Semert Areda

PROJECT PROPOSAL ON METAL PRODUCT MANUFACTURING
PROJECT PROPOSAL ON
METAL PRODUCT MANUFACTURING
PROJECT TO BE IMPLEMENTED IN OROMIA

REGIONAL STATE, ADOLA TWON
PROJECT PROMOTER: QUAN WANHUN PLC.
DECEMBER, 2020
project proposal On Metal Product Manufacturing Factory
ETHIOPIA
TABLE OF CONTENTS
Contents Pages
I. EXECUTIVE SUMMARY..........................................................................................................4
1. INTRODUCTION.......................................................................................................................5
1.1. Justification for the project..............................................................................................................5
1.3. Objective of the Project....................................................................................................................6
1.4. The Socio-Economic Significance of the Project.........................................................................7
1.5. Location, Infrastructure and Land...................................................................................................8
A. Location....................................................................................................................................8
B. Land..........................................................................................................................................9
C. Floor Layout Plan...................................................................................................................10
1.6. Location Map of the Area..............................................................................................................11
2. MARKET STUDY AND PLANT CAPACITY.......................................................................12
2.1. Market Study...................................................................................................................................12
2.1.1. Fast Economy Growth.........................................................................................................12
2.1.2. Demand for Nail and Iron...................................................................................................14
2.1.3. Projected Demand for Nail and Iron...................................................................................15
2.1.4. Demand for Modren Lifet and Barbed Elevator Assemblys...............................................16
2.1.5. Projected Demand Modren Lifet and Barbed Elevator Assemblys....................................17
2.1.6. Supply and Competition......................................................................................................17
2.1.7. Market Prospects.................................................................................................................18
2.2. Plant Capacity and production program.......................................................................................18
2.3. Pricing..............................................................................................................................................18
2.4. Marketing Strategy, Promotional Mix and Market Share..........................................................19
2.4.1. Marketing Strategy..............................................................................................................19
2.4.2. Promotional Mix.................................................................................................................19
2.4.3. Market Share.......................................................................................................................20
Page | 2
3. TECHNICAL STUDY OF THE PROJECT.............................................................................20

3.1. Products Description......................................................................................................................20
3.2. Raw Materials and Inputs..............................................................................................................23
3.3. Production Process.........................................................................................................................24
3.3.1. Metal and Metal Products For Expansion ............................................................................24
3.3.2. Galvanized Modren Lifet Box, Steel Elevator Assembly and Barbed Elevator Assembly. 24
3.4. Machinery and Equipment Requirement......................................................................................25
3.5. Technology Choice and Source.....................................................................................................26
3.6. Civil Engineer, Building and Civil Works...................................................................................27
3.7. Utilities.............................................................................................................................................27
3.8. Project Implementation Plan/ Action Plan...................................................................................28
4. ORGANIZATION, MANAGEMENT AND MANPOWER....................................................28
4.1. Organization and Management......................................................................................................28
4.2. Man Power.......................................................................................................................................28
4.3. Organizational Structure.................................................................................................................30
4.1. Training Requirement....................................................................................................................33
5. FINANCIAL REQUIRMENT AND ANALYSIS....................................................................34
5.1. Total Initial Investment Cost.........................................................................................................34
5.1.1. Fixed Investment.................................................................................................................34
5.2. Annual Production Cost at Full Capacity.....................................................................................36
5.3. Financial Analysis and Statements...............................................................................................37
5.3.1. Underlying Assumption......................................................................................................37
5.3.2. Sources of Fund...................................................................................................................38
5.3.3. Loan repayment Schedule...................................................................................................39
5.3.4. Depreciation Schedule.........................................................................................................39
5.3.5. Revenue Projection.............................................................................................................39
5.3.6. Balance Sheet(Beginning)...................................................................................................40
5.3.7. Income Loss Statement.......................................................................................................40
5.3.8. Cash Flow Statement...........................................................................................................41
5.3.9. Profitability..........................................................................................................................41
5.3.10. Pay-Back Period................................................................................................................42
6. FUTURE DEVELOPMENT.....................................................................................................42
7. ENVIRONMENTAL IMPACT OF THE PROJECT...............................................................42
Page | 3
I. EXECUTIVE SUMMARY
1. Project Name METAL PRODUCT MANUFACTURING
2. Project Promoter QUAN WANHUN PLC.
3. Nationality ETHIOPIAN
4. Project location Oromia Regional State

5. Project Composition Manufacture Basic Precious and Other Non Ferrous Metals Product, etc.
6. Premises Required Land Require Equivalent 10,000m2

7. Total Initial Capital Br. 79,515,000 from this amount 30% (23,854,500) financed by the
owner equity and 70% (55,660,500) financed by bank loan.
8. Market Share
The project will supply 70% of products for Domestic market and
30% for export (International market) mainly for neighboring
countries like South Sudan, Sudan and Kenya.
9. Technology Galvanized Manufacturing Technology
10. Employment
Opportunity The total manpower required for the plant will be 360 employees at full
capacity.
 Permanent workers 259
 Skilled 241( 140 male and 101 Female)
 Unskilled 18 (8 male and 9 Female)
 Temporary workers 101
 Skilled 5 ( 4male and 1 Female)
11. Height of the Building 7 m height for warehouse and workshop buildings.
12. Benefits of the project Manufacture and Supply of Metal and Metal Products, Source of
For The region/ Revenue, Employment opportunity, Save the Country Foreign
country Exchange, Benefit for the Local Community Stimulate the Local
Economy, Technology Transfer, Agricultural and Environmental
development.
1. INTRODUCTION
In dynamic Socio-economic environment, like the one currently exist in Ethiopia, the growth of
industry and supportive construction based manufacturing sector has a great role to make the
overall economic growth to be consistent. The government of Ethiopia has a conducive
investment polices and guidelines that promote the private sectors involvement in the economic
development through the various investment and business endeavors.
In this regard, the owner of the envisioned Metal and Metal Products factory planned to invest in
Adola town, Oromia Regional State and carried out this pre-project study to check the market,
technical and financial feasibility of this project. The result of the study is very sound and
promising for the owner to start the project in this area.
The promoter is very determined to commence the project. Hence, he expects to get the required
support from the regional and local governments to make the project operational.
1.1. Justification for the project
Ethiopia has a great economic potential in Africa. The current dynamic economic growth in all
sectors supports the idea to become a great nation. Agriculture is the backbone of the economy.
High improvement in terms of productivity and efficiency of this sector will strongly support the
development of other sectors (in backward and forward linkages).
Similar to the overall Ethiopian economy, the construction sector as one part of the economy is
increasing fatly. Hence, parallel growth of construction firms and construction materials
manufactures are vital to keep this growth of the sector in specific and economy in general
sustainably.
In this regard, roofing nail iron is an important element in Ethiopia. Widespread recognition of
this importance has led to concern amongst conservation practitioners regarding adequate fix
structures and durability. Besides, currently roofing Metal and Metal Products and Elevator
Assembly Steel are very demandable in Ethiopia and other African countries. However, there are
no enough producers in this area to make the price low and supply to be smooth.
Page | 5
Regarding infrastructure development, construction, education, private sector role in the

economy and environment the plan has good strategies to achieve the goal of industrialization.
To all the above facts the parallel growth in complementary (supportive) sectors of the economy
is vital to sustain it. In relation to this, the owner of the envisioned factory interested to engage in
the sector that has government development focus apart from huge market potentials.
Therefore, manufacturing of Modern lift, Steel Elevator Assembly and Barbed Elevator
Assembly are very important for the development of the nation. Modern lift is a large rectangular
box of netted Elevator Assembly (Steel) used in civil engineering works. Modern lift has long
been used as a transition method of construction and engineering for protecting river banks from
erosion, for hardening the shoulder of roads and the face of slopes to prevent landslide. Modern
lift is also used for the foundation of water reservoirs.
In line with the above facts, the government of Ethiopia has implementing the five years Growth
and Transformation Plan(11/2017-15/2021) that aimed to achieve wider development spectrum
in all sectors with a special emphasis to agricultural development that will realize the formation
of industrialized and middle income earned. In this plan, crop production and productivity,
irrigation, environmental protection and improved water use, technology multiplication, food
security and supply and distribution are among the main strategy for agriculture and rural
development strategies.
1.2. Objective of the Project
The main objective of this factory/plant is to manufacture different types, cost effective Modern
lift Box, Steel Elevator Assembly, and Barbed Elevator Assembly and Metal and Metal Products
mainly the roofing nail products for domestic market and international market in the future.
Page | 6
1.3. The Socio-Economic Significance of the Project
The envisaged project deemed to contribute to the economic development of the nation in
general and Oromia region in specific with following ways:
1. Manufacture and Supply of Products
By producing and supplying variety, high quality and cost efficient Metal and Metal Products,
Modern lift Box, Steel Elevator Assembly and Barbed Elevator Assembly, it will satisfy the need
of the consumers.
2. Source of Revenue
As public policy of any nation, the government collects different forms of taxes from different
business organizations and individuals. Among the different forms of taxes, business income
taxes, VAT and payroll tax are collected from undertaking business activities. Therefore, the
project will serve as sources of revenue for both the region and nation in general.
3. Employment opportunity
One of the problems that our country faced is unemployment. Therefore, the current objective of
the government is working on tackling the problem of unemployment and fostering the
development process either through creating self-employment or employment in other
organization. Hence, this project will hire 360 citizens.
4. Save the Country Foreign Exchange
By producing and supplying roof Nail products, the factory will save the foreign currency of the
nation. When it starts export to other African market, the company will generate hard/foreign
currency to the nation.
5. Environmental protection and Agricultural Development
The project will contribute for environmental protection and agricultural development by
producing Modern Lift Box and Steel Elevator Assembly.
Page | 7
6. Benefit For The Local Community
As a corporate responsibility the company will engage in different development activities on the
surrounding areas. This will better worse the community and contribute for the development of
the nation.
7. Stimulate The Local Economy
This factory has positive externality in the district that will encourage the economic movement of
local economy. There will be economic relationship and transactions among different actors.
8. Technology Transfer
By producing Metal and Metal Products, Modern Lift Box, Steel Elevator Assembly and Barbed
Elevator Assembly products, the project will train and develops the capacity of the technical
staffs. By doing this, the company will add value in technology transfer for the nation/region in
this area.
1.4. Location, Infrastructure and Land
A. Location
The envisioned project is planned to be located in Adola Town, Oromia Regional State. The
main justifications behind the selection of this location are:
 Strategically located to the central and largest market of the nation (Addis Ababa)
 Relatively advanced development in infrastructure (Power, Water, Telephone internet,
road etc.
 All asphalt road to the nearest market outlets
 Availability of huge skilled labor force
 High construction works are undergoing in the vicinity
Page | 8
 The gate to port Djibouti and Mojo dry port that will make ease for inputs and machines
 Conducive investment policy and governance
 Environmentally fit for Metal and Metal Products, Modern Lift Box, Steel Elevator
Assembly and Barbed Elevator Assembly manufacturing.
B. Land The total area of land required by the factor is 1 hectare, which is equivalent to 10,000
m2. This land planned to use as follow indicated in table below.
Table Premises Required and land use plan
SN Description Land Requirement(M2)

1 Production Hall
1.1 Workshop 2,000.00
1.2 Inspection Room 350.00
1.3 Packing Area 600.00
Total production Hall 2,950.00
2 Warehouse
2.1 Raw Materials and 2,000.00
Inputs
2.2 Finished Products 1,500.00
Total Warehouse area 3,500.00
3 Office and show room
Building (G+2)
3.1 Office 250.00
3.2 Show Room 100.00
Total Office & 350.00
Showroom
4 Waste Accumulation 300.00
area
5 Green Area, Parking, 2,900.00
road and Buffer Zone
Total 10,000.00
Page | 9
C. Floor Layout Plan
Page | 10
1.5. Location Map of the Area

2. MARKET STUDY AND PLANT CAPACITY
2.1. Market Study
The market study analysis for Metal and Metal Products, Modern Lift Box, Steel Elevator
Assembly and Barbed Elevator Assembly are mainly related with the dynamic growing of the
construction and Agricultural sector.
The statistics for Metal and Metal Products, Modern Lift Box, Steel Elevator Assembly and
Barbed Elevator Assembly are merged with the complementary goods. Hence, this project will
use the aggregated data’s.
2.1.1. Fast Economy Growth
The Ethiopian economy has been experiencing dynamic and double digit growth that
experienced annual average growth of 11.4% in past 8 years. According to Ministry of Finance
and Economic Development (MOFED), the forecasted economic growth the economic growth
(GDP at constant basic price) for 2011/2012 is estimated to be 10.4 %. As per the estimates,
annual growth rates of the major sectors, i.e. Agriculture, industry and service were 7.6 %, 10.6
% and 13.0 %; respectively and their shares out of the total GDP were 42%, 13% and 45 %,
respectively. This continuous and a-two-digit high growth would place Ethiopia among the fast
growing countries in the world.
As sectors of the economy, the agriculture and construction sector also grows with double digit
with the average annual growth 10.31% and 12% respectively in the past 8 years. As shown in
the table below the growth of the sectors directly related with the economy as parts of the
economy.
Table Major Economic Indicators

Trends in Performance of the Economy: Growth Rates (%)

Item 2010/03 2011/04 2012/05 2013/06 2014/07 2015/08 2016/09 2017/10
GDP in
1999/00
Prices -2.1 11.7 12.6 11.5 11.5 11.6 10 10.4
Agriculture -10.5 16.9 13.5 10.9 9.4 7.5 6.4 7.6
Industry 6.5 11.6 9.4 10.2 10.2 10.4
O/w:
Manufacturing 0.8 6.6 12.8 10.6 8.3 7.1
Construction 13.6 19.5 7.5 10.5 10.9 11.3 11.7 10.9
Services 6 6.3 12.8 13.3 14.3 17
O/w: Banking
and insurance 10.8 19.7 24.2 28.7 15.1 24.9 16.5 13.7
Distributive
services 5.5 6.4 14.7 14.2 16 15.2
Other
services 6.5 6.1 10.9 12.5 13.1 14.2
Real GDP per
capita GDP -4.6 10.7 9 8 7.5 7.6
Inflation 15.1 8.6 6.1 10.6 15.8 25.3
Source: MOFED & NBE
This fast growth of these sectors resulted from different bodies like government, non-
government and private activities in Ethiopia is growing in the fastest rate. Moreover, the current
five years Ethiopian Growth and transformation plan will expand the current agriculture,
infrastructure, residential (Condominium) and buildings in paramount level.
In Economics, there exists direct relationship between sect oral development and complementary
equipment’s and materials. As economic science proved the demand for complementary goods
(goods that will consume together like fuel and car) have positive relationship. This means when
the demand for one good increase the corresponding complementary good demand also increase
automatically with different rate depending on the nature of good.
Page | 13
The fastest growth of construction and Agricultural sector created the fast and bulk demand for
construction (building) materials. Since Metal and Metal Products, Modern Lift Box, Steel
Elevator Assembly and Barbed Elevator Assembly are among the main complementary materials
for these sectors particularly, the corresponding demands for these products are also increase.
Therefore, Metal and Metal Products, Modern Lift Box, Steel Elevator Assembly and Barbed
Elevator Assembly have the highest demand.
2.1.2. Demand for Nail and Iron
Metal and Metal Products and iron sheet are consumed in all construction works and in furniture
and fixtures workshops. The current demand for the product is met through domestic production
and imports.
The demand for nail, Elevator Assembly Steel and Barbered Elevator Assembly production is
alarmingly increasing as the construction sector is booming in Ethiopia due to the increase in the
number of population of the country and the increasing the level of income.
As indicated in the table below the past demand for Elevator Assembly Steel, Barbered Elevator
Assembly and nail show a significance growth per annual. The future demand is calculated
assuming this past demand for Metal and Metal Products to increase at an average of 10% per
annum while the domestic production will increase at an average of 5%.
Table Supply of Metal and Metal Products and Racks of Iron or Steel (in tons)
Year Ton
Local Import Total
1997 3,494 375 3,869
1998 2,702 5,810 8,512
1999 2,454 6,449 8,903
2000 2,773 5,325 8,098
2001 3,817 7,950 11,767
2002 5,190 6,582 11,772
2003 5,330 3,282 8,612
2004 8,664 4,961 13,625
2005 15,335 4,025 19,360
Page | 14
Source: Customs Authority

CSA, Survey of Manufacturing Industries
Table Domestic Production and Import of Iron or Steel (in ton)

Domestic Effective
Year Production Import Demand
1997/98 2,062 1,067.60 3,129
1998/99 1,709 381.1 2,090
1999/00 2,318 312.6 2,630
2000/01 1,640 404.7 2,045
2001/02 1,295 411.1 1,706
2002/03 1,030 288.8 1,319
2003/04 3,206 195.3 3,401
2004/05 3,340 158.9 3,499
2005/06 4,463 183.6 4,646
2006/07 4,909 184.2 5,093
Average 2,597 358.8 2,956
Source: CSA and Customs Authority, (various yeas)
2.1.3. Projected Demand for Nail and Iron

The demand for Metal and Metal Products is related with construction and building sectors. New
as well as renovation of buildings and other constructions are the main end users of Metal and
Metal Products. The growing construction sector development as evidenced in the successive
increase of nail supplies is expected to consume more. Therefore in this study the linear trend
equation;
Y = 1,339.9 X + 3,802.3 R2 = 71.2% is applied to project the demand for Metal and Metal
Products. Accordingly the demand for Metal and Metal Products in 2017 will be 31,940 tons.
Projected demand for Metal and Metal Products is presented in Table below.
Table Projected Demand for Metal and Metal Products & Iron (in ton)
Page | 15
Year Tons
2008 19,881
2009 21,221
2010 22,561
2011 23,900
2012 25,241
2013 26,580
2014 27,920
2015 29,260
2016 30,600
2017 31,940
2.1.4. Demand for Modern Lift and Barbed Elevator Assembly

The demand for Modern Lift and barbed Elevator Assembly in Ethiopia is being met from two
sources: imports and domestic production by importing the Elevator Assembly and billet and
processing it in local factories.
The recent years import of Modern Lift boxes is negligible as the production locally both in
industry and handicraft level are highly being exercised. Therefore, the current local production
capacity has reached of Modern Lift products with different dimension. The historical data on
the unsatisfied demand for the barbed Elevator Assembly which met through, spanning the years
2000-2006 shown in the table below;
Import Of Barbed Elevator Assembly (Tones) Import

Year
2004 261.88
2005 263.65
2006 22.07
2007 108.1
2008 490.8
2009 266.94
2010 171.09
2.1.5. Projected Demand Modern Lift and Barbed Elevator Assembly

The future demand for barbed Elevator Assembly is contingent upon the growth of the national
economy, especially the construction sector. Assuming that the construction sector will grow by
Page | 16
7% annually, the future demand for the product is forecasted to range from by the year 2020 (see
Table below).
Projected Demand d For Barbed Elevator Projected Demand

Assembly (Tones) Year
2008 242
2009 259
2010 277
2011 297
2012 317
2013 340
2014 363
2015 389
2016 416
2017 445
2018 476
2019 510
2020 545
2.1.6. Supply and Competition

There are different forms of competition that may face the factory. These are price and non-
price based competition. Moreover, there are different competitors that will compete with the
project either directly or indirectly. But the factory under discussion has diversified marketing
strategies that could enable it cope-up with the different competitors in the market. Moreover it
will frequently conduct competitors research which focuses on, the strength and the weaknesses,
the different competitor’s strategies, the techniques they use in rendering the service, their
customer handling methods, and others. Generally the project has many factors all over Ethiopia
which compete with it.
2.1.7. Market Prospects

From the above market demand and supply analysis, there exists market gab for Metal and Metal
Products, Modern Lift Box, Steel Elevator Assembly and Barbed Elevator Assembly in
Ethiopian market. Hence, the envisioned factory will be successful by entering in to this market.
Page | 17
2.2. Plant Capacity and production program
The annual production capacity of the project in two production line for each product with two
shifts(per 8 hours) for 300 working days is 1,500,000 kgs of Metal and Metal Products and 1,500
tons of Steel Elevator Assembly, 2,000 tons of Modern Lift Box and 1,000 tons of Barbed
Elevator Assembly at full capacity. However, for the first three years it is estimated to produce at
40%, 60% and 80% and 100% at fourth year and then after. Hence the annual production and
program for the project is show in the table below.
Table Plant capacity and production program

Description Year
1 2 3 4_10
Capacity utilization 40 60 80 100
(%)
Metal and Metal 600,000.00 900,000.00 1,200,000.00 1,500,000
Products in Kg
Steel Elevator 600.00 900.00 1,200.00 1,500
Assembly in Ton
Modern Lift Box in Ton 800.00 1,200.00 1,600.00 2,000
Barbed Elevator 400.00 600.00 800.00 1,000
Assembly in Ton
2.3. Pricing
It would be important to examine the possible level of price based on the competitor’s action. In
this connection, the existing average prices of similar company were assessed for the benefit of
comparison. Based on the existing retail price in the market. The firm stetted the prices as
follows;
Table pricing of the factory
Product Price of the project in Br

Metal and Metal Products 40
mix(Kg)
Steel Elevator Assembly 39000
in ton
Page | 18
Modern Lift Box in ton 40000

Barbed Elevator 37000
Assembly ton
2.4. Marketing Strategy, Promotional Mix and Market Share
2.4.1. Marketing Strategy

In order to reach customers different marketing ways will be used. Among the different
marketing strategies and tools for promoting and controlling the market the factory will use:
 Sponsorship of key government activities and public support mechanism.
 Using different marketing segmentation strategies and tactics.
 Utilizing effective and customer centric marketing strategies that is the marketing
strategies that focuses on different groups of customers based on different segmentation
tools like income and geography.
In general, the marketing strategy mainly focus on the satisfying the needs and the requirement
of the customers.
2.4.2. Promotional Mix
The company will follow the following promotional mix:
 Electronic Medias
 Advertising(Media, flayer and newspaper)
 Public Relations
 Branding
2.4.3. Market Share
The project will supply 70% of products for Domestic market and 30% for export in
international market mainly for neighboring countries like South Sudan, Sudan and Kenya.
Page | 19
3. TECHNICAL STUDY OF THE PROJECT
3.1. Products Description
1. Nail
Metal and Metal Products are used mainly in fixing corrugated iron sheet roofs, walls or fenced
construction. The predominant roofing material in urban Ethiopia is galvanized corrugated iron
sheet and capped Metal and Metal Products are used in fixing the corrugated iron sheets.
2. Modern Lift Box

Modern Lifts are multiple twisted hexagonally woven galvanized or PVC coated steel Elevator
Assembly Steel compartmented baskets with a rectangular box shape. The compartments are of
equal dimension and are formed by internal diaphragms. The compartment is filled with natural
stone and the diaphragms assure minimum stone migration within the basket. Thus providing
even distribution of the stone even in abnormal conditions, and adding strength to the container
to help retain its rectangular shape during the filling operation.
Applications:
• Control and guide of water or flood
• Flood bank or guiding bank
• Prevention of rock breaking
• Water and soil protection
Page | 20
• Bridge protection
• Strengthening structure of soil
• Protection engineering of seaside area
• Seaport engineering
• Isolation walls
• Protection of road
Advantage:
Flexibility
Flexibility is an important benefit of any Modern Lift structure. The double-twist hexagonal
Steel construction permits it to tolerate differential settlement without fracture. This property is
especially important when a structure is on unstable soil conditions or in areas where scour from
wave action or currents can undermine the toe of the structure and cause structural settlement.
Durability
Modern Lifts support plant growth which provides a live coating for the Elevator Assembly Steel
and stones, adding to their durability. Generally, the Elevator Assembly Steel is needed for the
first few years of the structure's life; later the void between the stones is filled with soil, silt, and
plant roots which act as a bonding agent for the stones.
Strength
Steel Elevator Assembly hexagonal Steel has strength and flexibility to withstand forces
generated by water and earth masses, and the pervious nature of the Modern Lift allows it to
absorb and dissipate much of that energy. This is evident on coast protection installations where
Modern Lift structures remain effective long after a massive rigid structure fails. Additionally,
the double twisted hexagonal Steel won't unravel if cut.

3. Barbed Elevator Assembly
Page | 21
Elevator Assembly Materials: Galvanized steel Elevator Assembly, PVC coated iron Elevator
Assembly in blue, green, yellow and other colors.
Barbed Elevator Assembly, a protective - variety, of fencing, consisting usually of several

strands of Elevator Assembly twisted together with sharp spikes or points clinched or fastened
into the strands. The advantages of galvanized barbed Elevator Assembly fencing are that it is
almost imperishable, is no burden on the posts; does not oppose the wind with enough surface to
rack the posts, thus allowing water to settle around them and rot them; is economical, not only in
the comparative cheapness of its first cost but also in the amount of land covered by it; and is
effective as a barrier against all kinds of stock and a protection against dogs and wild beasts.
The envisioned company will manufacture barbed Elevator Assembly with specified line
Elevator Assembly and barb Elevator Assembly diameters, barb spacing, zinc coating (class of
galvanizing) and length of Elevator Assembly per roll.
Rolls are shipped with Elevator Assembly handles for easy handling and the rolls packaged on
pallets. Because of our very high volume mass production our prices on container load quantities
are the most competitive to be found.
General Use: Barbed Elevator Assembly mainly serves in protecting of grass boundary, railway,
highway, etc.
Page | 22
4. Steel Elevator Assembly

Elevator Assembly Steel is a material that is made from various strands of interconnected metal,
usually steel or aluminum. These strands can be welded together, extruded, or even connected by
pins or other devices. The size and permeability of the Elevator Assembly Steel will often dictate
its various uses; thinner Steel can be used as pasta or vegetable strainers, whereas larger, pinned
Steel can be used as a conveyor belt in an industrial setting. Sometimes this type of Steel is used
in gardening and landscaping applications as well.
One of the most commonly used types of Steel are welded Elevator Assembly Steel. This is often
used in concrete construction, as the Steel can be laid down before the concrete is poured. The
concrete can then be poured around the Steel, and once it sets, the concrete will have a higher
tensile strength because the Elevator Assembly Steel contained within will help stabilize the
often brittle concrete. This type of Steel is often used in place of steel rebar, which is a series of
interconnected steel rods. Steel tends to be easier to install and it comes at a lower cost than rebar
for concrete projects.
Picture of Steel Elevator Assembly
3.2. Raw Materials and Inputs
The raw material for the production of the projection of the projects output (Nail) is Elevator
Assembly rod, packaging materials and other inputs. It will be supplied from over sea market.
The main raw materials for Modern Lift Box, Steel Elevator Assembly and Barbed Elevator
Assembly are 2mm galvanized steel Elevator Assembly; 0.75mm galvanized steel Elevator
Assembly, warping cloth and etc. The raw materials and accessories can be obtained from local
markets and from outside (international market). However, the major problem related to raw
materials is that it is subject to significant variations in price. As a result, the project's normal
operations are usually hampered by this situation.
Page | 23
3.3. Production Process
The envisioned plant will employ the following production process and techniques for the
production of roofing Metal and Metal Products, Modern Lift Box, Steel Elevator Assembly and
Barbed Elevator Assembly.
3.3.1. Metal and Metal Products
Manufacturing of Metal and Metal Products passes through the following steps.
 Feeding of Elevator Assembly coil(rod) to nail making machine

 Forming the bottom and top portion of nail and cutting on the nail making machine
manufacturing of flat head Metal and Metal Products ends here
 Manufacturing of the nail head on a washer making machine
 Polishing of head part
 Feeding the head to the nail making machine
 Punching of the head to the nail and pressing to umbrella shape
 Galvanizing.
3.3.2. Galvanized Modern Lift Box, Steel Elevator Assembly and Barbed Elevator
Assembly
Modern Lift Steel is the Modern Lift which is woven by the hexagonal Steel machine. The
diameters and thickness depend on the Steel size. The diameter used is between 2-4mm if the
raw material is zinc coated, while the diameter will be 3-4.5m if the material is pvc-coated
Elevator Assembly. The selvage Elevator Assembly diameter is usually one gauge ticker than the
body Elevator Assembly diameter. The box is then made manually for the appropriate box
dimension.
A single automated machine performs all the steps needed to transform the galvanized Elevator
Assembly into Barbed Elevator Assembly and Steel Elevator Assembly. Two Elevator Assembly
are fed into machine and twisted together to form the cable. Another Elevator Assembly is fed
into machine from the side and twisted around one or both cable Elevator Assembly.
Page | 24
This Elevator Assembly is cut at angle on both sides to form point barb. Two Elevator Assembly
are twisted and cut together if four point barbs are needed. The barbed Elevator Assembly is
wound onto spools and cut into 100m lengths.
3.4. Machinery and Equipment Requirement
The project requires relatively less complex machineries and equipment. The list of the
machineries and equipment’s are shown below in the table below;
1. Machineries and Equipment’s for Metal and Metal Products Production
 Nail making machine

 Polishing machine
 Elevator Assembly drawing machine
 Welding machine
 Roofing nail machine
 Polishing machine
 Nail cutter sharpener
 Accessory & other
2. Machineries and equipment for Steel Elevator Assembly and Barbed Elevator
Assembly
1. Hexagonal Modern Lift Elevator Assembly Steel
2. Steel Elevator Assembly Making machine
3. RAZOR ELEVATOR ASSEMBLY Machine
4. Barbed Elevator Assembly Machine
5. Forklift
6. Steel strip
7. Packing machine
 Also include spare parts as standard with Modern Lift machine.
3. For one Modern Lift Machineries
Page | 25
Head alloy cover 10pcs/set

Half gears 16pcs/set
Whole tube of winding 5pcs/set
Braking strap 1pcs/set
Grating sheet 1pcs/set
Cam roller 1set/set
For two Modern Lift machine it needs twice of the standard one Modern Lift machine.
4. For spiral coiling machine (under Modern Lift machine)
The speed reduction gears no of teeth (37, 41, 43, 47, 51, 54, 58, 65, 74 and 81)
&all accessory
3.5. Technology Choice and Source
The project will use galvanized manufacturing technology to Metal and Metal Products,
Modern Lift Box, Steel Elevator Assembly and Barbed Elevator Assembly.
Metal and Metal Products are product made from pieces of metal pointed at one end and flat or
umbrella headed at the other. They join articles by being hammered through them. The flat
headed Metal and Metal Products are consumed by construction workers for joining wooden
structures and by carpenters; while the umbrella shaped Metal and Metal Products are consumed
in every building construction when galvanized sheets are used for roofing purpose. These
products can be produced as per the required sizes. This technology will be imported from china.
The Elevator Assembly are obtained, the process of converting them into Modern Lift Box, Steel
Elevator Assembly, Barbed Elevator Assembly and galvanized Modern Lift Box, Steel Elevator
Assembly, Barbed Elevator Assembly only requires galvanizing.
3.6. Civil Engineer, Building and Civil Works
As indicated in part 1 the total land requirement for the project is estimated to be 10,000M 2.The
buildings are planned to accommodate production houses, storage and other utility requirements
as well as offices and a social rooms/constructions.
Page | 26
In general the buildings must be capable of being kept clean and provision should be made for
keeping the sewerages drained out properly and room temperature is attained to keep healthy
environment. In most environments, equipment should be totally enclosed in a light structure:
where the climate is suitable. A concrete floor, which can be swept, is usual. The buildings will
have 7 m.
In the site plan is also included a common garage, storage and workshop building together with
an effluent treatment plan and gate mans’ house.
The loading and offloading areas together with incoming and outgoing roads are proposed to be
paved to ensure a clean environment around the project site. The site will be encircled by a chain
linked fence fastened to concrete posts. The project construction is designed by professional
engineers and construction will be done under close supervision and collaboration of the
engineers.
3.7. Utilities
A number of utilities would be put in place in order to ensure smooth functioning of the factory.
These utilities include:
a) Water Supply,
b) Supplementary Electricity supply,
c) Paved Road Transportation,
d) Drainage Facility
3.8. Project Implementation Plan/ Action Plan
The project's implementation is expected to take 2 years. The major activities include Bank loan
processing, construction of the building, cleaning the area around the building; procurement of
equipment’s and start rendering services. The time schedule for the above mentioned major
activities is presented below:
Page | 27
Table 5 -Project-Implementation-Schedule
SN Activities Date

1 Land Approval July 2019
2 Bank loan processing August–September 2019
3 Site Development October 2019
4 Building and construction work November 2014- April 2019
5 Purchasing of Machines and Equipment’s May-June 2020
6 Production execution July 2020
4. ORGANIZATION, MANAGEMENT AND MANPOWER
4.1. Organization and Management

The organizational structure should be in a way that the company able to achieve its objectives as
well as the satisfaction of standard requirement.
4.2. Man Power

The total manpower required for the plant will be 360 employees at full capacity.
 Permanent workers 259
 Skilled 241( 140 male and 101 Female)
 Temporary workers 101
 Skilled 5 ( 4male and 1 Female)
The total number of manpower, Manpower list, qualification, and salary and sex composition
are listed in the table.
Table - Manpower list, Number, Qualification, Salary and Sex composition of the project
SN Position No. Qualification Sex Monthly Annual
Salary in Br Salary in br.
I Permanent
Worker
1 General Manager 1 MSC in Mechanical M/F 12,000.00 144,000.00
Engineering
2 Head, Production 1 BSC-in M/F 7,000.00 84,000.00
Page | 28
Division Mechanical/Industrial
Engineering
3 Technician 2 Diploma in General M&F 1,800.00 43,200.00
Mechanics
4 Production 2 Diploma in M&F 1,800.00 43,200.00
Supervisor production
Technology
5 Production Worker 122 10+1 in Metal work M&F 1,050.00 1,537,200.00
6 Assistant Prodn 85 10 completed (Semi M&F 500.00 510,000.00
Worker Skilled)
7 Head, 1 BA in Management M/F 6,000.00 72,000.00
Administration &
Finance Division
8 Personnel 1 BA in HRM M/F 3,000.00 36,000.00
9 Head, Marketing 1 BA in Marketing M/F 6,000.00 72,000.00
Dept Management
10 Sales 8 Diploma in Sales Mgt M&F 1,500.00 144,000.00
11 Accountant 2 BA In Accounting M&F 3,500.00 84,000.00
13 Cashier 3 10+2 in Bookkeeping F 1,100.00 39,600.00
14 Secretary 2 Diploma in Secretariat F 1,200.00 28,800.00
science
15 Cleaner 6 Unskilled F 700.00 50,400.00
16 Store keeper 2 Diploma in logistic M&F 1,350.00 32,400.00
mgt
17 Purchaser 2 Diploma in supp. & M&F 1,500.00 36,000.00
Put. Mgt
18 Guard 8 Unskilled M&F 700.00 67,200.00
19 Driver 6 10 completed + M&F 1,000.00 72,000.00
certification
20 Assistant Driver 2 Unskilled M 700.00 16,800.00
21 Gardner 2 Unskilled M 700.00 16,800.00
Sub Total 259 3,129,600.00
II Temporary
Worker
1 Electrician 2 Diploma in General M&F 1,600.00 38,400.00
Electricity
2 Auto Mechanic 2 Diploma in M 1,750.00 42,000.00
Automotive
technology
3 Plumber 1 10+2 in Lumbering M 1,500.00 18,000.00
4 Laborer 96 Unskilled M&F 700 806,400.00
Sub Total 101 904,800.00
Total 360 4,034,400.00
Benefits(25 % of 782,400.00
Basic Salary)
Page | 29
Grand Total 360 4,816,800.00
4.3. Organizational Structure

The organizational structure of the project is designed by including all the necessary personnel
under the right division. At the top of the organizational structure, there will be manager with the
responsibility of supervising the overall activity of the plant. Depending up on the nature of the
center and the amount of work to be performs; there exist auxiliary units under the general
manager.
Employees under each unit will be supervised by the department head that is accountable for the
general manager. General Manager is appointed by board of director.
Owner/s
General
Secretary Manager
Production Admin. & Marketing &

Dept. Finance Dept. Sales Dept.
Fig: Organizational Structure
Gabion, Mesh & Nails Section Admin. & Finance section

Barbed Wire Sec HRM Section
Dept.
Page | 30
Marketing Sales Section

Section
Hence the following section deals with the duties and responsibilities of some departments.
1. Manager
Duties and responsibilities
 She/he will plan, organize, direct and control the overall activities of the plant
 She/he will devise policies and strategies that will enable the plant to be profitable.
 She/he will incorporate modern technological innovation that will facilitate the service
delivery of the project center and increase customer’s satisfaction.
 He/he will plan, organize, direct and control the human and non-human resources of the
plant so as to achieve the short and long run objectives of the organization.
2. The Production Department

Duties and responsibilities:-
Page | 31
It is the core department of the project center it has two main sections (Modern Lift, Steel &
Barbed Elevator Assembly and Metal and Metal Products section) and has the following
responsibilities.
 Designs and prepared prototypes of Metal and Metal Products, Modern lift Box, Steel
Elevator Assembly and Barbed Elevator Assembly based on the plant standard and
customer preferences
 Use modern manufacture and processing technologies that will enhance the quality of
Metal and Metal Products, Modern lift Box, Steel Elevator Assembly and Barbed
Elevator Assembly
 Produce quality product that will enable the center competent both in the domestic and
international market.
 Use appropriate technology to manage maintenance of its products.
 Control on the quality of raw materials, inputs, quality of the product and also the overall
production process.
 Produce products in least cost so that the profitability of the center is guaranteed.
 Moreover control over the quality of the final products(Metal and Metal Products,
Modern lift Box, Steel Elevator Assembly and Barbed Elevator Assembly)
3. Administration and Finance Department
It has two main sections, i.e Administration and HRM section and Finance section
3.1. Administration and HRM
 Will control the human and non-human resources of the plant, which include: effective
handling of the different inventories of the machineries, equipment’s, raw materials,
finished products, and devise strategies of controlling against fraud and damage.
 Administer and control the company logistic resource
 Provide and manage general supportive service to the plant.
3.2. Finance section

Page | 32
 Will develop sound financial control system by developing modern financial control
systems.
 Will prepare the annual financial statements and prepare condensed reports for the
general manager, owner and other concerned government body.
 Manage and execute the company national and international procurement procedure
4. Marketing and Sales Department
It has two main sections, i.e. marketing and Sales section and Finance section with the following
duties and responsibilities
 Will handle the overall marketing activities of the organization which include planning,
organizing, directing, and controlling.
 Provide cost estimates in preparation for securing the profitability of the factory.
 Gather information on new product design, type and profile
 Approval of new products profile & brand plan analyzes market research.
 Plan and execute sales.
 Will develop effective customer handling strategies
 Will develop the marketing strategies for future project center’s development.
 Conduct both foreign and domestic market research for expanding the sales of the
company
4.1. Training Requirement
The production employees of the plant expected to take basic metal work skill training for 5
days. In addition training could be given to the mechanic and to the supervisor will also take skill
training from one of TVET Colleges or similar undertaking factories in Addis Ababa.
Page | 33
5. Financial Requirement And Analysis
5.1. Total Initial Investment Cost
The total amount of money that is required to establish the envisaged Metal and Metal Products
& Electrodes, Modern lift, Barbed Elevator Assembly and Steel Elevator Assembly is estimated
to be birr 70,110,740.
Table-Total Initial Investment Capital
SN Description Cost in birr
1 Land, Building & Construction 21,803,125.00
2 Machines & Equipment’s 20,205,610
3 Vehicles 6,290,000
4 Office Equipment 404,100
Total Fixed Investment Cost 48,702,835
6 Pre service Expense 392,000
7 Initial Working capital 14,642,201
Total 63,737,036
Contingency(10 %) 6,373,70
3.60
Total Initial Investment Capital 79,515,000
5.1.1. Fixed Investment

A. Building & Construction
SN Description Land Unit cost in br. Total cost in br.
Requirement(M2
)
1 Total Production Hall 2950 2500 7,375,000.00
2 Total Warehouse 3500 2300 8,050,000.00
3 Office Building and show 350 2700 2,835,000.00
room
4 Waste Accumulation area 300 300 90,000.00
5 Green Area, Parking, road 2900 250 725,000.00
and Buffer Zone
7 Fence and others _ 300,000.00
8 Site Development 250,000.00
9 Design and Supervision 800,000.00
10 Land lease Initial Fee 10% pyt by 18.75 1,378,125.00
br per M2 for 60
years
Total 10,000.00 21,803,125.00
B. Machinery And Equipment

SN Description UO Quan Unit Price Total Price Remark
M tity in Br in Br.
1 Complete Modern Lift, Barbed & Set 2 4,050,000.00 8,100,000.00 Duty free
Steel Elevator Assembly Making
Line
2 Complete Galvanized Nail making Set 2 3,875,000.00 7,750,000.00 Duty free
Line
3 Auxiliary Equipment’s Set 2 1,438,500.00 2,877,000.00 Duty free
4 Workshop Equipment’s Set 1 828,610.00 828,610.00 Duty free
5 Generator 450 KVA Uni 1 650,000.00 650,000.00 Duty free
t
Total 20,205,610.0
0
C. Vehicles
SN Description Qty Unit Price Total Price in Remark
in br. br.
1 Pick up 1 750,000 750,000 Duty free
2 Mini-Bus 1 700,000 700,000 Duty free
3 Worker Bus 2 1,300,000 2,600,000 Duty free
4 FSR Isuzu 2 1,120,000 2,240,000
truck Duty free
Total 6 6,290,000
D. Office Equipment’s
SN Description Qty Unit cost in Total cost in
Br. Br.
1 Managerial Tables with chair 6 9500 57,000
2 Secretarial chairs 2 7500 15,000
3 Office Chairs with tables 18 4000 72,000
4 Computer with its printer 7 15,000 105,000
5 Shelf 5 7000 35,000
6 Telephone and fax machine 2 1800 3,600
7 Filing Cabinets 3 5500 16,500
8 Decoration and others 100,000
Total 404,100
Page | 35
E. Initial Working Capital
The initial working capital is estimated to be Birr. 14,642,201.
F. Pre-Service Expense
SN Description Total Cost in br

1 Project proposal 15,000
2 Environmental Impact Assessment 25,000
3 Promotion and Advertisement 250,000
4 Staff Capacity Building 100,000
5 Licensing fee and others 2000
Total 392,000
5.2. Annual Production Cost at Full Capacity1
i. Raw Materials and Inputs
SN Description Unit Qty Unit cost in Total cost in

measure birr birr
1 Elevator Kg 1,100,000 20 22,000,000.00
Assembly Rod
2 Iron ore Tons 400 16200 6,480,000.00
3 Different Tons 4400 30000 132,000,000.00
Elevator
Assembly
4 Zinc Tons 112 26100 2,923,200.00
5 Packaging LS 7,000,000.00
material
Total 170,403,200.00
Page | 36
ii. Salary and Wage Expense
As indicated in part 4.2 (Manpower) of this study, the total cost of salary and wage is estimated
to be Br. 4,816,800.00.
iii. Other Operating Expenses
SN Description Annual Cost in Assumption Used

Br
1 Property Insurance 487,028.35 1% of fixed Investment Cost
2 Audit & Legal Fee 48,000.00 4000 per month
3 Worker Uniforms 41,400.00 230*180br
4 Telephone, fax and postal 24,000.00 2000 per month
5 Cleaning goods supplies 30,000.00 2500 per month
6 Repair and maintenance 974,056.70 2 % of the Fixed Cost
7 Advertisement 800,000.00 % of sales
6 Stationery and other office 21,600.00 1800 per month
supplies
8 Electricity 112,500.00 0.45*250,000KW per year
9 Water 10,000.00 2 br.*5,000m3 per year
10 Fuel 402,400.00 20120 lit*20 per year
11 Oil and lubricant 40,240.00 10% of fuel cost
12 Miscellaneous Expense 120,000.00 10000 per month
Total 3,111,225.05
5.3. Financial Analysis and Statements
5.3.1. Underlying Assumption
The financial analysis of the envisioned Metal and Metal Products & Electrodes, Modern Lift,
Barbed Elevator Assembly and Steel Elevator Assembly Manufacturing Factory is based on the
data provided in the preceding sections and the following assumptions.
Page | 37
A. Construction and Finance
Construction period 18 months

Source of finance 30% equity and 70% loan
Tax holidays 2 years
Bank interest rate 10 %
Operating Costs Increase by 2%
Salary and wages increase by 5%
B. Depreciation
Building 5%
Machinery and equipment 10%
Office furniture 10%
Vehicles 20%
C. Working Capital
Accounts receivable 30 days

Raw material local 30days
Work in progress 5 days
Finished products 30 days
Cash in hand 5 days
Accounts payable 30 days
5.3.2. Sources of Fund

SN Description % share Amount(in birr)
Owners
1 Share 30 23,854,000
2 Bank Loan 70 55,660,500
Total 100 79,515,000
Page | 38
5.3.3. Loan repayment Schedule

Principal Interest Total Annual Remaining
Year Payment (10%) Payment in br. Balance
0 0 0 0 49077518
1 4907752 4907752 9815504 44169766
2 4907752 4416977 9324728 39262014
3 4907752 3926201 8833953 34354262
4 4907752 3435426 8343178 29446511
5 4907752 2944651 7852403 24538759
6 4907752 2453876 7361628 19631007
7 4907752 1963101 6870852 14723255
8 4907752 1472326 6380077 9815504
9 4907752 981550 5889302 4907752
10 4907752 490775 5398527 0
5.3.4. Depreciation Schedule

SN Description Original Value Depreciation Depreciation
In Birr rate in % Per year
1 Construction and Civil 21,803,125.00 5 1,090,156.25
Work
2 Machineries & 20,205,610 10 2,020,561.00
Equipments
3 Vehicles 6,290,000 20 1,258,000.00
4 Office Equipment 404,100 10 40,410.00
Total 48,702,835 4,409,127.25
5.3.5. Revenue Projection
Based on the price and the capacity program of the factory indicated in previous chapter, the
revenue of the factory projected as indicated in the table below;
Table Revenue projection
Description Year 1 Year 2 Year 3 Year 4_10
Metal and Metal 24,000,000.00 36,000,000.00 48,000,000.00 60,000,000.00
Products
Elevator 23,400,000.00 35,100,000.00 46,800,000.00 58,500,000.00
Assembly Steel
Modern Lift Box 32,000,000.00 48,000,000.00 64,000,000.00 80,000,000.00
Barbed Elevator 14,800,000.00 22,200,000.00 29,600,000.00 37,000,000.00
Assembly
Total 94,200,000.00 141,300,000.00 188,400,000.00 235,500,000.00
Page | 39
5.3.6. Balance Sheet(Beginning)

Asset
Current Asset Value in Br.
Cash 6,765,703.60
Inventory of raw materials and inputs 14,642,201.00
Total Current Asset 21,407,904.60
Fixed Asset
Land, Building and Construction 21,803,125.00
Machineries and Equipments 20,205,610.00
Office Equipment 404,100.00
Vehicles 6,290,000.00
Total fixed Asset 48,702,835.00
Total Asset 79,515,739.00
Liability
Account payable 49,077,518
Owners Equity
Capital 21,033,222
Total Liability & Owners’ Equity 79,515,000
5.3.7. Income Loss Statement

Revenue Year 1 Year 2 Year 3 Year 4_10
Sales Revenue 94,200,000.00 141,300,000.00 188,400,000.00 235,500,000.00
Purchase of Raw 68,161,280.00 102,241,920.00 136,322,560.00 170,403,200.00
Material & Inputs
Gross profit 26,038,720.00 39,058,080.00 52,077,440.00 65,096,800.00
Expenses
Salary Expense 1,926,720.00 2,890,080.00 3,853,440.00 4,816,800.00
Other Operating 1,244,490.02 1,866,735.03 2,488,980.04 3,111,225.05
Expenses
Deprecation 1,090,156.25 1,090,156.25 1,090,156.25 1,090,156.25
Building
Deprecation 1,258,000.00 1,258,000.00 1,258,000.00 1,258,000.00
Vehicles
Deprecation 2,020,561.00 2,020,561.00 2,020,561.00 2,020,561.00
Machineries &
equip.
Deprecation office 40,410.00 40,410.00 40,410.00 40,410.00
Equip
Interest Expense 4,907,751.77 4,416,976.59 3,926,201.42 3,435,426.24
Lease payment 253,125.00 253,125.00 253,125.00 253,125.00
Total Expense 12,741,214.04 13,836,043.87 14,930,873.71 16,025,703.54
Profit Before Tax 13,297,505.96 25,222,036.13 37,146,566.29 49,071,096.46
Tax(30% ) - - 11,143,969.89 14,721,328.94
Net Profit 13,297,505.96 25,222,036.13 26,002,596.40 34,349,767.52
Page | 40
5.3.8. Cash Flow Statement

Year Year 0 Year 1 Year 2 Year 3 Year 4 -10
Equity 21,033,222
Capital
Loan 49,077,518
principal
Net sale 0 94,200,000.00 141,300,000.00 188,400,000.00 235,500,000.00
Total cash 70,110,740 94,200,000 141,300,000 188,400,000 235,500,000.00
in flow
Cash
payment
Purchase of 0 68,161,280 102,241,920 136,322,560.00 170,403,200.00
raw
materials
Pre 52,000 0 0 0
operating
expense
Investment 12,422,329 0 0 0
Other 0 1,244,490.02 1,866,735 2,488,980.04 3,111,225.05
Operating
cost
loan 0 9,815,503.54 9,324,728.37 8,833,953.19 8,343,178.01
repayment
Lease 390,000.00 90,000 90,000 90,000 90,000
payment
Tax 0 0 0 880,995.06 1,225,965.67
payment
Total 12,864,329 79,311,274 113,523,383 147,735,493 181,947,603
payment
Cash 57,246,410.60 14,888,726.44 27,776,616.60 40,664,506.77 53,552,396.94
surplus /
Deficit
Cumulativ 14,888,726.44 42,665,343.04 83,329,849.81 136,882,246.75
e cash flow
5.3.9. Profitability
According to the projected income statement, the project will start generating profit in the 1 st
year of operation. Important ratios such as profit to total sales, net profit to equity (Return on
equity) and net profit plus interest on total investment (return on total investment) show an
increasing trend during the lifetime of the project.
The income statement and the other indicators of profitability show that the project is viable.
Page | 41
5.3.10. Pay-Back Period
The investment cost and income statement projection are used to project the pay-back period.
The project's initial investment will be fully recovered within 5.9 years of operation.
6. Future Development
Every business undertakings be it large or small should have future development plan. It is a
plain fact that business activities are undertook in a dynamic business nature and different
environment. Therefore, the factory will have an expansion phase to manufacture different
Electrodes products.
7. Environmental Impact of The Project

Currently the issue of environment and envelopment get due emphasis and thus every citizen
called exert their maximum effort for fighting against any negative impacts on the environment
so as to result in a win-win solution on common agenda that is creating environmentally friendly
business environment. The project has some impact on the environment and the independent EIA
report is required.
8. Summary
As clearly the project cash flow statement shows the owner of the project has sufficient amount
of money that enable him pay the bank loan with in short period of time and invests in the
expansion of the project. In general, the financial statement of the project shows that the project
under discussion will cover its entire investment costs with in medium span period of time.
Hence the owner of the project has a long term plan engaging in the expansion of the factory.
Finally, the owner of the project will assist the local societies by providing them different
developmental endeavors.
Page | 42

Semert Areda

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Semert Areda

Uploaded by

Copyright:

Available Formats

PROJECT PROPOSAL ON METAL PRODUCT MANUFACTURING

PROJECT TO BE IMPLEMENTED IN OROMIA

PROJECT PROMOTER: QUAN WANHUN PLC.

3. TECHNICAL STUDY OF THE PROJECT.............................................................................20

1. Project Name METAL PRODUCT MANUFACTURING

2. Project Promoter QUAN WANHUN PLC.

4. Project location Oromia Regional State

6. Premises Required Land Require Equivalent 10,000m2

9. Technology Galvanized Manufacturing Technology

1.1. Justification for the project

Regarding infrastructure development, construction, education, private sector role in the

1.2. Objective of the Project

1.3. The Socio-Economic Significance of the Project

1. Manufacture and Supply of Products

4. Save the Country Foreign Exchange

5. Environmental protection and Agricultural Development

6. Benefit For The Local Community

7. Stimulate The Local Economy

1.4. Location, Infrastructure and Land

Table Premises Required and land use plan

SN Description Land Requirement(M2)

C. Floor Layout Plan

1.5. Location Map of the Area

2. MARKET STUDY AND PLANT CAPACITY

2.1. Market Study

2.1.1. Fast Economy Growth

Table Major Economic Indicators

2.1.2. Demand for Nail and Iron

Source: Customs Authority

Table Domestic Production and Import of Iron or Steel (in ton)

2.1.3. Projected Demand for Nail and Iron

2.1.4. Demand for Modern Lift and Barbed Elevator Assembly

Import Of Barbed Elevator Assembly (Tones) Import

2.1.5. Projected Demand Modern Lift and Barbed Elevator Assembly

Projected Demand d For Barbed Elevator Projected Demand

2.1.6. Supply and Competition

2.1.7. Market Prospects

2.2. Plant Capacity and production program

Table Plant capacity and production program

Table pricing of the factory

Product Price of the project in Br

Modern Lift Box in ton 40000

2.4. Marketing Strategy, Promotional Mix and Market Share

2.4.1. Marketing Strategy

2.4.2. Promotional Mix

The company will follow the following promotional mix:

 Advertising(Media, flayer and newspaper)

2.4.3. Market Share

3. TECHNICAL STUDY OF THE PROJECT

3.1. Products Description

2. Modern Lift Box

Barbed Elevator Assembly, a protective - variety, of fencing, consisting usually of several

4. Steel Elevator Assembly

3.2. Raw Materials and Inputs

3.3. Production Process

3.3.1. Metal and Metal Products

 Feeding of Elevator Assembly coil(rod) to nail making machine

3.4. Machinery and Equipment Requirement

 Nail making machine

 Also include spare parts as standard with Modern Lift machine.

3. For one Modern Lift Machineries

Head alloy cover 10pcs/set

3.5. Technology Choice and Source