Land requirements

SN Description (M²)
1 Plant building 2,200.00
2 Product finishing room 400
3 Raw materials room 300
4 Office Space 200
Living accommodations for on
5 duty 300
6 Green Area 1,180
7 Security Guard Room 50
Inner Roads, Parking and
8 Unloading Area 1,200
Total 5,830.00
 Projected
year Demand (m2)
2013 3,296
2014 5,323
2015 7,574
2016 10,073

2017 12,846
2018 15,925
2019 19,342

2020 23,135
2021 27,345
2022 32,019
2023 37,206
2024 42,964
2025 49,356
SN Description Cost in birr
1 Project proposal 10,000.00
2 Licensing fee and others
Total 10,000.00
 PP Sheets PP Mats
PP Bags (pcs) (M²) (M²)
15,000 11,000 12,000

Description Years 1 Years 2 Years 3-10

Capacity Utilization (%) 70 90 100

PP Bags (pcs) 10,500 13,500 15,000
PP Sheets (M²) 7,700 9,900 11,000
PP Mats (M²) 8,400 10,800 12,000

Description Years 1 Years 2 Years 3-10

PP Bags (pcs) 735,000 945,000 1,050,000
PP Sheets (M²) 847,000 1,089,000 1,210,000
PP Mats (M²) 1,008,000 1,296,000 1,440,000
Total 2,590,000 3,330,000 3,700,000
Increase by 5 % per
annum after 2nd year 185,000
Grand Total 3,885,000
 Price of
Product company

PP Bags (pcs) 70
PP Sheets (M²) 110
PP Mats (M²) 120
 Total cost
SN Description MeasuremeQty Unit cost inin Birr
1 Managerial tables Unit 5 4,000.00 20,000.00
2 Guest chairs Unit 2 600.00 1,200.00
3 Computer with chairs Unit 1 12,000.00 12,000.00
4 Shelf Unit 1 3,000.00 3,000.00
Total 36,200.00
SN List of Items Annual cost in birr Assumptions Used

1 Audit and legal fee 2,400.00 200 birr/per ,month

2 Stationery supplies 2,400.00 200 birr/month

3 Promotional Cost 2,000.00 Lump sum annual cost

4 Property Insurance 36,000.00 1% of the building

5 Cleaning Supplies 12,000.00 1000 br. Per month
6 Uniforms 3,600.00 200 per person for 18 people
Water
7 consumption 5,000.00 2500 m3 by 3.15 birr
Electric
8 consumption 6,000.00 20000KWH By Br.0.4736
9 Fuel 0.00 2032 lit per year by Br. 21
10 Oil & lubricants 0.00 10% of fuel cost
11 Telephone & fax 6,000.00 500 per month
12 Repair expense 72,000.00 2% of building cost
Miscellaneous
13 costs 9,600.00 800 per month
Total 157,000.00
 Monthly
salary in Annual salary in
SN Position No Birr Birr
1 Factory Manager 1 3,000 36,000
Production and Tech
2 Manager 1 1,200.00 14,400
3 Machine Operators 1 1,500.00 18,000
4 Process testers 1 1,800.00 21,600
Sales & Marketing
5 Manager 1 1,800.00 21,600
Administration and
6 Finance manager 1 2,000.00 24,000
7 Accountants 1 1,500.00 18,000
8 Cashier 1 1,500.00 18,000
9 Production workers 30 1,200.00 432,000
10 Store Keepers 1 1,200.00 14,400
11 Guard 2 1,700.00 40,800
12 Driver 1 2,200.00 26,400
13 Cleaner 4 1,600.00 76,800
Grand Total 46 762,000
SN Item Measurement Qty Unit Price in Total Price in Br.
Br.

1
Double screw extruder
with power loader Unit 1 300,000.00 300,000.00
2 Injection Molding Unit 1 25,000.00 25,000.00
3 Blow Molding Machine Unit 1 25,000.00 25,000.00
4 Crusher 14” Unit 1 10,000.00 10,000.00
5 Molds Unit 3 35,000.00 105,000.00
Lathe Machine
6 Support 8 F1
structure Unit 1 32,000.00 32,000.00
7 (cutter, batteries, etc.) Set 1 40,000.00 40,000.00
8 Mold Unit 1 30,000.00 30,000.00
9 Vacuum Thank Unit 1 98,000.00 98,000.00
Hauling Offcutting
10 Automatic Unit 1 60,000.00 60,000.00
11 machine Unit 1 75,000.00 75,000.00
Stacker
12 Scrap line (Recycling Set 1 46,000.00 46,000.00
13 machine) Set 1 50,000.00 50,000.00
14 Oil-Ink Printer Unit 1 19,000.00 19,000.00
15 Compressor Set 1 18,000.00 18,000.00
16 Chiller unit Unit 1 25,000.00 25,000.00
Total 958,000.00
S.N Description of works Total Cost in birr
1 Building construction 3,600,000.00
2 Site Development 431,400.00
3 Design and supervision 45,400.00
1st Year land lease &
4 (10%) down payment 0.00
Total 4,076,800.00

6,000,000.00
6,000,000.00
-

SN

2
3
4

5
6
7

SN
1
2
3
4
Description Cost in Birr 0.10

Land, building & construction 4,076,800 10.00

Building machines &
Equipments 958,000.00 10.00
Vehicle 0.00 10.00
Office Equipment 36,200.00 10.00
Total fixed investment cost 5,071,000
Salary expense 762,000
Operation Expense 157,000.00
Pre service Expense 10,000.00
Total Working capital 929,000
Total initial investment
capital 6,000,000.00

Original Value in Depreciation Depreciation

Description Birr rate in % per year in Birr
Construction and Building 4,076,800 10 407,680.00
Bldg. machines & Equipment’s 958,000.00 10 95,800.00
Vehicle 0.00 10 -
Office Equipment 36,200.00 10 3,620.00
Total 5,071,000 507,100.00
Depreciation rate in Descrip Unit Cost in
SN UOM Qty
% tion Fr.
Mini-
1 Unit 1 0.00
407,680.00 Bus

2 Pick-up Unit 1 0.00

95,800.00
- 3 ISUZU Unit 1 0.00
3,620.00 Total
507,100.00
Total cost in
Remark
Birr

0.00 Duty Free

0.00 Duty free

0.00 Duty free

0.00
Revenue Year 1 Year 2
Product revenue 2,590,000.00 3,330,000.00
Gross Revenue 2,590,000.00 3,330,000.00
Expenses
Salary Expense 762,000.00 838,200.00
Operating Expenses 157,000.00 172,700.00
Deprecation Building 407,680.00 407,680.00
Deprecation Bld. Machineries and Equip. 95,800.00 95,800.00
Deprecation of Vehicle 0.00 0.00
Deprecation office Equip 3,620.00 3,620.00
Interest Expense 301,177.90 331,295.68
Lease payment 0.00 0.00
Total Expense 1,727,277.90 1,849,295.68
Profit before Tax 862,722.10 1,480,704.32
Tax (30%) 258,816.63 444,211.29
Net profit 603,905 1,036,493
Year 3 and after
3,885,000.00
3,885,000.00

922,020.00
189,970.00
407,680.00
95,800.00
0.00
3,620.00
364,425.25
0.00
1,983,515.25
1,901,484.75
570,445.42
1,331,039

301,178
331,296
364,425