Feasibility Study For Establishment of Sesame Processing Plant

GOLDEN HUMERA SESAME TRADING PLC
FEASIBILITY STUDY FOR ESTABLISHMENT

OF SESAME PROCESSING PLANT
Our Culture & Motto Based on Quality Our Mission is to maintain Our
Strong Position as Market Leader in the processing of Sesame products
Sector & to meet the Demand of the Valued Buyers!
ADDIS ABABA
ETHIOPIA
OCTOBER 2020
1 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

DISCLAIMER
The purpose and scope of this project proposal is to introduce the subject matter
and provide a general idea and information on the said area. All the material included
in this document is based on data/information gathered from various sources and is
based on certain assumptions. Although, due care and diligence has been taken to
compile this document, the contained information may vary due to any change in any
of the concerned factors, and the actual results may differ substantially from the
presented information. The consultant does not assume any liability for any financial
or other loss resulting from this memorandum in consequence of undertaking this
activity. Therefore, the content of this proposal should be relied upon for making
decision, investment or otherwise. The prospective user of this proposal is
encouraged to carry out his / her own due diligence and gather any information
he/she considers necessary for making an informed decision.

Table of Contents
EXCUTIVE SUMMARY...................................................................................................................................4
INTRODUCTION……………………………………………………………………………………………………………………………………….8
THE OBJECTIVE OF FEASIBILITY STUDY………………………………………………………………………………………………….11
PROJECT PROFILE......................................................................................................................................11
OPPRTUNITY RATIONALE……………………………………………………………………………………………………………………..11
THE COMPANY…………………………………………………………………………………………………………………………………….13
BASIS & PRESUMPTION………………………………………………………………………………………………………………………..14
PROJECT BRIEF .........................................................................................................................................14
MARKET POTENTIAL…………………………………………………………………………………………………………………………….16
PROPOSED BUSINESS LEGAL STATUS ......................................................................................................17
KEY SUCCESS FACTORS/PRACTICAL TIPS FOR SUCCESS...........................................................................17
BACKWARD INTEGRATION………………………………………………………………………………………………………………….17
PRODUCT MARKETING & EXISTING COMPETITION………………………………………………………………………………17
PRODUCT DESCRIPTION & APPLICATION……………………………………………………………………………………………..18
PRODUCT MARKETING…………………………………………………………………………………………………………………………19
MARKET STUDY & PLANT CAPACITY…………………………………………………………………………………………………….20
MARKET STUDY……………………………………………………………………………………………………………………………………20
SUPPLY – DEMAND ANALYSIS………………………………………………………………………………………………………………22
PROJECTED DEMAND…………………………………………………………………………………………………………………………..23
PRICING & DISTRIBUTION…………………………………………………………………………………………………………………….28
MARKET STRATEGY OF THE COMPANY………………………………………………………………………………………………..29
SWOT ANALYSIS…………………………………………………………………………………………………………………………………..30
PLANT CAPACITY & PRODUCTION PROGRAMME…………………………………………………………………………………30
PLANT CAPACITY………………………………………………………………………………………………………………………………….30
PRODUCTION PROGRAMME………………………………………………………………………………………………………………..30
RAW MATERIALS & UTILITY………………………………………………………………………………………………………………….31
LOCATION & LAND REQUIREMENT………………………………………………………………………………………………………31
TECHNOLOGY & ENGINEERING…………………………………………………………………………………………………………….32
PRODUCTION PROCESS………………………………………………………………………………………………………………………..33
SOURCE OF TECHNOLGY………………………………………………………………………………………………………………………33
MACHINERY & EQUIPMETS………………………………………………………………………………………………………………….35
CIVIL ENGINEERING COST…………………………………………………………………………………………………………………….36
MANPOWER & TRAINING…………………………………………………………………………………………………………………….36
ORGANIZATION & MANAGEMENT……………………………………………………………………………………………………….36
MAN POWER REQUIREMENT……………………………………………………………………………………………………………….36
TRAINING REQUIREMENT…………………………………………………………………………………………………………………….36
FINANCIAL ANALYSIS……………………………………………………………………………………………………………………………39
UNDERLYING ASSUMPTIONS……………………………………………………………………………………………………………….39
INVESTMENT COST………………………………………………………………………………………………………………………………39
PRODUCTION COST………………………………………………………………………………………………………………………………40
FINANCIAL EVALUATION………………………………………………………………………………………………………………………40
SOCIO-ECONOMIC BENEFITS………………………………………………………………………………………………………………..42
THE PROJECT IMPLEMENTATION…………………………………………………………………………………………………………42

IMPACT ON ENVIRNMENT……………………………………………………………………………………………………………………43
CONCLUSION……………………………………………………………………………………………………………………………………….44
ANNEXES……………………………………………………………………………………………………………………………………………..45
EXECUTIVE SUMMARY
Project Promoter
GOLDEN HUMERA SESAME TRADING PROCESSING PLC is an Ethiopia business entity
Investment activity
Processing of Organic Sesame Oil, Hulled Sesame seed, Hulled and Roasted Sesame seed, Tahina, etc
Initial Investment Capital
The initial investment capital of GOLDEN HUMERA SESAME TRADING PROCESSING PLC will be
Birr 50.00 Million as capital in production facilities, plant and machineries, technology and ancillaries.
Investment Location
The location of the investment will be in Amhara Nationa Regional State, Debre Birhan Town and the land
requirement will be 1 hectares/10,000 m2.
Objective of the Investment
Producing Processing of Organic Sesame Oil, Hulled Sesame seed, Hulled and Roasted Sesame seed, Tahina,
and halva etc nutritionally enriched foods and Animal food processing.

The main objective of the investment is to establish a company that Processing of Organic Sesame Oil, Hulled
Sesame seed, Hulled and Roasted Sesame seed, Tahina, etc
GOLDEN HUMERA SESAME TRADING PLC is an Ethiopian company registered under law of Ethiopia.
Company is promoted by shareholder from Ethiopia by securing 100% shareholding in company.
GOLDEN HUMERA SESAME TRADING PLC is leading Organic Agro commodities/products suppliers to
developed markets having sourcing/production base in developing countries. Company works in very niche market
and supporting sustainable way of agriculture and strives to increase the income of associated farmers.
Company aims to develop an Organic supply chain of Oil seeds, Hulled Sesame seed, Hulled and Roasted Sesame
seed, Tahina, etc their value – added processing, packaging and exporting to developed markets out of Ethiopia.
We want to create a complete eco-system where in all the stakeholders shall add values at certain stage of supply
chain and will be profiting out of it.
 Sesame oil is generally not recommended for cooking because of its low smoke point, but you can use it
to flavor a stir-fry by adding it right at the end of cooking or just afterwards. Toasted sesame oil is
particularly flavorful; a small amount goes a long way in dressings and sauces or drizzled over vegetables,
stews, soups, and other dishes. Like all edible oils, sesame oil is high in calories (120 per tablespoon). It
has a longer shelf life than many other oils because of its antioxidants.
 Sesame flour (or sesame meal), with its mild nutty aroma, can be used for making bread, cakes, biscuits,
and even pizza dough. Rich in fiber and protein, it’s also gluten free, which makes it a good option for
people with celiac disease or gluten sensitivity.
 Tahini (sesame paste), from the Arabic word meaning “to grind,” is a creamy paste that is called the
“butter of the Middle East.” It’s used to flavor hummus (chickpea dip), baba ghanoush (eggplant dip), and
other traditional dishes; it’s also featured in Asian cuisine. Typically, the seeds are hulled and lightly
roasted first. Red tahini, made by roasting the seeds for a longer time, has a more intense flavor. One
tablespoon has 90 calories and 8 grams of fat (most unsaturated), plus some protein (3 grams), and a little
fiber. Other ways to use it: Mix it with olive oil and lemon as a sauce for vegetables, meat, fish, and
poultry; spread it on toast (topped with honey or jam); add it to sandwiches, soups, salads, and stews;
serve it over lentils and rice; use it in baked goods.
 Halvah or halva (from the Arabic word halwa, meaning “sweet”) is a dense and crumbly candy-like
confection made from ground sesame seeds blended with sugar or honey, with nuts and other ingredients
sometimes added. (Other halvahs are made from flour or other seed or nut butters.) Though its exact
origins are disputed, halvah is especially popular in the Middle East and parts of the Mediterranean; in
Israel, it’s sold in more than 35 flavors, including pistachio, coffee, coconut, cinnamon, and rose water.
The oldest manufacturer in the U.S., since the early 20th century, is Joyva, but you may also be able to
find artisanal halvah, as well as imported halvah. Enjoy halvah in small amounts because of its high
calories (about 140 to 200 per ounce) and sugar.
Production Capacity
GOLDEN HUMERA SESAME TRADING PLC plans to set a processing factory in Sebeta city so that logistics
cost, lead time for processing can be reduced and products can be supplied to customers in developed markets at a
reasonable time. Company plan to set us a processing factory of hulled sesame seed, Hulled and Roasted sesame
seed, Sesame Oil, Tahina, processing capacity of the facility is assumed to be 8 kg/hour. In addition to this,
Company will be setting up processing plant for sesame and its byproducts.

On other side, Company shall set up a processing factory for manufacturing Soya meal (Animal feed) out of
byproduct of Soybean (Oil cake). It has very high value in developed market and will earn revenue of 30 Birr
Million from third year of operation subject to capacity building at farmer’s level for production of Organic
Sesame and other oil seeds inputs.
The envisioned organization will be operating with a cleaning machine and 5 oil press machines. The cleaning
machine is able to clean 2.5 tons of Sesame Seed per hour while a single oil press machine is able to press 8 kg of
Sesame Seed per hour. The organization will be launching its operation at 80% capacity which will increase to
reach 90% in the 5th Year.
Revenue Generation
Company aims to export 20% and 80% for domestic market of their product and expect to generate revenue of 60
Million Birr of operation.
Employment Creation
In addition to support 50 farmers for production of Organic Sesame and oil seeds inputs, we expect to create
employment to 55 Ethiopian nationals thru entire supply chain of the business when our processing factory is fully
operational.
Utility Requirement
In general, Electric power, water and communications are main utilities required for the company; accordingly.
3
500 Kw Electric power, 1,200M of water per year and 5Mb/s internet connectivity are required.
Environmental Impact
Organic Sesame Oil, Organic Edible Oil, Hulled Sesame seed, Hulled and Roasted Sesame seed, Tahina, etc
processing activities do not involve hazardous chemicals and hence considered as environmentally friendly
projects.
Social and Economic Benefits to the Community

The project will:
 Company plan to assist local community with supply of Organic Sesame Oil, Organic Edible Oil, Hulled
Sesame seed, Hulled and Roasted Sesame seed, Tahina, etc subsidized animal feed.
 Company aim to set up a skill development/ Training center within factory campus trend local youths
from Vocational Schools for Agro-processing business.
 Since company is already engaged in developing local marginal farmers in Oromiya Region to develop
organic produce; now aims to set up multiple Agri extension programme.
 Will have forward linkage effect with Agriculture sector industries
Implementation Time
According to the tentative implementation plan of GOLDEN HUMERA SESAME TRADING PLC, the
company will start commissioning of plant and production in Dec, 2021.

EXCUTIVE SUMMARY IN SHORT
1. Project Name FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT
2 Project Owner GOLDEN HUMERA SESAME PROCESSING PLC
3 Nationality Ethiopian
4 Project Location Amhar nationa Regional State, North Shoa Zona, Debre Birhan Town
5 Project composition Company aims to develop hulled sesame seed, Hulled and Roasted sesame seed,
Sesame Oil, Tahina, Halva, Organic supply chain of Oil seeds, their value – added
processing, soya meal for animals packaging and exporting to developed markets
out of Ethiopia.
6 Product capacity & This Sesame sector investment opportunity brief highlights the establishment of a
sales Sesame processing facility to produce Sesame Oil, hulled sesame seed, Hulled and
Roasted sesame seed, Tahina,. Halva The processing capacity of the facility is
assumed to be 8 kg/hour. In addition to this, Company will be setting up
processing plant for sesame and its byproducts.
7 Raw materials The raw materials required are soybean seed, cotton seed, groundnut, caustic soda,
bleaching earth, common salt, phosphoric acid and nickel. Except phosphoric acid
and nickel the other raw materials are locally available. 500 Kw Electric power,
1,200M3 of water per year and 5Mb/s internet connectivity are required.
8 Land Requirement 1 hectares/ 10,000m2
9 Total initial capital The total investment requirement estimated at Birr 50 Million, out of which Birr
45.7 Million is required for capital investment and Birr 4.3 Million for working
capital. The total investment, Birr 50 Million from owner’s equity. 25% own
equity and 75% from bank loan. The project is financially viable with an internal
rate of return (IRR) of 16% and a net present value (NPV @ 20%) of Birr
47.62Million, discounted at 8.5%, and payback period 3 years.
10 Employment The total manpower required for the plant will be 55 employees at full capacity. In
creation addition to support 50 farmers for production of Organic Soybean and other oil
seed productions.
11 Market Share 80% for domestic consumption, local sales for oil and 20% for export, whereas
95% export for sesamemeal (for animals)
12 Technology Making and processing of Organic Edible Oil from Soybeans and other oil seeds.
13 Production Start operation at 75% of its installed capacity, which will grow to 85% in the
programme second year. Full capacity production will attained in third year
14 Benefits of the Supply of Organic Sesame Oil, Hulled Sesame seed, Hulled and Roasted Sesame
project seed, Tahina, etc products to the society in a better quality and lower price,
employment creation, revenue generation, among others…etc
15 Project Action Plan Land acquisition and civil construction & Mobilization…1 st year, Production at full
capacity…. 2nd year.

1. Introduction
Ethiopia is one of least developed countries in the world. The economic policy of the previous
government has changed the structure of trade and industry resulting in the decline of production and
commerce.
The liberalization policies of the present political system, however, are widely believed to bring
about growth in economic development. If not best, the situation is now better on matters related to
processing and manufacturing industry. In fact, until now land cannot be hold privately but can
acquire through a lease and rental system.
The existing system encourages private investments and as the result, economic growth has been
apparent in industrial, agricultural and its other sectors of the economy. This on its turn has
demanded for the establishment of industries that process organic edible oil products and other
related byproducts.
Taking note of this scenario the objective of the study is to look into the possibilities and situations
under which the promoter would get into the business of processing of organic edible oil, hulled
sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina industry and related byproduct,
packaging and distribution industry.
The Ethiopian economy remains heavily dependent on agriculture, which accounts for about 45
percent of GDP. An estimated 85 per cent of the population gains its livelihood directly or indirectly
from agricultural production. The Ethiopian Government’s economic strategy based on Agricultural
Development - Led Industrialization, major gains have made from the strategy, particularly because
of liberalization, low inflation, fiscal discipline and low government borrowing, infrastructure
improvement and the growth of the private sector.
Consistent with the economic reform program, the Government has been shifting its role from one of
active participation in productive and service sectors to one of creating an enabling environment for
the private sector and providing regulatory oversight on industry sectors.
Ethiopian economy primarily based on agriculture but over the last 12 years, the government has
been keen on diversifying exports with priorities focused on strategic sectors like production of
Agricultural products and processing to them by adding add-value.
Food and Organic Edible Oil industry are one of the few basic industries, which are characterized as
a necessary component of human life. One may classify it as a more glamorous industry, but
whatever it is, it provides with the basic requirement called raw materials, such as sesame seed,
cotton seed, groundnut, caustic soda, bleaching earth, common salt, phosphoric acid and nickel.

Except phosphoric acid and nickel the other raw materials are locally available.
Ethiopia's food and organic edible oil industry is undergoing major development, aided by the
presence of a cheap raw materials, skilled and highly motivated workforce. This surge has helped by
the country’s impressive economic growth over the past 12 years. Ethiopia’s enormous export
potential made possible by the wide availability of raw Soybeans and other oilseeds and Ethiopia’s
access to domestic, regional and international markets.
Based on country’s data, in the last 12 years, the food and organic edible oil industry have grown at
an average of 51% and there are no many investment projects in this field in large scale of
production in our country.
The growth in the organic edible oil industry directly linked to the government’s move to set up an
industrial development strategy. This step of the Ethiopian government to prioritize designing
incentives and policies to attract investment in view of worldwide competition has played a big role
in the development of the country’s economic status.
As indicated in the country data, the food and organic edible oil processing in Ethiopia appeals to
domestic and foreign investors mainly due of the three major components of a successful
investment:
 High raw materials of inputs for this investment
 Low manpower cost
 Low raw materials and
 Low energy costs
This profile envisages the establishment of a plant for the production of organic edible oil, hulled
sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina and Halva.
The envisioned organization will be operating with a cleaning machine and 5 oil press machines.
The cleaning machine is able to clean 2.5 tons of Sesame Seed per hour while a single oil press
machine is able to press 8 kg of Sesame Seed per hour. The organization will be launching its
operation at 80% capacity which will increase to reach 90% in the 5th Year.
In addition to this, Company will be setting up processing plant for sesame and its oil cake that can
be used for animal feed as byproducts, about 95% of the sesame meal (animal feed) will be export.
The raw materials required are sesame seed, cotton seed, groundnut, caustic soda, bleaching earth,
common salt, phosphoric acid and nickel. Except phosphoric acid and nickel the other raw materials
are locally available.

Analysis of the Business Environment and Incentives for Investors

As per the analysis carried out by different institutions on the political, economic, socio- cultural and
technological developments (PEST), Ethiopia offers a stable political and economic environment as
well as security; exceptional climate; almost complete absence of routine corruption; continuously
improving public service delivery which makes it potentially an ideal destination for investment. The
macro economic performance in the past seven years has been very positive and the broad-based
economic growth is expected to continue under GTP II. Although the incentive packages that are
currently given seem to be adequate the government is planning to give additional incentives for the
manufacturing sector, particularly to export oriented and import substituting projects. Priorities will be
given to the manufacturing sector in support of provision in the areas of licensing, land and finance
allocation, training and the like.
The expansion of Universities as well as Technical, Vocational Education and Training (TVET) in all
parts of the country provides good opportunity in the supply of skilled and semi-skilled technical
personnel. Health service provision and development of infrastructures such as roads, energy and
communication are also showing a rapid improvement in the country. Advancement of science and
technology in the world and the spread of same in the country will favorably influence the smooth
operation of the envisaged project. As part of the support provided by the government to the agricultural
sector, accesses to productive inputs, such as hybrid seed and fertilizer has been expanded. The
government has also established the Ethiopian Commodity Exchange (ECX) which is a marketing
institution established for creating and running the Ethiopian commodity market in a transparent, fair
and sustainable manner that would benefit all the actors in the value chain and the country at large.
Accordingly, it can be concluded that Ethiopia is ideal for investment.
The present demand for the proposed product is estimated at 105,304 tons per annum. The demand is
expected to reach at 215,612 tons by the year 2028.
The total investment requirement is estimated at Birr 50 million, out of which Birr 45.7 Million is
required for capital investment and Birr 4.3 Million for working capital, from owner’s equity 25% own
equity and 75% from bank loan. The project is financially viable with an internal rate of return (IRR) of
16% and a net present value (NPV @ 20%) of Birr 47.62Million, discounted at 8.5%, and payback
period 3 years.
The plant will have a backward linkage effect on agriculture sector. The establishment of such factory
will have a foreign exchange saving effect to the country by substituting the current imports and make of
exports.

Objective of the Study

The main objective of the project is to prepare a project document for the establishment of a modern and
qualified manufacture of organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed,
Sesame Oil, Tahina industry and related byproducts of sesame meal (for animals), preservation and
distribution project and, producing organic edible oil, hulled sesame seed, Hulled and Roasted sesame
seed, Sesame Oil, Tahina producing and for the local market and in the future for the export to
neighboring countries and east African country, like Kenya, Sudan and Egypt. A specific objective
includes:
o Produce quality of organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame
Oil, Tahina for export market
o Drive cash profit for the promoter of the project
o Drive cash profit in the form of tax for the government
o Create employment opportunity for Ethiopia nationals and in addition to support 500 farmers for
production of Organic sesame
o Generate foreign currency for the country by exporting 20% of its products to the international
market
o Assess the general trend of the market
o Developing suitable organ gram with the staffing plan
o Determine the investment needs and
o Work at the financial feasibility of the project
PROJECT PROFILE
Opportunity Rationale
The processing of organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina, Halva and its byproducts of sesame meal (for animals) industry coupled is considered to be
one of the largest industrial sectors in Ethiopia. It is to growing at a robust rate of 56%.
Modernization of this industry, in consonance with the change in urban life style, massive shift of rural
population to the urban areas, growth in population, etc., predict a growing potential for instant
solutions in organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina, Halva and related byproducts, segment of the food industry.
Traditionally in Ethiopia and generally all over the world people prefer to use these natural organic
edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina product materials
and this perception is gaining more currency day by day which also adds to the advantage of the food
industry.

Processing of organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina, Halva industry has occupied a unique place in the industrial scenario of our country by
generating substantial export earnings and creating lot of employment. Its contribution to industrial
production, employment and export earnings are very significant. This industry provides one of the
necessities of life. The employment provided by its source of livelihood for millions of people. It also
provides maximum employment with minimum capital investment. Since this industry is highly labor-
intensive, it is ideally suited to Ethiopian condition. This project proposal is prepared for the process of
organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina and as they
find wide acceptance in local and international markets.
Organic Edible Oil Markets
Vegetable oil and oil seed resources are indispensable to mankind as a source of nutrient and industrial
raw materials. Crude vegetable oil obtained from various oil milling units is further refined before use for
edible purposes. Refined organic edible oil is a process where free fatty acids are volatized, condensed and
recovered simultaneously with vacuum de-coloring operation. Sometimes, refining process is limited to
simple physical treatment such as heating and filtering in regard to refining of superior quality of crude
oil. Generally the cake in the oil is separated by centrifuge, de-coloring by active clay and steam
deodorization at high temperature in vacuum up to 5 mm. Hg.
In recent years, the global market has become increasingly accessible to countries such as Ethiopia. New
export opportunities created through initiatives such as AGOA (the African Growth and Opportunity Act),
COMESA (the Common Market of Eastern and Southern Africa) and the many bilateral trade agreements
concluded with Western countries, including the Netherlands, Belgium and Luxembourg.
Ethiopia is also part of the “Everything But Arms” program that has been set up to provide access to the
E.U. market for Lesser Developed Beneficiary Countries, free of duty and without quota restrictions, for all
export products except arms.
The economic environment
 Ethiopia has achieved macro-economic stability,
 Stable annual economic growth in double digits since 2003,
 Stable exchange rate,
 Strong government commitment to private sector investment,
 Safe and secure working and living environments identified by the U.N. and the International
Chamber of Commerce (ICC) as key assets for investors in Ethiopia,
 Absence of corruption – Ethiopia is described by the U.N. and the ICC as “exceptional in its almost
complete absence of routine corruption.”

A Conducive tax environment

 Corporate income tax is 30%;
 Excise tax is levied (minimum 10%) on selected local or imported products;
 Income taxes range from 0-35% on monthly income of $16.50 and above;
 Capital gains tax – share of companies 30%; business 15%;
 Rental income tax (on annual rental income) is 0-35%, dependent upon the level of rental income;
 Export duty is zero; and tax treaties to avoid double tax payment signed with several countries, along
with bilateral treaties for the protection and promotion of investments.
Labor force
One of Ethiopia’s most valuable resources is its people. The country has a large pool of trainable work force
with a strong cultural disposition toward warm hospitality.
Ethiopia currently turns out more than 10,000 university graduates per year, with particular strengths in
business, accounting, management, economics and law, engineering, etc.
Security of investment
 The Government guarantees constitutional protection from expropriation;
 Ethiopia is a signatory to the main international investment related institutions, such as the
Multilateral Investment Guarantee Agency (MIGA);
 It is also a signatory to the Convention on the Settlement of Investment Disputes between States and
Nationals of Other States;
 A professional, one-stop-shop for foreign investment is offer through the Ethiopian Investment
Commission (EIC).
Land
Land is available on a leasehold basis and compensation payments to the farmers of up to 40 - 60 years. In
response to the country’s drive to attract domestic and foreign investment, regional governments now
expected to allocate land to investors within 60 days of receiving their applications. The lease of urban
and rural land varies according to location, type of investment and class of land. The Government
generally is willing to negotiate with individual business to provide incentives to get the capital
investment required.
Security
Ethiopia is politically stable and its popular tourist destinations and industrial areas are safe and secure.
The Company

The promoter of this project is GOLDEN HUMERA SESAME TRADING PLC is an Ethiopian investor that is
going to produce Organic Edible Oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina, Halva and related byproducts.
GOLDEN HUMERA SESAME TRADING PLC is an Ethiopian company registered under law of Ethiopia.
Company is promoted by shareholder from Ethiopia by securing 100% shareholding in company.
GOLDEN HUMERA SESAME TRADING PLC is leading Organic Agro commodities/products suppliers to
developed markets having sourcing/production base in developing countries. Company works in very
niche market and supporting sustainable way of agriculture and strives to increase the income of
associated farmers.
Company aims to develop an Organic supply chain of Oil seeds, hulled sesame seed, Hulled and Roasted
sesame seed, Sesame Oil, Tahina, Halva their value – added processing, packaging and exporting to
developed markets out of Ethiopia. We want to create a complete eco-system where in all the
stakeholders shall add values at certain stage of supply chain and will be profiting out of it.
Basis and Presumptions
1. This project based on 2 shifts basis and 300 working days in a year.
2. Since this industry is labor-intensive, the working efficiency considered at 85%.
3. Costs of machinery and equipment/ material indicated refer to a particular make and approximately to
those prevailing at the time of preparation of this project.
4. Installation and electrification cost is taken @ 10% of cost of machinery and equipment.
5. Non-refundable deposits, project report cost, trial production, security deposits with Electricity Board
taken under pre-operative expenses.
6. Depreciation has considered:
(a) On Building @ 5%
(b) On plant and machinery @ 10%
(c) On office furniture and fixtures @ 15%
(d) On other fixed assets @ 15%.
7. Interest on capital investment has taken @ 16% per annum.
8. Minimum 50% of total investment is required as margin money.
Project Brief
The primary objective of the model report is to facilitate the entrepreneurs in understanding the
importance of setting up unit of Organic edible oil refinery, hulled sesame seed, Hulled and Roasted
sesame seed, Sesame Oil, Tahina, Halva technology and financial parameters of various components for
preparation and submission of project proposal to bank for sanction of long term loan. This model report

will serve as guidance to the entrepreneurs on starting up such a new project and basic technical
knowledge for setting up such a facility.
The major raw materials required are sesame, crude groundnut oil, crude sesame oil and crude mustard oil.
The state of MP has abundant production of crude as well as refined vegetable oils round the year. Thus
procuring adequate quantity of crude oil will not be a bottleneck. Other materials like phosphoric acid,
citric acid, bleaching powder etc would be available from abroad.
The processing plant involves the following steps:
Manufacturing process Special pre-treatment steps which are essentially a combination of de-gumming
and blending under special operating conditions, eliminate all impurities and render oil fit to be processed
at elevated temperature under vacuum. Various steps involved in refining are:
 Super cleaning
 Contobleaching and
 De-acidification
All these processes are very well standardized and practiced in the country since long. The average
recovery is 90%.
It is possible to refine edible oils, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina, halva from sesame oil, crude groundnut oil, sesame oil, mustard oil etc. In this project, these three
crude edible vegetable oils have been considered for refining purposes.
Quality control and standard
The quality of organic edible oils mainly depends on quality of raw materials that are going to use to
produce edible oil. Therefore, care must take while purchasing raw materials to ensure good colorfastness
properties, uniformity in shade etc. Generally, edible oil, hulled sesame seed, Hulled and Roasted sesame
seed, Sesame Oil, Tahina, Halva processed as per customer's safety and specification and requirements.
To control the manufacturing product of its various process; a very strong quality control section inclusive
of finishing is maintained as per the international standard following world renowned buyers quality
control method though it train up all levels of quality people time to time . As all the individual sponsors
having excellent knowledge & experience in the field of edible oil products, they take part & play very
important role to produce good merchandise. Because of the strong quality control system trust &
dependability grows among the valued buyers, which would help rapid expansion of the company.
Organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina and other
related byproducts and consumed for their refreshing fashion, character and product qualities being
rich in quality and having regulatory functions to the body health systems. These qualities need to
maximize in technologies used to process edible oil products.

GOLDEN HUMERA SESAME TRADING PLC organic edible oil processing of edible oil, hulled sesame seed,
Hulled and Roasted sesame seed, Sesame Oil, Tahina, Halva and other byproducts industry can serve the
following purpose to contribute to the economic development of the country.
The project will promote modern production techniques, which can give better output in terms of man-
machine ratio. This project will promote worker’s right and create social bonding.
Product Marketing and Existing Competition
Existing Competition
Imported edible oils, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina, Halva
products are more than 70% of the total quantity consumed locally; and are generally available on those
shops and black markets especially at Addis Ababa and other big cities almost reserved for high-income,
medium and low-income groups. Therefore, imported edible oils, hulled sesame seed, Hulled and Roasted
sesame seed, Sesame Oil and Tahina are considered as direct or indirect competitors, but most of them are
not organic and they are low quality products.
Competition from the formal sector might be with FROST and TWIST who are enjoying major share of
the Ethiopian edible oil market.
The major competition threat would be from formal sector units who are engaged bulk edible oil and
related byproducts manufacturing. They produce quality based and healthy edible oil manufacturing
methodology, which result in low manufacturing cost and high margins for distributors and retailers. A
detailed account of the local competitors and players has provided in the second section of the report in
sector analysis.
Despite the stiff competition, given the right marketing strategies, market penetration is still possible
because the market is growing at an annual rate of combined annual growth rate of 56%.
Market potential
The importance of edible refined vegetable oils has been appreciated and ambitious plan has been chalked
out to increase production of edible refined vegetable oils, including sesame oil, by the Government of
Ethiopia in the previous Five Year Plans. The demand for refined edible vegetable oils, hulled sesame
seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina and Halva have increased in the consumer
market. With growing population, increase in the disposable income and overall trend of consumerism,
demand for edible oils is shooting up year after year. The country still imports large quantities of crude
edible oil. The domestic production has gone up during last few years but there still exists a gap between
demand and supply which results in large imports. Thus a new vegetable oil refinery has got good
potential.
The market for manufacture of organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed,

Sesame Oil, Tahina, Halva and its byproducts industry is increasing in Ethiopia and abroad and has a good
scope, especially for household, restaurants and hotels, etc. The marketing of organic edible oil will not be
a problem provided the users made aware of the cost benefit. All over the country, significant local market
is available for different types of products in edible oil.
Proposed Business Legal Status

The legal status of business tends to play an important role in any setup; the proposed manufacture of
organic edible oil including oil industry, hulled sesame seed, Hulled and Roasted sesame seed, Sesame
Oil, Tahina, Halva and related byproducts setup is assume to operate as a Private limited company/PLC
business entity.
Key Success Factors
Manufacture of organic edible oil industry, hulled sesame seed, Hulled and Roasted sesame seed, Sesame
Oil, Tahina, Halva and other related oil processing business is highly dependent on the trade margins
given to the distributors and retailers; however, following additional factors are considered as
important for success.
Back ward Integration
Frequent and continuous availability of quality raw materials, which are going to use at the production
process, is a prerequisite for organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed,
Sesame Oil, Tahina, Halva and related business. It is the only way to integrate operations from raw
materials to oil processing to organic edible making and packing. Integrated and earlier raw materials
supply arrangements with Soy beans, groundnut, sesame, mustard etc producers and suppliers would be
critical in business success.
Product Quality
Quality should emphasize at each step right from the beginning to the marketing of the product. Over the
years, an image of high quality products should be cultivated.
Distribution Network
Distribution network should give extra emphasis. Market share could gain by enhancing retailer and
distributor margins. Normally distribution and retailer margins in organic edible oil and related byproducts
business are from 10 to 15%.
SESAME OIL SECTOR

The Sesame Sector of Ethiopia is dominated by raw Sesame Seed exporters as opposed to processors.
There are currently more than 190 entities with a license to export Sesame while there are only three that
are actively engaged in Processing. However, there are no organizations that have engaged in Commercial
production of Sesame Oil. The global Sesame Oil market is dominated by producers in China, India,
Myanmar, Japan, Bangladesh, Thailand, Nigeria, and Tanzania.
Despite the numerous health benefits of consuming Sesame oil, it has still not been adopted into the local
cuisine. Rather, the edible oil that is available in the market includes Vegetable oil, Sunflower Oil, Palm
Oil and others. As a result, the envisioned organization will be a pioneer in the sector opening the door to
the higher value addition than is customary in the Sesame Sub-sector.
Product Description and Application
Sesame oil is essential nutrient and industrial raw material that is extracted from oil seed crops. Reference
is, however, made here to its dietary use. Pressing the raw material (i.e. oil seeds) and then extracting the
oil with steam or water gives Sesame oil as end product. The high protein residue (oil cake or oil seed
cake) that remains after oil extraction is a valuable fodder for livestock. Then the refined oil is used for
cooking food.
Sesame Seed is one the oldest oilseeds known to man. There are a number of health benefits that can be
drawn from the oil extracted from Sesame Seeds. Some of the benefits include lower blood glucose level;
lowering effects on blood pressure; lowering the level of Sodium in blood stream; skin benefits from
antioxidants in Sesame Oil. Sesame Oil is either toasted or light Sesame Oil. Toasted Sesame Oil has a
nutty flavor and is primarily used for seasoning, rather than cooking. On the other hand, the Light Sesame
Oil is made from untoasted seeds while the flavor is mild. The latter is preferable for cooking, in
comparison.
The ruminant cake after the Sesame Seed has been pressed is a high in demand animal feed component.
Local animal feed processors are discouraged from utilizing the Sesame Oil Cake as a result of the high
transportation cost of transporting it from cultivation areas such as Hummera.
Vegetable fat and Sesame oil are substances derived from plants that are composed of triglycerides.
Normally, at room temperature fats are solids and oils are liquid. Edible vegetable oils and fats are food
cooking ingredients and principally used for human consumption. The oils and fats are extracted from a
variety of fruits, seeds, and nuts.
Oils containing unsaturated fatty glycerides are by partial hydrogenation rendered into fats of more
suitable composition for edible purposes. This removal of double bond results in improving quality, taste
and odor of the oils as well as raises their melting point. The oils commonly used are sesame, ground nut,
soybean, cotton seed etc. in mixture depending on the availability.
It is possible to refine edible oils from crude groundnut oil, sesame oil, mustard oil etc. In this project,
these three crude edible vegetable oils have been considered for refining purposes. The cake contains
crude protein and is highly appropriate for animal feed.
As organic edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina, Halva
has a very huge demand, transporting the product is easy too; therefore, if the factory can produce quality
products at a cost which can compete domestically and internationally, geographical limitation of the
factory location is practically nil for both local consumption and export.
The type of importance of edible oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil,
Tahina and halva can be classified based on different aspects:
 Type of raw materials
 Seasonality in agricultural inputs
 Day – to –day use, different events like wedding, holydays, etc
 Application of Modern technology
 Method of Processing
 Source (raw material)
 Safe and healthy
 Length of edible oil
PRODUCT MARKETING
The demand for refined edible sesame oils, hulled sesame seed, Hulled and Roasted sesame seed, Sesame
Oil, Tahina, Halava has increased in the consumer market. With growing population, increase in the
disposable income and overall trend of consumerism, demand for edible oils is shooting up year after year.
The country still imports large quantities of crude edible oil, hulled sesame seed, Hulled and Roasted
sesame seed, Sesame Oil, Tahina and Halva. The domestic production has gone up during last few years
but there still exists a very huge gap between demand and supply which results in large imports. Thus a
new sesame oil refinery has got good potential.
Different oilseed types; such as Soybeans oil, crude groundnut oil, sesame oil, mustard, cotton seeds and
others, used to manufacture these products ready to customers’ requirement. Processed edible oil, hulled
sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina, Halva products are the choice of
urban people. It is also gaining wider acceptance in semi-urban and rural areas. The huge charges made by
whole sellers and retailers and delay in delivery have made people to switch over to imported edible oil,
hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil and Tahina products. In domestic
market and export market, it has made spectacular progress in the last decade. This industry is becoming
very vibrant and lot of foreign investment pouring in this industry because of low risk and high earning
nature of this industry. As these products are life oriented, entrepreneurs should always keep in mind
keeping the quality of the product. Considering its advantageous position, it is assume that there will be
no constraint in marketing of organic edible oil. The market for organic edible oil is increasing in Ethiopia
and abroad and has a good scope, especially for consumption purposes. The marketing of organic edible
oil, hulled sesame seed, Hulled and Roasted sesame seed, Sesame Oil and Tahina will not be a problem
provided the users made aware of the cost benefit. All over the country, significant local market is
available for different types of products in edible oil, hulled sesame seed, Hulled and Roasted sesame
seed, Sesame Oil, Tahina.
Market Study
Product Description
Sesame seed is rich in fat protein, carbohydrates, fiber and some minerals. The aroma and taste of the seed
are mild and delicious. It has nut-like slightly sweet flavor. It is used mainly as a food ingredient in whole,
broken, crushed, shelled, powdered and paste forms. The oil is extracted from sesame seeds is very
precious and stable. It has high oil content, normally its oil content ranges from 50 to 60 percent. The
main value added products intended to be produced from Sesame seed are:-
 Halva
 Sesame flower
a) Hulled Sesame Seed
Hulled sesame is the dried, cleaned, and hulled; color sorted inner part of the seed with consistent
appearance. It is rich in fat protein, carbohydrates, fiber and some minerals. It also has the highest oil
contents of any seed. Sesame seed is rich nutty flavor, a common ingredient in cuisines across the world.
Sesame seeds are commonly added to bakery, including bagels and the tops of hamburgers and creative
confectionery across the world.
b) Hulled and Roasted Sesame Seed
Hulled and Roasted Sesame seed is produced by roasting hulled sesame seed by a temperature 115-140
°C. It is golden color with purity of 99.97%. Hulled sesame seed is mainly used to add texture, taste and

aesthetic value to a variety of bakery products like bread, bread sticks, cookies, sesame bars etc; and also
as an additive to cereal mixes and crackers.
c) Sesame Oil
The oil is extracted from sesame seeds is very precious and stable. It has high oil content, normally its oil
content ranges from 50 to 60 percent. Sesame oil is a stable product because of a natural antioxidants
sesamol and sesamolinol that reduce the rate of oxidation. This character makes it preferable vegetable oil.
Sesame oil is sometimes used as cooking oil in different parts of the world, though different forms have
different characteristics for high- temperature frying. The "toasted" form of the oil (as distinguished from
the "cold-pressed" form) has a distinctive pleasant aroma and taste, and is used as table condiment in some
regions, especially in East Asia. Toasted sesame oil is also added to flavor soups and other hot dishes,
usually just before serving, to avoid dissipating the volatile scents too rapidly.
d) Tahini (sesame paste), from the Arabic word meaning “to grind,” is a creamy paste that is
called the “butter of the Middle East.” It’s used to flavor hummus (chickpea dip), baba
ghanoush (eggplant dip), and other traditional dishes; it’s also featured in Asian cuisine.
Typically, the seeds are hulled and lightly roasted first. Red tahini, made by roasting the seeds
for a longer time, has a more intense flavor. One tablespoon has 90 calories and 8 grams of fat
(most unsaturated), plus some protein (3 grams), and a little fiber. Other ways to use it: Mix it
with olive oil and lemon as a sauce for vegetables, meat, fish, and poultry; spread it on toast
(topped with honey or jam); add it to sandwiches, soups, salads, and stews; serve it over
lentils and rice; use it in baked goods.
e) Halvah or halva (from the Arabic word halwa, meaning “sweet”) is a dense and crumbly candy-like
confection made from ground sesame seeds blended with sugar or honey, with nuts and other
ingredients sometimes added. (Other halvahs are made from flour or other seed or nut butters.)
Though its exact origins are disputed, halvah is especially popular in the Middle East and parts of the
Mediterranean; in Israel, it’s sold in more than 35 flavors, including pistachio, coffee, coconut,
cinnamon, and rose water. The oldest manufacturer in the U.S., since the early 20th century, is Joyva,
but you may also be able to find artisanal halvah, as well as imported halvah. Enjoy halvah in small
amounts because of its high calories (about 140 to 200 per ounce) and sugar.
f) Sesame flour (or sesame meal), with its mild nutty aroma, can be used for making bread, cakes,
biscuits, and even pizza dough. Rich in fiber and protein, it’s also gluten free, which makes it a good
option for people with celiac disease or gluten sensitivity.

Local Market
Overview of the Performance of the Local Sesame Sub Sector
Ethiopia is one of the 51 major sesame-producing countries in the world. Ranked in terms of the land
Coverage of sesame, India, Sudan, Myanmar, China, Uganda, Nigeria, Tanzania, and Ethiopia lead the
world. Based on production; India, China, Sudan, Myanmar, Uganda, Nigeria, Ethiopia and Tanzania took
the rank from the highest to the lowest. These eight countries have produced 81.4% of the world sesame
production. During the period 2002– 2012 local production of sesame shows a huge increase both in land
area cropped and annual production registering an average annual growth rate of 19.26% and 22.24% in
terms of land area covered and annual production respectively. A large number of sesame seed varieties
exist in Ethiopia. However, in the international trade, three varieties are well known: Humera, Gondar and
Wellega. The three main export varieties have their own characteristics such as colour, oil content, and
taste. Recently, sesame has become an important export commodity of the country and has helped to
derive foreign currency. Export of sesame seed during the period 2002– 2013 exhibits a substantial
growth, the average annual export which was 71,147 tons during the period 2002--2004 has increased to
an average of 155,748 tons and 256,073 tons during the period 2005--2008 and 2009–2013 respectively.
During the period under consideration (2002–2013) annual export of sesame seeds has registered at an
average growth rate of 21.04% In terms of value during the period 2002--2013 export of sesame seeds has
registered an average annual growth rate of 43.02%. As a result of the exhibited concurrent growth by

2013 the value of the country‘s sesame export has reached an all-time high of Birr 8.44 billion.
Ethiopian sesame is among the highest quality in the world. Nevertheless, it can be concluded that the
country is not benefiting from its sesame resource potential. During the period 2009-- 2013 the average
unit value of sesame exported by the listed West European countries (USD 2,676/ ton) is higher by about
USD 1,332/ ton or 99.07% compared to the average unit value of sesame exported from Ethiopia
(USD1,344/ton). In fact, the West European countries are not producers of sesame. However, the West
European countries have specialized in importing raw sesame from developing countries such as Ethiopia,
where the resource is available and then processing the product (value adding) and re-exporting.
The majority of Ethiopian sesame is exported as raw seed. Accordingly, it can be concluded that although
blessed with favorable agro-climatic conditions as well as abundant land for sesame production, currently
Ethiopia is losing out on the opportunity to increase foreign currency earnings by mainly exporting
sesame seeds raw due to very limited domestic sesame processing capacity. Therefore, developing hulling
facilities and other value addition facilities will position the country to grow its sesame market and better
establish its international market position.
Past Supply Trend
Hulled Sesame and Hulled and Roasted Sesame
The local demand for hulled and roasted sesame is supplied through local production. Local production or
apparent consumption of hulled sesame seed and hulled and roasted sesame seed has increased from 1,469
tons and 163 tons in 2002, respectively to 7,346 tons and 816 tons in 2012 respectively.
Sesame Oil
Local production of sesame oil during the period 2002– 2013 exhibits a substantial growth, the average
annual local production which was 71 tons during the period 2002--2004 has increased to an average of
175 tons and 254 tons during the period 2005-2008 and 2009– 2012 respectively. The country imports
sesame seed oil from various countries. During the period 2002--2013 import of sesame seed oil fluctuates
from year to year without any noticeable trend. In terms of volume import ranges from the highest 841.82
tons in 2006 to the lowest 2.32 tons in 2005. However, during the period under consideration on average
the country was importing 180 tons of sesame seed oil annually. During the same period in terms of value
the country‘s import of sesame seed oil ranges from Birr 7.33 million to Birr 48.21 thousand with a yearly
average of Birr 1.20 million Apparent consumption of sesame seed oil during the period 2002--2013 has
increased from 47 tons to 256 tons registering an average annual growth rate of 28.02%.
Present Effective Local Demand
In order to estimate the current effective local demand for value added sesame products in Ethiopia, the
following methods were applied:

- Parameter double exponential smoothing; and
Based on the results of test statistics the Holt‘s two parameter method is found to be the most appropriate
for all the products. Accordingly, the estimated present effective domestic demand for each product is
given below.
n
3) Trend in Factors that Affect the Local Demand for Value Added Sesame Products
The variables that are essential in determining the magnitude and trend of demand for the product under
consideration are: population and
Accordingly, a thorough assessment of the current status and future prospect of these factors indicates that
there is a progressively growing local demand for value added sesame products.
Demand Projection
The local demand for hulled sesame seed is projected to increase from 12,365 tons in 2015 to 15,781 tons
and 20,141 tons by the years 2020 and 2025 respectively. Moreover, by year 2030 the local demand is
projected to reach 25,705 tons. The local demand for hulled and roasted sesame seed is projected to
increase from 1,374 tons in 2015 to 1,753 tons, 2,237 tons and 2,855 tons by the years 2020, 2025 and
2030 respectively. Likewise, the local demand for sesame oil is projected to increase from 454 tons in
2015 to 579 tons, 739 tons and 944 tons by the years 2020, 2025 and 2030, respectively.


Export Market
a) Trend in Global Production, Import and Export
During the period 2004--2013, globally, the land area cropped by sesame has increased from
7.39 million hectares to 9.38 million hectares, registering an average annual growth rate of 2.94%. During
the same period on average from the total land area cropped by sesame the largest share is accounted by
India (23.32%), Myanmar (18.47%) and Sudan (18.33%). Ethiopia is ranked 8th with an average share
3.02%.
During the same period (2004--2013) global production of sesame has increased from 3.48 million tons to
4.75 million tons registering an average annual growth rate of 3.62%. During the period under consideration
Myanmar, India and China with an average share of 19.08%, 17.12% and 15.19% are the leading producers
of sesame. During the period 2004--2013, global total export of sesame (in all forms) has increased from
833,437 tons to 1.56 million tons, registering an average annual growth rate of about 7.83%. In terms of
value global export of sesame has increased from 717.38 million USD in 2004 to 2.46 billion USD in 2013,
registering an average annual growth rate of 16.10%. During the same period, India, which on average
accounts for 21.46% of the global export, is the leading exporter of sesame, followed by Ethiopia (17.79%),
Sudan (11.86%) and Nigeria (10.42%). During the same period (2004--2013) the estimated global export of
hulled sesame, hulled and roasted sesame and tahini has increased from 151,686 tons, 105,013 tons and
35,004 tons to 284,746 tons, 197,132 tons and 65,711 tons, respectively. During the period 2004--2013,
global import of sesame seed in terms of volume and value has increased from 944,691 tons to 1.35 million
tons and from USD 876.71 million to USD 2.60 billion, respectively, registering an average annual growth
rate of 4.26% and 16.62% in terms of volume and value respectively. During the same period (2004--2013)
the leading importers with an average share of 24.39%, 13.56% and 8.26% were China, Japan and Turkey,
respectively. The other important importers include South Korea, USA, Taiwan, Syria and Israel which an
average share of 6.20%, 3.31%, 3.30%, 3.15% and 3.13%, respectively. During the period 2004-2012,
global production of sesame oil has increased from 943,637 tons to 1.04 million tons, registering an average
annual growth rate of 1.59%. During the same period on average from the total global production of sesame
oil the largest share is accounted by Myanmar (26.95%), China (19.81%) and India (10.92%).
During the period 2004--2013 global export of sesame oil, though slightly fluctuate in some years, exhibits a
general growth, increasing from 39,795 tons to 62,577 tons in terms of volume and from USD 95.46 million
to USD 227.09 million in terms of value, registering an average annual growth rate of 6.33% and 10.53% in
terms of volume and value, respectively. During the period 2004--2013, on average from the total global
import of sesame oil the highest share is accounted by USA (25.78%), Hong Kong (6.54%), Japan (5.01%)
and China (4.03%). The other important importers of sesame oil include (in order of importance) Malaysia,
Netherlands, Mexico and Germany.
b) Present and Projected Global Demand
The present (2014) global demand for hulled sesame is estimated at 307,042 tons, which is projected to
reach 482,653 tons and 703,611 tons in years 2020 and 2025 respectively. Moreover, by year 2030 the
global demand is projected to reach 1.02 million tons. The present global demand for hulled and roasted
sesame is estimated at 212,569 tons. The global demand for hulled and roasted sesame is projected to
increase from 334,145 tons in 2020 to 487,116 tons and 710,118 tons by the years 2025 and 2030
respectively. Likewise, the global demand for tahini is projected to increase from the present 70,856 tons to
111,382 tons, 162,373 tons and 236,707 tons by the years 2020, 2025 and 2030, respectively. The present
(2014) global demand for sesame oil is estimated at 66,538 tons, which is projected to reach 96,162 tons and
130,703 tons in years 2020 and 2025 respectively. Moreover, by year 2030 the global demand is projected
to reach 177,649 tons.
c) Estimated Market Share for Locally Produced Value Added Sesame Produces
The present (2014) export demand for locally produced hulled sesame seed is estimated at 15,352 tons,
which is projected to reach 24,133 tons and 35,181 tons in years 2020 and 2025 respectively. Moreover, by
year 2030 the global demand for Ethiopian hulled sesame is projected to reach 51,286 tons. The present
export demand for locally produced hulled and roasted sesame is estimated at 10,628 tons. The export
demand for locally produced hulled and roasted sesame is projected to increase from 16,707 tons in 2020 to
24,356 tons and 35,506 tons by the years 2025 and 2030 respectively. Likewise, the export demand for
locally produced tahini is projected to increase from the present 3,543 tons to 5,569 tons, 8,119 tons and
11,835 tons by the years 2020, 2025 and 2030, respectively. The present (2014) export demand for locally
produced sesame oil is estimated at 3,327 tons, which is projected to reach 4,808 tons and 6,535 tons in
years 2020 and 2025 respectively. Moreover, by year 2030 the export demand for sesame oil is projected to
reach 8,882 tons.
d) Total Projected Demand (Local Plus Export)
The total demand (local + export) for locally produced hulled sesame is projected to increase from 28,919
tons in 2015 to 39,914 tons and 55,322 tons by the years 2020 and 2025 respectively. Moreover, by year
2030 the total demand is projected to reach 76,991 tons. The total demand (local + export) for locally
produced hulled and roasted sesame is projected to increase from 12,835 tons in 2015 to 18,460 tons, 26,593
tons and 38,361 tons by the years 2020, 2025 and 2030 respectively. Likewise, the total demand for tahini,
which is intended for export, is projected to increase from 3,820 tons in 2015 to 5,569 tons, 8,119 tons and
11,835 tons by the years 2020, 2025 and 2030, respectively. The total demand for locally produced sesame
oil is projected to increase from 3,991 tons in 2015 to 5,387 tons and 7,274 tons by the years 2020 and 2025
respectively. Moreover, by year 2030 the demand is projected to reach 9,826 tons.
Marketing Mix
Product quality is one of the basic and most important marketing mixes that affect the success of a product.
The quality of value added sesame products is mainly dependent on the quality of the raw material used.
Accordingly, in order to insure the quality of the incoming raw material the envisaged project needs to set
up an effective raw material quality control mechanism. Achieving this form of quality control requires the
establishment of a test laboratory. Moreover, the quality of value added sesame products should be assessed
at various points throughout the manufacturing process. EU markets and the USA market demand a severe
quality control. Implementation of HACCP and tracking & tracing is necessary for access to these markets.
Moreover, in the global market for value added sesame taste is important but there is also growing interest
in the conditions in which products were made. Hence, product quality has increasingly begun to include
criteria related to environmental and socio-economic sustainability. This request can be clearly identified by
looking at market trends in Western countries. There are several organizations that are promoting fair trade.

Accordingly, getting certified by such institution is also important. Hulled sesame and roasted sesame are
traditionally packed in PP woven bags. However, two ply and three-ply poly bags have gained some favor
recently. Sesame oil and tahini can be packed in suitable well-closed food grade tin or plastic containers.
Based on the current FOB price of for value added sesame products exported by India the recommended
factory gate price is shown below.
Hulled sesame, hulled and roasted sesame are an intermediate product used in the manufacturing of other
products. Accordingly, by taking the nature of the products and the characteristics of the end users direct
distribution to end users is selected as the most appropriate distribution channel in the local market.
Regarding sesame oil the product can be distributed by selecting agents or wholesalers in major urban
centers in the country. Value added sesame products are imported by developed countries mostly through
specialized importers. Direct trade with end-users in the food industries is not possible as many end-users do
not have the means to import the products themselves (quality control, logistics, Customs). Importers and,
often, traders or agents handle this business. The envisaged project should consider exhibiting at relevant
international sesame expos in order to establish contacts with buyers or to investigate the possibility of
securing a business arrangement with a suitable importing and distribution company or broke. The
envisaged project is also recommended to develop a website. Since, a well-designed website can help the
envisaged projects ‘export venture in many ways, from promotion to customer service.
Pricing and Distribution
There is no commercial production of Sesame oil in Ethiopia. However, there is a practice of extracting
Sesame Oil in small amounts for home-use. Recent market survey of Sesame Oil in international markets has
shown that Sesame Oil is available at a price of $ 8 – 16, depending on the location of the market. In order to
penetrate the international market while covering its cost, the envisioned organization has set its selling price
for $10.50 for the first year of operation. Sesame Oil Cake is available in the local market at prices ranging
between $21.79 and $23.08 per Quintal. Taking this price into consideration, the envisioned organization
will be supplying the Sesame Oil Cake at $22.50 at the launch of its operation.

The current retail price of locally pressed edible oil ranges from Birr 65 up to Birr 75 per liter. This project
plans to sell its product at factory gate price of Birr 60 per Kg or Birr 55 per liter. Besides, it sells the by-
product, oil cake, at Birr 335 per quintal.
Market strategy of the company
The four marketing pillars of every project are the selling price, the placement or distributing system, the
quality of product and the way of promotion. The marketing strategy of the company is going to address all
the four marketing tools in a proper manner.
Price
The company will use low pricing strategy easily enter the market, the cost built-up method of pricing
approach used in the determination of the selling price.
Place
The distribution system that the company plans to use is:
Producer → trader → consumer &
Producer → consumer
The close proximity location of the capital city facilitates easy entrances to the market by reducing the cost of
transportation.
Product
Competitively sell its product in the local market the company plans to produce quality products. For this
purpose, the company will put quality control system. The quality control of the company begins with the
procurement raw materials to follow up the good manufacturing practice of production. In this way, the
company plans to maintain its control.
Promotion
To enter the market the company plan to use its low pricing and quality products directly and intensively
contact traders and consumers. The company plans to use television, radio and newspapers as means of

promotion in the initial period of its operation. After the company sows its root to the market, there is no
need of using the aforementioned promotion outlets rather the promotional activities will changed to
donation and charity in the name of the company.
SWOT analysis
S: 1. we have good skilled and technology W: 1. not know the country well
2. Good quality and new machine 2. Need longer process
3. Good quality products 3. Not have enough money
O: 1. Ethiopia have big market demand T: 1. Strong competition from other
2. Only have four to produce 2. Shortage of foreign currency
3. Most products need import
4. High price of product
Plant capacity and production program
Plant capacity
There are two aspects about the capacity of manufacturing plant, namely, installed or theoretical capacity and
actual capacity. The installed capacity of a plant refers to the theoretical level of output at a given time
whereas; the actual capacity refers to the attainable production capacity of plants at a given time.
The project will operate in two shifts eight hours a day each, three hundred days a year and as its full
capacity, the envisioned organization will be operating with a cleaning machine and 5 oil press machines.
The cleaning machine is able to clean 2.5 tons of Sesame Seed per hour while a single oil press machine is
able to press 8 kg of Sesame Seed per hour. The organization will be launching its operation at 80% capacity
which will increase to reach 90% in the 5th Year.
Production program
The envisaged plant is assumed to utilize higher percentage of its full capacity beginning from the first year
of its operation. The only possible constraint that inhibits full capacity utilization in the first year of the plant
operation is assumed to be raw material procurement. Accordingly, 75 % capacity utilization is assumed for

the first year of the operation, 85% at the second year, while starting from the third year 100 % capacity
utilization is assumed.
Target Market
The target market for GOLDEN HUMERA SESAME TRADING PLC will be 20% for export and 80% for
domestic markets.
RAW MATERIALS
The principal raw material required for the production of Sesame Oil is Sesame Seed. In order to ensure the
quality of the product is maintained while maintaining a marketable stature, the Sesame oil will be packed in
sealed clear bottles.
UTILITIES
The major utilities required by the envisaged project are electric power and water. The cost of these services
is estimated to be minimal at slightly above $900 per year.
Location and Land Requirement
The intended location of the plant is determined on the proximity of raw materials, availability of
infrastructure, availability of skilled work force and distance to potential market outlet.
In view of this, the envisaged plant will be establish in one of the following potential investment areas in
Amhara National Regional State, at Debre Birhan Town which is located near Addis Ababa, the land
requirement is estimated to be 10,000m2, out of these, 1,000m2 shed for raw materials, 1,000m2 for finished
goods, 2,000m2 for general store and office building, 5,000m 2 for plant and machine area and remaining to
parking and green area. About 1.95 million birr is allocated for land lease payments.

Technology and Engineering
In view of the small scale production under consideration, the press (expeller press) method is proposed to
recover oil from oil seeds. This method involves continuous crushing/pressing of cleaned seeds and
filtering of primarily pressed crude oil. The filtered oil is packed manually. Here, refining is not
anticipated.
Alternatively, there is other method of recovering oil from oilseeds; that is solvent extraction. This method
of vegetable oil extraction is large scale and capital intensive.
The major machineries required for the vegetable unit are super cleaning section, Contobleaching section,
DE acidification section, steel structure, water cooling system, Oil storage tanks, boiler, water softening
unit, storage tanks, pipes, accessories etc.
There are two extraction technologies, one is mechanical pressing and the other is solvent extraction. The
most important factor in the choice of the processing plant, and the processing sequence, is the seed to be
extracted, its yield, capacity and the quality of products to be achieved. The minimum capacity
recommended for solvent extraction process is 150-200 t /day feed stock. In addition to the above
restriction, mechanical presses has the advantage of reduced capital cost, no danger of fire from
combustible solvent, simpler process control and smaller number of skilled staff over solvent extraction
process. Therefore, screw press expulsion is recommended for the envisaged plant.
The seed requires a thorough cleaning process to remove sand, stalk, plant debris and any foreign matters
by rotary or table sieves, usually with air aspiration by fans, and cyclones for dust removal from the air.
Then, the seed have to be prepared for efficient oil recovery. The stages involved in pre-treatment are:
a) Size reduction of the seeds by breaking them, usually in fluted roller mills;
b) Flaking of the seed particles in roller mills with smooth roller surfaces (0.2 -0.3 mm);
c) Conditioning the seed by adjusting their moisture content and temperature, while keeping the seed hot
(say 90-950C) for periods that vary widely (30-60 minutes). Then, extraction by using high pressure screw
press follows.
The crude oil obtained from the press requires undergoing refining processes to produce a bland tasting,

light coloured oil without odour or flavour. To obtain fully refined oil from crude oil, the following steps
are necessary: degumming, neutralizing, bleaching, winterizing and deodorizing. The refined oil is, then,
packed and marketed. The refined oil containing unsaturated fatty glycerides are by partial hydrogenation
rendered into fats of more suitable composition for edible purposes. The hydrogenation processes consist
of the following two process steps; hydrogenation and post hydrogenation refining stages (the refining
process mentioned above).
The main waste material from oil manufacture is water and much attention should be given to the water
treatment to avoid its adverse effect in the environment. Biological treatment by aerating, activated sludge
system, addition of flocculating agent and filtration are used before the effluent is discharged.
PRODUCTION PROCESS
As in any Sesame Processing line, the Sesame is primarily cleaned. The cleaned Sesame is then roasted and
moves on to oil presser. Extracted Sesame Oil is liquid at room temperature and can be extracted either
through mechanical pressing and solvent extraction and other related products are going be produced.
Source of Technology
The machinery and equipment required to manufacture organic edible oil, hulled sesame seed, Hulled and
Roasted sesame seed, Sesame Oil, Tahina products are conventional and available in different technological
levels, in general. Selection among alternatives made based on the competitive advantages it provides to the
stakeholder in the context of the country. The major criterions taken in to consideration are resource
utilization (especially labor), job opportunity, operability, and maintainability. Therefore, the labor-intensive
machineries and equipment are select for the envisaged plant. Suppliers of labor-intensive technologies are
available in Europe, Asia and Far East.

1. Top consultants & Engineering PVT LTD
C-327, Inland Floor, Shanti Shopping Center,
Mira Road, Ply. Station E, Mumbai,
Maharashatra, India
2. Mitsun Engineering
FF-107, silver coin, shrenikpark Char Rasta, Akota, Baroda-390
Phone: + (91)-(265)-2352802
Fax: + (91)-(265)-2352802
Mobile: + (91)-9824083532/9824097599
E-mail: mitsunengineering@yahoo.com,mcpaid@indiamart.com
3. DAYAL IMPEX
77-A, Industrial Estate
Ludhiana-141 003, Punjab, India
Phone: +(91)-(161)-4640008
Fax: +(91)-(161)-4640008
Mobile: +(91)-9872100027
Email: dayalimpex@yahoo.com,mcpaid@indiamart.com
4. Henan Times Trading Com. Ltd
Tel: 0086-371-9013776
Fax: 0086-371-3812887
E-mail: shang5@371.net
Machinery and Equipment

In general, machineries required for the manufacturing of organic edible oil, Hulled and Roasted sesame
seed, Sesame Oil, Tahina can be classified in to the following groups. The list of machinery and equipment
is indicated in Table 1. The total cost of machinery is estimated at Birr 15,547,149.00 of which 100% is in
foreign currency.
Table 1. LIST OF MACHINERY & EQUIPMENT
Sr. Description Qty. COST(`000 Birr)
No. No. LC FC TC
1 Dehulling Machine 1 - 514.24 514.24
2 Delinting machine 1 - 511.392 511.392
3 Vibratory Cleaner 1 - 359.968 359.968
4 Crusher 1 - 885.68 885.68
5 Cooker 1 - 759.968 759.968
6 Expeller press 1 - 599.88 599.88
7 Settling tank 1 - 571.40 571.40
8 Hot water tank 1 - 822.824 822.824
9 Alkali Treatment tank 1 - 519.936 519.936
10 Filter press 1 - 631.368 631.368
11 Holding tank 1 - 697.112 697.112
12 Neutralization and Bleaching 1
tank - 897.072 897.072
13 Deodorization tank 1 - 457.08 457.08
14 Cooling tower 1 - 777.056 777.056
15 Hydrogenation tank 1 - 645.648 645.648
16 Submersible pump 1 - 817.128 817.128
17 Boiler 1 unit - 537.024 537.024
18 Water Reservoir 1 - 445.688 445.688
19 Crude and Refined oil tank 2 - 662.816 662.816
20 Waste water treatment plant set - 3,433.87 3,433.87
Total - 15.55 15.55

Civil Engineering Cost/ Building and Civil Work
The total land requirement for the envisaged plant is estimated at 10,000 m 2 out of these 1,000m2
shed for raw material, 1,000m2 for finished goods, 2,000 m2 for general store and office building,
5,000 m2 for plant and machine built-up area, the rest of the area is for production hall, waste
treatment plant, for parking, green areas, roads, and other facilitations. Cost of building construction
at rate of Birr 2,666 per m2 amounts to Birr 21,248,000.00.
Man power and training requirements

Organization and Management
Entrepreneurial capability and proper organizational structure are among the very detrimental factors
that explain successes of the modern businesses like the plant under study. Organizational structure of
the plant worked out based on key functional duties and responsibilities that need to consider for
efficient operation of the plant under study. A general manager will head this new plant and it will
have three departments namely, production and technique department, finance and administrative
department manager and marketing department manager. Each department will fill with the necessary
personnel required for the smooth operation of the plant.

Man power requirement
As far as the availability of labor consider the country said to have relatively cheap trainable and
abundant labor force. Most manufacturing projects are located around Addis Ababa where abundant
labor exists and the wage also low. This could be one of the comparative advantages that the country has
with respect to its competitors, but also, it could be the source of low productivity; dissatisfaction and
high labor turn over. Based on the proposed project organizational structure and nature of the production
process, the number of labor requirement is determined. Therefore, the total number of labor
requirement will be parsons 120 personnel for various levels at initial stage of production. This includes
Manager, Machine operators, helpers, technicians, supervisors, Marketing, and administrative staffs.
Table below, shows the list of workers required along with annual labor cost.
Table 2. Man power Requirement and annual salary
S/N Description No Monthly salary Annual salary
1 Factory Manager 1 10,000.00 120,000.00
2 Executive Secretary 1 3,000.00 36,000.00
3 Departmental Secretaries 4 10,000.00 120,000.00
4 Departmental Clerks 5 5,000.00 60,000.00
5 Production and Tech Manager 1 7,500.00 90,000.00
6 Production Head 1 5,000.00 60,000.00
7 Technical Head 1 5000.00 60,000.00
8 Quality Head 1 5,000.00 60,000.00
9 Production supervisor 9 31,500.00 378,000.00
11 Quality Control supervisor 4 14,000.00 168,000.00
12 Mechanical maintenance supervisor 1 3,500.00 42,000.00
13 Electrical maintenance Supervisor 1 3,500.00 42,000.00
14 Machine Operators & helpers 37 148,000.00 1,776,000.00
15 Quality Inspectors 11 11,000.00 132,000.00
16 Mechanic 4 5,200.00 62,400.00
17 Electrician 3 3,900.00 46,800.00
18 Marketing Manager 1 7,500.00 90,000.00
19 Sales person 2 5,000.00 60,000.00
20 Administration manager 1 7,500.00 90,000.00
21 General service personnel 1 2,500.00 30,000.00
22 HR Personnel 1 2,500.00 30,000.00
23 Nurse 2 4,000.00 48,000.00
24 Guard 8 6,400.00 76,800.00
25 Messengers 3 1,800.00 21,600.00
26 Driver 3 3,000.00 36,000.00
27 Cleaner 5 3,000.00 36,000.00
28 Financial manager 1 7,500.00 90,000.00
29 Accountant 2 7,000.00 84,000.00

30 Cashier 1 1,500.00 18,000.00
31 Purchasers 2 3,000.00 36,000.00
32 Store Keepers 2 3,000.00 36,000.00
Sub Total 120 331,300.00 4,035,600.00
Employee Benefit (15%) 49,695.00 605,340.00
Grand Total 380,995.00 4,640.940.00
Training requirement
The key personnel which will be involved in the technical maintenance and operation of the
machinery will be given due training free by the suppliers of the machinery and equipment.
However, the company plans to upgrade the technical and managerial skill of the employees
through on job training after operation is commenced. Additional on job training for operators and
short-term trainings for supervisors, technicians, and designers planned, with estimated cost of Birr
45,000.00.
General Manager
Secretary
Marketing Division Finance & Administration Production & Technical

Division Division
Purchase Sales Store Personnel Finance Production Technical

Dept. Dept. Dept. Dept. Dept. Dept. Dept.
Key managerial structure of the company

Financial Analysis
Underlying Assumption
The financial analysis of the envisaged plant based on the data provided in the preceding chapters and the
following assumptions.
Table 3 Financial Assumptions
A. Construction and Finance
Construction period 12 months
Source of Finance 25% equity and 75% Loan from bank
Tax Holidays 5 years
Bank Interest rate 8.50%
Discount for cash flow 8.50%
Value of Land Birr 160-170/M2 for land lease
Spare parts & Repair and Maintenance 5% of the fixed investment
B. Depreciation & Amortization
Building 5%
Machinery and Equipment 10%
Office Furniture 10%
Vehicles 20%
Pre-Production (Amortization) 20%
C. Working Capital(Minimum day of coverage)

Raw Material Local 30 days
Raw Material Foreign 120 days
Factories supplies in stock 30 days
Spare part in stock and Maintenance 60 days
Work in Progress 5 days
Finished Product 20 days
Account receivable 30 days
Cash in Hand 20 days
Accounts payable 30 days
Investment Cost
The investment cost of the project including working capital estimated at Birr 50.00 Million. The
owner shall contribute 25% (12.5Million) of the finance in the form of equity and the remaining
from bank loan.

Table 4. Total Initial Investment

Item LC FC Total
Land 3,237,000.00 - 3,237,000.00
Building and Civil Work 13,280,000.00 7,968,000.00 21,248,000.00
Office Equipment - 928,351.00 928,351.00
Vehicles/1/ - 1,004,500.00 1,004,500.00
Plant machinery and equipment - 15,547,149.00 15,547,149.00
25,448,000
Total Fixed investment cost 16,517,000.00 .00 41,965,000.00
Pre-Production 3,735,000.00 - 3,735,000.00
Total initial investment cost 20,252,000.00 25,448,000.00 45,700,000.00
Working capital at full capacity 4,300,000.00 - 4,300,000.00
Total 24,552,000.00 25,448,000.00 50,000,000.00
Production Cost;- The total production cost at full capacity operation is estimated at Birr
88.077million. Raw materials and utilities account for 86.3%, while the rest together costs 13.7% of
the total production cost.
Table 5. Total Production cost at full capacity

Items Cost %age share
1. Raw Material 74,256,547.00 84.31
2.Utilities 1,760,420.00 1.99
3.Wages and salaries 4,640.940.00 5.28
4.Spares and Maintenance (5% of F.I) 1,533,640.00 1.74
5. Depreciation& Amortization 3,729,910.00 4.23
6.Marketing and Promotion (salary*3) 952,200.00 1.08
7.Adminstrative Expense (salary *1.2) 1,203,900.00 1.37
Total Production cost 100.00 100
Financial Evaluations
Profitability
Based on the projected profit and loss statement, the project will generate a profit beginning from the
first year of operation and increase on wards throughout its operation life. Annual net profit after tax

will grow from Birr 779.28 million to Birr 1,300.75 million during the life of the project. Moreover,
at the end of the project life the accumulated cash flow amounts to Birr 772.25 Million.
Financial Ratios
In financial analysis, financial ratios and efficiency ratios used as an index or yard stick for
evaluating the financial position of a firm. It is also an indicator for the strength and weakness of
the firm or a project. Some of these ratios calculated for the first year of the project life are:
Return on sales = Net income/Revenue
= 185,780,350/779,289,000
= 0.2384 (23.8%)
Return on equity = Net profit/Equity
= 70,312,500/93,750,000
= 0.75 (75%)
Return on investment = Net profit/Total Investment
= 86,250,000/375,000,000
= 0.23 (23%)
These financial ratios for all years of the operation life of the project found to be satisfactory and
hence indicate that it is profitable and viable.
Break-even Analysis
The break-even analysis establishes a relationship between operation costs and revenues. It indicates
the level at which costs and revenue are in equilibrium. To this end, the break-even point of the
project including cost of finance when it starts to operate at full capacity (year 3) is estimated by
using income statement projection.
BEP = Fixed Cost/ (Average Unit selling price – Average Variable cost per unit product)
= 263,259,180/949,023,720
= 616, 055 pieces (BEP in production volume)
= Birr 29,629,939.00 (BEP in Sales volume)
= 27.74% (BEP in percentage)

Payback Period
The payback period is define, as the period required recovering the original investment outlay through
the accumulated net cash flows earned by the project. Accordingly, based on the projected cash flow
it estimated that the project’s initial investment would fully recover within 3 years.
Internal Rate of Return
The internal rate of return (IRR) is the annualized effective compounded return rate that can earn on
the invested capital, i.e., the yield on the investment. Put another way, the internal rate of return for an
investment is the discount rate that makes the net present value of the investment's income stream total
to zero. It is an indicator of the efficiency or quality of an investment. A project is a good investment
proposition if its IRR is greater than the rate of return that could be earned by alternate investments or
putting the money in a bank account. Accordingly, the IRR of this project computed to be 16.0 %
indicating the viability of the project.
Net Present Value
Net present value (NPV) is defined as the total present (discounted) value of a time series of cash
flows. NPV aggregates cash flows that occur during different periods during the life of a project in to a
common measuring unit i.e. present value. It is a standard method for using the time value of money
to appraise long-term projects. NPV is an indicator of how much value an investment or project adds
to the capital invested. In principal, a project is accepted if the NPV is non-negative. Accordingly, the
net present value of the project at 8.5% discount rate found to be Birr 47.42 million that is acceptable.
ECONOMIC BENEFITS
Earning foreign currency
In addition to saving hard currency by substituting import of apparel products, the project will have a
role of earning of foreign currencies by exporting 50% of its products. Accordingly, an average of
91.22 million USD sales each year during operation life of the project and 910.8 million USD export
sales will made at the end of the project life (ten years).
Job creation:-
This project creates permanent job opportunities for 120 persons at the first production year.

Tax Revenue
In the project life under consideration, the region will collect about Birr 39.5million from corporate
income tax. Such result create additional fund for the government that will use in expanding social
and other basic services in the region.
ENVIRONMENTAL IMPACT
Generally, mechanical presses, has the advantage no danger of fire from combustible solvent and
more controllable production process with smaller number of skilled staff over solvent extraction
process. As a result, the hydraulic oil press machine, which has been selected by the envisioned
organization, will not emit pollutants which will be harmful to the environment. Additionally, the
waste materials from the product line will also be disposed of in a timely manner.
THE PROJECT IMPLEMENTATION SCHEDULE (PLAN)

Expected commencement and completion date of the project
Commencement date of Excavation earth work and boundary wall……………. Oct. 2021
Completion of civil work and building……………………………….. July 2022
Table 6. Details of the project activities and their date of completion
NO ACTIVITIES DATE
1 Project development and feasibility study level and the market Oct 2020
research.
2 Land acquisition and head office rent Nov- Dec.2020
3 Land preparation and construction of the building civil works Jan.,2021–January 2022
4 Public utility acquisition （electric, water ，telecom ，others） February–April 2022
5 Project commissioning of plant and machinery July 2022
6 Prepare the raw material and installing the machine and the related April – May 2022
works
7 Covering raw materials February 2022

Conclusion
To sum up, we believe that the project is of superior geographical location, good natural
environment, sufficient sustainable development potential, a certain profitability and anti-risk
ability, and good social benefits. Through our establishment of such organic edible oil, hulled
sesame seed, Hulled and Roasted sesame seed, Sesame Oil, Tahina enterprise can arrange the social
staff 120 people, namely the social stability, solidarity, and the harmonic contributes and also has a
direct participation of 500 farmers for production of organic sesame and other oil seed products.
The company can pay nearly Birr 28.5million from corporate income tax to the state, it has a
positive significance to alleviate the financial difficulties and unemployment. Due to this project in
an adapted blank and our company can guarantee the normal and efficient production related
enterprises to make greater contribution to the economic revitalization of the Local market.
As the factory, we hope the decent office could approve this project, and then the company can start
the project as soon as possible.

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GOLDEN HUMERA SESAME TRADING PLC

FEASIBILITY STUDY FOR ESTABLISHMENT

GOLDEN HUMERA SESAME TRADING PLC

1 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

2 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

3 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

GOLDEN HUMERA SESAME TRADING PROCESSING PLC is an Ethiopia business entity

Initial Investment Capital

Objective of the Investment

4 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

5 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Social and Economic Benefits to the Community

 Will have forward linkage effect with Agriculture sector industries

6 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

EXCUTIVE SUMMARY IN SHORT

1. Project Name FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

2 Project Owner GOLDEN HUMERA SESAME PROCESSING PLC

8 Land Requirement 1 hectares/ 10,000m2

7 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

8 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

9 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Analysis of the Business Environment and Incentives for Investors

10 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Objective of the Study

11 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

12 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

A Conducive tax environment

13 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

14 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

15 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

16 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Proposed Business Legal Status

SESAME OIL SECTOR

20 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

21 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

22 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

23 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

- Parameter double exponential smoothing; and

24 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

25 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

28 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Pricing and Distribution

29 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Market strategy of the company

The distribution system that the company plans to use is:

Producer → trader → consumer &

30 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

2. Good quality and new machine 2. Need longer process

3. Good quality products 3. Not have enough money

O: 1. Ethiopia have big market demand T: 1. Strong competition from other

2. Only have four to produce 2. Shortage of foreign currency

3. Most products need import

4. High price of product

Plant capacity and production program

31 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Location and Land Requirement

32 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

Technology and Engineering

33 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

34 FEASIBILITY STUDY FOR ESTABLISHMENT OF SESAME PROCESSING PLANT

1. Top consultants & Engineering PVT LTD

C-327, Inland Floor, Shanti Shopping Center,

Mira Road, Ply. Station E, Mumbai,