Ezana
Ezana
Ezana
The sources the fund are contributions of AB_KRT Company owners and loan
from bank. The total amount of money required for the project is ETB 67,879,200
of which 70% of this amount is from bank while the remaining 30% is owners’
contributions
AB-KRT Plastic Production Company a new startup company that produces plastic
products of quality designs and sizes for customers.
The goal of the project is to establish plastic processing plant in Addis Ababa to
produce plastic products and meet the market demand for plastic products at
competitive prices to be used by different sectors to contribute to the development
The Project will be implemented by the owners and The duration of the project is
going to be twenty years after the ratification of the project proposal.
Product Sales
Working with the proposed plant and machinery, the project will be capable of
producing 25,000 cards of various types, 2,7600 meters of wire and cable
coverings, 5,000 bags of different sizes, 40,000 packs of packaging plastic
products, 25,000 kitchenware goods and 10,000 rain cover and sun shadings
annually
The Name of the Company is Plastic Products Private Limited Company (PLC)
owned by Ethiopians, located in Addis Ababa it is established to produce high
quality plastic products of different prototypes and sizes to satisfy the high demand
for the products.
PROJECT DESCRIPTION
The goal of the project is to establish plastic processing plant in Addis Ababa to
produce plastic products and meet the market demand for plastic products to be
used by different sectors to contribute to the development endeavors of the
country.
The specific objectives of this project are
i) To fill the gap between demand and supply of plastic products in Addis
Ababa
ii) To exploit untapped resources usable for the production of plastic goods.
iii) To create job opportunity for the community and to curb the problem of
unemployment in line with the development objectives of the country
iv) To produce high quality and exportable plastic goods ex to get
foreign/hard currency
PRODUCTS AND SERVICES
FORMULATION OF PROJECT
Machinery that produces dust should be properly fitted for a dust collection
system.
The type of collection system and safeguards required will depend largely on the
volume of dust being generated and the size of the particles.
Most plastics manufacturing operations regrind plastic scrap and poor quality
parts/products. The small self-contained regrind units typically do not generate
quantities of dust to be considered hazardous. Large re-grinders, normally found in
bag manufacturing plants do generate significant quantities of airborne dust which
require controls to prevent dust explosion. Plastic regrind dust is a combustible
dust comparable to wood or grain from an explosion standpoint.
Portions of system-handling powdered materials from which dust can escape
should have permanent dust collection systems. Production machinery such as
hoppers, storage bins, conveyors, conveyor ducts and grinders that come into
contact with plastic dust should be constructed with dust-tight seals and explosion
venting. Controls for static generation are variable and depend on the process
involved.
Anti-static coatings, additives and sprays, and grounded metal static combs may be
used to reduce the surface resistance of plastic material. The use of conductive
belting, low conveyor belt speeds and short center drives is advisable.
Pneumatic dust conveying systems should be restricted to handle only dust and no
other waste.
MARKET PLAN
As clearly stated in the country’s development industrial strategy, valued adding
private sector is considered as the engine of sector growth. Because of this, the
Ethiopian government has been providing facilities and enabling investment
environment for the realization of the country’s GTP objectives. As a result, the
need of construction raw materials supply and the processing of plastic products
are increasing from time to time since the enhancement of industrial sector in the
country has been given more attention.
The current increasing trends on both the demand and supply side of plastic
products market make plastic production to initiate the industry
The Rising input prices are of other commodities cause manufacturers to seek new
efficiencies, in particular in low value added items such as packaging using plastic
products. Nationwide demand for green packaging is projected to increase
annually with food service and transport packaging growing the fastest. The
currently observed fast growing banking and financial institutions demand for
various plastic cards to be used by their clients/customers. Also the currently
growing construction and transport sectors in the country have the propensity to
consume more and more plastic products
The goal of the project is to establish plastic processing plant in Addis Ababa to
produce plastic products and meet the market demand for plastic products to be
used by different sectors to contribute to the development endeavors of the
country.
The specific objectives of this project are
v) To fill the gap between demand and supply of plastic products in Addis
Ababa
vi) To exploit untapped resources usable for the production of plastic goods.
vii) To create job opportunity for the community and to curb the problem of
unemployment in line with the development objectives of the country
viii) To produce high quality and exportable plastic goods ex to get
foreign/hard currency
ix)
PRODUCT FEATURES AND BENEFIT
CUSTOMERS
Three important points to keep in mind when thinking about the objectives of
competition are: x underlying variable of competition (price, quantity, quality etc.);
x aimed level of achievement; and x competitive process that is at least partly
determined by the strategic objectives of agents.
Each firm within a particular industry faces a different competitive context. This is
because an industry typically consists of multiple product segments operated by
different but overlapping sets of industry members. Two industry members can be
regarded as direct competitors to each other when they operate in at least one
common product segment
NICHE
Marketer has long advocated the use of ecology or biological theory in marketing
in order to study markets. A relationship may be drawn between the
ecological niche and the market niche. This refers to ecological niche and market
niche similarities. In both cases, organisms and organizations live in their
immediate physical environment and are able to continue their life forms in a
changing environment.
Strategic Planning
Organizational Realignment
MARKET STRATEGY
The term pricing method in the context of compiling price indices would probably
be regarded by most price statisticians as a common concept. However when one
attempts to find a definition for this concept, or indeed a definition for various
types of pricing methods, the inadequacy of the current literature becomes
apparent. This is particularly true in the case of producer price indices for service
industries (SPPI), where defining pricing methods is crucial in many respects.
Pricing method is a key issue for services price statisticians because theoretical or
practical problems cause transaction pricing to be unfeasible. The main causes,
which are interrelated, are:
Sales revenues are the function of projected production output and projected
selling price per plastic products. Taking the projected production the output from
the above table, we know we calculate the revenue using selling price of output.
Accordingly, the selling price of each product is expected to increase each year by
proportionately for each product item by a minimum of 15%, given the trends of
the past five year in Ethiopia, in particular and world in general, this projection
wouldn’t be far from the reality under the normal macroeconomic conditions.
OPERATION PLAN
The purpose of the Operations section is to indicate how you plan to operate the
business. This means how you will produce the services or provide the products.
RAW MATERIAL
This Strategic Implementation Plan (SIP) has been developed on the basis of input
from a wide range of European stakeholders dealing with raw materials
(governments, industries, academia, NGOs), which are involved in the European
Innovation Partnership (EIP) on Raw Materials. To steer the work on the Plan, a
High-Level Steering Group was formed in 2012. To collect input to the Plan, the
European Commission established five operational groups with experts on raw
materials and various aspects of raw materials policy. From May to July 2013, four
draft versions of the Plan were issued by the services of the European Commission
and commented on by the members of the HighLevel Steering Group or their
representatives (“Sherpas”) prior to this final version.
There are many types of inventory that can be held throughout the supply chain.
They include raw material, work in process (WIP), finished goods inventory and
spare parts. In this thesis, we are more concerned with managing the inventory of
raw material. Hopp and Spearman (2000) define raw material as the components,
subassemblies, or materials that are purchased from outside the plant and used in
the fabrication/assembly process inside the plant. The idea of managing the raw
material is to have it available when it is needed by the production system. Since
most of the time we cannot receive the raw material immediately (in a just-in-time
fashion), carrying inventory stock of raw material seems appropriate. The size of
the stock can be influenced by several factors; quantity discount received from the
supplier, variability in either the supply or demand, or the materials can become
obsolete.
TECHNOLOGY UTILIZATION
The key factors that underpin enterprise growth are labor, land, capital,
entrepreneurial spirit and innovation. In particular, it was innovation and
entrepreneurial drive that provided the motivating power for Taiwan’s economic
miracle. Today, new business development continues to depend on the flexibility
and vigor of Taiwan’s SMEs. In more concrete terms, innovation can take one of
five forms: the development of new products or the improvement of existing
products, the introduction of new methods of production, the development of new
markets, the identification of new sources of raw materials or semi-finished
products, and the establishment of new forms of industrial organization.
There are also relevant national and local institutions around the district with
which we will work in collaborations.
Bole Sub City and Woreda Investment Office
Bole Sub City and Woreda Land Use and Administrative Authorities
University and collages.
Bole Sub City and Woreda l Enterprises.
Financial Institution and Banks.
Civil society organizations including cooperatives and kebele organization
etc.
The role of these institutions and their expected synergy will be utilized for the
successful implementation of the project.
PRODUCTION PROCESS
The project area is located in Bole Sub city which has got convenient and
accessible road throughout the year. There is also access road from different areas
and towns to the project area. Thus, there will be no transportation problem to and
from the project area to its branches or stores located in suitable places.
LOCATION
Addis Ababa is the federal capital of Ethiopia, the seat of the African Union (AU),
the United Nation Economic Commission for Africa (UNECA) and a chartered
city; having three layers of government: The city government at the top, 10 sub
city administrations in the middle in which Bole Sub City is one of the 10 sub city
in Addis Ababa.
The city has grown from sparse and scattered settlement Addis Ababa to an
expansive and highly populated city. Addis Ababa lies in the center of the country
on the western escarpment of the main rift. The altitude of the city varies from
1500. to 2400 m a.s.l. there is high topography in the north and west, relatively flat
in the south east, which is cut by a deep George and rivers crossing the city from
north to south (ORRAMP, 2002). The city covers an area of about 54,000 hectare
(CSA, 2008).
Bole sub-city, which is one of the sub city in which this plastic card production
PLC is established has distinct characteristics and, relatively standardized part of
Addis Ababa, constituting modern and high standard residential localities as well
as very poor people who live with income of less than $1 per day, commercial
buildings, public offices, different social and economic over heads, industrial
areas, foreign embassies etc. Bole international air port and Ethiopian Civil
Aviation Authority are also found in this sub city..
The project is located in Addis Ababa Bole sub-city, which is one of the sub city in
which this plastic card production PLC is established has distinct characteristics
and, relatively standardized part of Addis Ababa, constituting modern and high
standard residential localities as well as very poor people who live with income of
less than $1 per day, commercial buildings, public offices, different social and
economic over heads, industrial areas, foreign embassies etc. Bole International
Air Port and Ethiopian Civil Aviation Authority are also found in this sub city. In
addition, the availabilities of facilities like road, utilities and easy access to the
target markets are other factors for the selection of the site.
MACHINERY AND EQUIPMENT
Machinery and equipment have moving parts. The action of moving parts may
have sufficient force in motion to cause injury to people. When assessing
machinery and equipment for possible mechanical hazards, consider:
• machinery and equipment with moving parts that can be reached by people
• machinery and equipment that can eject objects (parts, components, products or
waste items) that may strike a person with sufficient force to cause harm
• machinery and equipment with moving parts that can reach people, such as
booms or mechanical appendages (arms)
LEGAL ENVIRONMENT
PERSONAL
A personal marketing plan is a strategic marketing plan that can help you ensure
the efficiency and effectiveness of your personal brand or image and how it is
perceived by different entities like potential employers, businesses, engineering
lawyer, technical and professionals.
MANAGEMENT AND ORGANIZATION STRUCTURES
Addis Ababa, the capital of Ethiopia, is the industrial, commercial and cultural
centre of the country. Being the seat of various regional and international
institutions, it is an important political and diplomatic hub of Africa. With a
population of more than 2.7 million (CSA 2008), Addis Ababa is the largest city in
Ethiopia. According to the 2007 population and housing census of the Central
Statistical Agency, the city accounts for 30% of the nation’s urban population and
is ethnically diverse. 52.4% of the population is female, a slightly higher rate than
the national ratio (51%). Addis Ababa also has the highest number of female-
headed households (38.5%) in Ethiopia.
PROFESSIONAL AND ADVISOR SUPPORT
Bank Services, Business Advisors and Mentors (it can be helpful to provide
single-paragraph biographies on key business advisors.)
ORGANIZATIONAL STRUCTURE AND CHART
General Manager
Legal Advisor
Human Resource
Finance Manager Marketing Manager
Manager
Cashier
The major beneficial impacts of this project are change in employment and income
opportunity, infrastructure, community development, communication, transport,
educational, commercial, recreational and medical facilities. In addition this
project will accommodate many labor forces. As a result, the income theses labor
forces will increase and enable them support their households and fulfill their basic
needs (food, health, shelter and social necessities)
Repair and Maintenance cost: operating cost for operation and maintenance of
machineries and equipment is taken to be 5% of initial investment costs beginning
after the acquisition i.e., 67,879,139 *.05= ETB 3,393,956.95
Supplies cost: such costs include the cost of stationary materials needed for
office use. It is forecasted for first year as Br.20, 000.00 and increase at least
by 5% as the activities of the project increases.
Source of fund: the sources of fund for this project are the owner itself and banks.
Market opportunity
The current increasing trends on both the demand and supply side of plastic
products market make plastic production very important. The current rising input
prices are causing manufacturers to seek new efficiencies, in particular in low
value added items such as packaging goods, preferably plastic products. In
addition, nationwide, demand for green packaging is projected to increase annually
with foodservice and transport packaging growing the fastest’ It is observed that
the fast growing banking and financial institutions demand for various plastic cards
The currently growing construction and transport sectors in the country have the
propensity to consume more and more amount of plastic products. In a recent
survey completed by the promoter, most of consumers responded that they would
choose environmentally-friendly various types of quality plastic products.
2.0. Budget Breakdown
OVERHEAD COST
Following Overheads are assumed to occur in the first year of production.
Expense Year
amount (Br)
Utilities……………………………………………………………………
13,057,000
Depreciation………………………………………………………………. 30,000
Maintenance………………………………………………………………... 10,000
Selling and Distribution……………………………………………………. 55,000
Miscellaneous……………………………………………………………….
10,027,000
Total………………………………………………………………………..
23,829,000
Man power is decisive factor for the successful implementation and operation of a
project. Hence, careful identification and qualification of the man power
requirement of the project is indispensable. Accordingly, although the details of
responsibility and accountability relationship will be determined latter, the
following table shows the manpower requirement with qualifications:
Salary of Staff
1 Year
Minimum
N Quantit Monthl (12 Total Remar
Staff Qualificatio
o y y salary months Salary k
n
)
1 General BA in 1 8,500 12 102,00
Manager/ Mgt/Econor 0
Director related & 8
years of
Salary of Staff
1 Year
Minimum
N Quantit Monthl (12 Total Remar
Staff Qualificatio
o y y salary months Salary k
n
)
related
experience
Deputy BA in
Manager Mgt/Econor
related & 5
2 1 7,500 12 90,000
years of
related
experience
Sale BA in
Manager marketing
related & 5
3 1 6,500 12 78,000
years of
related
experience
accountant BA in
s accounting
4 1 6,000 12 72,000
& 4 years
experience
Cashier Diploma in
Accounting
5 1 2,500 12 30,000
& 2 years
exp
Secretary Diploma in
Office
6 management 1 2000 12 24,000
or related &
2 years exp
Purchaser Diploma in
Accounting
7 1 2,000 12 24,000
& 2 years
exp
8 Drivers 3rd Grade 2 2,000 12 48,000
Driving
Salary of Staff
1 Year
Minimum
N Quantit Monthl (12 Total Remar
Staff Qualificatio
o y y salary months Salary k
n
)
License
Productio license 144,00
9 10 1,200 12
n workers 0
Store Diploma in
1 1,200 12 14,400
keeper the field
Guard 6th grade &
work
10 1 980 12 11,760
experience 2
years
Total 638,16
21
Salary 0
NB: For cost calculation, take 15% of the total cost as contingency and sum up
with the total cost so as to get the grand cost.
Forecasted production
Note that: then the above projections are based on the expert’s opinions in the field
as well as the existing experiences. In essence, if the project is to be implemented
and run in accordance with the recommendation of the expertise and experiences,
these projections are supposed to be achievable.
Product 1
Unit
Total
Selling
Year Product Item Quantity sales in
Price in
ETB
ETB
2019 Plastic cards of 2,500
different types 25,000 100 ,000
2020 Plastic cards of 2,946
different types 25,625 115 ,875
2021 Plastic cards of 3,414
different types 26,266 130 ,531
2022 Plastic cards of 3,903
different types 26,922 145 ,729
2023 Plastic cards of 5,384
different types 33,653 160 ,453
2024 Plastic cards of 7,361
different types 42,066 175 ,557
2025 Plastic cards of 9,191
different types 48,376 190 ,430
2026 Plastic cards of 11,404,
different types 55,632 205 629
2026 Plastic cards of 14,074,
different types 63,977 220 982
Product 2
Unit
Total sales in
Year Product Item Quantity Selling
Price in ETB
ETB
2019 40,00
Plastic Packaging 0 80 3,200,000
products
2020 41,00
Plastic Packaging 0 92 3,772,000
products
2021 42,02
Plastic Packaging 5 104 4,370,600
products
2022 43,07
Plastic Packaging 6 116 4,996,773
products
2023 44,15
Plastic Packaging 3 128 5,651,522
products
2024 45,25
Plastic Packaging 6 140 6,335,886
products
2025 46,38
Plastic Packaging 8 152 7,050,936
products
2026 47,54
Plastic Packaging 7 164 7,797,779
products
2027 48,73
Plastic Packaging 6 176 8,577,556
products
Product 3
Unit
Total sales
Year Product Item Quantity Selling
Price in in ETB
ETB
2015 kitchenware, toys, sporting 1,00
goods, medical products and 25,000 0 25,000,000
footwear, boxes, bags
2019 kitchenware, toys, sporting 1,15
goods, medical products and 25,625 0 29,468,750
footwear, boxes, bags
2020 kitchenware, toys, sporting 1,30
goods, medical products and 26,266 0 34,145,313
footwear, boxes, bags
2021 kitchenware, toys, sporting 1,45
goods, medical products and 26,922 0 39,037,285
footwear, boxes, bags
2022 kitchenware, toys, sporting 1,60
goods, medical products and 27,595 0 44,152,516
footwear, boxes, bags
2023 kitchenware, toys, sporting 1,75
goods, medical products and 28,285 0 49,499,109
footwear, boxes, bags
2024 kitchenware, toys, sporting 1,90
goods, medical products and 28,992 0 55,085,437
footwear, boxes, bags
2025 kitchenware, toys, sporting 2,05
goods, medical products and 29,717 0 60,920,145
footwear, boxes, bags
2026 kitchenware, toys, sporting 2,20
goods, medical products and 30,460 0 8,577,556
footwear, boxes, bags
2027
Product 4
Unit
Total sales
Year Product Item Quantity Selling
Price in in ETB
ETB
2019 5,0 30 1,500,00
Production of plastic bags of 00 0 0
different sizes
2020 5,7 34 1,983,75
Production of plastic bags of 50 5 0
different sizes
2021 6,6 39 2,578,87
Production of plastic bags of 13 0 5
different sizes
2022 7,6 43 3,307,90
Production of plastic bags of 04 5 3
different sizes
2023 8,7 48 4,197,61
Production of plastic bags of 45 0 5
different sizes
2024 10,0 52 5,279,81
Production of plastic bags of 57 5 3
different sizes
2025 11,5 57 6,592,22
Production of plastic bags of 65 0 3
different sizes
2026 13,3 61 8,179,56
Production of plastic bags of 00 5 1
different sizes
2027 15,2 66
Production of plastic bags of 95 0 10,094,775
different sizes
Product 5
Unit Total
Year Product Item Quantity Selling sales in
Price in
ETB ETB
2019 home and industrial 2,5 375,0
appliances, wire and cable 00 150 00
coverings
2020 home and industrial 2,5 442,0
appliances, wire and cable 63 173 31
coverings
2021 home and industrial 2,6 512,1
appliances, wire and cable 27 195 80
coverings
2022 home and industrial 2,6 585,5
appliances, wire and cable 92 218 59
coverings
2023 home and industrial 2,7 662,2
appliances, wire and cable 60 240 88
coverings
2024 home and industrial 2,8 742,4
appliances, wire and cable 29 263 87
coverings
2025 home and industrial 2,8 826,2
appliances, wire and cable 99 285 82
coverings
2026 home and industrial 2,9 913,8
appliances, wire and cable 72 308 02
coverings
2027 home and industrial 3,0 1,005,18
appliances, wire and cable 46 330 2
coverings
.
5. Project Schedule
Table-5: Action plan
Construction of office
and store
Purchase of Office
furniture
Man power
Recruitment
Start the work