Dagim Lule Business Plan For Mojo

THE FEASIBLITY STUDY ON ESTABLISHMENT OF PAINT PRODUCTION FACTORY.
EXECUTIVE SUMMARY
DAGIM PAINT FACTORY
The sources of the fund are contributions of DAGIM 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.
DAGIM Paint factory a new startup company that produces paint products of
quality designs and colors for customers.
The goal of the project is to establish paint processing plant in Modjo town
Administration to produce paint products and meet the market demand for paint
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products at competitive prices to be used by different sectors to contribute to the

development.
DURATION OF THE PROJECT AND IMPLEMENTING AGENCY
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 Liters of paint , 5,000 bags of
different colors , 40,000 packs of packaging paint products, 25,000 extra items
and 10,000 metal purpose annually
FINANCIAL BUDGET OF THE INVESTMENT
Total financial requirement =ETB 67,879,139.00
Capital investment =ETB 34,674,000
Operating cost = ETB 33,205,139
COMPANY AND INDUSTRY
The Name of the Company is Paint Products Factory owned by Ethiopians, located
in Modjo town Administration. It is established to produce high quality paint
products of different colors to satisfy the high demand for the products.
PROJECT DESCRIPTION
Paint Production industry is an important industrial sector in the country. Over the
last few years, the manufacturing and financial sectors including construction
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sector have registered strong growth rates. These sectors are some of the major
drivers of growth for the demand of paint products.
The Paint industry:
- Supports the construction sector providing various types of

materials for the building activities. House furniture and various
instruments and equipment’s;
- It supports the transport sector in providing the necessary materials
for manufacturing of cars, carriage utensils; number plates, small
and large sized bags;
- It is also used in designing and realization traffic signs;
- Used in the preparation of different types of gaskets to be used for
different purposes
- Give a hand to the banking and financial institutions in providing
different types of paint cards
- Support associations by providing them membership cards;
- It also supports the hotel industry and recreational activities in
providing rain covers and sun shading
The paint products are useful for households and individuals in presenting
the necessary materials like utensils, paint s boxes, seats, and other furniture.
In addition, paint manufacturing products are used for presents and
cosmetics, document folders and credit cards.
Therefore, in line with the current development endeavors of the country,
there is a great market demand for paint products.
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OBJECTIVES OF PROJECT
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 paint products in Ethiopia
ii) To exploit untapped resources usable for the production of paint 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 paint goods ex to get
foreign/hard currency
PRODUCTS AND SERVICES
Dagim Paint Production Company is planning to manufacture high quality paint

products. Paint Production is an important industry that supports the various
sectors in the country towards the enhancement of growth and transformation plan
implementation. The products the company to produce is, 25,000 cards of various
types, 2,7600 Liters of paint, 5,000 bags of different colors, 40,000 packs of
packaging paint products, 25,000 extra items goods and 10,000 metal purpose in
the first year and increase this amount yearly
FORMULATION OF PROJECT
A project report is like a road map. It is an operating document. What information
and how much information it contain depends upon the size of the enterprise, as
well as nature of production. For example small-scale enterprises do not include
technology which is used for preparing project reports of large-scale enterprises.
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Within small-scale enterprises too, all information may not be homogeneous for all
units.
According to DAGIM , project formulation divides the process of project
development into eight distinct and sequential stages as below:
 General information
 Project description
 Market potential
 Capital costs and sources of finance
 Assessment of working capital requirements
 Economical and social variables
 Project implementation
RISK ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

While there are many manufacturing processes, most use heat to soften the paint
and pressure to force the molten material into a mold cavity or through a dye. An
effective process safety management program should establish procedures for
routinely documented machinery inspection and service to monitor excess heat,
friction, leakage, malfunction, and control potential ignition of flammable or
combustible materials.
Remotely located emergency shutoff or automatic shut off switches should be
provided for hydraulic equipment.
A large quantity of easily ignitable dust may be generated in paint production
areas. Paint dust only requires a small ignition source to create a severe explosion.
If not controlled, the presence of ignitable dust and static can lead to total losses.
Due to paint ’s natural insulating ability, static build up occurs in:
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 The manufacturing process

 Pneumatic conveying systems used in transferring and blending paint
pellets
 Finishing activities
 Grinding activities
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 paint s manufacturing operations regrind paint 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. Paint 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 paint 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 paint 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.
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Dust collection typically involves placement of local exhaust ventilation systems

close to the source of dust emissions.
The systems may be integrated with machine guards. They should have an efficient
air cleaning device and be properly maintained at regular intervals. The dust
collection duct should be galvanized metal provided with explosion venting, and
should be properly bonded and grounded.
The collected dust should be properly disposed outside and away from any ignition
sources. The areas in which combustible dusts are processed or handled should be
segregated, separated or detached to minimize damage and to avoid pollution of
the environment. Dust collection and venting equipment are typically located
outside the production building. Access to dust collection areas should be
restricted. The duct from the central collector to the storage bin should have a
flashback prevention to keep explosions from blowing back through the conveying
ductwork into the building or into other equipment. Dust bins should have an
audible or visual warning system with smoke, heat or light detectors that shut
down fuel and oxygen supply in event of a fire.
ENVIRONMENTAL MONITORING
To assess the prevailing quality of air, water, noise, land etc., regular monitoring of
these parameters is necessary. This data will help to arrive at improvement in
protection measures. The project proponent has set up a permanent cell, which
shall take care of effective implementation of Environment Management Plan
which is very much necessary to preserve/protect the surrounding environment.
The functions of the environmental cell are as follows:
 Implementation of the planned mitigating measures
 Monitoring the program of implementation
 To estimate the efficiency of the measures taken
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 Environmental monitoring and maintaining the test reports in a file for each
of the monitoring parameters like air, water, soil etc.
 To bring out any other unforeseen effect on the environment not covered
under this study
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 paint 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 paint products
market make paint 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 paint
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 paint 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 paint products
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MARKET RESEARCH METHOD AND IMPLEMENTATION
The Target Market is the groupings of consumers or businesses most likely to

purchase your products or services. The first group you plan to target is your
Primary Target Market; the second is your Secondary Target Market. It is very
important that you understand your target markets
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 paint products in Ethiopia
vi) To exploit untapped resources usable for the production of paint.
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 paint to get foreign/hard currency
PRODUCT FEATURES AND BENEFIT
The expected beneficiaries of this project are:

 The surrounding community in obtaining job opportunity
 The various sectors that use paint products as inputs for their activities
 Individuals who are trading and using paint products.
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 Government and non-government organizations will also be the

expected beneficiaries of this project.
For instance, with regard to job opportunity, the expected beneficiaries of the
project will be 15 permanent and 50 temporarily employees will be recruited as
labor forces which will reduces poverty and unemployment in Modjo town
Administration in particular and in the country in general.
CUSTOMERS
Start by reviewing customer complaints, questions, and comments. If you don't

have a systematic way of collecting and compiling this input, develop one. Don't
just dwell on complaints; studies show that only 2 to 4 percent of dissatisfied
customers ever complain.
In modern business philosophy business should be customer oriented and the

implementation of the main principles of continuous improvement, justifies the
importance of evaluating and analyzing customer satisfaction. In short, customer
satisfaction is considered as baseline of standardize and excellence of performance
for many business. It also helps to identify the potential market opportunities.
COMPETITION
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
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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
 Define Mission and Objectives
 Strategies and Action
 Monitoring Key Projects/Objectives
 Organizational Realignment
MARKET STRATEGY
In the manufacturing industry, marketing is considered to be of significant

importance. In the Paint Production, marketing parameters are very limited and
usually in some degree associated with the various sectors of the economy of the
country.
PRICING
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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.
The use of a specific type of information on prices to represent the evolution of

price in price index compilation. The specific type of information specifies the
method.
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:
 Unique product transactions are not periodically priceable and have to be

reduced to a standardized replicable unit;
 Complex products have to be reduced to manageable units (e.g. telephony);
 There is limited knowledge about complex products whereby the issue of

pricing to constant quality becomes (too) difficult;
 Classifications and information for a weighting scheme are not available

down to the product level, while the goal is often only the estimation of top
aggregates;
 Limited human resources;
 Representativeness of a small product panel is problematic.
SALES AND FORECAST
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Sales revenues are the function of projected production output and projected
selling price per paint 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.
In order to determine the forecasted sales revenues, we need to multiply the

forecasted selling price by the number of each paint products.. The following table
shows this procedure.
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 High Level Steering Group or their
representatives (“Sherpas”) prior to this final version.
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The EU is self-sufficient in the production of construction minerals, including

aggregates (sand, gravel, and crushed natural stone), various brick clays, gypsum
and natural ornamental or dimension stone. Europe’s production of aggregates is
approximately 3 billion tons per year. Around 91% of all aggregates produced are
from natural resources, 5% are recycled aggregates, and 2% are of marine origin or
manufactured. The EU also has a large production of industrial minerals supplying
a very wide range of industries. For some minerals, such as magnesite, fluorspar,
bentonite, kaolin and potash, Europe is an important global producer. The EU
however is a net importer for many of these industrial minerals. Due to large
quantities of construction and industrial minerals produced and consumed, there is
a need to improve the overall sustainability performance, the materials range of the
primary production and to ensure a higher proportion of recycling.
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
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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.
 Oromia National Regional state Investment Office
 Modjo town Administration and its Woredas Land Use and Administrative
Authorities
 University and collages.
 Modjo town Administration and its Woredas 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 Modjo town Administration 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
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problem to and from the project area to its branches or stores located in suitable
places.
LOCATION
Modjo town Administration is the town in Oromia region of Ethiopia, 57km far
from Addis Ababa city, the seat of the African Union (AU), the United Nation
Economic Commission for Africa (UNECA).
The town has grown from sparse and scattered settlement Modjo to an expansive
and highly populated Town. Modjo town lies near to Addis Ababa city which is the
center of the country on the western escarpment of the main rift. The altitude of the
city varies from 1788 to 1825m a.s.l. There is high topography in the north and
west, relatively flat in the south east.
Modjo town Administration, which is one of the town in which this paint factory is
established has distinct characteristics and, relatively standardized part of Oromia
region, 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 etc...
Furthermore, 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
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• 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
Legal & Administrative  Legal Form (proprietorship, partnership, corporation,

cooperative).  Share Distribution (Corporation Only)  Directors & Officers
(Corporation Only)  Buy Sell Agreement (Corporation and Partnerships Only) 
List of key legal agreements such as contracts, leases, agreements, franchise
agreements, personal loan guarantees etc. The actual documentation is often put
into the appendix of the business plan.  Insurance/Risk management
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
Modjo Town Administration is Near to Addis Ababa, the capital of Ethiopia,

which in turn is the industrial, commercial and cultural centre of the country.
Having proximity to the seat of various regional and international institutions, it is
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an important political and diplomatic hub of Africa. Modjo is the critical Town in
Oromia region, in Ethiopia.
PROFESSIONAL AND ADVISOR SUPPORT
 Accountant, Lawyer, Engineering and Technician, human resource is use in

project of paint production in Modjo town Administration.
 Bank Services, Business Advisors and Mentors (it can be helpful to provide
single-paragraph biographies on key business advisors.)
ORGANIZATIONAL STRUCTURE AND CHART
Business form: this business is going to be established in the form of sole

proprietorship.
General Manager
Legal Advisor
Finance Manager Marketing Manager Human Resource Manager
Accountant Marketing Officer Personnel officer General Services Officer
Cashier
EFFECTIVE MANAGEMENT STYLE
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Management style is a managerial parlance often used to describe the how of

management. It is a function of behavior associated with personality.
Management style can be understood as a way to manage an organization.

According to DAGIM , management style is “the adhesive that binds diverse
operations and functions together”. It is the philosophy or set of principles by
which the manager capitalizes on the abilities of the workforce. Management style
is not a procedure on how to do but it is the management framework for doing. A
management style is a way of life operating throughout the enterprise and permits
an executive to rely on the initiative of the personnel of an entity.
SOCIO ECONOMIC STUDY
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)
ECONOMIC BENEFIT FOR THE COMMUNITY: As the matter of fact, any

organization has social responsibility in creating job opportunity and involving in
different social affairs. The economic benefit of this project is not far from this
truth.
ECONOMIC CONTRIBUTION TO THE COUNTRY: This project has

paramount importance in reducing unemployment rate and helping industry sector
in providing raw materials and thereby supplementing the country’s GTP of
industrial objectives. Furthermore, the linkage between various sectors of the
economy will be increased.
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FINANCIAL PLAN
The Company will earn a large amount of revenue from the sales of products of
paint production of high quality. The details of the financial status of the company
and its profitability are indicated in section under financial plan.
PROPOSED RATE OF PRODUCTION
The proposed rate of production of the project are 25,000 cards of various types,
2,7600 Liters of paint , 5,000 bags of different colors , 40,000 packs of
packaging paint products, 25,000 extra items goods and 10,000 metal purpose in
the first year and increase this amount yearly.
FINANCIAL BUDGET OF THE INVESTMENT
10.1 Total financial requirement =ETB 67,879,139.00
10.2 Capital investment =ETB 34,674,000
10.3 Operating cost = ETB 33,205,139
Here, operating costs refer to those costs which are not included in the project
capital costs and hence are not subjected to periodical depreciation. These costs
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include such costs as labor costs; costs for equipment operations and maintenance
such as fuel cost and repair and maintenance cost, depreciation cost, utility
expenses such as telephone charges, employee salaries, and other miscellaneous
expenses.
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
 Utility expenses: this includes such periodical costs as incurrence of liabilities

(payments of cash) for fuel consumptions and telephone expenses. Although
such types of expenses changing with the volume of operations, it is forecasted
that a minimum of ETB 10,027,100.00 forecasted for the first year of project
operation.
 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.
 Miscellaneous expenses: Expenses for which it is neither economical nor

convenient to specific account code and hence, should be merged together
under miscellaneous expenses. These include entertainment expenses,
employee benefits, litigation expenses and others. As a result, such expenses
estimated to be Br. 25,000.00 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
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The current increasing trends on both the demand and supply side of paint
products market make paint 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 paint 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 paint cards.
The currently growing construction and transport sectors in the country have the
propensity to consume more and more amount of paint products. In a recent
survey completed by the promoter, most of consumers responded that they would
choose environmentally-friendly various types of quality paint products.
2.0. Budget Breakdown
1. Summaries of the project construction costs (in ETB)

Construction Unit Cost Total Cost
No Quantity
items in ETB in ETB
1 Production 1 8,500,000 8,500,000
Building
2 Dust Dumping 1 2,500,000 2,500,000
Building
2 Guardian houses 1 30,000 30,000.00
3 Store 3 100,000 300,000
4 Fence with wire 1 100,000 100,000
around
production Plant
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5 Generator 1 100,000 100,000

(medium)
Subtotal Cost 11,530,000
Physical and relative price change contingency (10%) 1,153,000
Total cost 12,683,000
2. Summaries of the Office Equipment Cost (in ETB)

No Item Unit Units Unit cost Total
needed
1 Desk top computer Pcs 1 100,000.00 100,000
with printer
2 Laptop computer Pcs 1 120,000.00 120,000
4 shelves Pcs 2 20000.00 40000.00
6 Managerial chairs Pcs 1 70000.00 70000.00
7 Secretarial chair Pcs 1 40000.00 40000.00
8 Guest chair Pcs 5 10000.00 50000.00
9 Guest table Pcs 5 10000.00 50000.00
10 Computer table Pcs 1 10000.00 10000.00
11 Leather bag Pcs 5 8000.00 40000.00
Estimated cost 520,000
Contingency due to price fluctuation (10%) 52,000.
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Total estimated office equipment cost 572,000
3.0. PROJECT FINANCIAL STATEMENT

OPERATIONAL DATA
The plant is to start production at 70% of capacity thereby increased by 10% in the
next three years till the plant operates at 100% which is to be maintained for the
next twenty-five years.
13.1 FIXED COSTS
Land and Building (Note)………………………………. 12,683,000
Plant & Machinery………………………………………. 15,500,000
Direct material & labor Cost -------------------------------- --8,174,000
Furniture & Fixtures & Office Equipment ……………….650,000
Other utilities ---------------------------------------------------28,372,139
Vehicles ………………………………………………….. 2,500,000
Total Project Investment ………………………………….67,879,139
Note: Land for setting up the proposed stone crushing unit would be acquired on
lease for a period of 25 years. Lease concession would be granted by the Mineral
Development Authority of the concerned Area.
13.2 WORKING CAPITAL
Following are the initial working capital requirements for the Paint Production for
first year.
Description Amount in
Rs.
First year Salaries (Production staff) ……………………………650,000
First year Utilities Charges (Other then fuel/diesel)\.....................13,057,000
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First year Fuel Inventories (Diesel) ……………………….. 7,524,000

First year Misc. Expenses………………………………………. 10,027,000
Cash balance required ………………………………………….. 1,775,000
Total …………………………………………………………… 23,006,000
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
HUMAN RESOURCE REQUIREMENT AND ASSOCIATED EXPENSES
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:
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Salary of Staff
1 Year
Minimum Quanti Monthl Total
No Staff (12 Remark
Qualification ty y salary Salary
months)
General BA in Mgt/Econor
1 Manager/ related & 8 years of 1 85,000 12 102,0000
Director related experience
Deputy BA in Mgt/Econor
1 Manager related & 5 years of 1 75000 12 900,000
related experience
Sale BA in marketing
2 Manager related & 5 years of 1 14,500 12 78,000
related experience
accountants BA in accounting &
3 1 8,000 12 92,000
4 years experience
Cashier Diploma in
4 Accounting & 2 1 5000 12 60,000
years exp
Diploma in Office
Secretary management or
5 1 4000 12 48,000
related & 2 years
exp
Diploma in
6 Purchaser Accounting & 2 1 4,000 12 48,000
years exp
7 Drivers 3rd Grade Driving 2 4,000 12 96,000
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Salary of Staff
1 Year
Minimum Quanti Monthl Total
No Staff (12 Remark
Qualification ty y salary Salary
months)
License
Production license
8 10 6,200 12 184,000
workers
Store Diploma in the field
9 1 2,000 12 14,400
keeper
Guard 6th grade & work
10 1 2,000 12 11,760
experience 2 years
Total
21 638,160
Salary
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
In order to estimate the production of paint products, we have utilized opinions of
experts in the field of geology. Accordingly, the following tables shows the
projected/expected yearly outputs
Projected Paint Items production in G.C
No Product Items 2019 2020 2021 2022 2023 2024 2025 2026 2027
Paint cards of different 25, 25, 26, 26 33, 4 48, 55 63,97

1
types 000 625 266 ,922 653 2,066 376 ,632 7
By Dagim Lulseged
Paint Packaging 40, 41, 42, 43 44, 4 46, 47 48,73

2
products 000 000 025 ,076 153 5,256 388 ,547 6
extra items , toys,
sporting goods, medical
3
products and footwear, 25, 26, 26 27, 2 28, 29 30,46
boxes, bags 25,000 625 266 ,922 595 8,285 992 ,717 0
Production of paint 5 5, 6, 7 8 1 11, 13 15,29
4
bags of different colors ,000 750 613 ,604 ,745 0,057 565 ,300 5
home and industrial
5 appliances, wire and 2 2, 2, 2 2 2, 2 3,04
cable ,500 563 627 ,692 ,760 2,829 899 ,972 6
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.
Annual Revenue of Paint Production in ETB

The total Revenue from the above paint production over the next 9 years is
indicated on the following table. The projected unit selling price of the paint
product items are indicated in the following 5 table or five product items
Product 1
Unit Selling Total sales

Year Product Item Quantity
Price in ETB in ETB
1 2,500,0
Paint of different types
25,000 100 00
2 Paint of different types 2,946,8
25,625 115
75
By Dagim Lulseged
3 3,414,5
Paint cards of different types
26,266 130 31
4 Paint cards of different 3,903,7
types 26,922 145 29
types 33,653 160 53
types 42,066 175 57
types 48,376 190 30
types 55,632 205 29
types 63,977 220 82
Product 2
Unit Selling
Total sales in
Year Product Item Quantity Price in
ETB
ETB
1 40,000 80 3,200,000
Paint Packaging products
2 41,000 92 3,772,000
3 42,025 104 4,370,600
4 43,076 116 4,996,773
By Dagim Lulseged
5 44,153 128 5,651,522

6 45,256 140 6,335,886
7 46,388 152 7,050,936
8 47,547 164 7,797,779
9 48,736 176 8,577,556
Product 3
Unit
Selling Total sales in
Price in ETB
ETB
1 exra items , toys, sporting
goods, medical products and
25,000 1,000 25,000,000
footwear, boxes, bags
By Dagim Lulseged

25,625 1,150 29,468,750
26,266 1,300 34,145,313
26,922 1,450 39,037,285
27,595 1,600 44,152,516
28,285 1,750 49,499,109
28,992 1,900 55,085,437
29,717 2,050 60,920,145
30,460 2,200 8,577,556
10
By Dagim Lulseged
Product 4
Unit
Price in ETB
ETB
1 5,00
Production of paint bags of different
0 300 1,500,000
colors
2 5,75
0 345 1,983,750
colors
3 6,61
3 390 2,578,875
colors
4 7,60
4 435 3,307,903
colors
5 8,74
5 480 4,197,615
colors
6 10,05
7 525 5,279,813
colors
7 11,56
5 570 6,592,223
colors
8 13,30
0 615 8,179,561
colors
9 15,29
5 660 10,094,775
colors
Product 5
By Dagim Lulseged
Unit
Price in ETB
ETB
1 2,5
home and industrial appliances, wire
00 150 375,000
and cable
2 2,5
63 173 442,031
and cable
3 2,6
27 195 512,180
and cable
4 2,6
92 218 585,559
and cable
5 2,7
60 240 662,288
and cable
6 2,8
29 263 742,487
and cable
7 2,8
99 285 826,282
and cable
8 2,9
72 308 913,802
and cable
9 3,0
46 330 1,005,182
and cable
By Dagim Lulseged
By Dagim Lulseged
5. Project Schedule
Table-5: Action plan
Activity First quarter Second quarter Third quarter Fourth quarter

April May Jun. Jul. Aug. Sep. Oct Nov Dec Jan Feb. Mar.
Prepare project
proposal
Submit the proposal
and process license
Purchase machines and
other related
equipment
Installation of the plant
Construction of office
and store
Purchase of Office
furniture
Man power
Recruitment
Start the work
By Dagim Lulseged
The civil works and installation of plant is estimated to complete in 3 months
By Dagim Lulseged

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THE FEASIBLITY STUDY ON ESTABLISHMENT OF PAINT PRODUCTION FACTORY.

DAGIM PAINT FACTORY

products at competitive prices to be used by different sectors to contribute to the

DURATION OF THE PROJECT AND IMPLEMENTING AGENCY

FINANCIAL BUDGET OF THE INVESTMENT

Total financial requirement =ETB 67,879,139.00

Capital investment =ETB 34,674,000

Operating cost = ETB 33,205,139

COMPANY AND INDUSTRY

The Paint industry:

- Supports the construction sector providing various types of

Dagim Paint Production Company is planning to manufacture high quality paint

RISK ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

 The manufacturing process

Dust collection typically involves placement of local exhaust ventilation systems

MARKET RESEARCH METHOD AND IMPLEMENTATION

The Target Market is the groupings of consumers or businesses most likely to

PRODUCT FEATURES AND BENEFIT

The expected beneficiaries of this project are:

 Government and non-government organizations will also be the

Start by reviewing customer complaints, questions, and comments. If you don't

In modern business philosophy business should be customer oriented and the

 Define Mission and Objectives

 Strategies and Action

 Monitoring Key Projects/Objectives

In the manufacturing industry, marketing is considered to be of significant

The use of a specific type of information on prices to represent the evolution of

 Unique product transactions are not periodically priceable and have to be

 Complex products have to be reduced to manageable units (e.g. telephony);

 There is limited knowledge about complex products whereby the issue of

 Classifications and information for a weighting scheme are not available

 Limited human resources;

 Representativeness of a small product panel is problematic.

SALES AND FORECAST

In order to determine the forecasted sales revenues, we need to multiply the

The EU is self-sufficient in the production of construction minerals, including

MACHINERY AND EQUIPMENT

Legal & Administrative  Legal Form (proprietorship, partnership, corporation,

MANAGEMENT AND ORGANIZATION STRUCTURES

Modjo Town Administration is Near to Addis Ababa, the capital of Ethiopia,

 Accountant, Lawyer, Engineering and Technician, human resource is use in

ORGANIZATIONAL STRUCTURE AND CHART

Business form: this business is going to be established in the form of sole

Finance Manager Marketing Manager Human Resource Manager

Accountant Marketing Officer Personnel officer General Services Officer

EFFECTIVE MANAGEMENT STYLE

Management style is a managerial parlance often used to describe the how of

Management style can be understood as a way to manage an organization.

SOCIO ECONOMIC STUDY

ECONOMIC BENEFIT FOR THE COMMUNITY: As the matter of fact, any

ECONOMIC CONTRIBUTION TO THE COUNTRY: This project has

FINANCIAL BUDGET OF THE INVESTMENT

10.1 Total financial requirement =ETB 67,879,139.00

10.2 Capital investment =ETB 34,674,000

10.3 Operating cost = ETB 33,205,139

 Utility expenses: this includes such periodical costs as incurrence of liabilities

 Miscellaneous expenses: Expenses for which it is neither economical nor

2.0. Budget Breakdown