How to start a nitrile glove production: business plan


The excellent performance characteristics of nitrile gloves have made them one of the most popular products in the modern market of protective and special clothing. They are resistant to mechanical damage and aggressive chemicals - oils, fats, organic solvents, solutions and hydrocarbons. Elastic nitrile does not cause allergic reactions and does not dry out the skin. Thanks to the high stretch limit (more than 500%), the gloves are able to take the shape of the hand. The material retains its original properties in the temperature range from -40 to +130 degrees Celsius.

Nitrile gloves are chemical resistant and have increased durability

1. Market analysis 2. Business registration 3. Rent of a production workshop 4. Equipment for production 5. Raw materials 6. Personnel 7. Promotion and sales 8. Start-up costs and payback period

Market analysis

According to official data, before the global coronavirus pandemic, the Russian market for nitrile gloves amounted to 1-1.2 billion pairs per year, however, with the introduction of quarantine measures, the demand for them increased to 4 billion. Until the summer of 2022, our country did not have its own enterprises producing nitrile gloves.

The main manufacturers in this market segment - Jasmine Honey, Rusmedupak, Armavir Rubber Products Plant and Manipula Specialist - are based abroad, in Malaysia, Indonesia, Sri Lanka, Thailand - in countries where raw materials and there is no shortage of relatively cheap labor.

However, as a result of the introduction of strict quarantine in these countries, all production facilities were closed, and the import of gloves to the Russian Federation was temporarily suspended. All this led to a sharp increase in demand for these products and an increase in their wholesale cost.

Today, about 85-90% of all nitrile gloves that are sold in Russian regions are goods imported from abroad, which causes a clear shortage of domestic products and makes the production of medical gloves as a business attractive not only for large enterprises, but also for companies small and medium business.

Wholesale buyers of nitrile protective gloves can be pharmacies, private medical centers, state and municipal hospitals, clinics, industrial goods stores and construction supermarkets. Unlike traditional latex products, products made from synthetic, nitrile rubber have a non-slip surface, which is very convenient if you have to perform precise and precise manipulations using small and thin instruments.


Nitrile gloves can withstand punctures from sharp objects

Business registration

As with any other line of business, the production, retail and wholesale of nitrile gloves will require registration of your activity. If you plan to produce goods on an industrial scale, you will need to open an individual entrepreneur or LLC. Both of these options do not require excessive amounts of time and effort.

OKVED for . The choice of taxation system is made depending on the scale of the enterprise’s activities.

At the initial stages of doing business, it is best to choose a simplified system with a tariff rate of 6 or 15% of the company’s profit.

However, if a businessman expects to work with large government organizations and wholesale companies, the use of a general taxation system that includes VAT will be required.

Paperwork

In order to officially register your business, you will need to register an individual entrepreneur or form an LLC. You can find out how to do this by following the links. The most convenient option for a novice entrepreneur is to register as an individual entrepreneur. This entails less responsibility and easier business management. Here you can read how to choose the tax system that suits you. The article “What taxes does an individual entrepreneur pay” may also be useful.

OKVED code for the production of gloves: 18.24.23 – Production of clothing accessories, including scarves, scarves, ties, gloves and other similar fabric products.

Renting a production workshop

To open a small production facility, you will need a land plot of several hectares to accommodate production workshops, technological and storage facilities, an office, and staff rooms. Particular attention should be paid to the development of the project and the arrangement of the workshop. To accommodate the production line, the area of ​​the room must be at least 250-300 square meters. In accordance with fire and sanitary-epidemiological safety requirements, the ceiling height cannot be less than 3.5 meters.

All buildings and structures of the enterprise must be electrified, connected to water supply and sewerage, and have ventilation and air conditioning systems installed. To ensure labor safety standards in the workplace, floors in the production workshop and in auxiliary areas (cabins for staff, rooms for storing raw materials, placing finished products) must have a durable, anti-slip coating.


Production facility for the production of nitrile gloves

Types of glove making machines

In the production of gloves, the main emphasis is on a good machine. The leadership level in this area is held by Japanese manufacturers of Shima Seiki brand devices. Korean knitting machines are breathing in their backs, and there is no need to discount Chinese models. They do their job well, and their inexpensive cost will allow you to start a business on a small budget.

According to the principle of operation, knitting machines are of two types:

  • Automatic . Here the program works in automatic mode, and the necessary knitting parameters, such as the number of rows or lines, are set on a special display.
  • Manual . Here, the required set of loops is determined and set by a special plastic chain, by changing the number of links in it.

Additional equipment you will need is the following:

  • Overlock.
  • Apparatus for applying protective layers.
  • Packaging line.

Equipment for production

According to rough estimates, opening an enterprise for the production of nitrile gloves will require significant initial investments in the amount of at least 4.5-5 million rubles. Most of the start-up capital will go towards purchasing equipment, setting up and launching production lines.

To produce nitrile gloves you will need to purchase the following equipment:

  1. Glass, metal and ceramic containers for storing raw materials and materials of various sizes;
  2. Ball mill;
  3. Vulcanizing apparatus and automatic mixers;
  4. Production block with brushes;
  5. High-strength containers for alkali, acid and boiling water;
  6. Containers for washing and molding gloves;
  7. Pressing apparatus;
  8. Coagulating capacity;
  9. Drying cabinet;
  10. Oven for hardening gel and drying nitrile products;
  11. Cooling container;
  12. Cooling system;
  13. Metal or plastic tray for collecting liquid.

Modern industrial equipment makes it possible to create fully automated production lines, the components of which are supplied from China and Taiwan. It is best to purchase equipment from Russian suppliers, who, for an additional fee, will set it up, organize personnel training, prepare the technological and engineering documentation necessary to start work, and take on issues related to maintenance and scheduled repairs of the production line.

Product selection

Business and the quality of products in the future will depend on the purchase of the right high-tech equipment. When choosing machines, you need to pay attention to:

  • quality, since cheap analogues will lead to poor quality, frequent breakdowns and a slowdown in the production process;
  • availability of certificates to avoid buying counterfeits;
  • the power of the equipment and customer reviews can be read on the Internet;
  • technical equipment, because when producing gloves, it is necessary to take into account the technology of glove production.

Many modern models are multifunctional and equipped with an electronic control unit for quickly setting up production and producing high-quality products. Taking into account the ratings of manufacturers, it is better to buy from reputable companies offering warranty and post-warranty service.

It is possible to purchase additional machines to give the gloves more advantages:

  • strength;
  • environmental friendliness;
  • air leakage;
  • low cost.

If you have a limited budget, you can start by purchasing Chinese equipment with fairly good performance and automatic computerized control.

According to experts, to thoroughly start a business for the production of work gloves, it is enough to purchase 5 machines. But the profitability of production will be influenced by many other factors:

  • performance;
  • power;
  • speed degree.

If desired, today it is possible to lease equipment, but it will be more expensive than buying used equipment. But you can count on receiving high-quality equipment.

Raw materials

In recent years, experts have noted a serious increase in prices for natural latex. If the main suppliers to Russia are Thailand, India, Indonesia and Malaysia. The demand for these raw materials is constantly growing, which in turn affects its cost. Therefore, many enterprises producing special and protective clothing prefer to replace natural latex with cheaper synthetic rubber.

Read about how to open a sewing business for sewing workwear here.

To start a business producing nitrile gloves, you need to arrange supplies of:

  • Synthetic and natural rubber;
  • Natural emulsion;
  • Titanium pigment;
  • Antioxidants;
  • Calcium nitrate;
  • Separator for zinc oxide.

Supply contracts can be concluded both with domestic intermediary companies and directly with manufacturers (mostly foreign). On average, the purchase of raw materials and supplies costs up to 3-4 million per month, depending on the scale of the production process and plans for the release of finished products.


Raw materials for the production of nitrile gloves

What documents are needed to open

Based on the scale of production, we also determine the organizational and legal form. If the production of gloves will be carried out at small production facilities, then it is enough to register as an individual entrepreneur. This requires a minimum of documents and takes no more than 5 days.

To do this, you must submit an application and attach a photocopy of your passport, as well as a receipt for payment of the state fee. In cases of volume production or when there are shareholders, a limited liability company is registered. However, here you will need to provide a more impressive package of documents.

Staff

Even if a company operates a fully automated production line, it cannot do without qualified operators.

  1. With the planned capacity of the enterprise being 30-40 thousand pairs per day, it is necessary to hire at least 4 operators who will work in shifts and in pairs.
  2. To pack finished products (pieces or blocks of 10-100 pairs) into cardboard or cellophane containers, you will need to hire two packers, also for shift work.
  3. To optimize logistics costs (delivery of raw materials, transportation of gloves to customers), a forwarding driver should be included in the staff.
  4. The manager should be responsible for selling products, searching for suppliers, advertising and marketing.
  5. Accountant – maintains financial and personnel documentation, tax reporting.
  6. Manager – at the initial stages of the company’s work, this position can be filled by the businessman himself.

The wage fund will be 350-400 thousand rubles per month, 5-5.5 million rubles per year.


Production personnel

Financial calculations

Basic investment

  • rental of premises - 60,000 rubles;
  • purchase of raw materials and consumables - 90,000 rubles;
  • registration of individual entrepreneurs - up to 3,000 rubles;
  • purchase of equipment - 2,432,000 rubles.
Equipment
NameProductivity, steam per hourQuantityPrice, t.r.Sum
Knitting machine Aurora 7C-12-115141502 100 000
Overlock SALUT-0218514545 000
Machine for applying PVC coating PPM-1-M22501235235 000
Packaging machine GPM-0940015252 000
Total:2 432 000

The total starting capital will be 2,585,000 rubles.

Monthly expenses

  • rental of premises - 60,000 rubles;
  • raw materials and consumables - 90,000 rubles;
  • staff salary - 150,000 rubles;
  • utility bills - 20,000 rubles;
  • payment of taxes - 15,000 rubles.

The total monthly expenses will be 293,000 rubles.

How much can you earn?

The monthly output of the workshop will be 15 pairs/hour * 8 hours * 14 machines * 20 days = 33,600, or taking into account possible breakdowns and overlays, 33,000 pairs.

The wholesale cost of a pair ranges from 10 to 15 rubles, let’s take 13 rubles * 33,000 = 429 rubles for calculation. per month, minus all transportation, we will leave 410 thousand rubles .

Monthly net profit will be equal to (410-293) 117,000 rubles.

Payback period

In our case, the payback period will be 2532/117 = about 1 year and 10 months. This is an average and typically varies across the industry from 1.5 to 2.5 years.

Promotion and sales

The production of medical gloves, widely used for medical purposes, is carried out in accordance with the provisions of GOST R 52238-2004 and GOST R 52239-2004. To carry out business activities in this market segment, it is not necessary to obtain a state license; however, a quality certificate must be issued for the finished product. This document is issued by certification centers based on laboratory tests. The average price for the services of these cents is 5-10 thousand rubles.

To establish sales of finished products, serious investments in marketing and advertising are required. To obtain a sustainable customer flow, you will need to develop a website with a detailed electronic storefront.

To sell products, you can enter into supply agreements with large regional and federal pharmacy chains, laboratories and medical organizations. Considering that the main consumers of the product are private medical prices, public clinics and hospitals, it makes sense to apply for participation in tenders and government procurement for the supply of nitrile gloves. Information about procurement is freely available on the Internet. Of course, in this case, you will need to spend a lot of time and effort on preparing the application and other technical documentation, however, if you win, the company will not only have financial success, but also strengthen its own position in the sales markets.

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