Executive summary

This is the feasibility study for Gypsum powder and Gypsum board manufacturing industry project. It is
planned to establish in Dejen town for manufacturing gypsum powder and Gypsum board for the market.

The plant will be proposed to have a theoretical production capacity of 300,000 tons of Plaster of Paris
per annum and 4 million m2 gypsum board per annum assuming 300 working days a year.

The company has requested to 55,976.20 m2 area of land from East Gojjam, Dejen town to produce
gypsum powder and gypsum board.

The project study identified that there is market demand gap. Also the technical feasibility study has
shown that the project is technically feasible and the appropriateness of machineries, plant layout and
technology is verified. The investment cost is estimated to be birr 196,899,932. The source of finance for
the project would be both equity contribution and bank finance. From the total investment cost, the
project promoter will contribute 30% and the remaining 70% shall be bank finance repayable in five years
with quarter installment against collateral of the project assets.

Profitability and financial viability of the project have been seriously analyzed. The project NPV at the
current interest rate of 8.5 % and IRR is 25%, respectively. The project create a job for Professionals,
semi professionals' staffs and unskilled labor will be recruited for the project on permanent and temporary
basis that would be a total of 375 workers.