BUSINESS PLAN

2023
FOR DOMESTIC TRADE SERVICES

BUSINESS PLAN
FOR DOMESTIC TRADE SERVICES
(POLYSTER FABRICS AND OTHER TEXTILE PRODUCTS)

REGISTERED NAME:- …...

BUSINESS ADDRESS:- …….

OCTOBER, 2023
ADDIS ABABA, ETHIOPIA

ABC IMPORT AND EXPORT PLC

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES

TABLE OF CONTENTS

I EXECUTIVE SUMMARY 3

II GENERAL BACKGROUND 4

III MARKET ANALYSIS 7

IV TECHNICAL ANALYSIS 20

V ORGANIZATION AND MANAGEMENT 23

VI FINANCIAL ANALYSIS 25

VII ANNEXES 28

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES

I. EXCLUSIVE SUMMERY
ABC PLC is an Ethiopian based company registered in accordance with Ethiopian Commercial Code
and legally established as Private Limited Company by two Ethiopian entrepreneurs with fulfilling
sector standards since June 2014. Since its inception, the firm has been playing a significant role on the
national economic development by availing in demand consumer and industrial commodities including
textile fabrics, chemicals and construction materials from foreign countries as well as Supply
domestically processed goods such as; minerals, cereals, pulses and Oil seeds to different foreign
countries at various export market destinations. Furthermore, The founders of ABC PLC are energetic
business partners with a very rich business experience in running successful service delivery and
commercial ventures of various trading business operations and have attained their best goals during
previous years, and hence, serving the community specially having ethical business management skills
with best Ethiopian personality.

However, currently there are well known facts that the shortage of foreign currency has resulted
negative impact on the overall economic activity of the country and management of the firm has deeply
understood such difficulty, especially on doing import business in-line with pre-determined plan. To
this end, ABC PLC has designed forward looking strategic plan to diversify its business activities that
enables to mitigate operational risk and enhance its domestic trade performance by working with
reliable business partners among domestic textile manufacturers that enables to supply products
consistently and considerably as import substitution plan of the country. Furthermore, the firm has a
plan to fully engage on Export of Mineral, Pulses and Oil-seeds to generate hard currency through
advancing already established export works.

Thus, the immediate objective of the company with this business plan document is to raise working
capital financing for amount of ETB 30,000,000 through medium term credit facility from one of the
local financial institutions in Ethiopia; and hence, the purpose of the intended external financial need is
in connection with purchase of various Textile and Fabric Products Supplied mainly by “Freestyle
Textile Manufacturing” one of the few Textile fabric manufacturers in Ethiopia, and hence, such in
demand products to be supplied through wholesale and Retail service operations in the domestic
markets. While showcasing the expected financials and operations over the next five year, the business
has an intension to provide distribution and wholesale trade of varieties Textile fabric to consumers of
central and regional areas at fare and affordable price in its targeted market.

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
Based on the study conducted for the envisaged domestic trade business operations, the total investment
cost required including existing asset is worked out for about ETB 41,184,968. Of which ETB
11,184,968 accounted for equity contribution and the remaining ETB 30,000,000 accounted for
medium term bank loan to cover working capital fulfillment. Regarding the results of financial statement
analysis, the business generates net profit of ETB 290,586; ETB 2,748,867; ETB 5,603,818; whereas,
the net cash flow/surplus generated at startup (Year-0) will ETB 4,234,968 and reaches about ETB
11,766,852 by 3rd year respectively.

Furthermore, based on financial analysis results, the internal rate of return (IRR) is an indicator of the
efficiency or quality of an investment. Hence, the IRR of the project before and After Tax is 20% and
17% respectively and it indicates the highest viability of the project; whereas, the net present value of
the project at 15.5% discount rate is found to be ETB 603,994.-, which is acceptable. Finally, the
business seems it has reliable positive impacts on the overall development of the country in many
aspects. In this regard, the company with its initial supply capacity intended to move forward, so that;

 It creates employment opportunity for about 20 permanent and more than 10 daily laborers
 It generates income to the promoters and enhances self-employment;
 The business contributes its best role in the socio-economic development;
 It generates revenue to the government in the form of income tax;
 Encourage Local Textile Manufacturers and enhance import substitution

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
II. BACK GROUND INFORMATION
2.1 ESTABLISHMENT DATA
 Registered Name: …………...ABC Pvt Ltd Co.
 Address: …………………….
 Tax Identification No.: ….…..
 Commercial Reg. No.: …….. .
 Business License No.: ……....
 V.A.T Registration No:….….
 Existing Business Lines: ……Import/Export Trading, Wholesale and distribution
 Operational Scopes So far: ….Well Organized Actively Performing On
 Import Trade of Textile fabrics, Building materials,
 Export Trade of
 Agents and distributor for Textile fabric of “Freestyle Textile Manufacturing”

2.2 COMPANY BREIF AND OWNERSHIP

As clearly illustrated above, ABC PLC is an Ethiopian based company registered in accordance with
Ethiopian Commercial Code and legally established as Private Limited Company by two Ethiopian
entrepreneurs with fulfilling sector standards since June 2014. Since its inception, the firm has been
playing a significant role on the national economic development by availing in demand consumer and
industrial commodities including textile fabrics, chemicals and construction materials from foreign
countries as well as Supply domestically processed goods such as; minerals, cereals, pulses and Oil
seeds to different foreign countries at various export market destinations.

During previous successful years of operations, the firm has been providing acceptable trade service
operations with well-organized business set-up and gained the reputation among the community. To this
accord, the company has initially started its business activities by importing building materials from
Thailand, and then dramatically expanded to a wide spectrum of work in multiple services business
operations and playing a role in the national development activities, which includes: working as an
authorized agent and distributor for ----- in Since 2020.

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
Furthermore, over the last two years, the company has exported, white pea beans, Turmeric, and Horse
beans to Djibouti, Singapore and Turkey and still on the verge of diversifying our export business and
finding new areas of competitiveness by expanding its export lines into Minerals and gemstones sector.
Besides, ABC plc has organized two other sister companies, named “Liz Pharmaceuticals PLC”, and
“Crystal Mineral Mining PLC”, which engaged on Import of Human Medicines & medical supplies as-
well-as on mineral sector to support the export of mineral supply respectively.

Regarding Company Ownership, ABC Private limited company was established in June 2014 by two
business partners Mr. ,,,,, and Mr. ,,,,,,,,,,, by having 50% each share holding with an objective to create
successful trading company in the country. Both founders of ABC PLC are energetic business partners
with a very rich business experience in running successful service delivery and commercial ventures of
various trading business operations and have attained their best goals during previous years, and hence,
serving the community specially having ethical business management skills with best Ethiopian
personality.

However, by considering the current fast and dynamic economic growth of Ethiopia especially in urban
area, the founder has deeply understood and inspired to engage in what the market necessitates for
equivalent growth of consumer goods demand and strongly motivated to enhance its domestic trade
performance the firm has developed strategies to work with reliable business partners for domestically
manufactured textile products to be traded in the Local Market that enables to supply products
consistently and considerably as import substitution plan of the country.

Thus, their previous acquaintance and industry knowledge is what prompted them to implement the
underlying business expansion and operational diversity of company’s service provision that intended to
be performed with professionally equipped modern trade services to all round demanding clients and in
turn enables to enhance employability of skilled and semi-skilled labor in the country. Hence, the
business under consideration is strategically projected as a first Five-year implementation plan for which
the company will be graceful to expand through its own business approach after 5 years.

2.3 COMPANY VISION AND MISSION STATEMENTS

2.3.1 The Vision
Company vision is to become one of the most successful Import/Export and
Wholesale business organizations in Ethiopia and build up good reputation on
contributing its share to generate foreign currency to the country through
achieving excellence and efficiency in all aspects of export activity.

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
2.3.2 Mission Statements
The mission of ABC plc PLC includes:

 To work with and encourage local textile manufacturers

 To delight its customers by supplying products with quality and value.
 To actively participate in mineral export sector.
 To contribute to the growth of Export of minerals and enhance its share on generating foreign
currency.
 To ensure the delivery of clients’ need centric focused Services which enhance the development
of quality life of the society. The Company realizes these ideas through:
 Strategic Business Plan
 Attracting and retaining skilled employees
 Creating and maintaining partnership on the basis of mutual benefits.
 Taking care of natural environment

2.4 BUSINESS OBJECTIVE

By having this business plan document, the general objective of envisaged company is to become a
trustworthy and multifaceted company engaged in both international as-well-as domestic trade
operations in Ethiopia, especially by trading in demand consumer products to be supplied through
wholesale and Retail service operations in the domestic markets. Besides, the underlying business
operation also intended to attain the following specific objectives that comprise:

 Primarily to secure to raise working capital financing for amount of ETB 30,000,000 through medium
term credit facility from one of the local financial institutions in Ethiopia; and hence, the purpose of
the intended external financial need is in connection with purchase of locally fabricated Textile and
Fabric Products for wholesale in the domestic market.
 To become best Supplier of quality Textile and Fabric Products by following modern marketing
techniques;
 To engage in manufacturing of Textile and Fabric Products by sourcing locally, which in turn
contribute on import substitution of similar consumer goods,
 To generate income for the company in order to involve in other development activities in the
country;


2.5 PRODUCTS DESCRIPTION AND APPLICATIONS

Although there is a set of strategic plans to engage in Supply of multiple textile products and other
trading activities in the future, ABC PLC PLC has been actively supplying Polyester knitted and
crocheted fabrics for the domestic market by availing such products as sourced from limited local
Supplier, especially from “Freestyle Textile Factory P.L.C” one of the few Textile fabric manufacturers
in the country and located in Oromia region, Dukem Industry Park. Currently, the company is planning

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
to expand itself to enter into the mass distribution activity of quality textile products throughout the
country and exploit the demand of the increasingly emerging young community.

Hence, as part of the long term plan, the company has designed to engaged in manufacturing of Wearing
apparel (including sport wears), weaving, finishing and printing of textile products and more knitted and
crocheted fabrics at times custom designed orders over the coming years. However, with this immediate
plan, the firm intended to supply Polyester knitted and crocheted fabrics that comprises of new style and
up to date product standards by committing itself to continuous innovation. Accordingly, the products
under-consideration, the Polyester Knitted Fabric is a plastic-like material made from Polyethylene
Terephthalate (PET), a mixture of extracted coal, ethylene from petroleum, air, and water formed by a
chemical reaction at extremely high temperatures. Some people actually believe that polyester is
inappropriate for wearing because of its original, but this is not the case. Polyester fabric has been
developed for improved quality using high-technology, particularly when knitted as a Polyester knit
fabric and comprises of the following five (5) Characteristics.

 Breathability: Because of the space between linked threads, the polyester knit fabric structure allows the
items to dry fast. Make it a moisture-wicking, comfortable-to-wear fabric with a non-sticky texture.
 Flexibility: Polyester knit fabric provides a lot of versatility because different kinds of yarns may be
used together, and it’s popular in sportswear. Furthermore, the interlock is combined with spandex to
create a 2-way stretch that allows people to move freely while exercising.
 Softness: Polyester knit fabrics are distinguished by this property. The textile’s smooth touch on both
sides aids the manufacturer in creating comfortable garments.
 Resistance to wrinkles: This kind of fabric has a high resiliency and may keep its shape after sitting or
moving. As a result, no ironing is required, making it much more convenient and saving time.
 Good for sublimation: Sublimation printing can be done on polyester. The pigments in sublimation ink
can bond with polyester molecules, allowing you to transfer your designs with the best possible results.

ABC IMPORT AND EXPORT PRV.LTD.CO

 BUSINESS PLAN 2023
FOR DOMESTIC TRADE SERVICES
III. MARKET ANALYSIS
3.1 GENERAL OVERVIEW

IV. TECHNICAL STUDY

V. ORGANIZATION AND MANAGEMENT

VI. FINANCIAL ANALYSIS

VII. ANNEXES
AL DOCUMENT

ABC IMPORT AND EXPORT PRV.LTD.CO