Weight

FOB Shanghai

 

 

 

 

 

 

SD-600

600kg

4kw

190x100x130cm

1000kg

US$1,200.00

 

 

 

 

 

 

 

 

 

 

 

SD-1000

1000kg

7.5kw

230x150x160cm

1300kg

US$2,000.00

 

 

 

 

 

 

Cutting Tool Grinder

Wire pay off

(grinding nail s, make it sharper)

Capacity:

200kg

 

Power: 0.75 Kw

US$100.00/Pc

Size: 800 x 600 x

 

900mm FOB

 

Shanghai: US$900.00

 

(With one set Grind Stone, 4pcs)

 

Spare Parts

The equipment could also come with spare s of the parts that wear out fast. In the case of the above company these are as follows:

MODEL

NAME

QTY'

 

UNIT PRICE

SUB TOTAL

 

 

 

 

 

 

 

NAIL MOULD

15

 

US$17.00

US$255.00

 

 

 

 

 

 

Z94-1C

NAIL CUTTER

15

 

US$19.00

US$285.00

 

 

 

 

 

 

PUNCH PIN

15

 

US$7.00

US$105.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$645.00

 

 

 

 

 

 

 

NAIL MOULD

15

 

US$27.00

US$405.00

 

 

 

 

 

 

Z94-2C

NAIL CUTTER

15

 

US$27.00

US$405.00

 

 

 

 

 

 

PUNCH PIN

15

 

US$9.00

US$135.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$945.00

 

 

 

 

 

 

 

NAIL MOULD

15

 

US$29.00

US$435.00

 

 

 

 

 

 

Z94-3C

NAIL CUTTER

15

 

US$29.00

US$435.00

 

 

 

 

 

 

PUNCH PIN

15

 

US$10.00

US$150.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$1,020.00

 

 

 

 

 

 

 

NAIL MOULD

15

 

US$34.00

US$510.00

 

 

 

 

 

 

Z94-4C

NAIL CUTTER

15

 

US$34.00

US$510.00

 

 

 

 

 

 

PUNCH PIN

15

 

US$12.00

US$180.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$1,200.00

 

 

 

 

 

 

 

NAIL MOULD

15

 

US$36.00

US$540.00

 

 

 

 

 

 

Z94-5C

NAIL CUTTER

15

 

US$36.00

US$540.00

 

 

 

 

 

 

PUNCH PIN

15

 

US$13.00

US$195.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$1,275.00

 

 

 

 

 

 

 

NAIL MOULD

10

 

US$50.00

US$500.00

 

 

 

 

 

 

Z94-6C

NAIL CUTTER

10

 

US$50.00

US$500.00

 

 

 

 

 

 

PUNCH PIN

10

 

US$18.00

US$180.00

 

 

 

 

 

 

 

TOTAL AMOUNT

 

US$1,180.00

 

 

 

 

 

 

Nail Mould

Nail Cutter

Punch Pin

Now let us look at some set ups based on the above equipment and prices:

Set Up Scenario One:

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

Z94-2C

1

US$2,900.00

US$2,900.00

 

 

 

 

 

Nail Making Machine

Z94-4C

1

US$5,200.00

US$5,200.00

 

 

 

 

 

Nail Polishing Machine

SD-1000

1

US$2,000.00

US$2,000.00

 

 

 

 

 

Cutting Tool Grinder

2M6-6

1

US$900.00

US$900.00

 

 

 

 

 

 

 

Total FOB SHANGHAI:

US$11,000.00

 

 

 

 

 

Assume you want to manufacture nails between 0.5 inches and 4 inches. The main equipment you will require are:

Set Up Scenario Two:

Say you want to manufacture nails between 2- 4 inches, then you will require

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

Z94-4C

1

US$5,200.00

US$5,200.00

 

 

 

 

 

Nail Polishing Machine

SD-1000

1

US$2,000.00

US$2,000.00

 

 

 

 

 

Cutting Tool Grinder

2M6-6

1

US$900.00

US$900.00

 

 

 

 

 

 

 

Total FOB SHANGHAI:

US$8,100.00

 

 

 

 

 

Set Up Scenario Three

In this case you want to make nail between 0.5 and 5 inches:

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

Z94-2C

1

US$2,900.00

US$2,900.00

 

 

 

 

 

Nail Making Machine

Z94-4C

1

US$5,200.00

US$5,200.00

 

 

 

 

 

Nail Making Machine

Z94-5C

1

US$6,800.00

US$6,800.00

 

 

 

 

 

Nail Polishing Machine

SD-1000

1

US$2,000.00

US$2,000.00

 

 

 

 

 

Cutting Tool Grinder

2M6-6

1

US$900.00

US$900.00

 

 

 

 

 

 

 

Total FOB SHANGHAI:

US$17,800.00

 

 

 

 

 

Set Up Scenario Four :

Say you want to manufacture umbrella nails. You require:

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

WZ94-4C

1

US$7,000.00

US$7,000.00

 

 

 

 

 

Nail Polishing Machine

SD-1000

1

US$2,000.00

US$2,000.00

 

 

 

 

 

Cutting Tool Grinder

2M6-6

1

US$900.00

US$900.00

 

 

 

 

 

 

 

Total FOB SHANGHAI:

US$9,900.00

 

 

 

 

 

The above are just the price of equipment at Shanghai. But we will come back to these and other costs later.

Example : Supplier Two; Machines, Features , Prices

Let us look at a different supplier, this time from India.

Here is a summary of the equipment and features:

 

 

Working Range

 

 

 

 

 

Model

Wire Diameter

Nail Length

Nails

Power

APPROX

Production

Per

FLOOR

per 8

 

 

 

 

 

m.m

S.W.G

m.m

Inch

HP

 

Minut

AREA

Hour

 

 

 

 

 

 

 

 

 

 

 

e

 

 

 

 

 

 

 

 

 

 

 

 

EN 1

0.9-1.8

20-15

12-40

½-1.5

55

1.5

1100*950

92 Kg.

 

 

 

 

 

0

 

 

 

EN 2

1.6-2.9

16-11

12-75

½ - 3

40

2.0

1375*950

256 KG.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0

 

 

 

 

 

 

 

 

 

 

 

 

EN 3

2.0-4.1

14-8

25-100

1-4

30

3.0

1680*1000

600 Kg.

 

 

 

 

 

0

 

 

 

EN 4

3.25-4.88

10-6

25-125

1-5

20

5.0

1760*1100

700 Kg.

 

 

 

 

 

0

 

 

 

EN 6

3.25-6

10-4

50-150

2-6

15

7.5

2130*1377

1000 Kg.

 

 

 

 

 

0

 

0

 

PRICE LIST

Description

Rate -USD

PACKING -USD

EN 1 Wire Nail Machine

3300

100

EN 2 Wire Nail Machine

4700

150

EN 3 Wire Nail Machine

6500

200

EN 4 Wire Nail Machine

7700

250

EN 6 Wire Nail Machine

1550

300

Polishing Drum 250 Kg.

0

250

 

 

Polishing Drum 500 Kg.

1800

300

 

 

Cutter Grinder

2100

100

 

 

Wire Stand

1000

Unpacke

 

 

 

100

d

 

 

 

Let us pick one of the machines the EN 3 which can make nails of 1-4 inches.

Wire Nail Making Machine EN – 3

 

 

 

 

 

Technical Data

 

 

 

 

 

Length of Nail (Inches)

1” – 4”

 

 

 

 

Nail Length (mm)

25- 100

 

 

 

 

 

Wire Diameter (SWG)

14 – 8

 

 

 

 

 

Wire Diameter (mm)

2.0 – 4.1 mm

 

 

 

 

 

Nails Per Minute

350

 

 

 

 

 

Power Require (HP)

3.0

 

 

 

 

 

Net / Gross Weight

975 - 1145

 

 

 

 

 

Floor Area (mm)

1610 x 1020

 

 

 

 

 

Production Per 8 Hour (75%)-

600 Kg.

 

 

 

 

Production Estimate

Wire Thickness

 

 

Nail Length in Inches

 

 

 

 

 

 

 

 

 

 

 

1.50” Inch

2.00” Inch

 

2.25” Inch

2.50” Inch

3.00” Inch

 

 

 

 

 

 

 

8 SWG (4.1 mm)

520 kg.

640 kg.

 

730 kg.

875 kg.

975 kg.

 

 

 

 

 

 

 

9 SWG (3.6 mm)

475 kg.

550 kg.

 

640 kg.

795 kg.

850 kg.

 

 

 

 

 

 

 

10 SWG (3.2 mm)

370 kg.

480 kg.

 

580 kg.

685 kg.

785 kg.

 

 

 

 

 

 

 

11 SWG (2.9 mm)

325 kg.

375 kg.

 

480 kg.

530 kg.

675 kg.

 

 

 

 

 

 

 

12 SWG (2.6 mm)

275 kg.

350 kg.

 

425 kg.

475 kg.

510 kg.

 

 

 

 

 

 

 

13 SWG (2.3 mm)

225 kg.

275

 

350 kg.

425 kg.

450 kg.

 

 

 

 

 

 

 

14 SWG (2.0 mm)

185 kg.

215

 

250 kg.

300 kg.

375 kg.

 

 

 

 

 

 

 

Equipment Terminologies More

As you can see the above there are no major differences between the various suppliers in terms of feature. The slight differences are in terminologies.

The production estimate is for 8 hours a day and depends on the length and thickness of the nails. Prices vary between various suppliers. SWG means standard wire gauge, a British standard used to measure the thickness of wires. It’s not very popular but often used by Indian manufacturers due to their British heritage. Basically it refers to the thickness or diameter of the nail.

As is perhaps now clear there are no set standards on what a machine can make thus you find one will have a machine that can make 1-4 inches, while another limits to 2-4 inches. This is informed by what they feel the market will favourably response to.

In all cases a good nail making machine should be efficient in order to produce the desired quantities within a given time, it should not breakdown easily neither wear after a short duration. In this regard it should last for long. And because you are using it for business the maintenance costs should be low.

Let us consider some scenarios.

Supplier Two: Set Up Scenario One

Here you want to manufacture nails between 0.5 inches and 4 inches. You will need:

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

EN2

1

US$4,850.00

US$4,850.00

 

 

 

 

 

Nail Making Machine

EN3

1

US$6,700.00

US$6,700.00

 

 

 

 

 

Nail Polishing Machine

 

1

US$2,400.00

US$2,400.00

 

 

 

 

 

Cutting Tool Grinder

 

1

US$1100.00

US$1100.00

 

 

 

 

 

 

 

Total FOB INDIA

US$15050.00

 

 

 

 

 

Compare this with the Chinese equivalent of $ 11000

Supplier Two: Set Up Scenario Two

Assume you are making nails 1-4 inches. You will need:

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

EN3

1

US$6700.00

US$6,700.00

 

 

 

 

 

Nail Polishing Machine

 

1

US$2,400.00

US$2,400.00

 

 

 

 

 

Cutting Tool Grinder

 

1

US$1100.00

US$1100.00

 

 

 

 

 

 

 

Total FOB INDIA

US$10200.00

 

 

 

 

 

Supplier Two: Set Up Scenario Three:

Let us say you want to make 0.5 to 5 inches.

Machine Name

Model

Qty.

Unit Price

Sub Total

 

 

 

 

 

Nail Making Machine

EN1

1

US$3,400.00

US$3,400.00

 

 

 

 

 

Nail Making

EN4

1

US$6,700.00

US$7,950.00

Machine

 

 

 

 

Nail Polishing Machine

 

1

US$2,400.00

US$2,400.00

 

 

 

 

 

Cutting Tool Grinder

 

1

US$1100.00

US$1,100.00

 

 

 

 

 

 

 

Total FOB INDIA

US$14,850.00

 

 

 

 

 

Compare with the Chinese example above which requires 17,800 and three nail making machines.

Example : Supplier Two; Machines, Features , Prices

Let us look at one more supplier from China. In this case we take a different approach and reproduce an invoice from the company. For better understanding we have modified the simple description part.

Zhengzhou Uniwin Machinery and Equipment Co.,ltd

Add:No 10 Hanghai road,Zhengzhou,450000 China.

Tel:+8615036110423 Email:[email protected] Web:www.nailmakingmachine.net

 

PROFORMA

INVOICE

 

 

 

 

 

 

 

 

 

 

To:

 

 

 

Invoice Date:Nov.27 2017

Attn:

 

 

 

Invoice NO.: 2017ZDJ-1127

Tel:

 

 

 

Valid Date: June.30th 2018

 

 

 

 

 

 

 

Item

Simple Description

 

Picture

FOB

Qty

Value

 

Price

 

 

 

 

 

 

 

 

 

 

 

 

 

wire drawing system

 

Purpose: To weld the

 

 

 

 

Butt welding

wire together after

 

 

 

 

breakage

 

300

1

300

machine 3-8mm

 

Size:700*700*1000mm

 

 

 

 

 

 

 

 

 

 

Weight: 40kg

 

 

 

 

 

 

 

 

 

 

 

To sharpen head of wire

 

 

 

 

 

before feed into wire

 

 

 

 

Sharpening mill

drawing machine Power:

 

850

1

850

2-12

2.2kw

 

 

 

 

 

 

size: 800*800*1200 mm

 

 

 

 

 

weight: 100kg

 

 

 

 

 

 

 

 

 

 

 

Purpose: to get the

 

 

 

 

Water Cooling

diameter of the steel

 

 

 

 

Drawing machine

wire as required.

 

 

 

 

WSL500(3drums)

Power: 15kw(first

 

9600

1

9600

With frequency

drum)+15kw(second

 

 

 

 

 

converter to adjust

drum)+15kw(third drum)

 

 

 

 

speed

Size: 3400*1100*1250

 

 

 

 

 

Weight:2.5 ton

 

 

 

 

 

 

 

 

 

 

Dice for wire

Dice of dia for different

 

10

100

1000

drawing machine

size nails

 

 

 

 

 

 

 

 

 

 

 

wire drawing

make the drwaing

 

500

1 tons

500

powder

smoothly

 

 

 

 

 

 

 

 

 

 

 

Nail making system

 

 

Motor power:3 kw

 

 

 

 

 

 

Diameter of nails: 1.8-

 

 

 

 

 

 

3.4 mm

 

 

 

 

 

Nail making

Length of nails:30-80

 

 

 

 

 

mm

 

4000

1

4000

 

machine Z94-3C

 

 

Speed:320 pcs/min

 

 

 

 

 

 

 

 

 

 

 

 

Weight:1.5 tons Size:

 

 

 

 

 

 

1850*1200*1350mm

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor power:4 kw

 

 

 

 

 

 

Diameter of nails: 2.8-

 

 

 

 

 

 

4.5 mm

 

 

 

 

 

Nail making

Length of nails:50-100

 

5500

1

5500

 

machine Z94-4C

mm

 

 

 

 

 

 

 

 

Speed:280 pcs/min

 

 

 

 

 

 

Weight:2 tons

 

 

 

 

 

 

Size: 2350*1500*1450

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor power:5.5 kw

 

 

 

 

 

 

Diameter of nails: 3.5-

 

 

 

 

 

Nail making

6.0 mm

 

 

 

 

 

Length of nails:100-150

 

7000

1

7000

 

machine Z94-5C

 

 

mm

 

 

 

 

 

 

 

 

 

 

 

 

Speed:220 pcs/min

 

 

 

 

 

 

Weight:2.3 tons

 

 

 

 

 

 

 

 

 

 

 

 

 

Polishing the finished

 

 

 

 

 

 

nails,make it brighter

 

 

 

 

 

 

Motor power: 5.5kw

 

 

 

 

 

Polishing

Capacity: 1000kg/time(it

 

 

 

 

 

machine SD-

will take 2-3 hours per

 

2400

1

2400

 

1000

time)

 

 

 

 

 

 

Size:

 

 

 

 

 

 

2300*1200*1200mm

 

 

 

 

 

 

Weight:1000kg

 

 

 

 

 

 

 

 

 

 

 

 

 

to hold wire for nail

 

 

 

 

 

wire reel

making machine

 

100

6

600

 

Size:800*800*1000

 

 

 

 

 

 

 

 

 

Weight: 10kg

 

 

 

 

 

 

 

 

 

 

 

 

Nail mould

nail mould

 

25

20

500

 

 

 

 

 

 

 

 

Nail knife

to cut wire to make the

 

25

20

500

 

nail point

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pin punch

punch the wire to make

 

10

20

200

 

the nail head

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remark:capacity about 2-6ton per 8 hours.

 

 

 

 

 

 

 

 

 

 

 

Total FOB Price

 

 

$ 32,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.Term of payment: 30% TT Deposit, 70% TT before delivery.

2.Time of delivery: within 20 days after receiving the advance payment

3. Delivery city: Tianjin port of China

4. Bank details:

Bank Information:

BENEFICIARY: ZHENGZHOU UNIWIN MACHINERY AND EQUIPMENT CO.,LTD

BANK:BANK OF CHINA HENAN BRANCH

ADD:HUAYUAN ROAD 40TH ZHENGZHOU CITY HENAN CHINA

ACCOUNT NUMBER: 248144506326

SWIFT CODE: BKCHCNBJ530

THE BUYER:

THE SELLER:

Sophia Zhao

This example is for a small but full scale operation that has a wire drawing machine, machines to make normal nails from 1-6 inches, sharpening tool, polishing drum and accessories and spare parts. Still you can pick only the machines that you require based on your resources and market. The above is the ideal set up, but then again at the start you can specialize in the most in demand nails and use extra resources to market, acquiring raw materials and as working capital.

From all the above examples you can see that there are several set ups that you can go for. It will depend on the resources you have at your disposal, your market and the kind of nails that you want to produce.

You will also note the equipment combinations and specifications will vary between the suppliers. Since they are in business they will try selling to you as many of the equipment as possible, but simply buy what you need.

Factors To Consider When Purchasing Equipment

Capacity

The machines come with different capacities usually measured in kilograms per hour. Choose the capacity based on the cash at hand, the share of market you plan to win and of course your future projections.

It’s preferable to initially have idle capacity than to struggle to meet increased demand as a result of low capacity. This does not mean that you should go for the maximum size but something reasonable: 100 kg/ hour or so is fair enough.

Support

You should look for a dealer who offers support of sorts. This could be in terms of warranties, spare parts and even servicing whenever possible.

Because most of the companies do not have a local presence it might not be possible to get full commissioning and service support free of charge. Often a company will give you the option of sending a technician to help with installation, training and commissioning. However you will have to pay for the expenses such as flight and accommodation. In addition you will be required to pay the technician an allowance which averages $ 100 per day. This is not a necessary cost for a nail making machine considering that it’s not a very complex machine. You can look for local technicians to help you in installations. Only in extreme cases should you ‘import’ the technicians.

Always have clear ideas of what warranties cover, how soon you can get spare parts and technicians in case of a breakdown.

 

 

 

 

Price

There are quite some price variations for the equipment .Although variations will depend on factors such as capacity, brand and extra features, at times prices differences are for the same equipment but from different dealers.

Look for the best deal. For equipment the best deal is not necessarily the cheapest, look at everything as a whole including other factors such as ease of operation, warranties and running costs.

Also look at what the price covers. For instance some manufactures will quote the price of making the machine at their factory. You have to add extra costs for transport from the factory to the port, local (manufacture’s country) taxes, packaging and such other costs.

Ease of operation

A complex system is not necessarily better. Look for a machine that is easy to use. This way you don’t spend so much time training your staff. You are more efficient if operators are sure of what they are doing and even non technical staff are able to run the machine.

Running Costs

Consider the running costs. The key among them being power consumption, how often it requires service, how many people are required to operate it, the price of spare parts and its life ‘ expectancy’ ; keeping everything constant how long will the equipment last before you are required to replace.

Physical Size

Nail making machines even of the same capacity come in different designs and sizes. The machine should be able to fit your premises, and leave you with enough space to work. Consider both the length and the height. If the machine can’t fit and there are no alternative premises then seek to know how if it can be assembled in such a way that it fits.

Price and Costs

As you have noted above all the prices are in US dollars. That is the standard when foreign companies are giving quotations. You can covert to Kenyan shillings by multiplying with the current exchange rates.

Something to note too is that the prices are F.O.B (Free on Board) meaning they exclude the costs of freight, insurance and related which you will bear... It will cost about Kshs.200, 000 to transport a container from China to Mombasa.

No custom tax is charged on these kind of machinery. Nonetheless there are other kinds of fees that will be charged at the port. These will include:

IDF Fee - 2.25% of CIF

concession fee - Kshs. 250.00

Railways Development Levy - 1.5% of CIF

Handling - at cost

Transport - at cost

IDF application fee – Kshs.1000.00

Documentation – Kshs. 2000.00

Agency fee - Depends on the agent but budget at least Kshs.15,000

Process of Buying Equiment

 

 

 

 

The process of buying equipment could follow the below general steps:

Identify the nails that you want to make. Let the market that you want to target and the opportunity you seek to seize be the guide.

Look at your resources (and market) and decide on the equipment you want. First what capacity are you seeking, do you need and are you able to afford a wire drawing machine, the sharpening tool and other accessories? If short on resources what can you prioritize?

Approach different suppliers with your needs and get quotations. Give about a week to get all quotations since some suppliers will take time to reply.

Look at the quotations. Consider the features of the machines as we noted above, the prices, terms such as warranty, support and delivery time.

If satisfied make the down payment, wait for the agreed period, get documentation and notification when shipment begins.

Contact a clearing agent to help you clear the equipment.

Transport to your site.

Suppliers

There are many suppliers of nail making equipment. Most of the suppliers selling to small and medium scale businesses are based in China and India. This is a good starting point because of affordability and established trade channels with Kenya.

Finding suppliers has been made easy by the internet and particularly markets such as Alibaba.com for Chinese suppliers and Indiamart.com for India suppliers. Still to jump start you here are some companies that you can approach directly. Some of which we have used their products in the examples above.

 

Company

Location

 

Contacts

 

 

 

Zhengzhou Uniwin Machinery and

China

 

Tel:+8615036110423

 

 

 

 

 

 

 

 

Equipment Co. ( Very reputable company,

 

 

Email:[email protected]

 

 

quick communication, knowledgeable and

 

 

Web:www.nailmakingmachine.net

 

 

 

assistance in selecting )

 

 

 

 

 

 

Ekta Nail Machine ( Fairly good Indian

India

 

[email protected]

 

 

 

company with a variety of products)

 

 

www.ektanailmachine.com

 

 

 

 

 

 

 

 

 

 

Hangzhou Candid Co.Ltd

China

 

Tel: +86 571 87924031

 

 

 

( Chinese company with relatively fair

 

 

www.china-equipments.com

 

 

 

prices for some items)

 

 

[email protected]

 

 

 

Wuxi Donghua Nail Making Machinery Co.,

China

 

Tel: +86 510 88711089

 

 

 

Ltd.

 

 

 

 

 

 

 

Mobile: +86 15951516141(WhatsApp &

 

 

 

 

 

 

 

 

 

 

WeChat) Website:

 

 

 

 

 

 

www.ChinaNailMachine.com

 

 

 

 

 

 

E-mail: [email protected]

 

 

Hems Machines

India

 

91 79 40305985

 

 

 

 

 

 

Email : [email protected]

 

 

 

 

 

 

Web link :

 

 

 

 

 

 

http://www.indiamart.com/hemsmachines/

 

 

 

 

 

Phone : +91-183-2275900 , FAX : +91-183-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gurinder Engineering Works

 

2275900

 

 

Mobile : +919988070520 , EMAIL :

 

 

[email protected]

 

 

Website : www.gurinderenggworks.com

Premises

The premises that you require for the business should be big enough to first fit the machines, have a working area, a store and an administrative area of sorts.

Layout & Overview

The layout could be something like this:

The above is just a simplified guide and you could modify depending on the nature of the premises, space available and the scale of your operation.

The production area is where the equipment will be placed and where the actual production of the nails will happen. Next to the production area will be the store where raw materials will be stored and finished products held before shipping.

The administrative area will hold the managerial staff.

To get an idea of the size that you require let us look at sizes of some of the machines:

Model

Size of Nails

APPROX FLOOR AREA (Meters)

EN 1

½ -1.5

1100*950 1.1*0.95

EN 2

½ -3

1375*950 1.373*0.95

EN 3

1-4

1680*1000

1.68*1

EN 4

1-5

1760*1100

1.76*1.1

EN 6

2-6

2130*13770 2.13 *13

 

 

 

 

As you can see nail making machines are not so huge. However don’t be fooled by the small size to go for ‘small’ premises. Remember you need space for wire drawing, nail polishing, packaging, storage and other such functionality. Also if you have more than one nail making machine then you will need even bigger space. You could allocate each machine at least double its actual size. At times it will depend on the space that you have at your disposal and resources available. Ideally you should have a high roof so the air is not congested and the noise too much. You can start in very basic premises and expand as the business grows.

Basic facilities like toilets and a breakout room are important.

Renovation

It could be necessary to conduct some renovations to make the room ready for business. The following are some possible renovations. Not all could be necessary

Type of Renovation

Purpose

 

 

Lighting

Provide enough light to make

 

sure production happens in a

 

safe and conducive

 

environment while at the same

 

time keeping energy costs

 

low.

 

 

Security System

To ensure the safety of the

 

products and staff. Includes

 

CCTV cameras and alarm

 

systems.

 

 

Laying of Epoxy Floor

This is to protect the floor,

 

equipment, staff and maintain

 

a high level of hygiene

 

 

Painting

To make the work place

 

physically appealing and

 

friendly.

 

 

Fire Protection System

To help control and extinguish

 

fire in case it erupts.

Security System

To help guard against theft.

 

 

Raw Materials

The basic raw materials for making nails are wires technically called low carbon wires MORE. Generally there are two types of wires that you can buy. First are the ‘finished ‘or ready wires. These are wires which have been made and ‘set’ for nail making. This is especially in terms of diameter. You just feed these wire in the nail making machine without any premodification.

The second type is the ‘raw’ wire. This means it’s not ready for nail making and has to be modified. Often this is in terms of getting the right thickness for nail making. Thus the wire has to be modified using a wire drawing machine in order to fit the required dimensions for instance 2.8mm. Once the wire is ‘drawn to the needed diameter it then fed into the machine.

 

 

 

 

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