This profile envisages the establishment of a plant for the production of spools, cops,bobbins and reels of wood with a capacity of 5,000 kg per annum. The present demand for the proposed product is estimated at 4,500 kg per annum. Thedemand is expected to reach at 11,672 kg by the year 2017 . The plant will create employment opportunities for 12 persons. The total investment requirement is estimated at Birr 881,600, out of which Birr 239,000is required for plant and machinery. The project is financially viable with an internal rate of return (IRR) of 18% and a netpresent value (NPV) of Birr 288,220, discounted at 8.5%.
II PRODUCT DESCRIPTION AND APPLICATION
These products are essential accessories of textile & handloom industries. With thedevelopment of textile industries, these products are in good demand which is expected toincrease. The demand is currently met through imports, except some local producers.
III. MARKET STUDY AND PLANT CAPACITYA. MARKET STUDY1. Past Supply and Present Demand
The textile manufacturing sector requires various types of spools, cops, bobbins andsewing thread reels made of plastic, paper or paperboard and wood. The demand for