This profile envisages the establishment of a plant for the production of Jeanswith a capacity of 250,000 pieces per annum.The present demand for the proposed product is estimated at 2.79 million piecesper annum. The demand isexpected to reach at 5.27 million piecesby the year 2020.The plant will create employment opportunities for 41 persons.The total investment requirement is estimated at about Birr 4.88 million, out of which Birr 772,000 is required for plant and machinery.The project is financially viable with an internal rate of return (IRR) of 20 % and a netpresent value (NPV) of Birr 2.43 million discounted at 8.5%.
II. PRODUCT DESCRIPTION AND APPLICATION
Jeans is a type of wear preferred particularly by both male and female youths becauseof its appearance to remain attractive in all the states throughout its life. A typical pairof jeans will have a hang tag, joker ticket, pocket flasher, leg sticker, inside care labelwith product of origin and assorted product id tags.
III. MARKET STUDY AND PLANT CAPACITYA. MARKET STUDY1. Past Supply and Present Demand
The demand for ready made garments such as Jeans is mainly met through importalthough some factories have started to produce it locally in small quantities. Thedomestic production of wearing apparel for the past five years is given in Table 3.1.