Feasibility Of: Foam Production Project

FEASIBILITY OF
FOAM
PRODUCTION
PROJECT
PROMOTER:
YOHANES TESEMA TUFER
. Page 0
Feasibility study for Foam Mattress and Foam Mattress
JUNE 2021, ADDIS ABEBA
1
YOHANES TESEMA Foam Industrial Enterprise June 2021 Addis Ababa
I. EXECUTIVE SUMMARY
This document is about viability of project on the manufacturing of Polyurethane (PU) foam
that produces mattress and uncovered foam sheets. In order to bridge the prevailing gap
between demand and supply Ethiopia relies on imports, the foam mattress products are
supplied to the domestic market.
The plant commenced production by installing used foam processing machineries which has
less production efficiency that increases production cost when the production volume
increases. The existing machinery which has book value of less than half million would not
enable the promoter to produce competitive products. Therefore, in order to increase
production volume to better meet the demand and produce cost effectively, the expansion of
the project with brand new machinery has become paramount important.
The promoter of the project is Ato Yohannes Tesema, who has running a sole proprietor
business of wholesale and retail trade of similar foam products for the past 10 years.
Realizing the cost and benefit, he has entered into the manufacturing of foam mattresses and
foam sheets. The foam mattress has entered the market upon starting of Ato Yohanes’s
factory. The promoter has registered trade name of Yohannes Tesema foams. The plant is
located at Ayer Tena town within leased compound land. The total area required for the
envisaged project will be 960 m2. The built-up area of the plant will be 250 m2. The plant
will have production buildings, stores, office buildings and other civil structures. The total
cost of buildings and civil works shall be Birr 9.98 million. The less complex production
process, ever growing and persistent demand, encouragement of the government and the
promoter’s rich experience in the bedding articles wholesale and retail trade are among the
driving factors to involve in foam manufacturing.
The implementation of the project requires finalizing the construction of the production
building, importation of machinery, purchase of vehicles and recruitment of required human
resource.
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The total investment cost of the project is Birr 41 million. It is planned that 52% of the total
project or Birr 21 million would be financed from equity and the remaining 48% or Birr 20
million is expected to be financed with bank debt.
The factory starting with 40% capacity utilization rate and increment by 10% per year, up to
attainable capacity of 90%, would make attractive profit throughout its operational years and
generate positive net cash inflows. The corresponding of the cut-rate cash net inflows at the
rate of 17.5% less the original outlay cost equals Net Present Value (NPV) of Birr 114
million. The internal rate of return (IRR) is 54% which is a good deal on top of the
considered cost of capital. These two major feasibility indicators show that the project is
financially viable.
The realization of the project as ascertained in the financial appraisal, enables the promoter
to generate higher net benefits, creates employment to the local labor force, generates tax
revenue and save hard currency by substituting imports. Manufacturing Industry is one of
the top priority sectors that government selected to achieve the country’s development
targets. These parameters are basic indicators of the project’s priority, social desirability and
economic viability. Therefore, it is advisable to finance the cost requirements from any
available source.
1. Description of the Project

The project under consideration is an expansion of a recently operational foam mattress and
foam sheet manufacturing project establishment that produces foam mattress, pillow and
foam sheets for the local market. The expansion increases the project’s production capacity
by 30,000 foam sheet and or/foam mattress per year at attainable capacity. The final product
is distributed through own wholesale and retail of merchandise business and others
established traders throughout the country.
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2. Description of the Product
A mattress is a large pad for supporting the recline body, used as or on mattress support/bed/.
Mattresses may consist of a covered or similarly fastened case, usually of heavy cloth, that
contains hair, straw, cotton, foam rubber, etc.; a framework of metal springs; or they may be
hot-air balloon. Firm Mattress_ Manufacturers use specific design techniques to create beds
that have a firm style surface. The use of carefully selected foams, in conjunction with tighter
sewing patterns in the quilt, both help to create this firm feel. Firm mattresses typically have a
lower height than their plush top counterparts. Firm mattresses offer optimal support, but are
designed to offer limited contour ability. Firm
mattresses can also be classified by manufacturers
by terms such as luxury firm and cushion firm or
can be paired with a Cushion firm mattresses tend
to be a bit softer feeling than those classified
solely as firm, but are sometimes the only firm
feeling option from a manufacturer at a particular
level
3. Project Rationales, Incentives and Schedule
3.1. Rational
From his trading experience of about 10 years in the same type of goods, the promoter of the
project has realized existence of regular demand gap for foam mattresses in Ethiopia and
coupled with the incentives in the area availed by the government, helped him to decide to
invest in the foam production project.
The market analysis of the project has demonstrated that there is reliable market in the
domestic market. The local foam processors also couldn’t supply adequate quantity of foam
as compared to the demand of the consumers. The gap is filled from the import market.
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3.2. Industry Incentives
The manufacturing Industry fits the government’s development strategy of encouraging

industrialization and contributes to the generation of employment opportunities.
The investment proclamation improved successively is also designed to support investment

growth in the country by providing tax and better access to infrastructure service incentives.
The most important incentive packages include the following:
 Importation of machinery and other investment items free of tax.

 Importation of raw materials for export oriented establishments free of import tax;
 Exemption from income tax for the period covering 1-5 years depending on the location
of the project, industry type and product markets (favoring export).
 Deduction of expense incurred for research, improvement studies or training, from
taxable income;
 Tax exemption on any remittance made by a foreign investor from the proceeds of the
sale or transfer or shares or assets up on liquidation or winding up of enterprise.
The foam processing business falls under the Industrial sector that is eligible to access the
incentives prescribed for the sector. Yet again, according to type and location of investment,
companies that incur losses during the tax holiday period are allowed to carry forward such
losses for 3 to 5 years.
3.3. Implementation Schedule
Implementation of the project involves activities of finalizing construction work, obtaining

debt financing, and importation of machinery, installation, recruitment of employees,
commissioning and operation. Considering the current level of work, total of 12 months, is
scheduled for the completion of the expansion implementation. The Gantt chart below shows
the implementation Schedule.
The time frame for the project is deemed tolerable by assuming there will be no major
incidences out of the scope of the promoter control.
5
JulyJune,
August
Jnov.
Year
April
Dec.
June
Janu
May
Mar
July
Feb
oct
Spt
Activity
Securing
Finance
Completion of
Factory
Construction
Importation of
2021/22
Machinery
Installation of
Machinery
Recruitment of
Additional
Commissioning
& Operation
4 The Promoter Experience and Financial Performance

4.1 The Promoter
The promoter of the project is a sole proprietor Ato Yohannes Tesema. The Foam
business is the registered trade name-of the business. The promoter has 10 years’
experience in other business. Performance wise, Ato Yohannes has been successful in
smoothly undertaking his existing business activities transactions and generated
encouraging return over the preceding years. The promoters’ rich experience and the
returns of his business served as springboard for the new businesses that he is currently
undertaking.
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4.2 ORGANIZATIONAL STRUCTURE & HUMAN RESOURCE

4.2.1 Organizational Structure
Currently, the factory is managed by an interim management structure consisting of few

people. Upon implementation of the expansion however, the factory will be organized with
management structure that is capable of managing the factory’s functions. All the
management members will be Ethiopians. The owner is the managing director of the plant.
However, for effective management of the plant, a general manager and three functional
divisions; Production & Technique, Finance & Administration and Marketing & Promotion
divisions would be formed under the oversight of the managing director. The division heads
are in charge of managing and supervising the logistic supply, production, technical,
marketing, financial, human resource and marketing aspects of the factory. The division
heads will be sufficiently qualified and experienced professionals. The following chart shows
the organizational structure of the plant.
Quality
Manager Control
Production
& Technique Head-
Sanitation
Accounts
Managing Factory
Directorr Manager Manager-
Human
Finance &
Admin. Resource
Logistics
Manager--
RM
Marketing Sales
&Promotion Procurment
4.1.1 Human Resource Requirement and Cost
The plant require 33 permanent and 20 daily laborers, total 53 employees including
managerial, professional, skilled, semiskilled, and unskilled staffs. The total cost of human
resource is described below
Position No. of Monthl Annual

Employe y salary
es Salary
7
Birr Birr
General Manager 1 35,000 420,000
Deputy General Manager 1 15,000 180,000
Administrative and HRM
Admin. And HR Manager 1 8,500 102,000
Admin. Officers and Assistant 5 4,500 270,000
Finance Department
Finance Manager 1 9,500 114,000
Finance team leader 1 6,400 76,800
Finance professionals 4 16,800 201,600
Production Department
Production Manager 1 9,500 114,000
Technical Manager 1 7,500 90,000
Daily Laborers 11 1,500 198,000
Foam production personnel 16 32,000 384,000
Procurement Department
Procurement Manager 1 9,500 114,000
Purchaser 2 3,00 72,000
0
Production and Logistic
Planning and logistics manager 1 8,50 102,000
0
Marketing & sales
department
Marketing and sales department 1 114,000
Manager 9,500
Marketing and Sales personnel 5 210,000
17,500
Total Existing Personnel 53 2,762,40
0
5 MARKET ANALYSIS
Polyurethane (PU) foams constitute the largest category of cellular polymeric materials. They
are produced, for the most part, in either flexible or rigid form. Within these groups, the
density and other properties vary depending on the end use. PU foams offer an attractive
balance of performance characteristics (aging properties, mechanical strength, elastic
properties, and chemical resistance, insulating properties) and cost. Flexible PU foams are
used primarily for cushioning and rigid PU foams for insulation.
Polyurethane foam demand is relatively close to production because trade is not economic
over larger distances. Even within the United States and China, supply geographically
follows demand very closely. However, in Europe trade in higher-valued foams and
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compressed foam rolls has increased significantly. The major drivers for global polyurethane
foam markets are regulation and energy efficiency increasing world population, particularly a
rising middle class in the emerging markets
Apart from the middle class population both in urban and rural, universities and hospitals buy
the bulk of the products directly from the factories whereas wholesalers and retailers will take
care of the individual market demand by providing various brands of foam from different
factories. Traditionally it is not only price but also older brands that lure customers to a
certain product in Ethiopia but there is still untapped market for the product.
5.1 Supply/Production of Foam
Supply of foam mattresses is originates from domestic producers and from the international
import market. Currently in Ethiopia the production of foam becomes competitive and the
number of producers has been increasing. According to Ethiopian Investment agency, the
country’s aggregate production is supplied by Kangaroo Foam, Addis Abeba Foam, Rainbow
Foam, Palm Ethiopia, Ethio-Foam, Amaga PLC, Tiger, New Flower, Metiket foam as well as
three Chinese and one Yemeni producer.
The chemicals which are inputs for the production of foam are mostly imported from China.
The amount of chemicals and their combination will determine the density of the foam,
which in return determines the quality of the foam. Foam, with a high density also known as
HD foam products represents a high quality, having longer durability and comfort while
medium density results an average quality and the lower density LD is known for being a
lesser quality product.
According to the CSA data summarized in the following table, the total foam production of
the country is between 99.6 millionM 3 and to 727.7million M3 within the past 10 years (2011-
2020). This growing amount of production represents the total production achieved by a
combining effect of expansion of existing factories, increasing capacity utilization of existing
factories and due to new entrants.
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From the foam produced which is used for different purposes such as mattresses, sofas,
vehicle seat, cleaning, the volume used to production of mattresses and pillows considered to
take 65% of the total foam produced. A common size mattress consumes on average 0.416m 3
sheet of foam. The produced foam mattresses within the past 10 years therefore ranges from
155,652 to 1.137 million mattresses as shown below.
Foam Mattress Production (M3)

for mattress (65% for One Mattress on Avr.
Year Foam M3 growth
mattresses) = 0.416 m3
2011 99,617 64,751 155,652
2012 101,888 66,227 159,200 2.28%
2013 166,480 108,212 260,125 63.40%
2014 210,698 136,954 329,216 26.56%
2015 243,958 158,573 381,184 15.79%
2016 480,426 312,277 750,666 96.93%
2017 552,602 359,191 863,441 15.02%
2018 580,232 377,151 906,613 5.00%
2019 644,058 418,637 1,006,340 11.00%
2020 727,785 473,060 1,137,164 13.00%
Average 380,774 247,503 594,960 12.7%
Source: CSA & Own Computation
Almost 76% of the total pasteurized foam production is collected from the great Addis Ababa
area which is 150 km radius from Addis Ababa.
5.1.1 Import of Foam Mattress
Foam Mattress Import

Year Net Wt. (Kg) CIF Value CIF Value Conversation of Foam Mattress Kg Quantity
(ETB) (USD)
into Unit @ 5.5 kg/Unit
2011 59,776 781,467 89,282 10,868

2012 67,411 2,728,788 310,630 12,257 12.8%
2013 74,204 2,369,073 261,843 13,492 10.1%
2014 81,586 1,581,890 163,297 14,834 9.9%
2015 84,850 3,818,398 321,606 15,427 4.0%
2016 105,572 7,359,796 505,324 19,195 24.4%
2017 125,208 6,541,464 383,333 22,765 18.6%
2018 179,099 17,139,639 959,365 32,563 43.0%
2019 144,821 8,010,722 426,100 26,331 -19.1%
2020 205,934 18,740,209 930,331 37,443 42.2%
Av. 16.2%
Source: IRCA
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IMPORT OF MATTRESS SUPPORT

Year Net Wt. (Kg) CIF Value (ETB) CIF Value No of Mattress Required Growth
(USD) @(11kg/Unit
2011 17,992.90 224,840.15 25,687.80
2012 19,800.66 376,888.00 42,902.76 10%
2013 41,311.75 852,188.60 94,188.43 109%
2014 60,095.14 1,299,723.71 134,169.17 45%
2015 87,960.58 2,931,224.06 246,883.59 46%
2016 52,494.69 3,395,640.17 233,145.01 -40%
2017 41,694.97 2,024,980.49 118,664.88 -21%
2018 42,467.43 3,278,366.71 183,501.63 2%
2019 40,040.40 2,519,715.79 134,026.72 -6%
2020 99,325.38 4,732,064.23 234,916.51 148%
Average 50,318 2,163,563 144,809 33%
Ethiopia’s had been involving in exporting of foam mattresses however, the volume was only
insignificant but also ceased to continue as of the year 2011. The following table shows the
smaller and discontinued export volume.
Export of Mattresses
Net Mass(Kg) FOB_Value (ETB) FOB_Value(USD)
2011 712 6,976 797 129
2012 810 4,910 559 147
2013 553 5,881 650 101
2014 110 2,773 286 20
2015 740 15,902 1,339 135
2016 304 12,308 845 55
2017 0 0 0 -
2018 0 0 0 -
5.1.2 Foam Past _consumption
Domestic Consumption is a function of production, import, export and ending stock. In

Ethiopia’s context where there is no high stock volume of items produced using imported raw
materials, the determinant data for consumption become production and import. Therefore,
demand or consumption equals Production +Import – Export. As the detail shown below,
consumption between the years 2005 and 2014 range from 168,026 to 1,183,636 pcs.
Average consumption growth is 12.82% per annum.
FOAM PAST
FOAM PRODUCTION, IMPORT , EXPORT - PCS CONSUMPTION TREND-PCS Growth
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Year Production Import Export
155,652 12,504 129 168,026

2011
159,200 14,057 147 173,109 3.03%
2012
260,125 17,247 101 277,272 60.17%
2013
329,216 20,297 20 349,493 26.05%
2014
381,184 23,424 135 404,474 15.73%
2015
750,666 23,967 55 774,577 91.50%
2016
863,441 26,555 - 889,996 14.90%
2017
906,613 36,424 - 943,037 5.96%
2018
1,006,340 29,971 - 1,036,311 9.89%
2019
1,137,164 46,472 - 1,183,636 14.22%
2020
Average 12.82%
5.1.2.1 Foam Consumption Forecast

As shown above production of foam registered average growth of 12.7% and the computed
consumption growth also show 12.82% average annual growth. The table hereunder shows
the forecast made using the average growth rate and the corresponding demand gap
5.1.2.2 Foam Consumption Forecast
12
year Supply/Production Forecast (PCS) Consumption Forecast(PCS) Demand Gap (PCS)
2021 1,626,225 1,699,920 73,695
2022 1,832,173 1,917,926 85,753
2023 2,064,203 2,163,891 99,687
2024 2,325,618 2,441,399 115,781
2025 2,620,138 2,754,496 134,358
2026 2,951,957 3,107,746 155,789
2027 3,325,798 3,506,298 180,501
2028 3,746,983 3,955,964 208,981
2029 4,221,507 4,463,296 241,789
2030 4,756,126 5,035,691 279,565
As shown above, the demand gap ranges from 73,695 to 279,565 pieces of foam mattresses
from 2021-2030. Apart from the observed demand the new entrants also have the potential to
replace the import volume that is also additional opportunity the investors. Even if the
forecast is made based on past consumption trend the next 10 years has the potential to
exhibit larger consumption with regard to the increasing per capita consumption that could
transform the rural population from using other forms of traditional mattresses to foam
mattresses.
5.2 Marketing Strategy
Product marketing is an essential task in business operation. The products to be offered

should be suitably marketed so as to realize the preferred market share. The marketing
techniques to be followed are using the proper integration of the marketing techniques.
Price - As the product is offered to the well-established local market, price trends are known
and determined by the market. The producer gets advantage of cheap labor cost which intern
enable to charge lower price to compete in the market. The price to be charged would be the
going market price for similar product that the promoter is trading for the past 10 years.
Depending on the market response to the product and cost of inputs, periodical revision of
product price is taken into consideration.
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Promotion - Promotion is vital for any business. The product should be advertised through
electronic and print Medias. The mattress cover is also serves as one advertising media for
almost all foam producers. The factory has marketing links with distributors in Addis Ababa
and regional towns. Commission based sales is also common practice the existing
wholesale and retail trade of similar products. As a strategy, the promoter uses a combination
of all the above techniques as appropriate. Adequate budget is allocated for the marketing
works.
Place (Location)- the place of processing-Ayer Tena is where raw materials for both
products are shortly deliverable from Addis Ababa and also to offer the finished products to
the main market area of the country-Merkato and to different regional towns
Packaging- packaging is another component of marketing strategy. Attractive, promotional,

safe, and durable garment would be used to cover and promote the product.
6 TECHNICAL ANALYSIS
6.1 Utilities
Availability of adequate water, electricity, telephone lines, etc. at the project site is
indispensable for smooth operation of the plant. In this regard, the project will be
advantageous, as all the necessary infrastructures are expected to be available at the project
site. The project has allocated for installation of electric power and for water line installation
within the premise of the factory is Birr 628,941
6.2 Building & Civil Works
Buildings- The total area required for the envisaged project will be 960 m2. The built-up area
of the plant will be 250 m2. The plant will have production buildings, stores, office buildings
and other civil structures. The total cost of buildings and civil works shall be Birr 9.98
million.
Cost component Cost in Birr Current Status

Substructure: 1,199,357.30
Superstructure:
Concrete Work 2,437,487.01
Block Work 596,270.20
Roofing 1,538,780.00 90 %
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Carpentry &Joinery 84,850.00 (Birr 9 million)

Metal Work 592,000.00 completed
Plastering &Pointing 327,534.40
Finishing 421,328.14
Glazing 141,022.40
Sanitary Installation 355,080.00
Electrical Installation 775,759.05
7,481,731.20
Sub Total 8,681,088.50
VAT 1,302,163.27
Total 9,983,251.77
6.3 Vehicles
For the transportation of raw materials and distribution of finished products the project
requires vehicles. The existing operational project uses vehicles even if are not included in
the recent financial statement due to different ownership other than the promoter. Therefore,
only one Toyota Hilux pick up is considered to be purchased as a requirement for
administrative support work. The following table indicates the required vehicles cost.
Unit Price Total Price

Investment Category Unit Qty (Birr) (Birr)
Trucks for Finished products Transportation: (NPR Isuzu

Trucks) Pcs 1 1,497,301 1,497,301
Forklift PCs 1 825,000 825,000
Service Buses (Toyota Coasters) Pcs 1 1,579,000 1,579,000
Pick Up D/Cab (Toyota Hilux) Pcs 1 1,990,000 1,990,000
Total 4 5,891,301
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6.4 Equipment and Furniture

The breakdown of the equipment to be purchased is shown below.

Item description Unit Qty Unit cost T/cost
Desk top computer

set 1 28,900 28,900
(4GB Ram
HP laser jet 401 A set 2 20,800 41,600
Printer
Photocopy machine Set 1 28,230 28,230
Fax machine 150 set 1 21,000 21,000
Tables, chairs and other related factory furniture 119,730

Tax15% 17,960
Total 137,689.50
6.5 Raw Materials and Input/output Ratio

The most important inputs for the foam processing are different chemicals such as Polyol,
(TDI) =Toluene Discoyanate, Stannous octane, Amine, Calcium Carbonate, Methyline
Chloride and Pigments.
Daily Consumption
Unit of
Type of Product Raw Material of raw material( 1
Measurment
ton)
Polyol KG 1,035
TDI(20/80) KG 478
Silcon KG 11
Methylene Chloride KG 11
Amine 33 LW KG 6
High Density Foam Amine BL 11(A1) KG 6
Thinner KG 10
Dyeing Chemical/PU
KG 8
color
Kraft Paper (90GR/M2) KG 6
Naylon KG 3
Unit of
Raw Material
Measurment
Polyol KG 1,773
Medium Density Foam TDI(20/80) KG 819
Silcon KG 19
16
Amine 33 LW KG 11
Amine BL 11(A1) KG 11
Thinner KG 17
Dyeing Chemical/PU
KG 13
color
Naylon KG 5
Unit of
Raw Material
Measurment
Polyol KG 148
TDI(20/80) KG 68
Silcon KG 2
Amine 33 LW KG 1
Low Density Foam Amine BL 11(A1) KG 1
Thinner KG 1
Dyeing Chemical/PU
KG 1
color
Naylon KG 1
Unit price Total Raw material cost

Daily
Summary of material
Unit of Consumptio
requirement at full
Measuremen n of raw Tota
capacity Unit price Unit price
t material( 1 l
USD Birr
ton) Cost
Polyol KG 2,956 2.5 105 83,807,325.00
TDI(20/80) KG 1,366 3.6 151.2 55,745,172.00
Silcon KG 31 7 294 2,460,780.00
Methylene Chloride KG 32 1 42 360,990.00
Amine 33 LW KG 18 5 210 1,020,600.00
Amine BL 11(A1) KG 18 5 210 992,250.00
Thinner KG 28 4.5 189 1,437,345.00

Dyeing Chemical/PU
KG 22 4.5 189 1,097,145.00
color
Kraft Paper (90GR/M2) KG 18 1.3 54.6 267,813.00
17
Naylon KG 9 0.4 16.8 40,824.00
Sub total 147,230,244.00
Total Raw Total cost

Materials at full Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Yea
cost Capacity
Capacity 40% 50% 60% 70% 80% 90% 90% 90% 90%
Foam 147,230,24 88,338,14 103,061,17 117,784,19 132,507,22 132,507,22

58,892,098 73,615,122 132,507,220 132,507,220 132
mattress 4 6 1 5 0 0
Total 147,230,24 88,338,14 103,061,17 117,784,19 132,507,22 132,507,22

58,892,098 73,615,122 132,507,220 132,507,220 132
Cost 4 6 1 5 0 0
6.6 Production Process
Polyurethane foam is a common component of mattresses. Even very high end mattresses
make use of this material to provide a comfortable and supportive sleeping surface. Most
people sleep on a mattress which contains at least a little bit of polyurethane. However, not
many people know much about it. Mattresses perform better based on three factors:
durability, comfort, and support. A mattress which contains properly used polyurethane foam
can provide a comfortable surface with all three of these properties. Foam also offers the
benefits of being noiseless, dustless, and resisting crumbling and matting. Polyurethane foam
does not aggravate the majority of allergies and lacks a residual odor. It also has an open cell
structure that lets the material breathe and reduces the chance of mold and mildew
infestation.
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7. FINANCIAL APPRAISA
7.1 Financing Structure:

Financing structure- (in Birr)
Financing Structure
Description Total cost Promoter's Equity Bank Loan
% Amount % Amount
Building and Civil Wrok 100% 0%
9,873,090.82 9,873,091 -
Production Plants and 100% 0%
Machinery-new 526,932 526,932 -
Transformer 100% 0%
470,019 470,019 -
Utilities 100% 0%
628,941 628,941 -
Motor vehicles & forklift 100% 0%
5,891,301 5,891,301 -
Furniture and Fixtures 100% 0%
Expansion 137,694 137,694 -
Total Fixed Investment 100%
17,527,977 17,527,977 -
Pre-operating Expenditures 100%
556,997 428,459 -
Pre-operating interest 100% 0%
3,508,876 2,699,135 -
Working Capital 0% 100%
20,000,000 - 20,000,000
Sub Total 24,065,873 17% 4,065,873
20,000,000
Total Investment cost 41,593,850 21,593,850
20,000,000
Contribution 52% 48%
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7.2 Applied Assumptions:

1. Project life: Ten operational years excluding implementation period,
2. Implementation Period 1 year,
3. Capacity Utilization Rate:
First, second and third years will works with 55%, 55% and 60% and then increases by
10% per year up to attainable capacity of 90%.
4. Production Capacity of Machineries
4.1 New foam machinery to be acquired : 100 mattress size foam sheet;
4.2 Working Days Per Year : 270 days;
4.3 Working Hours per day: 8 hours.
5. Input output Relationship
5.1 5.5 kilogram of chemicals for one mattress size foam
6. Purchase Costs Chemicals and cover garment
6.1 Birr 1,461 for one matters size foam;
7. Tax holiday period: nil,
8. Profit Tax and VAT: 35% profit tax and nil,
9. Salvage Value: buildings 40%, building, and 20% for vehicles, machinery and major
equipment ;
10. Recovery Rate: full amount of the ending working capital
11. Cost of Capital for Discounting: 17.5%,
12. Loan Repayment: Principal plus interest is paid per quarter within 10 years,
however, interest alone would be paid during grace period of 1 year;
7.3 Utility Consumption Rates:

Power, water, fuel and Lubricants consumption volume and corresponding expense
are shown in the table below:
Description Req. power Unit cost Total cost
Power 675,000.00 0.58 391,500.00

Telephone, Fax, Internet and
others 45,000.00
Fuel and Lubricants 54,000 18 162,000.00
Total 436,500.00
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 Stationery and Communication: Stationery 10% of salary;

 Uniforms: Birr 500 per unit, three times per year for laborers;
 Marketing and Promotion: 0.5% of revenue,
7.4 Fixed Costs:

1. Depreciation: Buildings 5%, Machinery & Vehicle, Equipment and furniture 20%,
2. Amortization: Pre-operating expense : 20%, Lease Land .2.5%,
3. Property Insurance premium: 0.5% for the buildings cost and Machinery cost;
4. Repair and Maintenance: 0.5% of the buildings and machinery cost;
7.5 Price, Production Volume and Revenue
7.5.1 Price
Average price of mattresses ranges from 500 to 1300 even though, little lower than
as compared to other competitor’s price, has been showing significant growth over
the past 6 years.
Revenue Foam Mattress

Annual production at Full Capacity 5 Production in Production in
ton/day=1,350 ton per annum KG pieces Selling price Total Revenue
2,85
High density foam 405,000 17,609 7 50,308,043
2,95
Medium density foam 810,000 41,117 9 121,664,467
2,33
Low density foam 135,000 13,500 0 31,455,000
Total Production Volume 1,350,000 72,225 203,427,510
Price would be adjusted based on market and materials cost Price reduction up to
10% is also tested in the sensitivity analysis as it wouldn't affect much the profitability
of the project.
21
7.6 Production Volume and Revenue

Production Volume- Based on capacity of the machine and considered capacity utilization
rate, the project would produce in aggregate to 5000 mattresses or 5 tons per day.
Foam making Line production Unit in KG

Daily Production in KG(Full Capacity 5,000
Number of Working days in Year 270
Annual production in KG(Full
Capacity) 1,350,000
Proportion of production with Product Annual production in

Mix KG Daily Production in KG
High Density Foam mattress (30%) 405,000 1,500
Medium Density Foam Mattress (60%) 810,000 3,000
Low Density Foam Mattress (10%) 135,000 500
Total 1,350,000 5,000
7.7 Project Profitability

The project would be profitable throughout the considered life years. It is expected to
generate from Birr 81,371,004 up to 183,084,759 net profits. Financial Table 6 shows the
forecasted profit and loss statement of the project within its ten operational years.
Desc
ripti Full
on / Capacit Year- Year- Year Year Year- Year- Year- Year-
Year y Year-1 Year-2 3 4 -5 -6 7 8 9 10
Cap
acity 100% 40% 50% 60% 70% 80% 90% 90% 90% 90% 90%
Total 122,0 162,7 183,0 183,0 183,0 183,0 183,0

Reve 203,427 81,371, 101,71 56,50 142,39 42,00 84,75 84,75 84,75 84,75 84,75
nue ,510 004 3,755 6 9,257 8 9 9 9 9 9
Tota
l 122,0 162,7 183,0 183,0 183,0 183,0 183,0
Reve 203,427 81,371, 101,71 56,50 142,39 42,00 84,75 84,75 84,75 84,75 84,75
nue ,510 004 3,755 6 9,257 8 9 9 9 9 9
22
7.8 Project Liquidity and Payback period

The project would produce positive net cash inflow throughout its life except for the
first year. As indicated in Financial Table #, the cumulative net cash inflow for year
one and at end of 10 th year would be Birr 87 million and 150 million respectively. The
total project cost would be paid back with the gross value of net-cash inflows at the
end of operational year 4. This indicates that the investment is a medium term one.
122,0 142,3 162, 183,0 183,0 183,0 183,0 183,0

Sales 81,371, 101,71 56,50 99,25 742, 84,75 84,75 84,75 84,75 84,75
Revenue 004 3,755 6 7 008 9 9 9 9 9
Total
Owner's 21,593,
Equity 850
Bank 20,000,
Loan 000
Working
capital
Recover 20,00
y 0,000
Salvage 6,537
Value - ,932
Total 122,0 142,3 162, 183,0 183,0 183,0 183,0 209,6

Cash 41,593, 81,371, 101,71 56,50 99,25 742, 84,75 84,75 84,75 84,75 22,69
Inflow 850 004 3,755 6 7 008 9 9 9 9 1
Fixed
Investme 41,593,
nt 850
Replace
ment
cost -
Operatin
g Cost 107,0 121, 136,8 137,0 137,1 137,3 137,6
less Dep. 62,834, 77,293, 92,16 45,79 933, 28,66 09,52 99,25 98,28 07,07
& Int. 927 582 6,041 5 208 0 8 6 4 7
Working
Capital 3,68
Increme 3,680,7 3,680 3,680, 0,75 3,680
nt 56 ,756 756 6 ,756 - - - -
Loan 19,3
Repaym 13,263, 14,569, 16,00 17,57 09,0 15,46
ent 508 145 3,306 8,644 56 8,020 -
3,17
Financia 9,220,4 7,914,7 6,480 4,905, 4,86 1,274
l Charge 08 71 ,609 271 0 ,110 - -
Profit
Tax 2,421,2 4,578,2 6,649 8,761, 10,9 13,12 13,44 13,39 13,33 13,26
23
16,7
84 04 ,540 040 65 1,180 9,153 2,234 2,526 9,888
Total 124,9 141,9 159, 170,3 150,4 150,5 150,7 150,8

Cash 87,740, 108,03 80,25 71,50 014, 72,72 58,68 91,49 30,81 76,96
Outflow 127 6,457 2 7 645 6 1 0 0 5
Net
Cash - - - - 3,72
Surplus/ 41,593, 6,369,1 6,322,7 2,923 427,7 7,36 12,71 32,62 32,49 32,35 58,74
Deficit 850 23 02 ,746 50 3 2,034 6,079 3,269 3,949 5,726
Cumula
tive (15,6 (11,4 157,4
Cash (6,369, (12,69 15,57 (15,18 60,4 1,251 33,87 66,37 98,72 70,60
balance 123) 1,825) 1) 7,821) 57) ,576 7,655 0,924 4,874 0
7.9 Net Present Value and Internal Rate of Return

The corresponding of the cut-rate cash net inflows at the rate of 17.5% less the
original outlay cost equals Net Present Value (NPV) of Birr 114 million. The internal
rate of return (IRR) is 54% which is a good deal on top of the considered cost of
capital. These two major feasibility indicators show that the project is financially
viable.
24
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
81,371,0 101,713,7 122,056,5 142,399,2 162,742,0 183,084,7 183,084,7 183,084,7 183,084,7
04 55 06 57 08 59 59 59 59 183,084,759
Item 15,423,629
Sales Revenue - 5,041,932

Total Cash 81,371,0 101,713,7 122,056,5 142,399,2 162,742,0 183,084,7 183,084,7 183,084,7 183,084,7
Inflow 04 55 06 57 08 59 59 59 59 203,550,320
Fixed 41,593,85
Investment 0
Operating Cost 62,834,9 77,293,58 92,166,04 107,045,7 121,933,2 136,828,6 137,009,5 137,199,2 137,398,2
less Dep. & Int. 27 2 1 95 08 60 28 56 84 137,607,077
Replacement
cost -
Working Capital
Increment 3,680,756 3,680,756 3,680,756 3,680,756 3,680,756 - - - -
2,421,28 10,916,76 13,121,18 13,449,15 13,392,23 13,332,52
Profit Tax 4 4,578,204 6,649,540 8,761,040 5 0 3 4 6 13,269,888
Total Cash 65,256,2 85,552,54 102,496,3 119,487,5 136,530,7 153,630,5 150,458,6 150,591,4 150,730,8
Outflow 11 2 37 92 29 97 81 90 10 150,876,965
-
Net Cash 41,593,85 16,114,7 16,161,21 19,560,16 22,911,66 26,211,27 29,454,16 32,626,07 32,493,26 32,353,94
Surplus/Deficit 0 93 3 9 6 9 3 9 9 9 52,673,355
114,377,9
NPV 08
IRR 54%
. Page 0
7.10 Sensitivity to Cost and Revenue Variations

Three scenarios are tested to assess how the net benefits of the project behave towards adverse changes each by 10%. That is.
 Revenue decline,
 Fixed cost increment,
 Operating cost increment and
The benefits variation is depicted below:
Scenario NPV in millions of Birr IRR-In %

Base 114 54
Decrease in revenue by 5% 73 40
Increase in Operating Expense by 5% 83 43
Increase in fixed investment cost by 10%. 111 49
As shown above, the project is less sensitive to increments in fixed investment cost, but sensitive to revenue decline followed by increments in operating cost.
In all adverse effects, the IRR is well above the considered cost of capital. And the net present value remains above 36 million. Therefore, the project is
feasible to be implemented as it has significant net benefits and resistance to shocks.
7.11 Debt Servicing Schedule

The anticipated bank loan would be paid within 10years excluding one year grace period, at quarterly repayments and 17.5% nominal interest rate per annum.
The schedule is shown in the following table.
Loan Repayment Schedule

Year Quarter Beginning Payments Total Payments Ending Balance
Balance Interest Principal
Zero year 1 20,000,000 863,014 - 863,014 20,000,000
2 20,000,000 863,014 - 863,014 20,000,000
3 20,000,000 863,014 - 863,014 20,000,000
4 20,000,000 863,014 - 863,014 20,000,000
sub-total 3,452,061 - 3,452,061 -
First - Year 1 20,000,000 863,014 250,296 1,113,310 19,749,704
2 19,749,704 852,213 261,097 1,113,310 19,488,607
3 19,488,607 840,947 272,363 1,113,310 19,216,244
4 19,216,244 829,194 284,116 1,113,310 18,932,128
sub-total 3,385,368 1,067,872 4,453,240
Second - Year 5 18,932,128 816,932 296,378 1,113,310 18,635,750
6 18,635,750 804,145 309,165 1,113,310 18,326,585
7 18,326,585 790,805 322,505 1,113,310 18,004,080
8 18,004,080 776,888 336,422 1,113,310 17,667,658
sub-total 3,188,770 1,264,470 4,453,240
Third - Year 9 17,667,658 762,372 350,938 1,113,310 17,316,720
10 17,316,720 747,228 366,082 1,113,310 16,950,638
11 16,950,638 731,432 381,878 1,113,310 16,568,760
12 16,568,760 714,953 398,357 1,113,310 16,170,403
sub-total 2,955,985 1,497,255 4,453,240
Fourth - Year 13 16,170,403 697,764 415,546 1,113,310 15,754,857
14 15,754,857 679,833 433,477 1,113,310 15,321,380
15 15,321,380 661,128 452,182 1,113,310 14,869,198
16 14,869,198 641,616 471,694 1,113,310 14,397,504
sub-total 2,680,341 1,772,899 4,453,240

Fifth - Year 17 14,397,504 621,262 492,048 1,113,310 13,905,456
18 13,905,456 600,030 513,280 1,113,310 13,392,176
19 13,392,176 577,882 535,428 1,113,310 12,856,748
20 12,856,748 554,777 558,533 1,113,310 12,298,215
sub-total 2,353,951 2,099,289 4,453,240
Sixth - Year 21 12,298,215 530,676 582,634 1,113,310 11,715,581
22 11,715,581 505,535 607,775 1,113,310 11,107,806
23 11,107,806 479,309 634,001 1,113,310 10,473,805
24 10,473,805 451,952 661,358 1,113,310 9,812,447
sub-total 1,967,472 2,485,768 4,453,240
Seventh - Year 25 9,812,447 423,414 689,896 1,113,310 9,122,551
26 9,122,551 393,644 719,666 1,113,310 8,402,885
27 8,402,885 362,590 750,720 1,113,310 7,652,165
28 7,652,165 330,196 783,114 1,113,310 6,869,051
sub-total 1,509,844 2,943,396 4,453,240
Eighth - Year 29 6,869,051 296,404 816,906 1,113,310 6,052,145
30 6,052,145 261,154 852,156 1,113,310 5,199,989
31 5,199,989 224,383 888,927 1,113,310 4,311,062
32 4,311,062 186,025 927,285 1,113,310 3,383,777
967,966 3,485,274 4,453,240
Nineth - Year 33 3,383,777 146,012 967,298 1,113,310 2,416,479
34 2,416,479 104,273 1,009,037 1,113,310 1,407,442
35 1,407,442 60,732 1,052,578 1,113,310 354,864
36 354,864 15,313 354,864 370,177 0
sub-total 326,330 3,383,777 3,710,107
Grand total 22,788,088 20,000,000 42,788,088
Annex
Table 2: Deperciation & Amortization Schedule: Expansion
Orignal Rate
Cost Item Year 1-5 Year 6-10
Cost Applied
Production plant & machinery-Existing 526,932 10% 52,693 52,693
Furniture & Equipment 137,694 10% 13,769 13,769
Motor Vehicles 5,891,301 20% 1,178,260 1,178,260
Total Depr. & Amortization 1,244,723 1,244,723
Table 3: Operating Cost Schedule:

Cost at full
Description/Year Year-1 Year-2 Year-3 Year-4 Year-5
Capacity
Direct Cost 40% 50% 60% 70% 80%
Materials-Existing & expansion 147,230,244 58,892,098 73,615,122 88,338,146 103,061,171 117,784,195
Direct labor for expansion 2,762,400 2,900,520 3,045,546 3,197,823 3,357,714
Repair & maintenance-expansion. 350,560 350,560 350,560 350,560 350,560
. Page 0
Table 4: Working Capital Schedule:

Cost Items MD CO Full
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10
/Year C T Capacity
Material cost 90 4 36,807,561 19,299,395 24,045,274 28,845,174 33,618,057 38,390,940 33,126,805 33,126,805 33,126,805 33,126,805 33,126,805
Direct labor 30 12 230,200 230,200 230,200 230,200 230,200 230,200 230,200 230,200 230,200 230,200 230,200
Utility
30 12 436,500 436,500 436,500 436,500 436,500 436,500 436,500 436,500 436,500 436,500 436,500
Expenses
Overhead costs 30 12 33,905 33,905 33,905 33,905 33,905 33,905 33,905 33,905 33,905 33,905 33,905
Total Working
20,000,000 24,772,879 29,545,779 34,318,662 39,091,545 43,864,428 43,864,428 43,864,428 43,864,428 43,864,428
Capital
Incremental
4,772,879 4,773,900 4,772,883 4,772,883 4,772,883
WC - - - -
Table 5: Revenue Projection

Sheet:
Description /Year Full Capacity Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10
Capacity 100% 40% 50% 60% 70% 80% 90% 90% 90% 90% 90%
Total Revenue 203,427,510 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 183,084,759
Total Revenue 203,427,510 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 183,084,759
Table 6: Projected Income/Loss

Statements:
Description /Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenue 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 183,084,759
Total Cost & expenses Before

64,079,650 78,538,305 93,410,764 108,290,518 123,177,931 138,073,383 138,254,251 138,443,978 138,643,007 138,851,800
Interest
Profit Before Interest and

17,291,354 23,175,451 28,645,743 34,108,739 39,564,078 45,011,376 44,830,509 44,640,781 44,441,752 44,232,960
Tax
Interest Expense 3,452,061 3,385,368 3,188,770 2,955,985 2,680,341 2,353,951 326,330

1,967,472 1,509,966 967,966
Profit Before Tax 13,839,293 19,790,083 25,456,973 31,152,754 36,883,737 42,657,425 42,863,037 43,130,815 43,473,786 43,906,630
Profit Tax 4,151,788 5,937,025 7,637,092 9,345,826 11,065,121 12,797,228 12,858,911 12,939,245 13,042,136 13,171,989
Net Income After Tax 9,687,505 13,853,058 17,519,881 21,806,928 25,818,616 29,860,197 30,004,126 30,191,570 30,431,650 30,734,641
9. Sensitivity Analysis:
9.1) If Sales Revenue Decreases by 5%

Item Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Sales Revenue 77,302,454 96,628,067 115,953,681 135,279,294 154,604,908 173,930,521 173,930,521 173,930,521 173,930,521 173,930,521
Working capital Recovery 20,000,000
Salvage Value 6,537,932

-
Total Cash Inflow 77,302,454 96,628,067 115,953,681 135,279,294 154,604,908 173,930,521 173,930,521 173,930,521 173,930,521 200,468,453
Investment Cost 41,593,850
Operating Cost less Dep. & Int. 62,834,927 77,293,582 92,166,041 107,045,795 121,933,208 136,828,660 137,009,528 137,199,256 137,398,284 137,607,077
Replacement cost
-
Working Capital Increment 3,680,756 3,680,756 3,680,756 3,680,756 3,680,756

- - - -
Profit Tax 2,421,284 4,578,204 6,649,540 8,761,040 10,916,765 13,121,180 13,449,153 13,392,234 13,332,526 13,269,888
Total Cash Outflow 65,256,211 85,552,542 102,496,337 119,487,592 136,530,729 153,630,597 150,458,681 150,591,490 150,730,810 150,876,965
Net Cash Surplus/Deficit -41,593,850 12,046,243 11,075,526 13,457,344 15,791,703 18,074,178 20,299,925 23,471,841 23,339,032 23,199,712 49,591,488
NPV 73,232,056
IRR 40%
9.2) If Operating Expense Increases

by 5%
Sales Revenue 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 183,084,759
Working capital
20,000,000
Recovery
Salvage Value 6,537,932

-
Total Cash
81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 209,622,691
Inflow
Operating Cost
65,976,674 81,158,261 96,774,343 112,398,085 128,029,868 143,670,093 143,860,005 144,059,218 144,268,198 144,487,431
less Dep. & Int.
Replacement

costs - - - - -
Working Capital
3,680,756 3,680,756 3,680,756 3,680,756 3,680,756
Increment - - - -
Profit Tax 2,421,284 4,578,204 6,649,540 8,761,040 10,916,765 13,121,180 13,449,153 13,392,234 13,332,526 13,269,888
Total Cash
68,397,958 89,417,221 107,104,639 124,839,882 142,627,390 160,472,030 157,309,157 157,451,453 157,600,724 157,757,319
Outflow
Net Cash
-41,593,850 12,973,047 12,296,534 14,951,867 17,559,376 20,114,619 22,612,730 25,775,602 25,633,307 25,484,035 51,865,372
Surplus/Deficit
9.3) If Investment Cost Increases

by 10%

Sales Revenue 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 183,084,759
Working capital
20,000,000
Recovery
Salvage Value - 6,537,932
Total Cash Inflow 81,371,004 101,713,755 122,056,506 142,399,257 162,742,008 183,084,759 183,084,759 183,084,759 183,084,759 209,622,691
Operating Cost less

62,834,927 77,293,582 92,166,041 107,045,795 121,933,208 136,828,660 137,009,528 137,199,256 137,398,284 137,607,077
Dep. & Int.
Replacement cost - -
- - -
Working Capital
3,680,756 3,680,756 3,680,756 3,680,756 3,680,756
Increment - - - -
Profit Tax 2,421,284 4,578,204 6,649,540 8,761,040 10,916,765 13,121,180 13,449,153 13,392,234 13,332,526 13,269,888
Total Cash
65,256,211 85,552,542 102,496,337 119,487,592 136,530,729 153,630,597 150,458,681 150,591,490 150,730,810 150,876,965
Outflow
Net Cash
-41,593,850 16,114,793 16,161,213 19,560,169 22,911,666 26,211,279 29,454,163 32,626,079 32,493,269 32,353,949 58,745,726
Surplus/Deficit
NPV 111,083,004
IRR 49%

Feasibility Of: Foam Production Project

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FEASIBILITY OF

YOHANES TESEMA TUFER

JUNE 2021, ADDIS ABEBA

1. Description of the Project

2. Description of the Product

3. Project Rationales, Incentives and Schedule

3.2. Industry Incentives

The manufacturing Industry fits the government’s development strategy of encouraging

The investment proclamation improved successively is also designed to support investment

 Importation of machinery and other investment items free of tax.

3.3. Implementation Schedule

Implementation of the project involves activities of finalizing construction work, obtaining

4 The Promoter Experience and Financial Performance

4.2 ORGANIZATIONAL STRUCTURE & HUMAN RESOURCE

Currently, the factory is managed by an interim management structure consisting of few

4.1.1 Human Resource Requirement and Cost

Position No. of Monthl Annual

5.1 Supply/Production of Foam

Foam Mattress Production (M3)

5.1.1 Import of Foam Mattress

Foam Mattress Import

2011 59,776 781,467 89,282 10,868

IMPORT OF MATTRESS SUPPORT

5.1.2 Foam Past _consumption

Domestic Consumption is a function of production, import, export and ending stock. In

Year Production Import Export

155,652 12,504 129 168,026

5.1.2.1 Foam Consumption Forecast

5.1.2.2 Foam Consumption Forecast

year Supply/Production Forecast (PCS) Consumption Forecast(PCS) Demand Gap (PCS)

2021 1,626,225 1,699,920 73,695

2022 1,832,173 1,917,926 85,753

2023 2,064,203 2,163,891 99,687

2024 2,325,618 2,441,399 115,781

2025 2,620,138 2,754,496 134,358

2026 2,951,957 3,107,746 155,789

2027 3,325,798 3,506,298 180,501

2028 3,746,983 3,955,964 208,981

2029 4,221,507 4,463,296 241,789

2030 4,756,126 5,035,691 279,565

5.2 Marketing Strategy

Product marketing is an essential task in business operation. The products to be offered

Packaging- packaging is another component of marketing strategy. Attractive, promotional,

6.2 Building & Civil Works

Cost component Cost in Birr Current Status

Carpentry &Joinery 84,850.00 (Birr 9 million)

Unit Price Total Price

Trucks for Finished products Transportation: (NPR Isuzu

6.4 Equipment and Furniture

Item description Unit Qty Unit cost T/cost

Desk top computer

6.5 Raw Materials and Input/output Ratio

Unit price Total Raw material cost

Polyol KG 2,956 2.5 105 83,807,325.00

TDI(20/80) KG 1,366 3.6 151.2 55,745,172.00

Silcon KG 31 7 294 2,460,780.00

Methylene Chloride KG 32 1 42 360,990.00

Amine 33 LW KG 18 5 210 1,020,600.00

Amine BL 11(A1) KG 18 5 210 992,250.00

Thinner KG 28 4.5 189 1,437,345.00

Naylon KG 9 0.4 16.8 40,824.00

Sub total 147,230,244.00