Project proposal on:

Establishment of cone yarn dyeing plant & apparel retail business in

Ethiopia.

Set By: Enquzer Getachew

Executive summary
Ethiopia is one of the fastest growing African countries. The past trends of GDP growth shows
that the country is spurring its industrial growth by an average of 11%. Textile and garment
sector is also gearing up to an enormous growth after the introduction of various huge and
popular textile brands in to the country on the basis of exporting business.

Based on the currently conducted insights ,the garment industry is exhibiting demands of new
textile accessories,raw materials and inputs due to the ever growing desire of the fashion industry
and consumers contemporary approach towards textiles and clothing. One of the main inputs
showing enourmous demand in the market is dyed textile yarns in the form of cone. Inorder to
launch the manufacturing facilty in the country the process needs a number of consequential
machineries .the process urges natural or artificial yarns as an input i.e. cotton or
polyester/viscose. The best integration of dyeing process leads to a great success to solve colored
yarn inadequacy in the market. The overall cost to purchase the cone dyeing machinery is
estimated to be 200,000 USD.

The other business aimed to introduce and retail finished apparel products by importing from
Asian countries such as Pakistan. Some of these products include children wear,jeans,and other
upper wears. For a startup there is about 10,000 pieces of finished apparel products to be
imported for an introductory retail business.
1. Product description
1.1 Dyed cone yarns
The main raw material is dye. Cotton being a cellulosic fiber requires Direct, Reactive, Vat,
Sulfur or Azoic dyes. Color, fastness, uniform appearance and cost are the key parameters for
selection of dyes. Vat dyes are expensive but offer good wash and light fastness while reactive
dyes are increasingly used because of cost advantage. Since dyeing process uses large quantity of
water, some water softening chemicals are also required. Dyes of different colors and qualities are
available in all industrial cities.
 2. Technology

Cotton yarn is packed by the spinning mills in hank or cone form. Hank yarn can be dyed in the hank
form itself by placing it in dye bath. Yarn on the cones needs to be rewound into soft cones to ensure dye
penetration in the inner layers of the yarn. Original grey yarn is therefore wound on collapsible spring
tubes in cheese winder to prepare soft packages. These tubes are kept on the pegs of dye chamber wherein
dye reaches inner layers of the yarn. Dyeing cycle requires yarn to be kept in dye for certain period of
time at a certain temperature depending on type of dye used and shade required. After dyeing, the excess
water is removed and hank / soft cones dried completely. Yarn on collapsible cones is rewound on paper
cones in a winding machine and packed in bags or cartons.
 3. MANPOWER REQUIREMENT:

The enterprise requires 9employees as detailed below:

1 Dye House Manager 1

2. skilled workers quantity 2

3 Marketing Executive 1

4 Lab / ETP Technician 1

5 Stores / warehouse Assistant 1

6 Accounts Executive 1

7 Production Supervisor1
4. Investment cost

Sr. Particulars Uom Quantity Value in usd

Main Machinery
Plant and machinery
equipments
1 Dye Bath for Hank Pc 1 14,000
Yarn
2 Pressure Dye Machine Pc 1 56,000
for cones
3 Boiler Pc 1 14,000
4 Cheese winders (30 Pc 1 7,000
spindles
5 Rewinder (Indigenous) Pc 1 28,000
(30 sp)
6 Water Softening Plant pc 1 7,000
Ancillary machinery
7 Hoist pc 1 1,400
8 Trolleys set 1 2,800
9 Washing machine pc 1 4,200
10 Material pc 1 4,200
handelingequipments
11 Laboratory pc 1 7,000
equipments
12 Pollution control pc 1 10,500
equipments
Total 156,000

*In addition to the above cost office furniture,storage systems electrical instalations ,computers,
transporting vehicle would cost up to 50,000 usd which will be near to a total estimation value of
200,000 USD.
Finished apparel products retailing
business overview
 1. Product description

1. Children wear
2. Jeans trousers for both adults and children
3. Extra-large sized wear

Retailing techniques

2. Selling to the whole sellers

 On the first round finished apparels categorized on three different groups will be sold
directly to whole sellers. The whole sellers are located in the biggest market in Africa
i.emerkato.
2.1 price estimation
 The samples from each category should be dispatched for presentation inorder to
compare and contrast their market whole selling price in Ethiopia. Once we arrive on a
good agreement they will take the products on continuous basis.

3. Selling for boutiques

 In addisababa there are more than 1000 medium and large clothing sale boutiques. Once
we dispatched and let the boutique owners take a look at the products they will give us an
offer.

4. selling for kid stores

 The kid wear market is extensively growing in addisababa.afterthe selling process passed
the price estimation and product introductory stage these selling stores will reach on an
agreement to take it on continuous basis .

Basic requirements

 Good sales person

 Ware house for storage
 Tracing out good market destinations.
 5 Price estimation

Sr. Item Unit Quantity Fob price

1
2
2
3
4
5
6
Overview of Children and
adult diaper manufacturing
1. Product description

A diaper (American English) or a nappy (British English) is a type of underwear that allows the wearer to
defecate or urinate without the use of a toilet, by absorbing or containing waste products to prevent
soiling of outer clothing or the external environment. When diapers become soiled, they require changing,
generally by a second person such as a parent or caregiver.

Disposable diapers contain absorbent chemicals and are thrown away after use. Plastic pants can be worn
over diapers to avoid leaks, but with modern cloth diapers, this is no longer necessary. An adult diaper (or
adult nappy) is a diaper made to be worn by a person with a body larger than that of an infant or toddler.

A sanitary napkin, sanitary towel, sanitary pad, menstrual pad, or pad is an absorbent item worn by a
woman while she is menstruating, while she is recovering from vaginal surgery, for lochia (post-birth
bleeding), after an abortion, or in any other situation where it is necessary to absorb a flow of blood from
the vagina.

2. Market for Diapers

The Demand for Adult Diapers Predicted to Increase due to:

 Growing aging population

 Urbanization Increased
 awareness of treatment methods for urinary incontinence
 Economic affluence
 Improvements in the healthcare sector
3. Technology

3.1 Baby Diaper Machine

This is a baby diaper machine from

Asia. The photograph shows the main
working area of the machine from
formation of the absorbent core to the
final bi-fold of the finished diaper.
In production, a fluff pulp mill will be
positioned at the right hand end of the
machine and normally a counter/stacker
will be at the left hand end to count the
diapers and align them before they are
pushed into the manually held bag or
into the automatic packaging machine.

3.2 Adult Diaper Machine

This is basically a larger version of the baby diaper machine. In some cases the material feeds are brought at right
angles to the machine as can be seen in this photograph.
 Cost headings Cost Items DCS Input Client Input

Main machine
Main machine financing Financing rates
specification & cost

Collateral Spec. & costs coll.

Financing rates
machinery/equipment machines
Fixed Overheads
Production and storage
Rent, rates, insurance Rental rates
area

Normal management
Admin./management Management rates
levels

Machine and stores

Direct labour costs Labour rates
personnel

Power and water

Power/water Power rates
Variable Overheads requirement

Consumables General cost level

Repairs and maintenance Predicted cost level Technician rates

Production figures per Preferred machine cost or

Machine capacity
shift speed
Production Level
Predicted annual
Machine efficiency
efficiencies

Product recipe and Local freight, duties and

Raw materials
material costs charges.
Materials and
Bags Bag costs Pack sizes
Packaging
Box, wrapping and pallet
Boxes/wrapping/pallet Box sizes
costs

Machine waste Predicted waste levels

Waste
Quality rejects Predicted seconds levels

Sales, Marketing, Sales costs Advice on sales Marketing information

 requirements

Distribution Advertising Advice on marketing

Freight costs Quantities per container Freight charges

Typical Machine Costs

All high speed disposables machines are purpose-made to suit exact client requirements. They vary greatly in price
based on the following main parameters:

- Machine speed
- Product features
- Product quality
- Machine reliability/efficiency

The following tables give approximate minimum costs of typical baby diaper and sanitary
napkin machines. These should be treated only as guidelines since there are many different
manufacturers in Americas, Asia and Europe that offer different levels of machinery and after-
sales support.

Note: There are home-based machines on sale with extremely low outputs. I do not show or list
these machines since I do not feel that their product can compete against that of the automatic
machines shown below.

Minimum
Machine speed Product type
Cost

Baby Diaper
Slow speed -100dpm Economy $150,000
Machine

Medium Speed 300- Medium

$1,000,000
400dpm /Premium

High speed 500-600

Premium $3,500,000
dpm

Top speed -1000dpm Premium $8,000,000

Machine speed Product type Minimum

 Cost

Sanitary Napkin
Slow speed - 250ppm Economy $100,000
Machine

Medium Speed - 500ppm Econ/Premium $350,000

High speed - 800ppm Premium $1,000,000

Top speed - >1500ppm Premium $3,000,000

Second-hand machines

There is a market in second-hand manufacturing machinery. However, there is more risk involved in the purchase of
such a machine directly from the vendor. I would always recommend purchasing from a machine manufacturer or
reputable machine modifier who will give some guarantee of performance and provide training for your machine
operators.
As part of my service when comparing new and second hand machines, I will check what is available in this market.

*As part of our Feasibility Study service I list the overall dimensions of machines as well as production and storage
areas required. Also all other ancillary machinery that you will need such as stacker, packaging machines,air
compressors, dryers adn generators*

Product Recipe

Below is a typical recipe for a baby diaper. In this case it is a Maxi or Large size, the best selling size worldwide.

The manufacturer has estimated in this example that he averages 4% waste for the diaper raw materials and 2% for
the packaging. Company operating procedures must be set up clearly at the outset to ensure that these waste levels
are accurately monitored and controlled. This is one of the key factors in success or failure in the industry.

I will assist you by creating these detailed recipes for your product. I will provide the material costs adjusted for
your geographical area and size of production unit.

PRODUCT SPECIFICATION : Maxi 28 28+9

(Sq. cm, cm). (Grams) (Grams) (Cents)

Units Price Area/Lgth Weight Waste Cost

Fluff $/Tonne 15.465 3% 0.000

SAP $/Tonne 9.000 3% 0.000

Tissue 18gsm $/Tonne 1014.0 1.876 3% 0.000

Non-woven $/1000m2 1617.0 3.719 3% 0.000

 Backsheet $/Tonne 1592.5 3.758 3% 0.000

ADL 40gsm $/1000m2 182.0 0.728 3% 0.000

Foam elastic $/1000m2 36.0 0.194 3% 0.000

Hook Tape $/ m. 5.2 0.600 3% 0.000

Loop Frontal $/1000m2 86.0 0.420 3% 0.000

Leg Elastic $/Tonne 84.0 0.052 3% 0.000

L/Cuff Elastic $/Tonne 39.2 0.024 3% 0.000

L/Cuff N/w $/1000m2 490.0 1.127 3% 0.000

Elastic Glue $/Tonne 0.300 3% 0.000

LC El Glue $/Tonne 0.130 3% 0.000

Constr. glue $/Tonne 0.850 3% 0.000

LC Con Glue $/Tonne 0.150 3% 0.000

Lotion $/Tonne 0.200 3% 0.000

R.M.Total 42.000 0.000

Price Pack Size Cost

Bags $/unit 0 28 2% 0

Boxes $/unit 0 168 2% 0

Wrap $/roll 0 21504 2% 0

Pallet $/unit 0 2688 2% 0

Pack Total 0

Total material cost (Cents)

Overhead cost (Cents)

Total Cost/diaper (Cents)

Total Cost/bag ($/bag)

Productivity

In order to operate your new manufacturing company profitably, you should aim to fill at least one full shift of
production on your proposed machine. The following example will show what production level you can expect from
these machines.
The efficiency is normally assumed to be circa 70% of available production. This can be exceeded if size
changeovers are minimised and operators are well trained.
At the start of manufacture with untrained staff or with more basic machines an approximate efficiency of 60%
should be assumed.
Baby Diaper example-

Economy diaper machine producing 250 diapers per minute - 4 sizes

Guideline 70% efficiency for working time
Example: Assuming 8 hour shift with 30 minute break = 7.5 hours working.
Daily production = 250 x 7.5 x 60 x 70% = 78,750 per day.
Annual production = 240 x 78,750 = 18.9 million diapers per year for one shift.
(Assuming 5 day working week and 4 weeks holiday shut-down per year)

Factory Set-up

1) Machine selection.

2) Factory preparation
3) Raw Material sourcing

4) Staff recruitment

5) Production and Quality systems