Create your website with WordPress.

com Get started

Haqiqa Investment
Consultant in Ethiopia Home Blog About us Feasibility Study| Business Plan Project Pro les
Certi ed Audit Firm, Feasibility Study, Business Plan,
Project Proposal, Investment Consulting Firm in
Ethiopia.

Project Proposal on the

Production of Industrial
Adhesive Feasibility Study |
Business Plan in Ethiopia Pdf.
by Suleman Mossa

Follow

Project Proposal on the Production of Industrial Adhesive

Feasibility Study for Industrial Adhesive Production.

.This pro le envisages the establishment of a plant for the production of industrial
adhesive with a capacity of  1,000 tons per annum.  An adhesive is a material, usually in a
liquid or semi-liquid state, that adheres or bonds items together.

The country`s requirement of industrial adhesive is met through import.  The present
(2018) demand for industrial adhesive is estimated at 4,965 tons.  The demand for
industrial adhesive is projected to reach 6,975 tons and 12,293 by the year 2019 and
year 2023, respectively. Furthermore, the demand will reach at a level of 8,750 tons by
the year 2025.

The principal raw materials required are starch, caustic soda, hydrochloric acid, borax,
calcium chloride and formaldehyde. Starch and caustic soda are locally available while
the other raw materials have to be imported.

The total investment cost of the project including working capital is estimated at Birr
12.25 million. From the total investment cost, the highest share (Birr 6.37 million or
52.02%) is accounted by xed investment cost followed by initial working capital (Birr
4.57 million or 37.32%) and pre operation cost (Birr 1.30 million or 10.66%). From the
total investment cost, Birr 2.62 million or 21.41% is required in foreign currency.

The project is nancially viable with an internal rate of return (IRR) of 34.69% and a net
present value (NPV) of Birr 23.69 million, discounted at 10%.

The project can create employment for 78 persons. The establishment of such factory
will have a

foreign exchange saving effect to the country by substituting the current imports. The
project will also create forward linkage with the manufacturing sector  and backward
linkage with the mining sector and chemical manufacturing sub sector and also
generates income for the Government in terms of tax revenue and payroll tax.  

PRODUCT DESCRIPTION AND APPLICATION

An adhesive or stick on is a material, usually in a liquid or semi-liquid state, that adheres 

or bonds items together. Adhesives come from either natural or synthetic sources. The
types of materials that can be bonded are vast but they are especially useful for bonding
thin materials.

Adhesives cure (harden) by either evaporating a solvent or by chemical reactions that

occur between two or more constituents.

In contrast to household or of ce applications where relatively few adhesives are used,

many adhesives are used in industry and a lot of these are tailor-made for special
requirements or processing. An industrial adhesive has to ful ll the following
requirements:

Fast and safe bonding of the materials,

Cost-saving production tool ,and
Compatibility with the existing production lines.

Among the available natural and synthetic industrial adhesive, starch adhesive is
envisaged for this pro le since the raw material is abundantly available and the
adhesive has a wider application. Starch adhesive is a natural polymeric product and is
found in many processes either as an adhesive.

Although starch and dextrin have been used as adhesives for many decades, there are
several important reasons why these natural adhesives will not be entirely replaced by
synthetic products. The following advantages ensure that they will continue to ll
particular niches in the marketplace.

Good availability ,
Relatively low cost,
Stable quality ,
Good adhesion to cellulose and many porous substrates ,
Insoluble in oils and fats ,
Non-toxic and biodegradable, and
Heat resistant.

Starch Adhesive is used in paper, corrugated cardboard, gypsum wall board, paper bags,
single and multi-wall, carton and case sealing, paper and board tube winding, laminated
paper board, gummed tape and paper (wallpaper), textile sizing, pharmaceuticals and
personal care products, Paints, inks and toners manufacturing.

PLANT CAPACITY AND PRODUCTION PROGRAM

1.  Plant Capacity

The demand for industrial adhesive grows from 5,561 tons in year 2023 to 8,750  tons
by the  year 2023, as indicated in the market study. The plant is proposed to produce
1,000 tons per annum of starch based  industrial adhesive considering the market study,
minimum economies of scale, investment cost,  period for implementation and full
capacity attainment. The plant will operate single shifts of 8 hours each per day for 300
days in a year.

2.  Production Program

The production program is worked out by deducting Sundays and public holidays and
assuming that maintenance works will be carried out during off-production hours. The
plant is assumed to start its operation at 75% of its rated full capacity and progressively
increase to 85%  and 100% in the second and third year, respectively. The production
programme is provided in Table 3.3.

Table 3.3.

PRODUCTION PROGRAMME

                   Year    1          2   3-10

Capacity Utilization (%)  75 85 100  

Production of industrial adhesive (ton)  750 850 1,000  

Standard Project Report – Map of National Bank of Ethiopia

A Standard project report for new business ventures is quite important in getting the
project itself off the ground. Therefore the project Feasibility Study report should be
prepared as per National Bank Standards.

Our consulting rm can prepare successful and standard project reports for commercial
agriculture, agro-processing, manufacturing and service enterprises as per National
Bank Standards

AllProject Feasibility Studies| Business Plans will be prepared by experienced certi ed

consultants and the market research and analysis are supported by computerized data
bank.

Our realistic project reports for Bank Loan accompanied by a detailed nancial plan can
make all the difference to get the funding you need.

The project report covers all the aspects of business; from analyzing the market,
con rming availability of various necessities such as plant & machinery, raw materials to
forecasting the nancial requirements. The project also provides sectoral information,
brief on Government policies and international scenario, which have some bearing on
the project itself.

The scope of the report includes assessing market potential and investment decision
making. in a very planned manner by formulating detailed manufacturing techniques
and forecasting nancial aspects by estimating the cost of raw material, formulating the
cash ow statement, projecting the balance sheet etc.

A SWOT analysis is often carried out in the initial reports. This helps to identify the
strengths, weaknesses, opportunities and threats of the business or a project.

The project so formulated considering the below-mentioned aspects and submitting to

any bank for availing credit facility for establishment of the project. The bank will then
examine the project for its technical feasibility, nancial viability and bankability.

PROJECT REPORT TABLE INDEX.

01  Executive Summary

02  Product Description and Application
03  Market Study
04  Plant Capacity and Production Program
05  Raw and Auxiliary Materials and Utilities
06  Location and Site
07  Technology and Engineering
TECHNOLOGY
Production Process
Machinery and Equipment
ENGINEERING             
Construction Process
Civil Engineering Cost
Plant Layout
08  Human Resource and Training Requirement
Human Resource.
Training Requirement
09  Economic and Social Bene t and Justi cation
Pro t Generation
Import Substitution and Foreign Exchange Saving
Employment and Income Generation
Environmental Impact

Financial Analysis details as under:

01  Underlying Assumption

02  Initial Investment Cost
03  Production Cost
04  Sources of Finance
05  Financial Evaluation:
Break-Even Analysis and pro tability analysis
Simple Rate of Return
Internal Rate of Return/IRR and Net Present Value/NPV
Sensitivity Analysis

Annexure-Financial Statements will be for 5 to 10 Years:

Annexure:: Net Working Capital

Annexure:: Projected Cash Flow
Annexure:: Discounted Cash Flow
Annexure:: Projected Income Statement
Annexure:: Projected Balance Sheet
Annexure:: Loan Amortization Schedule
Annexure:: Project Implementation Schedule

_______________________________________________________________________________________________________________

You should not miss:-

Project Proposal on the Production of Candle Wax (Arti cial Wax) in Ethiopia Pdf

Haqiqa Business Solution helps entrepreneurs all over the world to start and grow
businesses successfully and pro tably. We provide you with business ideas and smart
solutions that help you to build a pro table business empire. We have plenty of
resources that will assist you in your entrepreneurship journey.

Our Various Services Are:–

Auditing Financial Statements

Preparation of Successful Business Plans | Feasibility Study, Project
Pro les for Manufacturing Plant, Commercial Agriculture. Agro
Processing and Service Enterprises.
 Preparation of  Project Proposals for NGOs,
Market Research Study, which will make it easier for your to start and run
your business pro tably. 
Technical  and Commercial Counseling for setting up new industrial
project and Most Pro table Small Scale Business.

Get In Touch//

Suleman Mossa General Manager     

Mobile = +251 944-22-82-55 

WhatApp, Telegram, imo and Messanger Contact = +251 944-22-82-55 

Piazza, Kelifa Business Center Of ce No.507 Addis Ababa, Ethiopia

E-mail:   haqiqa2000@gmail.com

Website ፡   www.ethiopianauditor.wordpress.com

Share this Post for Friends:

 Facebook  Telegram  WhatsApp  Twitter  LinkedIn  Email  Skype  Pinterest

 Print  Reddit  Tumblr  Pocket

Loading...

Posted in Feasibility Study | Business Plan and Project Tagged Feasibility Study for Carbon dioxide Production
Pro les, Project Pro les Project Proposal | Business Plan in Ethiopia Pdf.

PREVIOUS NEXT

Project Proposal on Candle Production Project Proposal on the Production of Carbon

Feasibility Study | Business Plan in Ethiopia Pdf. dioxide Feasibility Study | Business Plan in
Ethiopia Pdf.

Leave a Reply
Enter your comment here...