Investing In Security Doors Business
Security door, a type of door that can withstand high impact forces such as kicking, punching, gunshots or even attempted burglary, is a must, considering the high rate of crime committed daily in Nigeria.
The main reason is that home invasions, burglaries and other security breaches are rampant and weak doors, even with burglary reinforcement, are often not enough to prevent thieves and kidnappers from gaining access to people’s homes and offices.
For example, a report by Statista revealed that nearly 70,000 crimes against property were reported in Nigeria in 2017. The largest number of cases was related to theft and theft in general, reaching more than 30,000 records; more than 3,000 cases of armed robbery have been recorded; 3,212 cases of burglary; 2,167 cases of house burglary and 1,873 cases of shop burglary were recorded in the year under review.
A professional business plan consultant, Paul Onwueme puts it clearly when he said a close look at homes and offices revealed that most security breaches are usually done through doors, adding that “It is more stressful and time consuming for thieves and robbers to try to force entry through windows or ceilings. Thieves often break into churches to steal musical instruments, equipment and generator sets. Private homes have lost their electronics, home appliances, cash and other valuables.”
These instances, coupled with rapid urbanization, housing shortages and growing middle class, among several other factors, have created a market space for security door business to flourish in Nigeria.
Onwueme added that well-made security doors can prevent thieves and intruders from gaining access to private residences.
As a result, many home owners, especially middle-class owners, who have been victims or know other people who have been victims, need high-capacity security doors, the consultant revealed, adding that some locally produced metal steel/metal doors are easily manufactured by artisans, even though often not very safe as they cannot withstand very heavy force (most of the time).
Investment in the business
To begin with, one must be able to differentiate between high quality security doors and the low quality doors, Onwueme said, adding that most high quality security doors in Nigeria are foreign made.
“The locally manufactured products, although they serve their purpose, are often not as good and functional as the foreign ones. A little more improvement and quality control will make locally manufactured doors very attractive to the middle class market,” he explained.
He listed the different types of security doors as Israeli Security Doors, which are highly effective against forced entry, aesthetically designed and often bulletproof but very expensive; Turkish made security doors, which are more affordable than Israeli doors, also effective but not as effective as Israeli made doors; German steel doors are more affordable than both Israeli and Turkish doors and also a good alternative to locally manufactured security doors, which are usually strong enough to resist breaking, but not as resilient as most foreign-made doors.
After knowing the different types of security doors, the next thing to do is to know the market, the consultant said, adding that along with the crime committed daily, which forced the demand for security doors to increase tremendously to take, there are many houses being built daily in Nigeria.
“In most cities, housing shortage also becomes evident as the population increases, leading to the construction of new houses or the renovation of existing buildings to meet the housing needs of residents. Part of this often involves the purchase and installation of high capacity security doors, especially Israeli and Turkish doors. These doors are in very high demand for luxury residential apartments and offices. According to my estimate, we are talking about at least 40,000 units of these doors with their prices starting from N110,000, we are talking about at least N4.4 billion per year in sales (this is a conservative estimate),” he explained.
He listed key target markets such as courts, hotels, government offices, schools, universities, private residences, embassy buildings, factories, offices, shops, churches, airport buildings among others.
“The cost of setting up a security door production company in Nigeria, in addition to pre-set-up admin expenses, is at least N45 million. The breakdown of this starting amount covers costs such as; purchase of machinery, door fittings, components and raw materials, purchase of a generator set, delivery van and office equipment. The administration setup expenses come down to N15 million. A conservative starting amount is therefore N60 million,” Onwueme revealed.
However, LEADERSHIP investigation revealed that with N2 million to N5 million, one can at least start selling these security doors on a small scale.