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Table of Contents
1. INTRODUCTION 1
1.1. Background of the Study 1
1.2. Objective of the Study 1
1.2.1. General Objective 1
1.2.2. Specific Objective 1
1.3. Methodology and Method of Data Analysis 1
1.4. Scope and limitation of the Study 2
1.4.1. Scope and limitation of the study 2
2. COMMODITY DESCRIPTION 3
2.1. Definition of the commodity 3
2.2. Classification of the commodity 4
2.3. Major types of the commodity 5
2.4. Characteristics of the commodity 8
2.5. Uses and advantages of plastic syringe and disposable needle 9
2.6. Quality and standard requirement of the commodity 10
3.RAW MATERIAL STUDY FOR DISPOSABLE SYRINGE AND NEEDLE..........................................11
3.1 Overview...................................................................................................................................................... 11
3.2 Description of Raw Materials.......................................................................................................................11
3.3 Raw Material Market....................................................................................................................................23
3.3.1 Supply of the Raw materials......................................................................................................................23
4. DISPOSABLE SYRINGE & NEEDLE MANUFACTURING PROCESS 25
4.1. Injection Molding 28
4.2. Barrel Printing 32
4.3. Syringe & Needle Assembly 33
4.4. Individual, Inner Box & Outer Box Packaging 35
4.5. Ethylene Oxide (ETO) Gas Sterilization Process 35
4.6. Degasser Stage 36
4.7. Quality Control 36
4.8. Machinery & Equipment Requirements for Disposable Syringe & Needle Manufacturing 38
5. MARKET STUDY........................................................................................................................................39
5.1. Market Segmentation 39
5.2.1. Demand for disposable syringe and needle...............................................................................................40
5.2.2. Demand derivers and their performance...................................................................................................40
5.3. Supply of disposable syringe and needle.....................................................................................................45

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5.4. Demand -Supply Gap 45
5.5. Marketing channel and Arrangement 46
5.6. Price and price trend 46
6. ORGANIZATIONAL STRUCTURE AND MAN POWER REQUIREMENT 48
6.1. Organizational Structure 48
6.2. Manpower Requirement 49
6.3. Problems and Challenges 50
7. ENVIRONMENTAL IMPACT AND SOCIO ECONOMIC BENEFITS 51
7.1. Environmental Impact 51
7.2. Socio Economic Benefits 51
8. Key Push and Pull Factors 51
8.1. Key Pull Factors 51
8.2. Key Push Factors 52
9. DBE Experience 53
11. CONCLUSION AND RECOMMENDATION 54
11.1. Conclusion 54
11.2. Recommendation 54
12. PARAMETERS, TECHNICAL COEFFICIENTS AND ASSUMPTIONS 55

1. INTRODUCTION

1.1. Background of the Study

The Ethiopian economy continued to grow and registered 6.4 percent growth in 2021/22 compared to the 6.3
percent last year withstanding the domestic and external challenges. This Real GDP growth was 3.8 percentage
point lower than the average base case scenario set for the Ten Year Development Plan but significantly higher
than the 3.8 percent average growth estimated for Sub - Saharan Africa (World Economic Outlook update,
October 2022).

The 2021/22 economic growth was mainly attributed to 7.6 percent expansion in services, 6.1 percent in
agriculture and 4.9 percent in industry. Meanwhile, nominal GDP per capita rose to USD 1,218, depicting a
11.6 percent improvement over the previous year.

ii
Agriculture sector registered 6.1 percent growth in 2021/22 as a result of 6.9 percent in total crop production;
particularly, grain production (2.1 percent)
In 2021/22, the share of agriculture in GDP slightly declined to 32.4 percent from 32.5 percent a year ago. Its
contribution to GDP growth was 31.3 percent
The services sector was relatively the dominant economic sector in Ethiopia. The share of services sector was
about 40 percent in the overall economy thereby contributing about 46.7 percent to the GDP growth in
2021/22.
On the other hand, industry sector grew 4.9 percent which was 2.4 percentage point lower than last year and
constituted 28.9 percent of the total domestic output.
Industry sector contributed 22.6 percent to the overall economic growth in 2021/22, The growth in the
manufacturing sector was 4.8 percent; and it contributed about 23.4 percent to industrial output.
Though there is a positive growth in the manufacturing sub-sector in the industry sector, one
could understand that its share from the GDP is very low. Since recent years, the government of
Ethiopia has given utmost emphasis to the sector with a belief of transforming the economy from
agriculture to industry. as disposable razor blade is under the industrial sector, it has got priority
from the government and as well from the Bank for financing.

Disposable razor blade is among manufacturing products that targets to adults who can serve
their sanitary by themselves. Domestic manufacturing performance is so insignificant emanated
from very infancy of the industry that calls for the intervention of other exporting countries in the
international trade for import.

Hence, this new commodity study aims at rigorously evaluating the prospect of disposable razor
blade manufacturing and reaches at a plausible recommendation whether Development Bank of
Ethiopia has to act in financial and technical support or not based on concrete evidences that are
collected and analyzed from different spectrum.

iii
1.2. Objective of the Study

1.2.1. General Objective

The general objective of the study is to:

o Meet the expectation of concerned units and decision makers through provision of
comprehensive, pertinent and up-to-date information and assist the Bank in taking decision
upon future financing of the commodity.

1.2.2. Specific Objective

The specific objectives of the study are to provide pertinent data on the following areas:-
o Availability of raw material, manufacturing techniques, market situation, organizational
structure and staff requirement,
o Assessing new environmental issues and mitigation measures to be taken if there are any.
o To identify socio- economic contribution of the sub-sector,
o To identify major pushing and pulling factors of the business and To provide pertinent
updated
o Parameters and assumptions those are important for determination of cost and revenue.

1.3. Methodology and Method of Data Analysis

In this study, the data were collected from primary and secondary sources. Primary data were
collected through dispatched questionnaires, interview and field visit. On the other side, secondary
data were gathered from internet, publication of various governmental organizations The case team
has applied simple descriptive statistics for analyzing and organizing of the collected data and
information from stakeholder.
1.4. Scope and limitation of the Study

1.4.1. Scope and limitation of the study

This study focuses on the manufacturing of disposable razor by recruiting necessary inputs.
Conversely, the blade will be imported from abroad for the required assembly with domestically
produced razors and then disposable razor blade will be marketed as final products..
The case team had an obstacle in obtaining factory visits and gathering the required data because
there isn't a single company in the country that manufactures disposable razor blades
 Commodity Description

 Commodity description

A razor belongs to a category of private grooming device that majorly is a bladed tool primarily utilized in the
removal of hair through the act of shaving.
A razor is a bladed tool primarily used in the removal of body hair through the act of shaving. Kinds of razors
include straight razors, safety razors, disposable razors, and electric razors. While the razor has been in existence
since before the Bronze Age (the oldest razor-like object has been dated to 18,000 BC), the most common types
of razors in current usage are the safety razor and the electric razor, though other kinds are still in use.
Disposable razors are similar in use and appearance to straight razors, but use disposable blades, either standard
double edged cut in half or specially made single edge. These shavettes are used in the same way as straight
razors but do not require stropping and honing.

 Classification of the commodity

As we might guess, each of these razors provides drastically different shave experiences
from one another and have differing price points and skill levels required to use them.
Types of disposable razors
Disposable razors come in various types to cater to different shaving preferences and
needs. Here are some common types of disposable razor products:

 Single-Blade Disposable Razors: These razors feature a single blade and are often
the most basic and affordable option. They are suitable for simple shaving needs and
can be found in both men's and women's variants.
 Twin-Blade Disposable Razors: Twin-blade razors have two closely spaced blades
designed to provide a closer shave than single-blade razors. They are commonly
available and offer a balance between cost and performance.
 Triple-Blade Disposable Razors: Triple-blade razors have three blades positioned
 closely together. The additional blade helps to achieve a closer and smoother shave,
reducing the number of passes required. They are generally considered to provide a
more comfortable shaving experience.
 Disposable Safety Razors: Disposable safety razors are designed with a protective
guard or comb that helps prevent cuts and nicks. They offer a level of protection,
especially for those who are new to shaving or have sensitive skin.
 Disposable Razors with Moisturizing Strips: Some disposable razors feature
moisturizing strips infused with ingredients like aloe vera, vitamin E, or lubricants.
These strips help to provide hydration and reduce skin irritation during shaving.
 Disposable Razors with Pivoting Heads: Razors with pivoting heads have a flexible
head that adjusts to the contours of the face or body, allowing for a smoother and
more comfortable shave, particularly in hard-to-reach areas.
 Disposable Razors for Women: Disposable razors designed specifically for women
often feature a feminine design and may have features like a larger handle or a
pivoting head to accommodate different shaving needs.
 Disposable Razors for Men: Disposable razors for men are typically designed with a
focus on facial hair removal. They may have features like multiple blades, precision
trimmers, or ergonomically designed handles.
 Disposable Razors with Built-in Trimmers: Some disposable razors include a built-
in trimmer blade at the back of the cartridge. This feature allows for precise
trimming of facial hair or shaping of sideburns and beards.
 Travel-sized Disposable Razors: Travel-sized disposable razors are compact and
convenient for on-the-go use. They are designed to be lightweight and easily
portable, making them suitable for travel or for keeping in gym bags or purses.

Other types of razors

a. Safety Razor
Invented in the early 1900s, the safety razor was a groundbreaking invention at the time. A
modification on the traditional straight razor, the safety razor introduced a safety bar that
helped to flatten the skin and reduce the risk of nicks and cuts. Not only did it offer more
safety over the straight razor, but it also offered convenience and speed.

 Longer Blade Life than its Predecessor: Safety razors included a blade on either
side of the head that extended the life of the blade 2x what a single-blade straight
razor could offer.
 Quicker Shave: The safety bar helped folks to shave more efficiently and quickly
than ever before.
 Less Expensive: While still relatively niche within the entire shaving industry,
safety razors have seen a resurgence due to their low lifetime costs. For example, a
pack of 100 blades can be purchased for as little as $10, or about $0.10 per blade.
Compare that to a cartridge razor, which can cost as much as $2 per blade.
 Reduced Irritation: With a single blade, the safety razor is less likely to cause
razor bumps as the hair follicle is never cut beneath the skin’s surface. Folks with
exceptionally curly hair will find safety razors prevent this issue.
Of course, safety razors do have some drawbacks, the most notable being the following:

 Learning Curve: If you are familiar with cartridge razors, you’ll find that safety
razors are a bit more difficult to use. They must be held at an optimal cutting angle
and have very little pressure applied to the skin. As you learn this shaving tool,
you’ll likely experience a few nicks and cuts.
 Higher Up-Front Costs: While the cost of blades is lower, the handle of a safety
razor is more expensive. A well-made safety razor typically retails between $50 and
$100.
 Not Travel-Friendly: Safety razor blades are not TSA-compliant. They must be in
your checked luggage or purchased at your destination.
 b. Cartridge Razor

Introduced in the 1970s, the cartridge razors took a lot of what was good about safety
razors and modified them for convenience and profit. With multiple razor blades set at the
optimal cutting angle, a cartridge razor can provide an even closer and safer shave than a
safety razor.

 Ease of Use: Cartridge razors are extremely easy to learn – making them good for
folks learning to shave. Simply hold the razor flat against the skin and glide over the
surface, and you are good to go.
 Closer Shave: Thanks to the hysteresis phenomenon, cartridge razors can lift-and-
cut the hair follicle to provide smooth results.
 Travel Friendly: Cartridge razors can be brought with you wherever you go. And if
you forgot it at home, thanks to the mass popularity of cartridge razors, it’s not too
difficult to find a replacement.
Of course, there are some obvious and not-so-obvious drawbacks to using a cartridge razor:

 More Expensive Blades: This is the biggest gripe among consumers. While the
initial investment for a cartridge razor is cheaper than a safety razor, the blades are
more costly. A pack of 8 blades can range from $15-$30, depending on the brand.
 Susceptible to Causing Bumps: Folks with especially curly hair are more likely to
experience razor bumps when using a cartridge razor. However, some brands have
 recently introduced modifications on the cartridge razor, like the Gillette SkinGuard,
that set blades further apart to reduce this issue.
 Dry Skin & Irritation: With each pass, a cartridge razor can put stress on the skin’s
moisture barrier. This can cause dry and irritated skin, especially if using dull blades
or poor shaving cream.

c. Straight Razor

A classic among options, the straight razor is the most traditional of all razor types. Used as
far back as the early last 1600s, this type of razor is for those folks who want to rediscover
the lost art of wet shaving. While it is the most difficult to use, it is also the most
rewarding.

 Long-Lasting Blades: With proper care, a straight razor can last a lifetime.
However, know that you’ll need to strop it regularly and either hone it yourself or
send it to a professional to keep it in tip-top shape.
 Therapeutic: Whether you are retired or just want to have a fun weekend hobby,
the straight razor offers a unique experience that can be quite soothing and cathartic.
 Cost Effective: Though the initial investment may be high, as a good straight razor
can easily cost upwards of $200, the long-term costs are relatively low.
Of course, straight razors do have some drawbacks that you should consider:
  Steepest Learning Curve: Without a doubt, the straight razor is the most difficult
to learn. Not only do you need to understand the proper way to hold it, but you also
need to know how to maintain it by stropping and honing.
 Slowest Shave: If speed is your main priority, the straight razor may be a bit too
time-consuming.
Note: Shavettes are a modification of the straight razor. They feature swappable blades and are
often used by barbers.

d. Electric Razor

Invented in 1930 by Colonel Jacob Schick, the electric razor brought about a new kind of
convenience for those who wanted a quick shave with minimal effort. Not intended to
replace cartridges or safety razors but rather to act as a supplementary shaving tool that can
get close to smooth results in a fraction of the time.

 No Shave Cream Needed: Electric razors do not require shave cream. In fact, they
tend to work better without the induction of moisture.
 Travel-Friendly: Electric razors are approved by the TSA, making them the perfect
tool to bring with you when you are short on packing space.
 Low Maintenance: Clean this shaving tool is easy; either empty it out over a trash
can or rinse it under water. Replacement heads are often recommended every six
months for optimal performance.
On the downside, electric razors have the following drawbacks:
  Not as Close: While an electric razor can provide smooth results, they are not as
close as a safety or cartridge razor.
 Costs Vary on Model: As with other shaving tools, electric razors are very much
‘you get what you pay for .’Low-end electric razors can cost as little as $30, while
high-end models can cost well over $300. As such higher-end models feature a
better motor resulting in a better shave.

e. Disposable Razor

This razor is very comparable to the cartridge razor. However, where it differs is that the
blade is fused with the handle and must be thrown away when the blades become dull. This
is ideal for temporary situations, including travel, medical use, or while at the gym.

 Easy to Use: Like a cartridge razor, they operate in the same manner. Lather up
some shaving cream on your face, press slightly, and make the appropriate passes.
 Low-Cost: Disposable razors are very inexpensive. A pack of 5 can typically be
purchased for around $5.
A lot of folks don’t like disposable razors because of the following reasons:

 Environmental Impact: Once the blade becomes dull, you must throw out the
entire handle. This is a lot of unnecessary waste that adds plastic to landfills.
  Not as Comfortable: The blades feel much duller than those found in other razor
types. This often results in more passes which can lead to irritation.

f. Beard Trimmers

Finally, there is the beard trimmer. While not technically a razor, it can be included in the
conversation as it is used to effectively and evenly trim facial hair of all lengths.

 Vast Range of Lengths: Beard trimmers have adjustable combs that allow you to select
the exact length of your trim. This range can be from 0.5mm to 15mm.
 No Nicks or Cuts: Just like electric razors, beard trimmers do not put you at risk of
cutting yourself. Plus, there is never a chance of other ailments like razor burn or
ingrown hairs.
One of the most notable downsides in the context of this guide is that beard trimmers
cannot provide close results. At best, they provide thick stubble.

g. Hybrid Razors

Within the last few years, a few companies have introduced razors that can’t necessarily be
classified as one of the above.

For example, we have seen companies like OneBlade introduce a razor that carries many of
the benefits of the safety razor in a form factor similar to that of a cartridge razor.
Additionally, we also have seen the Leaf Razor that holds several safety razor blades in a
cartridge-like form factor.

h. Gender-Specific Razors

By and large, a razor is a razor that is used to remove hair from the skin’s surface. Any of
the razors mentioned in this article can be used by both men and women.

Worth noting, though, is that there may be some small design differences.

For example, women’s razors may have a larger conditioning strips for general body
grooming whereas men’s razors are narrower for navigating tight contours when shaving
facial hair.

https://shaverater.com/
shearsdirect.com

our choice of razor can be significantly influenced by our skin and hair type. If you have
exceptionally coarse or curly hair, razor blades with a single cutting edge or cartridge razors with
fewer blades will help prevent ingrown hairs and razor bumps.

This is because multi-blade razors can pull and tug at the hair, causing it to retract below the skin’s
surface and grow back into the skin, leading to irritation.

Here are some recommendations based on the skin and hair type that is to be shaved:

Skin/Hair Recommended Razor

Reason
Type Type

Sensitive Safety Razors or Beard The single edge on a safety razor reduces the
 Skin/Hair Recommended Razor
Reason
Type Type

chances of skin irritation, and beard trimmers cut a

Skin Trimmers fraction above the surface of the skin, thus reducing
the potential for razor burn.

Coarse or Safety Razors or Straight These razors cut hair cleanly without tugging,
Curly Hair Razors reducing the chance of ingrown hairs.

Electric shavers don’t dry out the skin when

Electric Shavers or Mild
removing hair. Mild double edge safety razors cut
Dry Skin Double Edge Safety
hair a fraction above the surface, making them less
Razors
likely to exacerbate dry skin.

The multiple blades of a cartridge razor or the quick

Thin or Fine Cartridge Razors or oscillations of an electric shaver can easily cut
Hair Electric Shavers through fine hair strands with fewer passes,
lessening the chance of skin irritation.

If irritation or ingrown hairs aren’t a concern, then

Normal All any razor should be able to deliver a close,
comfortable shave.


 toolsofmen.com


While most men and women use razors daily, each has their preference regarding whether or
not to use disposable razors. What you use will depend on several factors. There are different
types of razors out there, though you should consider each type’s benefits and compare them
to your preferences to ensure you choose the option most suitable. This article will discuss
the benefits of reusable and disposable razors to make the best choice for your needs.

i. Benefits Of Using A Disposable Razor

Convenience

Disposable razors are quick and easy to use since you throw them away once you shave.
Maintenance is optional, making them convenient for busy people who need more time to
regularly clean and care for their reusable razors.

Disposable razors are also convenient because they can be easily carried with you on the go,
making them an excellent option for those who often travel or have busy schedules.

Versatility

While some people may prefer the precision of a safety or electric razor, disposable razors
are great for use on areas like the face, legs, underarms, and bikini line where accuracy is
less critical.

Ease of use

Many disposable razors are designed to be simple and intuitive, with features such as a
pivoting head or multiple blades for a closer shave. It makes them an excellent choice for
those who may need more experience with shaving or want to save time learning how to use
their razor correctly.

Affordability

Because disposable razors are designed to be inexpensive and easy to use, they can be an
excellent option for those on a budget. However, they are designed for single use, so even if
you invest in higher-quality reusable razors, you will need to purchase new ones regularly.

 https://lighttheminds.com/

Componenets of disposable razor blade

There are three main components in a disposable razor.
 The blades, which are made from carbide steel made using tungsten carbide,
 The handle, which is made from a combination of plastics such as polypropylene,
polystyrene, and phenylene oxide (PPO), and
 The head or cartridge, which is made up of these plastics and sometimes the carbide steel
as well.
These few simple materials go through processes of heating, cooling, moulding, cutting, and
sharpening throughout their manufacturing process to eventually become the handle, razor blades,
and blade cartridge that will then be assembled to become a disposable razor.

j. The Blade

One of the most important components of a disposable razor is, of course, the blade. The blade is
typically made of stainless steel and is designed to be sharp and precise.

When you take a closer look at the blade, you'll notice that it has a thin, sharp edge along one side.
This edge is what does all the work, cutting through the hair as you glide the razor across your
skin.
Disposable razors often have multiple blades, typically two or three, stacked on top of each other.
These multiple blades work together to provide a closer shave, as each blade helps to lift the hair
and cut it at a slightly different angle.

It's worth noting that not all disposable razors have the same type of blade. Some razors have a
fixed blade, while others have a cartridge system where the blades can be replaced. The choice
between the two usually comes down to personal preference and convenience.

A disposable razor is a grooming tool that provides a quick and convenient solution for
shaving needs. The blade is typically made of stainless steel and is designed to be sharp
and precise. When you take a closer look at the blade, you’ll notice that it has a thin,
sharp edge along one side. This edge is what does all the work, cutting through the hair
as you glide the razor across your skin. Disposable razors often have multiple blades,
typically two or three, stacked on top of each other. These multiple blades work
together to provide a closer shave, as each blade helps to lift the hair and cut it at a
slightly different angle.
 k. The Handle

The handle is the part of the razor that you hold onto while shaving, and it plays a
crucial role in the overall functionality of the razor. Handles are typically made from
plastic or rubber, providing a comfortable grip and preventing the razor from slipping
out of your hand while in use. The shape and design of the handle can vary from razor
to razor, with some featuring contoured grips for added comfort. Many disposable
razors also include a lubricating strip on the handle. This strip usually contains
ingredients like aloe vera or vitamin E, which are designed to provide a smooth and
comfortable shave. As you glide the razor over your skin, the lubricating strip helps to
reduce friction and irritation.

Many disposable razors also include a lubricating strip on the handle. This strip usually contains
ingredients like aloe vera or vitamin E, which are designed to provide a smooth and comfortable
shave. As you glide the razor over your skin, the lubricating strip helps to reduce friction and
irritation
 l. The Head

The head of a disposable razor is typically fixed, meaning it doesn't pivot or move in any way.
This design allows for greater control and precision while shaving. However, some disposable
razors do have a pivoting head, which can be beneficial for navigating tricky areas such as the chin
or jawline.

On the head of a disposable razor, you'll also find a guard. The guard is a row of small plastic or
metal teeth that help to guide the hair towards the blades and prevent any accidental nicks or cuts.
It acts as a barrier between the blades and your skin, ensuring a safe and smooth shaving
experience.

So there you have it - a closer look at how a disposable razor works. It's a clever combination of
blade, handle, and head, all working together to provide a clean and close shave. Next time you
reach for your trusty disposable razor, you'll have a newfound appreciation for its design and
functionality.

The head of a disposable razor is where the blade is located and where all the action
happens. It’s the part that comes into direct contact with your skin, so it’s important for
it to be well-designed and efficient. The head of a disposable razor is typically fixed,
meaning it doesn’t pivot or move in any way. This design allows for greater control and
precision while shaving. On the head of a disposable razor, you’ll also find a guard. The
guard is a row of small plastic or metal teeth that help to guide the hair towards the
blades and prevent any accidental nicks or cuts.
 Quality and standard requirement of the commodity
There are international quality standards for disposable syringe and needle. Products of a specific
accuracy and reliable quality are necessary to meet targeted demand. The quality of disposable
needle and syringe is mainly dependent on the quality of raw materials used. The Ethiopian quality
and standards authority has a standard that are attached with this commodity.
 3. Raw Material Study for Disposable razor blade

This section deals with the raw material study of the disposable razor blade manufacturing.
The description of raw material and supply situations are analyzed to show the availability and
price trend based on the local and global raw material producer/supplier.

Overview of raw materials

The materials used in the production of disposable razors are limited due to the products simplicity
however, many of the materials are unsustainable in that they are not biodegradable or easily
recyclable, and require heavy energy input to manufacture. In this life cycle breakdown, this part
will be discussing what materials go into the making of disposable razors and

3.1 Types and Description of Raw Materials

Materials used in a disposable razor

Disposable razors are typically composed of various materials to fulfill their functional
requirements. Here are the descriptions of the common raw materials used in the production of
disposable razors:

Plastics:
Disposable razors often utilize plastics for their handles, cartridge components, and protective
caps. The specific type of plastic used can vary, but commonly used materials include
polypropylene (PP), polystyrene, high-density polyethylene (HDPE), and acrylonitrile butadiene
styrene (ABS). Plastics are chosen for their durability, lightweight nature, and ease of molding into
intricate shapes.
The plastic portions of a safety razor include the handle and blade cartridge, or portions thereof,
depending on the razor design. These parts are typically molded from a number of different plastic
resins including polystyrene, polypropylene, and phenyleneoxide based resins as well as
elastomeric compounds

polypropylene a thermoplastic ‘addition polymer’ made from the combination of propylene

monomers” (Creative Mechanisms Staff, creativemechanisms.com). It has a low density and is
quite flexible and heat resistant, therefore making it an easily moulded and extruded material. It is
“resistant to fats and almost all organic solvents” which helps it hold up in the damp and warm
conditions of a bathroom and shower (“Polypropylene.” Wikipedia.org).
Polypropylene is recyclable with the resin code of 5, which is it’s numbered identification code
that is used to identify what resins plastic products are made of, and indicate how they are
recycled. Despite its ability to be recycled, it often ends up in the landfill as many people don’t
know how to properly recycle it, people are too lazy to recycle, or the plastics aren’t labeled
properly (“Polypropylene.” Wikipedia). Once in the landfill, it usually takes around 20-30 years to
breakdown. The 1% of the material that is recycled however, goes through a 5 step recycling
process which is “collecting, sorting, cleaning, reprocessing, and producing new products”. The
polypropylene is sorted during recycling using a float test that separates it from other materials
based on its ability to float due to its weight, then it is often melted down and reused in other
product manufacturing. The major problem with recycling this plastic however, is that during the
heating process, the plastic degrades in quality making it less valuable (“What Is Tungsten Carbide
or Hard Metal?”, AZoM.com).

Another material used is polystyrene. Polystyrene is “a naturally transparent thermoplastic that is

available as both a typical solid plastic as well in the form of a rigid foam material” (Rodgers,
“Everything You Need To Know About Polystyrene (PS).”). It is cheap and highly versatile, and
can either be hard plastic material, or a soft foam material, making it one of the most common
plastic materials manufactured and used (“What Is Polystyrene?: Uses, Benefits, and Safety Facts”,
ChemicalSafetyFacts.org,). Polystyrene is not biodegradable and takes hundreds of years to break
down. It is also often not accepted in curbside recycling, and even when it is, it is not separated
and recycled when it reaches the dumping station, making it an unsustainable and wasteful
material (“Polystyrene.” Wikipedia.org).

Phenylene oxide, or PPO, is another common plastic material used in disposable razors. It is a
thermoplastic that exhibits “high heat resistance, dimensional stability, and accuracy” and is often
combined with other plastics, such as polystyrene, due to various problems in its processing
(“Poly(p-Phenylene Oxide”, Wikipedia.org). It is used in razor manufacturing mainly due to its
high heat and water resistance, making it ideal for the conditions the product is used in. There is no
public data entailing the details of this plastic’s recyclability.

To make the handle and cartridges, these various plastics are heated together and melted together
along with optional colorants and various filler materials. This liquid material is then injected into
moulds, or extruded through moulds, where it will cool and take the form of the desired cartridge
and handle shape. Once the plastic has cooled, the pieces are released from the moulds. Any extra
plastic will be discarded, remelted, and reused (“Safety Razor”, madehow.com).

m.The Head
The head of a disposable razor is where the blade is located and where all the action happens. It's
the part that comes into direct contact with your skin, so it's important for it to be well-designed
and efficient.

The head of a disposable razor is typically fixed, meaning it doesn't pivot or move in any way.
This design allows for greater control and precision while shaving. However, some disposable
razors do have a pivoting head, which can be beneficial for navigating tricky areas such as the chin
or jawline.

On the head of a disposable razor, you'll also find a guard. The guard is a row of small plastic or
metal teeth that help to guide the hair towards the blades and prevent any accidental nicks or cuts.
It acts as a barrier between the blades and your skin, ensuring a safe and smooth shaving
experience.

So there you have it - a closer look at how a disposable razor works. It's a clever combination of
blade, handle, and head, all working together to provide a clean and close shave. Next time you
reach for your trusty disposable razor, you'll have a newfound appreciation for its design and
functionality.

 Razor blade steel, also known as razor steel, is a special type of stainless steel designed specifically to
be used as a razor blade. Its defining characteristics are its chemical composition and shape. Jindal
Stainless is the world's largest producer of razor blade stainless steel.
 Lubricating Strips: Many disposable razors feature lubricating strips placed above or below the blades.
These strips are often made of a mixture of polymers, including polyethylene oxide (PEO) or
polyethylene glycol (PEG). The lubricating strips release a thin layer of lubricant during shaving to
enhance glide and reduce friction, providing a smoother and more comfortable shaving experience.
 Rubber or Elastomer: Some disposable razors incorporate rubber or elastomer materials in the handle or
grip areas. These materials provide enhanced grip and control during shaving, reducing the likelihood of
slippage. Rubber or elastomer components may be added to improve ergonomic features and user
comfort.
Rubber or elastomer materials are sometimes used in the construction of disposable razors to
provide enhanced grip and control during shaving. Here's some information about rubber or
 elastomer components in disposable razors:

1. Grip Enhancement: Rubber or elastomer materials are often utilized in the handle or grip areas of
disposable razors. These materials have properties that enhance friction and provide a secure grip,
reducing the likelihood of the razor slipping from the user's hand during shaving. The addition of
rubber or elastomer components improves the overall ergonomics and handling of the razor.

2. Comfort and Control: The use of rubber or elastomer in disposable razors can enhance user
comfort by providing a softer and more cushioned grip. This can be particularly beneficial for
individuals with sensitive skin or those who prefer a more tactile shaving experience. The added
cushioning can also help to minimize hand fatigue during extended shaving sessions.

3. Vibration Dampening: Rubber or elastomer materials have inherent vibration-dampening

properties. These materials can help to absorb and reduce vibrations generated during shaving,
resulting in a smoother and more comfortable shaving experience. The vibration reduction can be
especially useful when using razors with multiple blades, as it minimizes the transfer of vibrations
to the user's skin.

4. Durability and Resilience: Rubber and elastomers are known for their durability and resilience.
They can withstand repeated use, pressure, and impact without deforming or losing their
performance properties. This makes them suitable for the demanding conditions of razor use, where
the handle may be subjected to various pressures and stresses.

5. Material Compatibility: Rubber or elastomer components in disposable razors should be

compatible with other materials used in the razor's construction. They should not degrade or react
adversely with the plastic, metal, or adhesive components. Compatibility testing is typically
conducted during the design and manufacturing process to ensure the materials work well together
and maintain the razor's structural integrity.

It's important to note that the specific rubber or elastomer formulations used in disposable razors can
vary among manufacturers. Different types of rubber or elastomers may be selected based on factors
such as desired grip texture, durability, and cost-effectiveness.
 Adhesives: Adhesives are used to securely assemble the various components of disposable razors, such
as attaching the blade to the cartridge or affixing the handle to the cartridge. Adhesive formulations may
vary but commonly include cyanoacrylate-based or epoxy-based adhesives, chosen for their strong
 bonding properties and compatibility with the materials being joined.
Adhesives play a crucial role in the manufacturing of disposable razors by securely bonding various
components together. Here's some information about adhesives used in the production of disposable
razors:

1. Blade Attachment: Adhesives are commonly used to attach the razor blades to the cartridge. The
adhesive provides a strong and durable bond between the blade and the cartridge body, ensuring that
the blade remains securely in place during use. Cyanoacrylate-based adhesives, also known as
instant or superglues, are often used due to their fast curing time and excellent bonding properties.

2. Handle Assembly: Adhesives are used to bond the handle to the cartridge assembly. This ensures
that the handle and cartridge are securely connected, providing stability and proper alignment.
Epoxy-based adhesives are commonly employed for handle assembly due to their high strength and
resistance to shear forces.

3. Grip Components: In disposable razors with rubber or elastomer grip components, adhesives may
be used to attach the grip material to the handle or other parts of the razor. The adhesive ensures a
strong bond between the rubber or elastomer and the underlying surface, providing a secure grip for
the user. The specific adhesive formulation used is typically selected to provide compatibility with
the materials being bonded and to maintain the desired performance properties of the grip material.

4. Label and Packaging: Adhesives are also used in attaching labels or decorative elements to the
razor packaging. These adhesives should provide a reliable bond to ensure that labels or decorative
elements remain in place throughout the product's lifecycle.

When selecting adhesives for disposable razor manufacturing, factors such as bond strength, curing
time, compatibility with the materials being bonded, and regulatory compliance are taken into
consideration. Manufacturers often conduct testing and quality control measures to ensure that the
chosen adhesives meet the required performance standards and do not compromise the integrity or
safety of the finished razors.

It's worth noting that the specific adhesive formulations used in disposable razor manufacturing can
vary among manufacturers and may evolve over time as new adhesive technologies and
formulations become available.
 Coatings: Some disposable razors may have specialized coatings on the blades or other components to
enhance their performance or appearance. For example, a thin PTFE (polytetrafluoroethylene) coating
may be applied to the blades to reduce friction and improve glide during shaving.
Coatings are often applied to various components of disposable razors to provide additional
functional or aesthetic benefits. Here's some information about coatings used in the production of
disposable razors:

1. Blade Coatings: Disposable razor blades may feature specialized coatings to enhance their
performance during shaving. These coatings can improve the glide of the blade across the skin,
reduce friction, and provide additional protection against corrosion. One common type of coating
used is a thin layer of polytetrafluoroethylene (PTFE), which is a low-friction, nonstick material.
PTFE coatings help the blade glide smoothly over the skin, reducing irritation and improving the
overall shaving experience.

2. Decorative Coatings: Disposable razors may have decorative coatings applied to certain
components, such as the handle or cartridge. These coatings can be used to enhance the appearance
of the razor, add color, or provide a desired texture or finish. Decorative coatings can be applied
using techniques like spray coating, electroplating, or powder coating, depending on the desired
effect and the materials being coated. The specific coatings used for decorative purposes can vary
widely, including metallic finishes, glossy or matte coatings, and various colors.

3. Protective Coatings: Coatings may also be applied to certain components of disposable razors to
provide protection against wear, scratches, or chemical exposure. These protective coatings help to
maintain the visual appeal and integrity of the razor throughout its use. Common protective coatings
include clear lacquers or varnishes that provide a thin, transparent layer of protection.

4. Anti-Microbial Coatings: In some cases, disposable razors may incorporate anti-microbial

coatings on certain surfaces to inhibit the growth of bacteria or other microorganisms. These
coatings can help maintain hygiene and reduce the risk of infection or skin irritation. Anti-microbial
coatings are typically designed to be safe for contact with the skin and can be formulated using
various technologies, such as silver-based or copper-based additives.

The choice of coatings in disposable razor production depends on factors such as the desired
performance characteristics, aesthetics, cost considerations, and regulatory compliance.
Manufacturers may conduct testing and quality control measures to ensure that the coatings meet the
required standards and do not compromise the performance or safety of the razors.
 It's important to note that the specific coatings used in disposable razor production can vary among
manufacturers, and new coating technologies may continue to emerge as the industry evolves.

There are three main materials used in the plastic handle and the cartridge of the disposable razor.
One of the materials used is polypropylene, “
Packaging materials

Packaging Material: Basic packaging material such as clear plastic blister packs, cardboard backing sheet,
etc

It's important to note that the specific combination and formulation of materials used in disposable razors can
vary among manufacturers. Additionally, there may be ongoing efforts within the industry to explore more
sustainable materials and packaging options, such as bio-based plastics or compostable materials, to reduce the
environmental impact of disposable razors.

The raw materials required are:

After production, disposable razors are typically packaged in various materials to protect the
product during storage, transportation, and display. The packaging materials used for
disposable razors can include:

Plastic blister packs are a type of packaging commonly used in industries such as pharmaceuticals,
consumer electronics, and retail. They consist of a clear plastic cavity or blister that holds a
product, typically in a specific shape or configuration, and is sealed with a backing material, such
as a foil or plastic sheet.

Here are some key points about plastic blister packs:

1. Product Protection: Blister packs provide a protective barrier around individual products,
shielding them from damage, contamination, and tampering. The transparent plastic allows
consumers to inspect the product before purchase while keeping it securely in place.

2. Visibility and Marketing: The clear plastic allows for a high degree of visibility, enabling
consumers to see the product inside the pack, its features, and branding. Blister packs can be
designed with attractive graphics and labeling to enhance product appeal and marketing.

3. Security: Blister packs can incorporate tamper-evident features, such as heat-sealed backing or
blister cards that show signs of tampering if broken. This helps ensure the integrity and safety of
the product, particularly in industries where product authenticity is critical.

4. Convenience and Accessibility: Blister packs are often designed for easy access to the product.
They can include features like perforations or easy-to-open tabs, making it convenient for
consumers to unwrap and use the product.

5. Product Display and Merchandising: Blister packs are commonly used for point-of-sale
displays, where products are hung or placed on store shelves. The packaging design allows for
efficient stacking, storage, and easy identification, making them suitable for retail environments.

6. Environmental Impact: Plastic blister packs have received criticism due to their impact on the
environment. They are typically made from various types of plastics, including polyvinyl chloride
(PVC) or polyethylene terephthalate (PET), which are not easily biodegradable. The disposal and
recycling of blister packs can present challenges, and improper disposal can contribute to plastic
waste.
It's worth noting that there are ongoing efforts to develop more sustainable alternatives to
traditional plastic blister packs, such as bio-based or compostable materials. These alternatives aim
to reduce the environmental impact while still providing the necessary functionality and protection
for products.

Overall, plastic blister packs offer advantages in terms of product protection, visibility, and
convenience. However, their environmental impact and sustainability concerns have prompted
discussions and initiatives to find more eco-friendly packaging solutions.

A cardboard backing sheet for disposable razors is a packaging component commonly used to hold
and display individual razor units. It typically consists of a flat sheet made of cardboard or similar
sturdy material that serves as the base for attaching the razors.

Here are some key points about cardboard backing sheets for disposable razors:

1. Structure and Design: The cardboard backing sheet is designed to accommodate multiple razor
units in a specific arrangement. It often includes perforations or die-cut slots to securely hold each
razor in place. The sheet may also feature branding elements, product information, or graphics to
enhance visual appeal and communicate essential details to consumers.

2. Protection and Safety: The cardboard backing sheet provides protection for the razor blades and
minimizes the risk of accidental cuts or injuries during handling and transportation. The sheet acts
as a barrier, preventing direct contact with the sharp edges of the razor blades.

3. Hanging and Display: The cardboard backing sheet is often designed with a hole or hook,
enabling it to be hung on display racks or pegboards in retail environments. This allows for
efficient merchandising and easy accessibility for consumers.

4. Sustainability: Cardboard is generally considered a more environmentally friendly material

compared to plastic. It is biodegradable, recyclable, and renewable if sourced from sustainable
forestry practices. Using cardboard as a backing sheet can contribute to reducing the
environmental impact associated with disposable razor packaging.

5. Branding and Marketing: The backing sheet provides an opportunity for branding and product
marketing. Companies can utilize the surface of the sheet to print their logo, brand colors, product
features, or promotional messages, helping to create brand recognition and influence consumer
purchasing decisions.

6. User Convenience: The cardboard backing sheet can be designed to include tear-off sections or
easy-to-open tabs, allowing consumers to remove individual razors from the packaging without
difficulty. This enhances user convenience and ensures a seamless experience when using the
razors.

It's important to note that some disposable razor manufacturers are also exploring more sustainable
packaging alternatives, such as using minimal or plastic-free packaging materials like paper-based
or compostable options. These initiatives aim to reduce the environmental impact associated with
disposable razor packaging and align with growing consumer demand for eco-friendly solutions.
Overall, a cardboard backing sheet for disposable razors offers functional and branding benefits
while potentially contributing to more sustainable packaging practices.

3. Plastic Wraps or Pouches: Some disposable razors are individually wrapped or packaged in
plastic wraps or pouches. These packaging materials provide protection against moisture, dust,
and other contaminants. Plastic wraps or pouches are often made from materials like
polyethylene (PE) or polypropylene (PP).

4. Combination Packaging: In certain cases, disposable razors may have a combination of

packaging materials. For example, a cardboard box may contain individual razors that are each
wrapped in a plastic pouch or covered by a plastic blister pack. This type of combination
packaging allows for both product visibility and protection during storage and transportation.

5. Sustainable Packaging: With increasing emphasis on sustainability, manufacturers may

explore eco-friendly packaging options for disposable razors. This can include using recycled
or biodegradable materials for the packaging, reducing the amount of packaging material used,
or opting for packaging designs that are easier to recycle or compost.

It's important to note that the specific packaging materials used for disposable razors can vary
among manufacturers and can be influenced by factors such as product branding, cost
considerations, and environmental considerations. Manufacturers may choose packaging
materials based on their ability to protect the product, meet regulatory requirements, and align
with their overall sustainability goals.
Color master batch is master batch is commonly used in the production of disposable razors,
including their handles. Masterbatch is a concentrated mixture of pigments or additives
dispersed in a carrier resin. It is added to the base polymer during the manufacturing process to
achieve desired colors, effects, or properties.

In the case of disposable razors, masterbatch is often used to impart color to the plastic handle.
The desired color or shade is achieved by incorporating specific pigments or dyes into the
masterbatch formulation. The masterbatch is then blended with the base polymer, such as ABS,
PP, or other plastic materials used for razor handles, during the injection molding or extrusion
process.

Using masterbatch offers several advantages in the manufacturing of disposable razors. It

provides consistent and uniform color distribution, allows for precise color matching, simplifies
the coloration process, and reduces the need to handle and store multiple individual colorants.

Moreover, masterbatch can also be formulated to provide additional properties or effects to the
plastic handle. For example, UV stabilizers can be incorporated into the masterbatch to enhance
the weathering resistance of the handle material. Anti-static additives, anti-slip agents, or other
functional additives can also be included in the masterbatch formulation to improve the overall
performance or user experience of the disposable razor handle.

The specific formulation of the masterbatch used for disposable razor making may vary among
manufacturers and product lines, depending on the desired color, effects, and performance
requirements..
 Figure 3.4: Color master batch

Utilities

 Electricity
 The required rate of electricity determine based on the capacity of machineries.
 Water

Availability of Raw materials

According to the information we have obtained from concerned stakeholders Preponderance of

raw materials used for disposable razor blade production are acquired from abroad. As there are no
major problems that prohibit from acquiring those raw materials, one can conclude that there is no
major availability problem of all raw materials for disposable razor blade producers problem if
there is an adequate working capital.On the other hand, acquiring raw materials domestically may
be the threat regarding to quality and can be resolved through contractual agreement with
desired quality of specification.

3.1.1

3.1.2 Supply of the Raw materials

Most of the raw material and inputs used for the manufacturing of disposable razor blade is
imported from abroad except few packaging material such as cartons. while the demand of the
product is open for various sub-sectors, group of peoples or individuals
 The plastic portions of a safety razor include the handle and blade cartridge, or portions thereof,
depending on the razor design. These parts are typically molded from a number of different plastic
resins of thermoplastics that are derived from petroleum products like natural gas through a
polymerization process including polystyrene, polypropylene, and phenyleneoxide based resins as
well as elastomeric compounds

 Polystyrene resin, polystyrene resin is used in the production of disposable razors. The
razor components are typically molded from a number of different plastic resins, including
polystyrene, polypropylene, and phenylene-oxide based resins as well as elastomeric
compounds
This type of the raw materials is not available in the domestic market and firms who need to enter
to manufacturing of disposable razors will depends on the imported raw materials of
polypropylene raffia granules from foreign sources.
On the subject of raw material import trends, it has been explained with in the table below
Accordingly during the period 2018 – 2022, on average the country imported 68.8 tons of
Polystyrene resin as depicted in table below
Table 1: Import trend of Polystyrene

year quantity in ton

2018 64

2019 129

2020 102

2021 7

2022 42

average 68.8

average 68.8
Source ITC trade map

 Polypropylene resin,
Polypropylene resin is a thermoplastic polymer that is commonly used in the manufacturing
of disposable razors . The plastic portions of a safety razor include the handle and blade cartridge, or
portions thereof, depending on the razor design. These parts are typically molded from a number of
different plastic resins including polystyrene, polypropylene, and phenyleneoxide based resins as well
as elastomeric compounds
import trends has been explained with in the table below Accordingly during the period 2018 –
2022, on average the country imported 40,744 tons of polypropylene resin as depicted in table
below
Import trend of Polypropylene

year quantity in tone

2018 52

2019 61,971

2020 80,882

2021 60,764

2022 52

average 40,744

Hdpe
High-density polyethylene (HDPE) is another thermoplastic polymer that is commonly used in the
manufacturing of disposable razors 1. HDPE is known for its durability, resistance to impact, and
moisture resistance
import trends has been explained with in the table below Accordingly during the period 2018
– 2022, on average the country imported 39,251tons of Hdpe
resin as depicted in table below
Import trend of Hdpe

year quantity in ton

2018 36,061
 2019 39,739

2020 36,480

2021 32,900

2022 51,073

average 39,251

acrylonitrile butadiene styrene (ABS).

Acrylonitrile butadiene styrene (ABS) is a common thermoplastic polymer that is used in the
manufacturing of various products, including disposable razors 1. ABS provides favorable
mechanical properties such as impact resistance, toughness, and rigidity when compared with
other common polymers 1.

import trends has been explained with in the table below Accordingly during the period 2018 –
2022, on average the country imported 81tons of ABS as depicted in table below
Import trend of acrylonitrile butadiene styrene (ABS).

year quantity in ton

2018 62

2019 48

2020 180

2021 -

2022 34

average 81

Razor blade
 Razor blades are typically used for shaving. They are thin, flat, and made of metal. The blade is
usually attached to a handle and can be replaced when it becomes dull. There are many types of
razor blades available in the market, including single-edge, double-edge, and cartridge razors.

import trends has been explained with in the table below Accordingly during the period 2018 –
2022, on average the country imported 113tons of Razor blade as depicted in table below
Import trend of Razor blade

year quantity in ton

2018 125

2019 100

2020 122

2021 120

2022 98

average 113

adhesives

The adhesive in disposable razor blades serves to attach the blade to the cartridge. This is important because it
ensures that the blade stays in place while you shave, preventing it from moving around and causing cuts or nicks
on your skin 1. The adhesive also helps to reduce friction between the blade and the cartridge, which makes it
easier to shave and reduces the likelihood of irritation or razor burn
import trends has been explained with in the table below Accordingly during the period 2018 –
2022, on average the country imported 3,425 tons of adhesives as depicted in table below
as depicted in table below
Import trend of adhesive

year quantity in ton

 2018 3,549

2019 3,271

2020 3,641

2021 3,110

2022 3,552

average 3,425

Import trend of Polytetrafluoroethylene

Polytetrafluoroethylene (PTFE) is a synthetic resin that is used in disposable razor blades as a coating
material. It is known for its slippery surface, high melting point, and resistance to attack by most
chemicals 1. The coating of PTFE on the razor blades helps to reduce friction between the blade and the
skin, making the shaving process smoother and more comfortable
import trends has been explained with in the table below Accordingly during the period 2018 –
2022, the country imported only 1.59 tons of Polytetrafluoroethylene as depicted in table below
Import trend of Polytetrafluoroethylene

year quantity in ton

2018 -

2019 -

2020 -

2021 -

2022 1.59

Spacer
A spacer in a disposable razor blade is a small plastic piece that is placed between the blades to keep them
separated and prevent them from touching each other. This helps to ensure that the blades remain sharp and
effective for a longer period of time. The spacer also helps to maintain the correct angle of the blades, which is
important for achieving a close and comfortable shave.
import trends has been explained with in the table below Accordingly during the period 2018 –
2022, on average the country imported 6,837 tons of Spacer as depicted in table below
Import trend of Spacer

year quantity in ton

2018 7,872

2019 6,087

2020 5,433

2021 6,330

2022 8,463

average 6,837

plastic film
The plastic film in disposable razor blades is used to protect the blades from moisture and dust, and to
keep them sharp import trends has been explained with in the table below Accordingly during the
period 2018 – 2022, on average the country imported 6,837 tons of Spacer as depicted in table
below
Import trend of plastic film

year quantity in ton

2018 2,190

2019 3,388

2020 2,171
2021 2,752

2022 2,485
 3.1.3 Market Arrangement of the Raw materials

As stated above major raw materials except few packing materials are imported from abroad
Marketing of raw materials required for disposable razor blade manufacturing is one of the most important and
growing markets in the plastic and polymer industrial sector. The thermoplastic polymer resins are used
in a wide array of industries and each industry requires thermoplastics with enhanced high performance
attributes.
As the main inputs for the manufacturing of disposable razor blade production will import from the foreign
source countries, firms who needs to start manufacturing in the country depends by importing the inputs from
abroad and has two options for importing the raw materials from the international market. The first option is a
direct purchase of the raw material from the main sources itself. The other option is purchase of the raw
material from the brokers of foreign countries who buy from the main suppliers and sell it in small quantities to
other. Regarding to cost of transportation, it depends on the agreement of the two parties.

3.3 Price Analysis of Raw materials

The case team was unable to incorporate the price trend of raw materials and inputs because the
product is new in the country and there isn't yet a company producing disposable razor blades;
however, the current cost of the raw materials needed to make disposable razor blades is included
in the study's parameter section.

 4. Disposable razor blade Manufacturing Process

Certainly! Here are some additional details about the manufacturing process of disposable razors:

Raw Material Preparation:

Plastic Resins: The plastic resins used for the razor handles are typically thermoplastics, such as polypropylene
(PP) or acrylonitrile butadiene styrene (ABS). These resins are melted and mixed with additives, such as UV
stabilizers or colorants, to achieve the desired properties and appearance.
Steel Strips: The steel used for razor blades is typically stainless steel, known for its corrosion resistance and
durability. The steel strips are precision-cut to the required dimensions, taking into account the length, width, and
curvature of the blades.
Injection Molding:

Injection molding is a widely used manufacturing process for producing plastic parts. The plastic resin is fed into
a hopper and melted in a heated barrel. Then, a screw mechanism injects the molten plastic into a mold cavity,
which has the shape of the razor handle.
The mold contains two halves, the core, and the cavity, which define the shape of the handle. The molten plastic
fills the cavity, and pressure is applied to ensure complete filling and proper part formation.
Once the plastic cools and solidifies, the mold opens, and the molded handle is ejected.
Blade Stamping:

The steel strips for the razor blades are typically sourced in coil form. These coils are unwound and fed into a
blade stamping machine.
The stamping machine consists of specialized dies and punches that cut the blades from the steel strip and shape
them to the desired configuration. The blades are stamped with precision to ensure consistent quality and
sharpness.
Coating and Grinding:

After the blades are stamped, they are subjected to a coating process to enhance their performance and longevity.
The coatings may include substances like lubricants, polymers, or coatings with Teflon-like properties.
The coated blades then undergo a grinding process to achieve the desired cutting edge. Grinding machines use
abrasive materials to sharpen the blades and remove any burrs or imperfections.
Assembly:

The assembly of disposable razors typically takes place on an assembly line. The razor handles and blades are
brought together, and other components, such as guards or moisturizing strips, may be added.
The blades are inserted into the handle using automated or manual processes, ensuring proper alignment and
secure attachment.
Any additional components are attached to the handle, such as guards to protect the skin from nicks or cuts, or
moisturizing strips for added comfort during shaving.
Quality Control:
Quality control is a crucial step in razor manufacturing to ensure that the final products meet the required
standards of performance, safety, and durability.
Various quality control tests are conducted, such as blade sharpness testing using specialized equipment, handle
strength testing, and dimensional checks to verify the accuracy of the components.
Visual inspections are also performed to identify any defects or cosmetic imperfections.
Packaging:

Once the razors pass quality control, they are ready for packaging. Packaging serves to protect the razors during
transportation, provide information to consumers, and facilitate easy display and sale.
Common packaging methods include blister packaging, where each razor is sealed within a plastic blister pack,
or flow wrapping, where razors are wrapped in a protective film.
Packaging may also include the addition of instruction leaflets, branding labels, or promotional materials.
Distribution:

Packaged razors are then prepared for distribution to retailers or other distribution channels, such as wholesalers
or e-commerce platforms.
Distribution logistics involve inventory management, warehousing, order fulfillment, and shipping to ensure that
the razors reach the intended markets efficiently and on time.

1. MARKET STUDY

This is a market study for Disposable Safety Razors. A razor is bladed equipment that is primarily
used to shave away unwanted body hair. Straight razors, safety razors, disposable razors, and
electric razors are all types of razors. The disposable razor, which consisted of simply a single
blade and a plastic handle, quickly became a popular tool among innumerable men who
appreciated the ability to shave quickly and safely, even more so than a safety razor.

For thousands of years man has been fighting the unending battle with his stubborn facial
hair. His face has about 25,000 whiskers, which are as hard and tough as a piece of copper wire of
the same thickness, and grow at a rate of five to six inches (125 to 150mm) per year. An average
man will spend in excess of 3,000 hours of his life in the act of shaving.

The ancient Egyptians began the custom of shaving their beards and heads, which was eventually,
adopted by the Greeks and Romans around 330 B.C. This practice was advantageous for soldiers
because it prevented enemies from grasping their hair in hand-to-hand combat. The unshaven,
unkempt tribes they fought became known as barbarians, meaning the unbarbered.

Until the nineteenth century, the most common razor was still a long handled open blade called a
"cut-throat" razor which was difficult to use, required repeated sharpening, and was usually
wielded by professional barbers.

In this section of the study picture of Ethiopian market with possible influencing factors under the
domain of industry assessment will be presented. The manufacturing industry of disposable razors
and related razor products in Ethiopia are almost nil and found in infant stages and a lion share of
the demand is satisfied via import. Thus this market study will give due attention to the domestic
market.
 1.1. Market Segmentation

In Ethiopia, it is evident that there is no recorded export of disposable safety razors as tangible
repercussion of prevailing unsatisfied domestic demand that is mostly filled with import due to
insignificant size of domestic manufacturing and infancy of the industry. As the country didn’t
have so far practical export experience that gives an opportunity to be competitive in the
international trade though there is potential market in the surrounding regions.
Thus this market study for Disposable Safety Razors focuses on domestic market however the door
is open for international market if competent and experienced firms lodge an application.

1.2. Global Disposable Safety Razors Market Overview

Personal grooming is basically the method of cleaning and maintaining parts of the body. The
idea behind grooming is not only the concern about hygiene but also to make a positive
impression. In the case of men, teenagers and adults both focus significantly on personal
grooming. The choice of products although may differ based on the applications. Right from hair-
care to shave-care and skin-care, the product range in case of men’s grooming is vast.

The men’s grooming products market has high potential because the body calls for regular
attention at relatively shorter intervals of time. The global men’s grooming products market is
predicted to rise at an exponential rate in the future years. The rise in the disposable income has
driven the demand for men’s grooming products. The growth of the e-commerce market has
given the potential customers more knowledge about the variety of grooming products available in
the market and hence the demand for specific specification-based products has shot up.

Moreover the growing demand of the fragrance market involving deodorants and perfumes is
increasing with time, contributing to the overall increase in the demand for men’s grooming
products. In the case of the shave care products, because of the growing trend of beard and facial
hair, the shave care segment is expected to witness the slowest growth in the coming years.

The global razor market size was valued at USD 10.2 billion in 2018 and is anticipated to exhibit
a CAGR of 3.5% from 2019 to 2025. The market is fueled by several factors predominantly by
growing focus on men’s grooming and rising awareness among consumers related to personal
hygiene. The Razor Blade in global market is huge especially in North America, Europe and Asia-
Pacific, South America, Middle East and Africa. In countries like U.K., U.S. and Germany where
the personal care industry is booming, demand for such products is bound to grow, irrespective of
gender.

The market demand for the same will continue to grow usage in developing countries such as
India, Sri Lanka, and Brazil. Low price and availability of domestic brands are key factors driving
product demand in these countries.

However, electric shavers, such as epilators and trimmers, are more in demand owing to their
durability and easy usage. Electric shavers are expected to witness the highest growth. Availability
of local and international brands, from Philips and Braun to Indian brands like Syska and Nova is
the primary factor driving this segment.

In terms of known brands globally, founded in 1901, Boston based Gillette has grown over the
years into one of the most global companies in the world. In 1999, Gillette recorded a sales
turnover of $9.9 billion and a net income of $1.3 billion. Gillette has 51 facilities in 20 countries
and sells its products in some 200 countries. Other than Gillette, there are key players in global
razor market industry like; Laser Razor, Blades, Supermax, Malhotra, SRBIL, Personna AccuTec
Blades, Benxi Jincheng, Edgewell Personal Care, and etc.
 1.3. Ethiopian Disposable Razor Market

In Ethiopia personal care market is moving beyond basic shaving products and demand for beard
and skincare products is increasing among male consumers, today. The men’s grooming market is
going through a surge. Rise in disposable incomes of consumers and developments in blades can
augur the market for disposable razor blades.

The domestic personal care market is moving beyond basic shaving products and demand for
beard and skincare products is increasing among male consumers, a few e-commerce companies
today. The men’s grooming market is going through a surge. Rise in disposable incomes of
consumers and developments in blades can augur the market for disposable razor blades.

However, according to metal industry development institute and ministry of trade there is no firm
engaged in manufacturing of disposable razor blade as a country hence the demand is only fulfilled
by import. Hence in a nut shell, the main end-users of these products are populations aged above
18 which are live across the geography of Ethiopia.

1.3.1. Demand for Disposable Razor

In Ethiopia, it is interesting to note that in this vast country with the population of more than 123.4
million people in 2022 (according to the latest census figures and projections from Trading
Economics), with 77.3% of it over 18 years (according to
https://knoema.com/atlas/Ethiopia/Employment-to-population-ratio from world Data Atlas).

Currently the demand for disposable razor is fully served by import following the robust economic
and population growth of Ethiopia. In contrast the industry is found at its suckling stage with null
number of producing actors and size of manufacturing. Ensuing this, there are no any recorded
data shows the annual domestic disposable razor production amount in the past as well current
times even after the settlement of disturbances. Hence, the domestic demand projection will relay
on the amount of disposable razor imported trend of the previous period (see table 5.1 below).
Furthermore, in Ethiopian context it is difficult to find relevant data on the amount of disposable
razor consumed by adults per annum. Consequently, demand for the product has been determined
using an apparent consumption approach.
Table 2: Import Trends of Disposable Razor Products/tons & Value (2015-2022)
 Import Volume Import Import Volume
Year
(Tons) (Values/USD) Change (in %)
2015 362 2,740,000.00 -
2016 303 2,113,000.00 -0.1630
2017 416 2,752,000.00 0.3729
2018 439 3,056,000.00 0.0553
2019 595 3,505,000.00 0.3554
2020 353 2,522,000.00 -0.4067
2021 368 2,483,000.00 0.0425
2022 394 1,985,000.00 0.0707
Annual Geo-mean 1.22%
Source: Ethiopian Custom Authority and ITC
HS Code 8212 | Harmonized System Code of Razors and Razor Blades (Including Razor Blades Blanks in
Strips)

As shown in the above table, since 2020 the import of disposable razor products become slow
down. This is mainly due to the fact that since then the country was stayed in domestic conflict and
war which was highly affected its foreign trade that highly affects its economic development.
However, on average, annually the country was incurred a cost of 2.64 million USD, to import
these products.

1.3.1.1. Demand derivers and their performance

In Ethiopia, the market demand driving factors for disposable safety razor products can be
attributed to a variety of economic, social, and cultural factors. Some of the key driving factors
include:
 Economic Growth of the Country
, and one of the fastest-growing economies in the region, with an estimated 6.4% growth in
FY2021/22, which is remained above East Africa’s average
(4.7% in 2021 and 4.4% in 2022), which is contributing to an increase in disposable income among
the population. As people have more money to spend, there is a growing demand for personal
grooming and hygiene products, including disposable safety razors.
 Urbanization
The rate of urbanization in Ethiopia is steadily increasing, leading to changing lifestyles and
grooming habits. Urban populations are more likely to adopt modern grooming practices, creating
a higher demand for disposable safety razor products.
 Hygiene Awareness & Health Safety Concerns
There is a growing awareness of the importance of personal hygiene and grooming in Ethiopia.
Disposable safety razors are seen as convenient and hygienic tools for personal grooming, which is
driving demand for these products. It is also perceived as safer and more hygienic compared to
traditional razors, leading to a shift in consumer preferences. The emphasis on safety and hygiene
is likely to drive the demand for disposable safety razor products.
 Changing demographics
With about 123 million people (2022), Ethiopia is the second most populous nation in Africa after
Nigeria, the demand for personal grooming, which is basically the method of cleaning and
maintaining parts, is expected to increase. Hence, population growth via stimulating demand for
products like disposable safety razor.
 Influence of Global Trends
Global grooming trends and the influence of international brands play a significant role in shaping
consumer preferences in Ethiopia. As disposable safety razors gain popularity in international
markets, there is a spillover effect in Ethiopia, driving demand for similar products.
 Affordable Luxury
Disposable safety razors are often viewed as affordable luxury items. As more Ethiopians seek to
indulge in grooming products that offer quality and convenience at an accessible price point, the
demand for disposable safety razors is likely to rise.

1.3.1.2. Estimation of Effective Demand for the Product

Estimation of demand for the product is made by using an Apparent Consumption Technique.
Apparent consumption is the sum of domestic product plus import minus export and takes in to
account the previous years’ level of stock. In competitive markets apparent consumption is equal to
effective demand. This approach is an indicative and a leading one to reflect the real prevailing
demand in the market but lacks strength to capture the overall demand without suppression. In the
estimation of demand the following factors are duly considered.
 Domestic manufacturing of disposable razor in Ethiopia is zero. As a result, since no firm
engaged in manufacturing of the product there is no any recorded domestic manufacturing
 data in the past as well current times even after the settlement of disturbances;
 Import is taken only to disposable razor from Ethiopian Customs Commission (ECC) &
International Trade Center (ITC) Authority due to data tracing problem for the needle;
 There is no export of envisaged disposable razor products; hence, export is considered to be
zero;
 The sum of domestic manufacturing plus import give us total apparent consumption in the
country by assuming the stock level zero ;
 The import volume trends growth rate of 1.22% is used for reasonable demand forecast.

Table 3: Forecasted effective demand

Year Forecasted effective demand (Tons)

2023 399
2024 404
2025 409
2026 414
2027 419
2028 424
2029 429
2030 434

Source; team computation

1.3.2. Supply of disposable razor

All of the disposable razor supply comes from imports. There isn't a company in Ethiopia that
makes throwaway razor blades at the moment. Additionally, if there is no production, there is no
data to demonstrate the product's production trends.

The team has made sue efforts to obtain the domestic disposable razor production data from
Ministry of industry and its industrial development institutes. However, because no company
produces the product in the nation, neither had any indicative data on past manufacturing or
manufacturing capacity. As a result, it was not possible to inculcate domestic production in the
supply projection.
Regarding new entrant firms, there is no observable efforts to join the industry by the investors
both foreign and domestic known by the responsible government ministry. Hence, the projected
effective demand in table 5.3 above derived from the mere source of import also demonstrates
future projection of aggregate supply. However, if new entrant domestic firms strengthened and
actively fuel their contribution by produce quality oriented competitive products, the projected
pace of import may revert back.

Concerning disposable razor, it said that the country is entirely dependent on import though it was
not believe that due to data tracing problem, it is not reflect the realistic feature.

1.3.3. Demand -Supply Gap

Since almost the total nation’s demand of disposable razor is met via import, then import by itself
could serve as a suppressed proxy gap. This situation calls for due effort by different actors of this
industry for substitution of import by encouraging new interested entrant firms that join the
industry to save foreign currency and maintain other national advantages such as employment
opportunity creation, technology transfer, etc.

 Marketing channel and Arrangement

 End usersThe marketing channel of disposable razor blade products made

by Ethiopian manufacturers are usually distributed by their agents.
Based on the agreement made and signed between manufacturer and the
agent that clearly state about products’ selling price ranges of an agent
and geographical boundary to be used by an agent to sell products. Some
private trading companies can obtain products at factories’ gate price,
where the buyer covers the transportation costs. Mode of payment is cash
on hand in most cases.
 Producers

Whole sellers Agents Retailers

End users

 Price and price trend

Since the product is new to the nation and no company is now manufacturing disposable razor
blades, the price trend of the product is excluded, and the present price of the product is dependent
on the study's parameter.
 Organizational structure and man power requirement

 Organizational Structure
Organizational structure refers to the way that an organization arranges people and jobs so that its
work can be performed and its goals can be met.

The basic organizational structure of a disposable razor manufacturing industry follows

hierarchical organizational structure, consisting of a manager, department heads, Sections and
units. The key functions of a manufacturing industry include manufacturing, purchasing,
marketing, technical operations, accounting, and human resource management service.

Source: - team computation

 Manpower Requirement
A disposable razor manufacturing industry requires both skilled and unskilled man power for
smooth factory operation. Regarding availability of man powers both governmental and private
education center is playing their own role on capacity building whereas unskilled man power can
find everywhere in the country.
The detail manpower requirement, minimum work experience, field of study, and their salary are
presented in the table below:
Manpower Requirements
Description Field of Study Minimum exper Required
Educational ience Man
Level power
General Manger Office
General Manager Economics/Management fields Degree 10 1
Administration
and Finance
Management/Accounting Degree 7 1
Department
Manager
Secretary Management/Secretary science Diploma 0 1
Accountant Accounting 1st Degree 7 1
Account clerks Accounting Diploma 1 1
Cashier Accounting Diploma 1 1
Human resource
and general
Management 1st Degree 7 1
service section
head
Personal clerk Management Diploma 1 1
Admin. Clerk Management Diploma 1 1
3rd grade driving
Drivers Driving - 2
license
Cleaner/
8th grade 1 2
messenger
Security Guards Military - - 4
Quality control Biomedical engineer
1st Degree 8 1
dep’t head
Manufacturing Bio medical technology/Applied 1st Degree 2 4
machine operator chemistry
Laboratory Bio medical technology/Applied 1st Degree 2 4
(chemist) chemistry
Raw Material Biomedical Engineer 1st Degree 1 2/shift
quality control
analyst
Product quality Biomedical Engineer 1st Degree 1 2/shift
control analyst
Technical Dep’t Biomedical Engineer/industrial
1st Degree 8 1
Head engineering /chemical engineer
Secretary Management/Secretary science Diploma 1 1
Manufacturing Biomedical Engineer /industrial
1st Degree 7 1
section head engineering /chemical engineer
Raw Material Biomedical/pharmaceutical
Diploma 1 2
collector/counter technology
Rubber latex Diploma in
Biomedical technology 2 2
Cutter pharmaceutical
Maintenance Industrial engineering /chemical Diploma in
2 2
Technical engineer pharmaceutical
General service
Management Diploma 1 2
workers
Biomedical Engineer /industrial
Manufacturing
engineering /chemical engineer/ diploma 0 or 1 24
workers
management
 10th grade
Input store keeper 1
complete
Fished product 10th grade
1
store keeper complete
Source: previous disposable syringe commodity study
It is advisable to filter the amount of man power requirement depending up on the work process required,
the machine type and the type of products (plastic syringe and accessories) under processing. Therefore
the case team recommends to use man power depending on the capacity utilization, number of shift and
raw material usage type for the reason of not to over or under estimate the man power requirement.

 Environmental Impact and Socio Economic Benefits

 Environmental Impact assessment with mitigation measures

The environmental impact assessment of disposable razor manufacturing involves evaluating the
potential environmental effects associated with the entire life cycle of the product, from raw
material extraction to manufacturing, distribution, use, and disposal. Here's an overview of the
environmental impacts and some mitigation mechanisms:
The manufacturing of disposable razors can have several environmental impacts throughout the production
process. Here are some common environmental impacts associated with disposable razor manufacturing some
mitigation mechanisms.
- Resource Consumption: Disposable razor manufacturing requires the extraction and
consumption of natural resources, such as metals and plastics. The extraction of these
resources can lead to habitat destruction, energy-intensive processing, and resource
depletion.
- Energy Consumption: The manufacturing process involves various energy-intensive
activities, including material extraction, processing, molding, assembly, and packaging.
The energy used is often derived from fossil fuels, contributing to greenhouse gas
emissions and climate change.
- Greenhouse Gas Emissions: The energy consumed during manufacturing, including
electricity and fuel usage, results in the release of greenhouse gases such as carbon dioxide
 (CO2) and methane (CH4). These emissions contribute to climate change and its associated
environmental impacts.
- Water Usage: Manufacturing processes require water for cooling, cleaning, and various
stages of production. Large quantities of water are often needed, and if not managed
properly, it can lead to water scarcity, pollution, and strain on local water resources.
- Waste Generation: Disposable razor manufacturing generates waste throughout the
production process. This includes scrap materials, rejected or defective components,
packaging waste, and chemical waste. Improper waste management can lead to
environmental pollution and contribute to landfill space depletion.
- Chemical Usage: The manufacturing process may involve the use of chemicals for
cleaning, coating, or treating razor components. Improper handling and disposal of these
chemicals can pose risks to the environment, including water pollution and soil
contamination.
- Packaging Waste: Disposable razors are typically packaged in plastic or cardboard
materials, which contribute to packaging waste. Excessive packaging and single-use
materials can lead to increased waste generation and contribute to environmental
degradation.
- Transportation: The transportation of raw materials, components, and finished products to
and from manufacturing facilities contributes to carbon emissions and air pollution. Long-
distance transportation can further exacerbate these impacts.

To mitigate the environmental impacts of disposable razor manufacturing, various measures can be
implemented:

- Sustainable Material Sourcing: Opt for sustainable materials, such as recycled plastics or
biodegradable alternatives, for razor handles and packaging. Consider using responsibly
sourced materials to minimize the environmental impact of resource extraction.
- Energy Efficiency: Implement energy-efficient practices throughout the manufacturing
process. This can include using energy-efficient machinery, optimizing production lines,
and adopting technologies that minimize energy consumption.
 - Renewable Energy: Transition to renewable energy sources, such as solar or wind power, to
power manufacturing operations and reduce reliance on fossil fuels.
- Waste Reduction and Recycling: Implement waste reduction strategies, such as recycling
plastic waste generated during production, optimizing material usage, and minimizing
packaging waste. Establish recycling programs within manufacturing facilities and
encourage consumers to recycle razors appropriately.
- Water Conservation: Implement water-efficient practices to minimize water consumption
during manufacturing processes. Capture and treat wastewater, ensuring it meets
environmental standards before release. Implement water recycling systems to reduce water
usage and minimize the impact on water resources.
- Product Design for Durability: Design razors for durability and longevity, using high-
quality materials and blade designs that maintain sharpness over an extended period. This
reduces the need for frequent replacements and disposal.
- Life Cycle Assessment (LCA): Conduct life cycle assessments to identify environmental
hotspots and areas for improvement. Use the findings to inform decision-making, prioritize
mitigation efforts, and track progress toward sustainability goals.
- Environmental Certifications: Seek certifications such as ISO 14001 (Environmental
Management Systems) or eco-labels to demonstrate adherence to sustainable practices and
environmental standards.
By implementing these mitigation measures, disposable razor manufacturers can significantly
reduce the environmental impacts associated with their products and contribute to a more
sustainable and responsible manufacturing process.
Socio Economic Benefits
Disposable razor manufacturing projects can bring several socio-economic benefits to a
region or country. Here are some potential socio-economic benefits associated with
disposable razor manufacturing projects:
 Job Creation: Establishing a disposable razor manufacturing project creates job
opportunities at various stages of the production process, including manufacturing,
assembly, packaging, quality control, and logistics. This can help reduce
 unemployment rates and improve the livelihoods of individuals in the local
community.
 Economic Growth: Disposable razor manufacturing projects can contribute to
economic growth by attracting investment, generating revenue, and stimulating other
sectors of the economy. The project's supply chain, including raw material suppliers,
equipment manufacturers, and packaging suppliers, can also benefit from increased
business opportunities.
 Technology Transfer and Innovation: Introducing a disposable razor manufacturing
project can facilitate the transfer of technology and know-how to the local workforce.
This can lead to skill development, technological advancements, and innovation
within the region. The project may also encourage research and development
activities related to razor manufacturing and related technologies.
 Export Opportunities: Disposable razors are widely used globally, presenting an
opportunity for the project to tap into international markets. Exporting razors can
generate foreign exchange earnings and improve the trade balance of the country. It
can also enhance the region's reputation as a reliable supplier of quality products.
 Ancillary Industries and Small Businesses: The establishment of a disposable razor
manufacturing project can create opportunities for ancillary industries and small
businesses. These can include suppliers of raw materials, packaging materials,
machinery, and other components. This leads to an expanded local supply chain and
provides additional economic benefits to the region.
 Infrastructure Development: The disposable razor manufacturing project may
require infrastructure development or improvement, such as manufacturing facilities,
warehouses, transportation networks, and utilities. These infrastructure investments
can have long-term benefits for the region, supporting future economic activities and
improving the overall business environment.
 Tax Revenues: The operation of a disposable razor manufacturing project generates
tax revenues for the government. These funds can be utilized for public services,
infrastructure development, education, healthcare, and other social programs,
contributing to the overall socio-economic development of the region.
  Social Development: Disposable razor manufacturing projects can have positive social
effects by promoting gender equality through the employment of both men and
women, providing training and skill development opportunities, and contributing to
poverty reduction. Additionally, the presence of industries can lead to the
development of social amenities, such as schools, healthcare facilities, and recreational
spaces.
 Create foreign currency savings
Disposable razor has positive economic impact. as an industrial product plays a crucial role in
foreign currency savings.

 Key Push and Pull Factors

 Key Pull Factors

There are several pull factors that can encourage an investor to establish a disposable razor
manufacturing project in Ethiopia. These factors highlight the favorable aspects and advantages of
investing in Ethiopia's manufacturing sector. Here are some key pull factors:

- Growing Domestic Market: Ethiopia has a large and growing population, which translates
into a significant domestic market for consumer goods like disposable razors. The rising
middle class and increasing urbanization contribute to the expanding consumer base and
demand for personal care products. This presents an attractive opportunity for investors to
capture a growing market within the country.

- Regional Market Access: Ethiopia's strategic location in East Africa provides access to a
broader regional market. The country is a member of the African Continental Free Trade
Area (AfCFTA), which aims to create a single market for goods and services across the
African continent. By establishing a manufacturing project in Ethiopia, investors can
leverage this regional trade agreement to access neighboring markets and expand their
customer base.

- Favorable Investment Climate: Ethiopia has been actively working to improve its
 investment climate and attract foreign direct investment. The government has implemented
various reforms to streamline business registration processes, reduce bureaucracy, and
provide incentives for investors. These measures contribute to a more favorable and
supportive environment for investors looking to establish a manufacturing project.

- Abundant and Low-Cost Labor: Ethiopia has a young and growing labor force, offering an
abundant supply of workers at competitive wage rates. Low labor costs can significantly
contribute to cost-effective manufacturing operations and enhance the project's overall
competitiveness.

- Government Support and Incentives: The Ethiopian government provides various

incentives and support mechanisms to attract investment in the manufacturing sector. These
incentives may include tax breaks, duty exemptions, and access to financing schemes.
Investors can benefit from these government initiatives, which can help reduce the overall
investment costs and improve the project's financial viability.

- Infrastructure Development: Ethiopia has been investing in infrastructure development,

including industrial parks, road networks, and energy projects. The construction of
industrial parks provides investors with ready-made facilities and infrastructure, reducing
the initial setup time and costs. Improvements in transportation and energy infrastructure
also contribute to a more efficient supply chain and reliable access to utilities.

- Renewable Energy Potential: Ethiopia has significant renewable energy resources,

particularly in hydropower and solar energy. This provides an opportunity for investors to
power their manufacturing operations with clean and sustainable energy sources, reducing
reliance on fossil fuels and contributing to environmental sustainability.

- Skilled Workforce Development: Ethiopia has been investing in education and vocational
training programs to develop a skilled workforce. Investors can benefit from the
availability of trainable and skilled workers, particularly in the manufacturing sector. This
helps ensure a competent workforce for the disposable razor manufacturing project.
Key success factors
Several key success factors contribute to the success of a disposable razor manufacturer. These
factors encompass various aspects of the business, including product development, marketing,
operations, and customer satisfaction. Here are some key success factors for a disposable razor
manufacturer:

- Product Quality: Manufacturing high-quality disposable razors is crucial for success. The
razors should be durable, sharp, and provide a smooth shaving experience. Ensuring
consistent quality control throughout the manufacturing process is essential to build a
positive reputation and customer trust.

- Innovation and Differentiation: Staying ahead of the competition requires continuous

innovation and product differentiation. Successful manufacturers invest in research and
development to introduce new features, designs, and technologies that meet customer needs
and preferences. Differentiating the product through unique features or packaging can help
attract and retain customers.

- Cost Efficiency: Maintaining cost efficiency is vital for profitability. This involves
optimizing manufacturing processes, sourcing materials at competitive prices, and
managing operational expenses. Efficient production methods, economies of scale, and
effective supply chain management contribute to cost efficiency.

- Marketing and Branding: Effective marketing and branding strategies are essential for
product visibility and customer acquisition. Developing a strong brand identity,
implementing targeted marketing campaigns, and utilizing various channels such as digital
marketing and retail partnerships can help reach and attract the target market.

- Distribution and Supply Chain Management: Establishing a robust distribution network and
efficient supply chain management is crucial for timely delivery of products to customers.
Collaborating with reliable distributors, optimizing logistics, and implementing inventory
management systems contribute to streamlined operations and customer satisfaction.

- Customer Focus and Satisfaction: Placing customers at the center of the business is key to
success. Understanding customer preferences, addressing their needs, and providing
excellent customer service contribute to customer satisfaction and loyalty. Actively seeking
 and incorporating customer feedback helps improve products and build long-term
relationships.

- Regulatory Compliance and Safety: Compliance with regulatory standards and safety
requirements is essential in the manufacturing of disposable razors. Adhering to relevant
regulations ensures product safety and consumer trust. Implementing robust quality control
processes and adhering to industry standards help mitigate risks and maintain compliance.

- Sustainability and Environmental Responsibility: Increasingly, consumers value

sustainability and environmental responsibility. Manufacturers that prioritize sustainable
practices, such as using recyclable materials, reducing waste, and implementing eco-
friendly manufacturing processes, can attract environmentally conscious customers and
align with evolving market trends.

- Adaptability and Resilience: The ability to adapt to changing market dynamics, consumer
preferences, and industry trends is crucial for long-term success. Successful manufacturers
remain agile and responsive to market demands, technology advancements, and
competitive challenges. They continuously monitor the market, seek opportunities, and
adjust their strategies accordingly.

- Strategic Partnerships and Collaborations: Collaborating with strategic partners, suppliers,

and distributors can contribute to increased market reach, shared expertise, and access to
new opportunities. Building strong relationships within the industry and leveraging
partnerships can enhance the manufacturing project's success.

It's important to note that these success factors may vary depending on the specific market, target
audience, and competitive landscape. Manufacturers should conduct market research, understand
customer needs, and align their strategies accordingly to maximize their chances of success.
Key Push Factors
While there are several push factors that can attract investors to establish a disposable razor
manufacturing project in Ethiopia, there are also potential challenges and difficulties that investors
may face. Here are some factors that could make it challenging for an investor to establish such a
project:
- Supply Chain Challenges: Ethiopia's infrastructure, including transportation networks and
logistics, is still developing. Limited access to reliable transportation and logistics services
can pose challenges for the efficient movement of raw materials and finished products,
potentially leading to increased costs and delays
- Access to Raw Materials: While Ethiopia has access to some raw materials, securing a
consistent and reliable supply of raw materials for disposable razor manufacturing may be
challenging. Depending on the specific materials required, the availability and quality may
vary, leading to potential supply chain disruptions or the need for imports.
- Limited Local Supplier Base: The availability of local suppliers for manufacturing
equipment, machinery, and components may be limited in Ethiopia. This can increase
reliance on international suppliers and result in longer lead times and higher costs for
sourcing necessary equipment and materials.
- Skilled Labor Shortage: While Ethiopia has a large labor force, there may be a shortage of
skilled workers with specific expertise in disposable razor manufacturing. Investors may
need to invest in training programs or import skilled labor, which can add additional costs
and logistical challenges.
- Regulatory Environment: Navigating the regulatory environment in Ethiopia can be
complex and time-consuming. Investors may encounter challenges related to permits,
licenses, customs regulations, and compliance with local labor laws. Engaging with local
authorities and ensuring compliance with regulations can be a significant challenge for
investors.
- Limited Technology and Innovation Ecosystem: Ethiopia is still in the process of
developing its technology and innovation ecosystem. Access to advanced manufacturing
technologies, research and development facilities, and technical expertise may be limited,
which can impact the ability to adopt modern manufacturing processes and innovate within
the industry.
- Political and Economic Risks: Like any investment destination, Ethiopia carries political
and economic risks that investors should consider. While the country has made progress in
terms of political stability, there can still be uncertainties and potential for changes in
government policies or economic conditions that may impact business operations.
- Infrastructure Constraints: Although Ethiopia has been investing in infrastructure
 development, there may still be limitations in terms of reliable electricity supply, access to
water resources, and adequate industrial zones. Availability and stability of utility services
can affect the smooth operation of a manufacturing project.
- Cultural and Language Differences: Ethiopia has a unique cultural context and diverse
languages spoken across the country. Investors may face challenges related to cultural
differences, language barriers, and local business practices, which can impact effective
communication, workforce management, and establishing strong relationships with local
stakeholders.

DBE Experience

According to information we have received from several bank work units, the Development Bank
of Ethiopia does not currently provide finance to any companies that manufacture disposable
razors, nor does the bank have any prior experience funding initiatives of this nature.

11. CONCLUSION AND RECOMMENDATION

11.1. Conclusion

Compared to the rest of the world, Ethiopia's disposable razor market is new as seen by the
absence of any companies involved in actual product manufacture. The only way the country's
demand is met is through imports because there is no local manufacturing.
Direct raw materials required for the manufacturing process could be recruited easily from
international market if the working capital is adequate enough. Easily trainable man power that fit
the industry in its competency, both skilled and unskilled one, is also available in the market.
Adverse environmental impact is not there in the industry that needs serious mitigation measure.
The market is also an attractive and untapped one, initiated by positive growth of demand derivers
The demand drivers of disposable razors in Ethiopia can be attributed to various factors that
influence consumer behavior and create a market need for these products such as
Population Growth and Demographics, Rising Disposable Income, Urbanization and Changing
Lifestyle, Increasing Awareness and Hygiene Practices, Growing awareness of personal hygiene
and grooming practices has contributed to the demand for disposable razors. As individuals
become more conscious of maintaining cleanliness and personal grooming standards, disposable
razors offer a hygienic and convenient option for hair removal, Influence of Media and Fashion
Trends, Tourism and Hospitality Industry, Increasing Health and Beauty Consciousness,
Convenience and Accessibility. These demand drivers collectively contribute to the growing
market for disposable razors in Ethiopia and to accommodate new entrant firms to contribute
towards import substitution and foreign currency saving.
The socio economic benefit study illustrates the contribution of the commodity in terms of employment creation,
generates revenue for government in the form of tax, contributes to GDP, and act as import substitution and
foreign currency saving. Manufacturing process of disposable razor revealed to employ non-sophisticated
technology and production process.
The support of disposable razor manufacturing industry will have a positive spillover effect on
import substitution and there by foreign currency saving, besides it will create an advantage of
employment opportunity and technology transfer to the country.

 11.2. Recommendation

Based on the above findings, the case team recommends the bank to finance projects that will
engage in disposable razor manufacturing and assembly. However, projects have to be beholden
establish a Robust Supply Chain, Focus on Quality, Adapt to Local Preferences, Marketing and
Branding, Distribution Network, After-Sales Support, Continuous Innovation:, Sustainability and
Corporate Social Responsibility and Monitor Market Trends. By implementing these
recommendations, new manufacturer can position himself to capitalize on the high demand for
disposable razors in Ethiopia, build brand recognition, and establish a strong foothold in the
market.
 12.PARAMETERS, TECHNICAL COEFFICIENTS AND ASSUMPTIONS
This part of the study is prepared to assess the coefficients and parameters, which are used to
determine the costs and revenue in the manufacturing of disposable razor. The very important
caution which has to be taken by the users of this study is that the parameters and prices
determined are just indicatives, which help to understand where the real parameter lays.

A. Assumptions
a. Number of working days per year 300 days
b. Number of shifts per day 2 shifts
c. Working hours per shift 8 hours

B. Revenue

i. Conversion rate
 Input: output relationship

ii. Current price of outputs

Disposable razor type respective to their price
Razor type UNIT Price (USD)

Single-Blade Pcs 0.04

Disposable Razors

Twin-Blade Pcs 0.07

Disposable Razors:

Triple-Blade 100 0.09

Disposable Razors:

Disposable Safety 50 0.10

Razors

Disposable Razors
with Moisturizing
Strip

Disposable Razors
with Pivoting Heads

Disposable Razors for

Women:

Disposable Razors
with Built

Travel-sized
Disposable Razors

Source: Pharmaceuticals Fund and Supply Agency

Note: The gauage of the needle measured as 21G.
Disposable razors come in various types to cater to different shaving preferences and
needs. Here are some common types of disposable razor products:

Single-Blade Disposable Razors: These razors feature a single blade and are often the most
basic and affordable option. They are suitable for simple shaving needs and can be found
in both men's and women's variants.

Twin-Blade Disposable Razors: Twin-blade razors have two closely spaced blades
designed to provide a closer shave than single-blade razors. They are commonly available
and offer a balance between cost and performance.

Triple-Blade Disposable Razors: Triple-blade razors have three blades positioned closely
together. The additional blade helps to achieve a closer and smoother shave, reducing the
number of passes required. They are generally considered to provide a more comfortable
shaving experience.

Disposable Safety Razors: Disposable safety razors are designed with a protective guard or
comb that helps prevent cuts and nicks. They offer a level of protection, especially for those
who are new to shaving or have sensitive skin.

Disposable Razors with Moisturizing Strips: Some disposable razors feature moisturizing
strips infused with ingredients like aloe vera, vitamin E, or lubricants. These strips help to
provide hydration and reduce skin irritation during shaving.

Disposable Razors with Pivoting Heads: Razors with pivoting heads have a flexible head
that adjusts to the contours of the face or body, allowing for a smoother and more
comfortable shave, particularly in hard-to-reach areas.

Disposable Razors for Women: Disposable razors designed specifically for women often
feature a feminine design and may have features like a larger handle or a pivoting head to
accommodate different shaving needs.
 Disposable Razors for Men: Disposable razors for men are typically designed with a focus
on facial hair removal. They may have features like multiple blades, precision trimmers, or
ergonomically designed handles.

Disposable Razors with Built-in Trimmers: Some disposable razors include a built-in
trimmer blade at the back of the cartridge. This feature allows for precise trimming of
facial hair or shaping of sideburns and beards.

Travel-sized Disposable Razors: Travel-sized disposable razors are compact and

convenient for on-the-go use. They are designed to be lightweight and easily portable,
making them suitable for travel or for keeping in gym bags or purses.

These are just some examples of the types of disposable razor products available in the market.
Manufacturers often offer a range of options to cater to different preferences, skin types, and
shaving requirements.

C. Investment Costs
a. List of Machineries and Auxiliaries

S/N Machine Type Purpose

A. Major Machinery Category

1 Injection moulding M/C with set of Moulds: For making plastic syringe barrels,
Moulds (for Barrel, Plunger, Gasket, Hub & pistons, hub & Cap
Cap) as per the syringe sizes.
2 Printing Machine for barrel
3 Needle assembly machine comprising:
 Cannula Inserting Machine
 Epoxy Bonding Machine
 Drying/ Curing unit
 Silicon oil coating & Air flow test devices
 Needle cap setting machine
 Needle cap pressing machine
 Assembled needle picking-up machine
4 Syringe assembly machine including silicone Attaches plunger, gasket with barrel &
coating & tightness testing devices also covers the inner part of the barrel
with silicone oil
5* Syringe & needle assembling machine Alternative to S/N 3 & 4
6 Crusher (granulator) , Mixer& feeding system For Scrap Grinding, mixing of raw
to the injection moulding machine materials & feeding
7 Packing & Sterilizing Section:
 Blister Packing Machine with Mold
 Banding machine for cartooning
 E.O. Gas Sterilizer
8 Conveyor belt system
9* Air washer Optional
B. Measuring Tools, Auxiliary Machinery & other equipments Category
10 Forklift Truck
11 Air Compressor
11 Chiller
12 Stand by Generator
13 Air conditioning system with clean room
equipment
14 Workers guan/Uniform washing laundry
machine facility
15 Vernier caliper and micrometer
Medical grade syringe collection basket

b. Buildings For The Factory and Office

c. Vehicles
Vehicle requirement

Sr. No. Type of vehicle Purpose

1 Truck Raw material & output transportation
2 Service vehicles For transportation of employees
3 Pickup vehicle For administrative works
4 Automobile For the manager

 Required number of vehicles is variable according to the size of the factory.

a. Operational Expenses

b. Raw material purchase price

SN Description UM Unit Cost (FOB USD)
1 Polypropylene Granule Ton 2,095.00
2 Medical grade silicone oil Kg 3.05
3 Gasket pcs 0.01
4 Cannula pcs 0.0030
5 Barrel Printing Ink
6 Ink thinner solution
7 Silicon oil Kg 2.95
8 Corrugated carton box Kg 1.47
8 Blister packaging Kg
12 Ethylene Oxide (E.O) Gas Bag 0.03
13 Epoxy resin pcs 3.26

c. Uniform per employee ……………………………..…. Birr

305/year
 d. Other employee benefits……………………………… 0.098%
of Salary

D. Utility
 Electricity Cost/KWh: will depend on the specification of the proposed assembly plant
 Water Tariff Rate

Consumption Tariff
Tariff category (Meter cube/ Month) ‘Birr
Category Five Up to 300 meter cube 2,003.65
Note: If the tariff category is different from the above one in light of its water requirement,
please refer and use “Cross Cutting Project Supporting Data, 2015’’.

 Fuel cost:
a) For Automobile: 13-15 Km per liter
b) For Truck:
Gross Distance Fuel Fuel Consumption
AVERAGE
Vehicle Pay Load travelled in one Consumption per Km for each ton
lit/km/ton
Weight liter per Km of load
7.5 TON 3.124 ton 5.840 km/lit 0.171 lit/km 0.055 lit/km/ton
12 TON 6.311 ton 5.500 km/lit 0.182 lit/km 0.029 lit/km/ton 0.035
18 TON 10.198 ton 4.540 km/lit 0.220 lit/km 0.022 lit/km/ton

c) For Service Vehicle : 0.013559 lit/seat/ km

d) The cost of oil and grease: 2% of fuel cost
 Traveling expense: - The cost of travel and per diem is found to be on average 1.27% of annual salary.
 Medical expense: 5% of wage and salaries.
 Telephone, post & internet: on average 0.12% of annual sales.
 Marketing/Advertising expense:5.3% of total sales
 Training cost-------------------------------0.5% of total sales
 a. Insurance

Type of contract Insurance premium rate

1.Marine 0.2954% - 3.5438

2.Fire
Class one 1.19%-3.95% (per mill)
Class two 1.19%-5.95% (per mill)
Class three 1.79%-6.12% (per mill)
3.Bulglary (due to barberry by breaking Private premises1.70%-4.25% (per mill)
the key) Commercial risks 3.40%-14.45% (per mill)
Industrial risks 0.85%-14.45% (per mill)
4. Contractors all risks (CAR) 2.00%-4.% (per mill)
5.Erection all risks (EAR) 2.00%-4% (per mill)
6.Contractors plant and machinery 5%-12% (per mill)
(CPM)
Source: Cross cutting project supporting database

 Marine
- During transportation either on ocean transport or from port to project location insurance paid.
 Fire
- Based on the building type class one means made of block and standardize which is not easily
exposed to fire.
- Class two means less than the class one but easily exposed for fire comparing with class one.
- Class three means building made of wood and other cheap materials which is very easy for
fire.
 Burglary
- Due to breakage of home especially the key and all the asset or the part taken over by thief or
barber.
 Contractors all risks (CAR)
 Is due to construction building contract if it failed on construction either by cracking or by
land sliding the building may laid down during construction.
 Erection all risks
- This is for machinery erection especially during installation of machine.
 Contractor’s plant and machinery (CPM)
- This is due to for machinery simply for industry or other types of machines.

b. Repair and Maintenance

Building and Construction : 2% of original cost

Machinery & Equipment : 5% of original cost
Furniture and Fixture : 5% of original cost
Vehicles : 5% of original cost

c. Depreciation and Amortization

a. Building and Construction
b. Machinery & Equipment
c. Furniture and Fixture
d. Vehicles
e. Generator
: 5% of original cost
: 10% of original cost
: 10% of original cost
: 20% of original cost
: 10% of original cost

d. Land Lease Cost:

It is according to land lease agreement between the project and concerned office from where the
land would be availed.
 e. Working Capital Requirement

Description Period
Raw material Four months
Salary and Wages One month
Electricity One month
Fuel and lubricant One month
Stationary and P.T.T One month
Account Receivable 1 month*
Work in progress 1day
Finished goods stock 1 month

* The period was estimated in consideration of expected marketing strategy of any business to
move on, manufacturing process, and subjective judgment.
 13.REFERENCE
1. http://www.ehow.com
2. http://en.wifipedia.org/wiki
3. http://www.wisegeek.com
4. Sigma.aldrich.com/syringes
5. Sigma.aldrich.com/supelco
6. Simonsen et al.,1999;WHO,1999
7. http://www.allegro medical.com
8. “Fundamentals of nursing”; patricia A.potter FAAN and Anne
Griffin perry FAAN;2009
9. Pharmaceuticals an Fund and Supply Agency (PFSA)
10. Glove Commodity Study,2015
11. Customs and Revenue Authority
12. Ministry Of Industry
13. Handbook on Medical & surgical Disposable Products
14. http://www.sigma-aldrich.com
15. http://www.gpcmedicalequipment.word press.com
16. http://www.labhut.com/education-centre/product-guides/syringes-
education/luer-tip-styles.html
17. http://ktcboxconverter.en.ec21.com/
Disposable_Medical_Syringe_Needle_Production--5.html
18. http://365days365businessideas.blogspot.com/2012/02/start-disposable-
syringes-anufacturing.html
19. http://99businessideas.com/disposable-plastic-syringes-manufacturing-
project/\
20. http://www.madehow.com/Volume-3/Syringe.html