How to start Indomie wholesale business in Nigeria
Instant noodles is easy and fast to cook. This makes it an alternative good option for singles, busy mothers, students, and anyone who is hungry but has no time or resources to cook. In this post, you will learn how to start an Indomie wholesale business in Nigeria.
Indomie is an instant noodle product of an Indonesian company, popularly known as “Indofood.” This Indonesian company partnered with the Tolaram Group in Nigeria and introduced Indomie in 1988.
By 1995, Indofood had launched its Indomie production factory in Nigeria. It was widely accepted and became popular over the years. Today, Indomie has a market share of 74% in the Nigerian noodles market.
How profitable is the Indomie business in Nigeria?
The Indomie wholesale business is very profitable in Nigeria.
Indomie is one of the most consumed foods in Nigeria, by both students and adults. This is largely due to its refreshing and delicious taste which is unmatched by other foods, not even spaghetti or macaroni.
The Indomie brand came to Nigeria in 1988. The first Indomie production factory in Nigeria was opened in 1995 under Dufil Prima Foods.
Today, Indomie is widely consumed by many families. There’s no place in the country where Indomie is not being eaten, even in villages. Also, there are not many distributors yet, which reduces the competition.
How can I become a distributor of Indomie in Nigeria?
Unlike some other businesses, it’s very easy to become an Indomie distributor in Nigeria. In this article, we have put up a step-by-step guide on how you can start an Indomie wholesale business.
Ensure you read this post to the end.
How much do I need to start an Indomie business in Nigeria?
This will depend on the level at which you want to operate your Indomie distribution business. You will need a minimum amount of ₦2 million to start an Indomie wholesale business as a distributor.
If you want to be a sub-distributor, you can start with an amount of less than ₦1 million. However, that means you’ll have to buy from distributors, and they will sell to you at their own rates.
Although your profit margin won’t be as large as that of Indomie distributors, you will still have substantial profit, especially when compared to other types of businesses.
How to start Indomie wholesale business
Follow these steps to start an Indomie business in Nigeria:
1. Acquire distributor rights from the Indomie company
The first step in starting your Indomie wholesale business is to reach out to the Indomie company and voice your proposal.
Dufil Prima Foods Plc is the owner of Indomie Nigeria. It was formed through the partnership of Indofood and the Tolaram Group.
Once you become a certified Indomie distributor in Nigeria, you will be supplied with a large amount of Indomie instant noodles at low rates.
In turn, you will sell to sub-distributors at your own rates. The difference between the purchase price and the selling price is your profit.
2. Secure a good location
Remember that you’re a wholesaler (distributor) and not a retailer. This means that you will only be selling to sub-distributors and retailers. You won’t necessarily sell to final consumers (unless they want to buy in cartons).
When searching for a location, find somewhere that’s safe from burglary and armed robbery. It should also be easily accessible, as most of your customers (sub-distributors and retailers) will come with a vehicle.
Another important thing is pest control. You need to take this seriously, as rats and other pests may eat up your Indomie business from the inside out. After all, Indomie is meant to be eaten. Smiles.
3. Get funding for your Indomie wholesale business
Money is the fuel of every business. There are many ways in which you can get funding for your Indomie wholesale business.
- Use some of your personal savings
- Borrow money from friends and relatives
- Approach angel investors
- Meet with venture capitalists
- Submit a proposal to business accelerators
- Obtain business loans from commercial or microfinance banks
Check this out: The easiest ways to get funding for a new business in Nigeria
4. Do some branding
Yes, you’re a distributor. But that doesn’t stop you from having your own business name, logo, and identity. Your business name must be visually appealing, easy to remember, easy to spell, and should also make sense.
To arrive at a suitable business name, think of all possible names and come up with a list. Then start removing some names until you have an idea that finally works out.
Recommended: How to create a business name from scratch
5. Register your Indomie wholesale business
The next thing to do is to register your Indomie business with the Corporate Affairs Commission (CAC). This is the body responsible for the registration of businesses and companies in Nigeria.
Registering your business name will make you look more credible to customers. You will also have a higher chance of attracting investors and business partners.
6. Get an Indomie distribution vehicle
Once again, don’t forget you’re a distributor. Your work is to receive demands from other people and then supply them with the quantity they need.
While some customers will bring their vehicles to your warehouse, some will only pay in advance and request that you deliver them to their store.
Your distribution vehicle(s) is what you’ll use to deliver Indomie whenever sub-distributors and retailers place an order.
7. Hire some employees
Being an Indomie wholesale business means you’ll be carrying and loading tens (or hundreds) of vehicles every day. And each vehicle may stock up to 150 cartons or more.
You can’t possibly handle all of that by yourself. To run things smoothly, you should hire at least 2 or more casual workers, depending on the size of your Indomie wholesale business.
Your first 2 workers should be a driver and secretary. The latter can also work as a cashier and sales rep until you hire other employees.
Now here’s the thing. You should only hire people that you trust. Once they start work, you should supervise them from time to time.
Open and lock the warehouse yourself (or have a trusted family member do it). We’re not saying you shouldn’t trust your employees, but it doesn’t hurt to keep extra watch over your source of livelihood.
Indomie is being cooked and eaten by many students, families, singles, busy parents and many other people. It is widely consumed in many parts of the country, including rural settlements.
This explains why the Indomie wholesale business is very profitable in Nigeria. Acquire distributor rights, register your business, get a van, hire employees, deliver instant noodles and make your profit.
Disclaimer: This article is intended for general informational purposes only. It is not business advice and should not be treated as such. If you seek more knowledge, kindly refer to Indomie vendors and distributors in your region.
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