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Ethiopia.

Feasibility Study for Assembly of

Bicycle Project Proposal Business
Plan in Ethiopia.
by Suleman Mossa

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Assembly of Bicycle Project Proposal

Project Proposal on Bicycle Assembly Business Plan in Ethiopia.

This pro le envisages the establishment of a plant for the assembly of bicycle with a
capacity of 30,000 units per annum. Bicycles are very useful and popular simple
machines that serve as personal means of transport.

The demand for bicycles is met through import. Accordingly present (2021) effective
demand for the products is estimated at 48,950 units. The demand for bicycles is
projected to reach 68,655 units and 96,293 units by the year 2025 and 2030,
respectively.
.
The principal raw materials required are front wheel assembled, rear wheel assembled,
crank, pedal, chain & sprocket assembled, steering fork assembled, and frame
assembled all of which have to be imported.

The total investment cost of the project including working capital is estimated at Birr
24.21 million. From the total investment cost the highest share (Birr 15.35 million or
63.42%) is accounted by initial working capital followed by xed investment cost (Birr
6.83 million or 28.20%) and pre operation cost (Birr 2.03 million or 8.38%). From the
total investment cost Birr 1.58 million or 6.53% is required in foreign currency.

The project is nancially viable with an internal rate of return (IRR) of 22.50% and a net
present value (NPV) of Birr 20.67 million discounted at 10%.

The project can create employment for 52 persons. The establishment of such factory
will have a foreign exchange saving effect to the country by substituting the current
imports. The project will also generate income for the Government in terms of tax
revenue and payroll tax.

Product Description and Application

Bicycles usually consisting of two wheels xed to a frame, steered by handlebars, and
propelled by an arrangement of pedals and gears that are driven by the feet. Different
types of bicycles are tailored for different kinds of riding. The term bicycle is sometimes
extended to include rider -propelled three-wheeled tricycles, which are favored by
young children and others, who lack the balance needed to operate a two wheeled
bicycle.

Bicycles are very useful and popular simple machines that serve as personal means of
transport. Designed mainly for one man ride (and non sportive use) in this project, the
bicycles can also be made for two people ride and also to carry goods. A carrier is added
to the assembly for goods and people In case of options, the bicycle being free from any
fuel input it is cheap to use and preferred by many people of all ages and income.
Bicycles are very popular in many cities of our country where the landscape of the city is
level and free from steep roads.

Plant Capacity

The envisaged plant will have a capacity to assemble 30,000 units of bicycles per
annum, working 300 days and in one shift (8 hours) per day. The remaining days are
provided for annual maintenance and unexpected down times.

Production Program

Since bicycle assembly is a new plant in the country it will take some time to develop the
skill and penetrate the market. Considering the time required for skill development and
market penetration the plant is assumed to operate at 75% of its installed capacity in
the rst year operation. It will gradually increase to 85% during the second year of
operation. Full capacity operation (100%) will be achieved in the third year and then
after (see Table 3.3).

Raw and Auxiliary Materials

The various parts are imported as raw materials sub assembled in nine different units.
The total annual raw material cost is Birr 70.34 million. The raw materials required and
the associated cost is shown in Table 4.1.

Assembly Process Discription

The main production process is assembly of nished and semi assembled parts into
complete Bicycle. The raw material will be imported in semi assembled parts in nine
main units. Each Unit will be assembled on the frame. From the raw material input to the
nal nished product there will be six sub assembly lines and three main assembly lines.
There will be ve men on each main assembly line.

Plant Machinery and Equipment

Total cost of machinery and equipment is estimated at Birr 1.9 million of which Birr 1.58
million is required in foreign currency. The list of the required machinery and equipment
is presented in Table 5.1.

Land, Building and Civil Works Cost

The envisaged plant requires a total land area of 1,000 m2, of which 750 m2 would be
built-up area. Building construction cost at a rate of Birr 5,000/m2 is estimated to be
Birr 3.75 million.

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Standard Project Report – Map of National Bank of Ethiopia

 A Standard project report for new business ventures is quite important in getting the
project itself off the ground. Therefore the project Feasibility Study report should be
prepared as per National Bank Standards.

The project report covers all the aspects of business; from analyzing the market,
con rming availability of various necessities such as plant & machinery, raw materials to
forecasting the nancial requirements. The project also provides sectoral information,
brief on Government policies and international scenario, which have some bearing on
the project itself.

The scope of the report includes assessing market potential and investment decision
making. in a very planned manner by formulating detailed manufacturing techniques
and forecasting nancial aspects by estimating the cost of raw material, formulating the
cash ow statement, projecting the balance sheet etc.

A SWOT analysis is often carried out in the initial reports. This helps to identify the
strengths, weaknesses, opportunities and threats of the business or a project.

The project so formulated considering the below-mentioned aspects and submitting

to any bank for availing credit facility for establishment of the project. The bank will
then examine the project for its technical feasibility, nancial viability and
bankability.

Need Customized Feasibility Study or Business Plan for Bank Loan?

Ask for FREE project related details with our consultant/industry expert.

Our realistic project reports for bank Loan accompanied by a detailed nancial plan can
make all the difference to get the funding you need.

Our consulting rm can prepare successful and standard project reports for
commercial agriculture, agro-processing, manufacturing and service enterprises as
per National Bank Standards.

Al lProject Feasibility Studies| Business Plans will be prepared by experienced certi ed

consultants and the market research and analysis are supported by computerized data
bank.

Our Service Packages

Haqiqa Business Solution helps entrepreneurs all over the world to start and grow businesses successfully
and pro tably. We provide you with business ideas and smart solutions that help you to build a pro table
business empire. We have plenty of resources that will assist you in your entrepreneurship journey.

Auditing Financial Statements

Preparation of Successful Business Plans | Feasibility Study, Project Pro les for
Manufacturing Plant, Commercial Agriculture. Agro Processing and Service
Enterprises.
 Preparation of  Project Proposals for NGOs,
Market Research Study, which will make it easier for your to start and run your
business pro tably. 
Technical  and Commercial Counseling for setting up new industrial project and
Most Pro table Small Scale Business.

PROJECT REPORT TABLE INDEX.

Each ‘Haqiqa Business Solution’ MARKET OVERVIEW CUM DETAILED TECHNO

ECONOMIC FEASIBILITY REPORT (Complete Report) tentatively covers.

01  Executive Summary

02  Product Description and Application
03  Market Study   

Present Demand and Supply

Export & Import Statistics Data
Projected Demand
Names and Addresses of Existing Units (Present Manufactures) 
Pricing and Distribution

01  Technical Study

Plant Capacity and Production Program

Availability and Source of Raw and Auxiliary materials
Material Requirement and Cost
Electri cation, Electric Load and Water
Location and Site

01  Technology and Engineering

TECHNOLOGY
Production Process
Machinery and Equipment
ENGINEERING             
Construction Process
Civil Engineering Cost
Plant Layout

01  Human Resource and Training Requirement

Human Resource.
Training Requirement

01  Economic and Social Bene t and Justi cation

Pro t Generation
Import Substitution and Foreign Exchange Saving
Employment and Income Generation
Environmental Impact

Financial Analysis details as under:

01  Underlying Assumption

02  Initial Investment Cost
03  Production Cost
04  Sources of Finance
05  Financial Evaluation:
Break-Even Analysis and pro tability analysis
Simple Rate of Return
Internal Rate of Return/IRR and Net Present Value/NPV
Sensitivity Analysis

Annexure-Financial Statements will be for 5 to 10 Years:

Annexure:: Net Working Capital

Annexure:: Projected Cash Flow
Annexure:: Discounted Cash Flow
Annexure:: Projected Income Statement
Annexure:: Projected Balance Sheet
Annexure:: Loan Amortization Schedule
Annexure:: Project Implementation Schedule

_______________________________________________________________________________________________________________

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Feasibility Study for Coffee Plantation & Development Business Plan in Ethiopia Pdf

Project Proposal on the Production of Industrial Adhesivein Ethiopia Pdf

Get In Touch//

Suleman Mossa General Manager     

Mobile = +251 944-22-82-55 

WhatApp, Telegram, imo and Messanger Contact = +251 944-22-82-55 

Piazza, Kelifa Business Center Of ce No.507 Addis Ababa, Ethiopia

E-mail:   haqiqa2000@gmail.com

Website ፡   www.ethiopianauditor.wordpress.com

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