Project Proposal on Mineral Water Bottling Plant

PROJECT PROPOSAL

FOR

MINERAL WATER BOTTLING PLANT

PROJECT TO BE IMPLEMENTED IN OROMIA REGIONAL STATE,

BALE ZONE,GOBA WOREDA AT WALTAHI-TOSHA

PROMOTER: - BESHIR UMAR

May, 2022

FINFINNE, ETHIPIA

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 Project Proposal on Mineral Water Bottling Plant

Table of contents
I. Executive Summary

1. Introduction
1.1 Background …………………………………….…………………………….……….7
1.2 Objectives of the product ……………………………………………..…...…………..8
1.3 The project Description and Application ……………….…...……….……………...10
1.4 Location Map of the Area …………………………….……………………..……….10
2. General Market Study and Plant Capacity
2.1 Past Supply and Present Demand…………………………………………….………12
2.2 Project Demand ………………………………………………..……………………..12
2.3 Pricing and Distribution …………………………………………….…………….…13
2.4 Plant Capacity and Production Programmed ……………………………..………..13
2.5 Material and Inputs…………………………………………………………………..14
2.6 Land requirement and land use plan……………………………………..…….....…15
2.7 Technology and Engineering…………………………..……………………….....….16
2.8 Bottling Line Process Flow Diagram………………………………………….………
17
3. Organization Structure, Management and Manpower
3.1 Man power Requirement ………………………………………………...............…..18
3.2 Organizational Structure……………………………………………………...…..….20
3.3 Organizational Management duties and Responsibilities……………………....…....22
4. Financial Requirement and Analysis

4.1. Total Initial Investment Cost………………………………………………………...24

4.1.1. Fixed Investment …………………………………………………………24

4.1.2. Initial Working Capital………………………………………………..…27
4.2. Financial Analysis and Statements ………………………………………..………...28

4.2.1. Underlying
Assumption………………………............................................28
4.2.2. Source of Fund …………………………………………………………...29
4.2.3. Loan Repayment Schedule …………………………………………….....29
4.2.4. Annual depreciation schedule of the fixed asset ( birr)………………....30
4.2.5. Balance Sheet (Beginning)………………………………………………..30
4.2.6. Revenue Projection……………………………………………………......31
4.2.7. Income/Loss …………………………………………………………...…32
4.2.8. Cash Flow Analysis……………………………………………………….32

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 Project Proposal on Mineral Water Bottling Plant

4.2.9. Profitability……………………………………………………...……..….33
4.2.10. Pay-Back Period……………………………………………………….….33
5. Environmental Impact of the project

5.1 Socio Economics Environments …………………………………………………….…...….33

I. EXECUTIVE SUMMARY

1 Project Type Mineral Water Bottling Plant

1.1. Status New

1.2. Sector Industry ( Water Bottling)

2 Project Owner Beshir Umar,Diaspora USA

3 Nationality Ethiopian

4 Project Location Oromia Region,

Bale Zone,
Goba Woreda, At Waltahi-Tosha

5 Project  Water Treatment Plan

Accommodation  Bottled Blowing
 Rinsing - Filling – Capping
 Labeling
 Heat Shrinking
 Shrink Wrapping machine
 Defence & aerospace,
 Medical and healthcare,

6 Premises Req  2.78Hek. , which is equivalent to 27,800 M2

7 Total Capital  The total of birr 50,000,000 is required.

 From this 30% (birr 15,000,000.00) will be covered by the promoter of the
project,
 While the rest 70% (birr 35,000,000.00) `will be covered by bank loan.

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 Project Proposal on Mineral Water Bottling Plant

 Loan Repayment Period:- 10 years

 Interest Rate:- 8-12 %

The total manpower requirement for the plant will be 160 employees at full
capacity.
8 Employment
Opportunity  Permanent Workers 104
 Skilled 50
 Unskilled 54
 Temporary Worker 106
 Skilled 6
 Unskilled 50

9 Benefits of the Produce and supply Mineral Water Bottling Plant Source of revenue, create
factory for the employment opportunity, save foreign currency, benefit for the local
region/ country community, stimulate the local economy and transfer technology

10 Proposes of To add line of products and upgrading existing the project so the land uses is not
expansion Land success full to start the project.

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 Project Proposal on Mineral Water Bottling Plant

1. INTRODUCTION

Manufacturing Sector make up the largest and the most important segment of the
industrial sector in Ethiopia. Besides, development of such industries accelerates the fast
economic growth of Ethiopia and will help the nation lay its economy foundation on
strong industrial base.

The government of Ethiopia has developed a conductive investment policy packages and
other sect oral reforms at federal and regional level to attract a huge private investment for
the wellbeing of the nation and its citizens as a whole. Besides, it is also currently
implementing the five years growth and transformation plan gave a special focused for
manufacturing industries.

In this regard, oromia regional state government has been exerting its maximum effort to
expand investment opportunities in the region, so as to foster the economic development
of the region and subduing the region’s big enemy that is the trap of poverty. Therefore,
the regional government has been preparing a viable business environment to attract many
domestic and foreign investors so that the dream of making poverty history turns to be
true.

Therefore, the lucrative market potential an those viable investment policies

attracted the owners of this project to engage in the production of purified mineral
water in Oromia regional state, Bale Zone,Goba woreda, At Waltahi-Tosha.
The owners of the envisaged plant have a good business experiences and knees to extend
these assets to this plant. Therefore, the owner is very determined to establish the project
and considers getting the required support from regional government by considering the
existing facts and the multi benefits of this project.

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 Project Proposal on Mineral Water Bottling Plant

1.1 Background

Bottled mineral water plant is a material of any wide ranges of synthetic or semi-synthetic solids
that are_moldable. Chemically Bottled are typically_organic polymers_of high_molecular mass,
but they often contain other substances. They are usually synthetic, most commonly derived
from_petrochemicals but many are partially natural. One of the key functions of Bottled mineral
water is packaging, which according to evidences accounts for over 35 per cent of the global
Bottled mineral water. Amongst the individual Bottled, the type known as Polyolefin accounted
for 53 per cent of the total consumption, which accounts for 16.5 per cent.

Ethiopia has a range of business doing opportunities around the country and at the same time
ample scope for industrial investment. Presently, Small Scale Bottled mineral water in Ethiopia
has noteworthy contribution. The industry is also believed to provide opportunities ahead as the
country continues to grow. Regional Government of Oromia investment commission was
established in 1985 E.C as a focal organization to promote investment and handle all investment
issues in the regional state of
The project is to be located in Oromia regional state, East Bale zone, Goba district is one of the
administrative parts of east Bale zone which occupied about 2.384 square kilometers of land out
of the total area of the zone (69,661km2) this coverage of land leads the district to have a share of
3.4% of land out of the total area of the zone the district capital is robe. The capital of the district
(Robe) has a distance 430 km from the capital city of the region and the country of a country,
Finfine. The oromia investment commission has been exporting it is maximum effort to expand
investment opportunities in the region so has to faster the development of the region and sub
during the city being enemy that is the trap of poverty. Therefore aside with the government
duties and responsibility visited on it.
Bale Zone Goba Woreda At Waltahi-Tosha investment office has been preparing available
business environment to attract many domestic and foreign investor so that the drime of making
poverty history tern to been true. Since it is this available investment police which invited Mr.

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 Project Proposal on Mineral Water Bottling Plant

Beshir Umar to develop the interest and motivation of opening the Bottled mineral water plant in
area aforementioned.

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