Ugas Sapital Goods Alum

Somal Turki Aluminum and Pvc CO.
ALUMINIUM DOOR AND WINDOS MANUFACTURING

BUSINESS PLAN
SUBMITTED TO:- DEVELOPMENT BANK OF ETHIOPIA / JIGJIGA BRANCH
G/Manager:- HUSEN ARALE MOHAMMED
Prepared By DAYAH CONSULTING SURVICE
5/11/2023
JIGJIGA
Table of Contents
LIST OF TABLE..............................................................................................................................4
PRELIMINARY DESCRIPTION....................................................................................................6
Somal Turki Aluminum and Pvc CO. ALUMINIUM DOOR AND WINDOS MANUFACTURING
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1 EXECUTIVE SUMMERY........................................................................................................7
2 INTRODUCTION AND BACK OF PROJECT........................................................................9
2.1 Project Description.........................................................................................................10
2.1.1 Overall goal 10
2.1.2 Specific Objectives 10
2.1.3 Mission Statement 11
2.1.4 Vision 11
2.1.5 Mission 12
2.1.6 Values 12
2.2 Market Study..................................................................................................................12
2.2.1 Market Description 12
2.2.2 Demand 13
2.3 Demand Projection.........................................................................................................13
2.4 Supply..............................................................................................................................14
2.5 Market Share..................................................................................................................14
2.5.1 Market Trends 15
2.5.2 Marketing Mix 15
3 PROJECT PROFILE AND PRODUCTS DESCRIPTION.....................................................16
3.1 Project Profile.................................................................................................................16
3.1.1 Project Brief 16
3.1.2 Project Investment 17
3.2 Proposed Business Legal Status....................................................................................17
3.3 Financial Summary........................................................................................................17
3.4 Products...........................................................................................................................17
3.5 Challenges........................................................................................................................18
3.6 Opportunity Rationale...................................................................................................18
3.7 Sector Players..................................................................................................................19
3.8 Market Entry Timing.....................................................................................................19
3.9 Key Success Factors........................................................................................................19
3.9.1 Marketing 20
3.9.2 Pricing 20
9 PROJECT IMPLEMENTATION SCHEDULE.....................................................................21
9.1 Completion of Aluminum and PVC Machineries........................................................21
Somal Turki Aluminum and Pvc CO. ALUMINIUM DOOR AND WINDOS MANUFACTURING BUSINESS PLAN
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9.1.1 Essential Facilities 22
9.2 PROJECT BENEFIT.....................................................................................................23
9.2.1 Municipal Benefit 23
9.2.2 Promoter’s Benefit 23
10 TECHNICAL STUDY.........................................................................................................24
10.1 Technology and Engineering.........................................................................................24
10.1.1 Technology and Machineries 24
10.1.2 Location and Site 25
10.2 Proposed Location..........................................................................................................25
10.3 Site Surroundings:..........................................................................................................26
10.3.1 Machinery and Equipment Requirement and Cost 26
10.4 Processes Involved in Processed Aluminum and PVC doors and windows.............26
10.4.1 PROCESSED ALUMINUM 27
10.4.2 Doors and windows Completion 27
10.5 Quality Management......................................................................................................28
11 ORGANIZATION STRUCTURE AND HUMAN RESOURCE.......................................28
11.1 Leadership.......................................................................................................................29
11.2 Organizational Structure...............................................................................................29
11.3 Project Management Team............................................................................................29
11.4 Management....................................................................................................................30
12 Environment.........................................................................................................................31
12.1.1 Social, Economic and Environmental Impact 31
Climate...........................................................................................................................................33
13 FINANCIAL ANALYSIS AND ECONOMIC BENEFITS................................................34
13.1 Total initial investment cost...........................................................................................35
13.2 Pricing and Distribution................................................................................................36
13.2.1 Revenue and operation cost projection 37
13.3 Bank loan.........................................................................................................................37
13.4 Working capital..............................................................................................................37
13.5 Budget and Financial Control Systems........................................................................38
13.6 Capital Investment.........................................................................................................38
13.7 Revenue and Operating Cost Projects..........................................................................38
13.7.1 Revenue projection 39
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13.7.2 Operating Cost of the projection 39
13.7.3 Financial projections 39
13.8 Profit/loss projection......................................................................................................39
13.9 Cash Flow Projection.....................................................................................................39
13.10 Financial Evaluation...................................................................................................40
13.10.1 Profitability 40
13.10.2 Break-even Analysis 40
13.10.3 Pay Back Period 40
13.10.4 Internal Rate of Return 40
13.10.5 Net Present Value 40
14 1 CONCLUSION AND RECOMMENDATION ON THIS PROJECT.............................41
14.1 1.1 Conclusion.................................................................................................................41
15 1.2 Recommendation............................................................................................................41
16 Assumption Employed in the Projected Financial Analysis................................................42
16.1 Operating Costs..............................................................................................................43
16.2 Repair and Maintenances..............................................................................................44
16.3 Miscellaneous, (Ten percent incremental per Annum)...............................................45
16.4 Depreciation (Straight Line Method)...........................................................................45
16.5 Initial Working Capital..................................................................................................45
LIST OF TABLE
LIST OF INDEX
INDEX 2 DEPRECIATION AND AMORTIZATION 38

INDEX 3 REPAIR AND MAINTENANCE 38
INDEX 4 REVENUE PROJECTION 39
INDEX 5 OPERATING COST OF THE PROJECTION 40
INDEX 6 WORKING CAPITAL PROJECTION 41
INDEX 7 INCOME STATEMENT 42
NDEX 8 CASH FLOW 43
INDEX 9 BALANCE SHEET 44
ACRONYMS & ABBREVIATIONS
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DTB Depth to Bedrock
DTH Down the hole
DFAL Dynamic Framed Aluminum Level
L/hr Liters per hour
M meters
M bgl Meters below level
MWS Main Framed Aluminum Strike Levels
PAT Promotion of Appropriate Technology
PIP Pump installation depth
SFAL Static Framed Aluminum Level
TGS the Good Shepherd
UTM X, Y Universal Transverse Mercator for X axis and Y axis
WSL1, 2, 3 Framed Aluminum Strike Levels 1, 2, 3, etc
SSK Stitching Steunfonds Kyoga
Ml milliliter
Mm millimeter
M3 cubic meter
µm micro meter
PRELIMINARY DESCRIPTION
1. Business /Entity Name: Somal Turki Aluminum and PVC CO.
2. Business Entity address including woreda and kebele
Jigjiga city, kebele 15
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3. Land Lease Certificate Number:
4. Business registration number as:
Appropriate No. ---------------------
5. Business Tax Identification Number: - --------------
6. Business Commercial Business license:
Number: ----------------------
7. Registered Capital: ------------- ETHB
8. Business key contact (name and position)
Ugass Abdillahi Ahmed (General Manager)
9. Key contact Telephone and e-mail information:-Email- ----------
Mob. 0912870333
10. Future number of regular employees in the business by gender and if
applicable disability:
Female 4 Male 14 Total 18
Form of organization and legislations
Establishment Established as private firm
Founders/organizers Comprising one person
Manager Ugass Abdillahi Ahmed
Form of organization Business
1 EXECUTIVE SUMMERY
This Project Proposal is prepared to assess the marketability; technical feasibility
and financial viability of the establishment of framed Aluminum door and windows
business at Jijiga City. Hence, a detailed market, technical, organizational and
financial study is conducted in this project proposal study.
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The promoter the project is Somal Turki Aluminum and PVC CO. as partner whom
are a successful Ethiopian entrepreneurs and owner of various businesses. Currently
they are engaged in contracting different projects and importer of various
construction items in Jijiga. Totally they have more than 10 years’ experience in
managing various businesses.
As a matter of fact, framed Aluminum door and windows manufacturing sector
have direct linkage. This is because of the fact that the main source of market for
such type of construction business is from the constructers coming into the country
as well as local higher income group. It as an economic activity is becoming a
common phenomenon all over the country in the world, and in fact, it is generally
viewed as an engine for economic growth. Its contribution to the world economy as
well has grown so fast in the recent years that it has become one of the leading
foreign exchange earners and employment generators of many developed and
developing countries in the world.
According to historical records, in Ethiopia, doors and windows as an economic
activity and important development was given due attention in the early 1960s.
Somal Turki Aluminum and PVC CO. is newly establishing framed Aluminum and
PVC factory which will provides doors and windows products. In 2015 E.C
registered under registration business and license proclamation No.980/2008 also
received business license its registration number SM/ST/6/0012962/2015.
Tax Identification Number 0085846761 and commercial business license
SM/ST/05/187799/4567206/2015 received from regional authority based at Jigjiga
city.
Total starting capital is ETB 9000000.Though during the past time facing so many
problems, the business highly focusing on Aluminum and Pvc processed to
manufacture about 5o doors an 50 windows of Aluminum and Pvc dealing out
capacity but to complete the machineries and inputs there is limitation identified by
the owner unable to cover all the project costs only by its effort due to inflation
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increment and other related factors. Therefore to keep the opportunity of high
market demand for products if and only if financial and other supports will
available. Somal Turki Aluminum and PVC CO. requested 21126740.8 ETB for
establishing of their completion of machineries and suggested purpose.
Beyond the financial benefits, the project will contribute in creating job
opportunities to a number of people, increase income to the government in the form
of taxes, contribute in generating foreign exchange earnings by giving products to
constructers, ease shortage of this products and also improve beauties’ value of the
town.
A full-fledged project proposal study which was undertaken pursuant to the

investors’ project identification to establish a good standard construction in Jijiga
city, shows that the project is feasible in all respects.
To wrap up the above points, the project is financially viable and socially desirable.
Thus, the project is worthwhile undertaking.
2 INTRODUCTION AND BACK OF PROJECT
Review of the country’s macroeconomic performance trends over the period

covering from 2011/12 to 2020/21, the country has been achieving a sustainable
economic growth. Overall, during this period, the country has recorded an average
GDP growth rate of about 8.7% which makes it one of the fastest – growing nations
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in the continent of Africa. It is evident that Covid-19 pandemic has impacted the
global economy in general and the economy of Ethiopia in particular. This reflects
the country’s lower GDP growth rate achievements in 2019/20 and 2020/21 relative
to other years.
Somal Turki Aluminum and PVC CO. is designed to be a leader in the production
of Aluminum door and windows throughout Ethiopia. The company is planned to
supply good quality Aluminum and PVC various framed Aluminum door and
windows inside the region in countries.
The business has strong commitment to supply quality products to its valued
customers and it will keep on striving to introduce new technologies and products
to exceed customer expectations. Somal Turki Aluminum and Pvc CO. is in a
position to capitalize marketplace by leveraging existing technologies, Aluminum
and PVC doors and windows best practices, and an aggressive marketing and
produce campaign to ramp up the firm’s growth projections for the foreseeable
future. Upon Ethiopian government promotion to perform a project/market
assessment and feasibility study of Aluminum and PVC processed project in Somali
Region to provide Aluminum doors and windows for construction .
The organization has identified a potentially viable project and production a
private consultant for project/market identification and assessment, possible venture
partner selection, infrastructure, operational requirements, and management of the
new facility. In order to establish a Feasibility Study to take advantage of potential
opportunities/meet identified needs, Somal Turki Aluminum and PVC CO. had the
objectives to: (1) doors and windows analyses the market for the products. (2)
Identify, and assist with the selection of joint venture partners (if applicable). (3) A
comprehensively review for each products line and opinions on market assessment
and promotional activities and products pricing, plus an assessment of their
operating processes and techniques.4) since Aluminum and Pvc processed
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investment needs huge capital, conducting financial assessment and review to
complete Aluminum and Pvc processed project .
Somal Turki Aluminum and Pvc processed CO. is newly establishing firm. In 2013
E.C registered under registration business and license and proclamation
No.980/2016 /2012. The products to be produce is Aluminum and Pvc, in order to
upgrade its business, the business highly focusing on Aluminum and Pvc
processed in some amount but to maximizing its products there is no limitation
identified by the business unable to start the capable of purchase, provide,
transportation and distribute its products to consumer. Therefore to keep the
opportunity of high demand for its products, if and only if the loan and other
supports are available. Somal Turki Aluminum and PVC CO. requested 21126740.8
ETB completing Aluminum and PVC processed machineries and equipment of its
business and suggested for processed products purpose.
2.1 Project Description
2.1.1 Overall goal
Beside the scarcity of processed Aluminum products in Somali region of Ethiopia,

no organized as processors /operating business reach to produce and supply framed,
quality and enough Aluminum products in the Somali region. The project goal of
business is to produce quality processed Aluminum and PVC product with
sustainable way to consumer in its business area, region and country.
2.1.2 Specific Objectives
 To establish loyal customers

 To improve economic benefit by procuring the products in time
 To lead the business customers segment “cost consciousness”
 To provide quality products at affordable prices to the consumers
 Take part in development of framed Aluminum sector
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 Increasing doors and windows production by providing technical input
products
 To reach an Aluminum and PVC processed occupancy rate of 65 per cent
after the 3rd year of operation.
2.1.3 Mission Statement
Their mission is to raise the best and quality products: for the community. Briefly
the Aluminum processed project’s mission is to produce a high quality products
with a fair price.
Another core value of the mission's statement is to contribute for the country
economic development in generating employment. The project's vision is to
establish as one of the leading processed Aluminum provider in region and to
become a management success example in the country.
2.1.4 Vision
A Major vision of Somal Turki Aluminum and PVC CO. is to become one of the
top producer of framed Aluminum and PVC provider in Jigjiga by 2025 contribute
to a vision of people working together and responsibly to achieve their social and
economic doors and windows being through business they own and control. A
picture that vividly represents the business enterprise can become in the future.
Ideally, Somal Turki will receive vision pictures from all of its stakeholders and
commission a professional artist to combine the drawings into one picture for the
whole organization. According to project proponents they vision will be the
following
• To be pioneer in Jigjiga and establish as a professional provider in the
upscale market
• To become a management success example in the Ethiopia
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A firm’s stakeholders include its owner, customers, management, employees, and
the community. The shared vision and focus of these stakeholders provides the
unifying force for the whole organization. The collective vision provides a clear
direction upon which to determine measurable objectives. Besides acting as a
motivating force, significant decisions can be checked for similarity with this vision
on a basis.
2.1.5 Mission
To supply highest quality products that satisfy customers’ needs by optimizing

research and strict quality assurance in all aspect of products alongside of creating
job opportunities and professionalism in the field.
The mission of business expresses how to reach the vision which is mentioned
above. Its mission statement is clearly defines the long-term direction of the
business member and customer products , products quality, employee relations,
management style and competitive positioning are important components of the
mission statement which provide guidelines for the detailed, results-oriented
measurable objectives.
2.1.6 Values
1. Satisfying customers
2. Loyal to pay tax,
3. Optimizing profit,
4. Owning culture of group effort/work.
2.2 Market Study
2.2.1 Market Description
The Processed Aluminum Market in Ethiopia
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Grow due to population increasing become a major framed Aluminum demand
driver, Economic growth is further increasing demand. A recent study by
RWSN/WSP made an inventory of existing processed Aluminum doors and
windows and found that 103 processed Aluminum machines operate in the country;
many of them are old and low in efficiency. Ethiopia’s framed Aluminum work is
characterized by significantly increasing financial commitments in view of the
MDGs.
Somali region is a fast growing region and high framed Aluminum demand. The
excellent quality topped provided by Somal Turki Aluminum and PVC CO.
Market will fall into different distinct categories:
Source; FDRE MOWAE report
2.2.2 Demand
High GDP growth and increasing corporate entry is driving processed Aluminum
and PVC demand in the framed Aluminum business. There is a higher demand in
Ethiopia for big, framed doors and windows because of the geological conditions.
Doors and windows capable of processed Aluminum large diameter doors and
windows using a variety of technologies (mud/rotary/down-the whole hammer) are
increasingly valuable. The framed Aluminum segments continue to provide the
majority of the market demand in Somali region Ethiopia has a strong domestic
socio-economy which is driving demand growth in the mid-market.
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2.3 Demand Projection
To estimate the future unsatisfied demand the trend in the supplied quantity in the
past ten years and the future development of the framed Aluminum development
are taken in to account. As described above, the trend in the growth of supply was
very high. In addition, a number of Aluminum and PVC doors and windows
framed Aluminum and urban infrastructure developments are planned to be carried
out by the government as doors and windows as the private sector. To ensure
framed Aluminum development one of the priorities accorded by the government.
Hence, as a result of the various development activities the demand for Aluminum
and PVC processed will grow substantially. However, to be conservative a 10%
annual growth rate is applied in forecasting.
Based on the above assumption and using the estimated present demand as a base
the projected demand for Aluminum and PVC processed is shown in Table 3
2.4 Supply
Recent estimates suggest that up to one million new doors and windows will be
needed in Ethiopia to achieve the 2025 MDG for framed Aluminum supply. If one
considers that typical Ethiopia processed Aluminum rates are only 10-25 doors and
windows per doors and windows per year then at least a thousand processed
Aluminum teams working flat out for the next ten years will be needed. The scale
and magnitude of the challenge is being given increasing recognition and more aid
is now being directed towards framed Aluminum supply.
2.5 Market Share
Among construction materials framed Aluminum is one and its function like iron
which is the important contributor to the national socio-economy. Ethiopia’s
extreme hydrological variability is echoed in its economic performance. The vast
majority (80 percent) of Ethiopia’s population subsists on rain fed agriculture, and
thus their welfare and economic productivity are linked to the volatile rains. The
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correlation between rainfall and overall GDP is strong, as can be seen in Figure
ES.2. The impact of rainfall variability, unchecked by either physical infrastructure
or strong man-
2.5.1 Market Trends
Apparent utilization of Aluminum and PVC processed in the country shows

different distinctive trends. The first private processed Aluminum contractor in
Ethiopia started in 1991. Since then around 25-30 private processed Aluminum
companies operate now in Ethiopia. They number of doors and windows is about
40% of the total processed Aluminum capacity. The emergence of the big framed
Aluminum program in recent years has attracted foreign processed Aluminum
companies from China and India to compete in the market. They appear to be
operating at lower costs than the Ethiopian companies.
2.5.2 Marketing Mix
2.5.2.1 Products Quality
Products quality is one of the basic and most important marketing mixes that affect
the success of a market. In order to meet the framed Aluminum target, every
country that usesframed Aluminum needs a professional processed Aluminum
sector. All professions, including manual and machine processed Aluminum,
require special education or training. The quality of Aluminum and PVC processed
is mainly dependent on the quality of the management and material used.
Accordingly, in order to insure the quality of the products provision the envisaged
project needs to set up an effective material quality control mechanism. Achieving
this form of quality control requires the establishment of a control mechanism
Framed Aluminum quality, products reliability and sustainability require proper
doors and windows siting, design, construction (or rehabilitation) and pump
installation. Arguably, the drive for numbers of users over the last 15 years has led
to a fall in the quality of project implementation.
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Individual and consultants operating in a number of countries have expressed
concerns to the authors about working for government and, more widely, the lack of
capacity in-country to oversee processed Aluminum programmers and follow set
procedures (Danert, 2008a; Danert, 2008b; Danert, 2015c). It is recommended that
the products be free from quality weaknesses (be of impeccable quality) and be
endowed with sufficient strength. It is also important to heed the quality
requirements of customers.
Market Segmentation
4
Market Segmentation
0
2.5.2.2 Pricing
In order to propose the Aluminum and PVC processed gate price of the upcoming
projects, data on the current prices are collected from existing Doors and windows
owners, workers and users of the products. Accordingly, after making the necessary
analysis a price level that makes the project competitive in the market are
recommended. After completion of final stage of the Doors and windows and start
the operation of the produce of its products Somal Turki Aluminum and Pvc CO.
Doors and windows recommended that while selling precede it should be concern
the subject like costs, socio-economy and inflation. The proposed gate prices of
Aluminum and Pvc processed of 50 psc of doors and 50 pcs of windows per 10,000
ETB and 15000 Birr respectively which is pass through gradual price increment per
cents:
3 PROJECT PROFILE AND PRODUCTS DESCRIPTION
3.1 Project Profile
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3.1.1 Project Brief
Somal Turki Aluminum and PVC CO. Is incomplete established project which was
aimed to provide quality Aluminum and PVC processed products for different
building? The whole project will ensure all the aspects regarding the national
standards, an opportunity to draw the attention of the framed Aluminum materials
and change their conception about our region. The project designed in three phase:
first framed Aluminum phase, second installation and third operational phase.
The proposed Aluminum and PVC processed doors and windows project will
consist in the initial phase of the project three different dimensions Aluminum and
PVC processed. After successful introduction of the products
3.1.2 Project Investment
The total cost of the project needed (constricted part is excluded) worked out to be
Birr 15 million. This includes Doors and windows machineries, vehicles cost of 2
million and a working capital and products cost requirement of Birr 1.5 mil. Period
of products is 2 months for civil works and 3 months for machinery & Equipment
layout and installation.
3.2 Proposed Business Legal Status
Products business can be started as a sole proprietorship or a partnership, individual

ownership and even it can be registered under business law. Although selection
totally depends upon the choice of the entrepreneur but this feasibility is based on a
sole proprietorship. For getting information on the formation of type of firm, please
see the hard copy of legal document.
3.3 Financial Summary
Table 1 financial cost of the project
Debt Equity Split 25-75

Projected Life 15 year
Repayment of long term loan 10
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Grace period for long term loan 2 year
Mark up rate for long term loan % according DBE
3.4 Products
Somal Turki Aluminum and PVC CO. will follow all the process of products by
four different step of product processed completion. A development for the
products produce s doors and windows quality checking will developed by its
internal management system.
The products of Aluminum and PVC processed will be ready; quality as per the
customer’s order by dimension will be offer. The Aluminum and Pvc processed
qualified worker and trained in products will be stand by and welcome all
customers according the Ethiopian culture can be exactly positioned during
products . The business will be provide the following products;-
 Compressed air rotary processed Aluminum
 Doors and windows Logging
 Doors and windows Construction
 Sealing the Doors and windows
3.5 Challenges
In Ethiopia, great distances, poor infrastructure, a rudimentary financial sector are

challenging processed Aluminum conditions, and difficulties of ‘doing businesses
contribute to the high costs of framed Aluminum processed Aluminum .
3.6 Opportunity Rationale
The opportunity of setting up the Aluminum and PVC processed can be linked with
the using interest of the constructors. constructors in Ethiopia enjoy the natural
clean framed Aluminum and now constructors are ready to use this products for
living house real state condominium , building tower and industries, while closely
observing the trends, Aluminum and Pvc processed produce chain can play an
important role in this new era as it is the only improve socio economy as one of
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basic need in other hand now day peoples prefer the framed Aluminum doors and
windows for building due to its corrosion resist light. That means it is good market
opportunity for investors like Somal Turki Aluminum and PVC CO. want to
provide Aluminum and PVC products.
3.7 Sector Players
• Regional Governments
• Private Contractors
• Major Donors
• Public Sector (State Enterprises)
• NGOs
3.8 Market Entry Timing
As the main decisive factors in this case are events and season, Somal Turki
Aluminum and PVC CO. will have to match the timings with these two limitations.
3.9 Key Success Factors
Some of the key Success factors that will determine the success of this project
include:
 Products range selection and introduction.

 Quality and Innovation in products.
 Selection of location.
 Pricing strategy.
 Understanding of target customers, alternative availability (products
differentiation).
 Launching time.
 Quality conditions
 Framed Aluminum test procedure
 quality monitoring
 Avoid failarity
 Characteristics to be evaluated and assessed
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 Technology based products provision
3.9.1 Marketing
Marketing will play a key role in the mobilization of targeted number of customers.
Major marketing options include, site advertisement, cable ads and handbills among
other traditional marketing channels. Before launch of the project, Somal Turki
Aluminum and Pvc CO. recommended that a research for understanding the
dynamics of the targeted market should also be carried out, to design the products
as doors and windows as the promotional strategy.
3.9.2 Pricing
Costs and prices

The difference between the costs of processed Aluminum (to the contractor) and
the price quoted to and paid by the client (Government or large donors) is
sometimes not fully grasped. Assuming that the contractor can accurately estimate
the direct costs of a particular contract – and this is not always a fair assumption –
he then adds a number of items to arrive at a tendered price (the cost of business).
These items include administrative overheads, taxes (such as VAT), profit margin,
and different risk ratings and their associated costs. For example if he expects a dry
hole, he may increase the profit element on the processed Aluminum component
and reduce that on the supply and installation of casing. Desire to win a tender and
degree of competition are other considerations in pricing. Processed Aluminum cost
components Doors and windows construction costs (processed Aluminum costs) are
generally made up of four components, each of which can be further sub-divided.
These components are:
Mobilization and demobilization – The costs of getting the machineries and

supporting equipment to site and. Major elements of this component are the
depreciation costs of equipment, direct costs of moving equipment to site, and the
costs of manpower.
 Positioning/range of the products
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 Cost of developing.
 Cost of competitive products.
 Condition of the socio-economy.
9 PROJECT IMPLEMENTATION SCHEDULE
9.1 Completion of Aluminum and PVC Machineries
Normally, it takes about 2 to 4 months’ period for getting obtaining project

financing loan, approval of plans, establishing the suppliers invoice and two month
for products of various civil building and will take one month installation of all
systems. Hence, during year of operations, only three months of procurement can be
assumed. Proper planning needs to be done as to take up various activities without
any break. The activity wise schedule of implementation is to be given.
Table 2 Project Time line
S. No Activity Time (months)
1 Procurement
2
2 Installation of machinery and equipment
2
3 Contract and implement
1
The implementation schedule covers the activities starting from the project
evaluation and approval up to and including the trial-run and commissioning. The
complete implementation program for the envisaged Doors and windows is planned
to take a total of 5 months. The project operation starts with the assignment of the
project manager and establishment of the project office. It ends when detailed
engineering design is completed by the supplier/suppliers (General contractor).
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During this phase, HRD department manager is production to get adapted to the
processes of the project.
Other department heads are also production during this phase to facilitate
preparatory works for later smooth operation of the envisaged project. They shall be
the core members of the project implementation team who shall recruit and select
other employees and also work as counter parts with all consultants. Then the
tender document will be floated for the civil works to be conducted by contractors.
Orders will be placed for machine, furniture and equipment procurement by giving
priority to those items that have to be produce based on the detailed design.
Normally, it takes about 2 to 3 months period for getting obtaining financial loan,
construction of building and installation of all systems.
Hence, during the year of operations, only three months of procurement can be
assumed. Proper planning needs to be done as to take up various activities without
any break. The activity wise schedule of Implementation is to be givens.
9.1.1 Essential Facilities
 Firm’s vehicles will be stand by on the site under the shed

 Storage hall
 Storage area for raw materials
 Products area depends upon the type, and quantity of products handled and
the machinery to be installed.
Utilities area for installing generator set maintenance and store area for
spares.
Quarters and office area for all the essential staff
Vehicle parking area for the products procurement and distribution vehicles
Input supply area for providing products, supply of Aluminum and PVC
processed etc.
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9.2 PROJECT BENEFIT
9.2.1 Municipal Benefit
Doors and windows Framed Aluminum Allows You to Reduce Your Municipal
Costs
In operation for next ten years, we will bring unlimited superior quality doors and
windows framed Aluminum to homes, businesses, farms, and private organizations
throughout Ethiopia. Covering all aspects of doors and windows design, processed
Aluminum, installation, and maintenance, we can have your doors and windows
ready within 3 to 5 days. To get more information about the benefits of doors and
windows framed Aluminum or to get you’re under framed Aluminum assessed, chat
to us today...
So as a government office will collect a products charge from all users.
9.2.2 Promoter’s Benefit
Promoter will be benefited from the project during the implementation of processed
Aluminum doors and windows are
 Create an asset that should last at least 10 to 15 years at very little ongoing cost,
 Financial he will gain great amount of money from production processed
Aluminum and Pvc s products
 provided in gathering the experience of the work
Project Capacity and Rationale
According to the market study report on web site, the demand for in the year 2023
is very high and this figure grows to high by the year 2020/21 in the country.
Accordingly based on the demand projection, the proposed Aluminum and PVC
doors and windows will have a products capacity of 100 doors and windows per
Page 23
day. The Aluminum and PVC doors and windows will operate 2 shifts of 8 hours a
day, and for 200 days a year.
Project capacity cannot be based on machinery capacity, as the same machinery
will be having different capacities for different products. This business segment is
quality intensive. The proposed a products will be working from 6.00-am morning
to 12.00 pm. These produce determine the Aluminum and PVC processed timing
for products. It is proposed that no shift workers are necessary for products.
The interesting fact is that due to different sit have different hydrology and
geological property limits the pure working hours. rotary processed Aluminum
doors and windows is based on the current geological exploration in Ethiopia
market demand of doors and windows, combined domestic and foreign similar
advantages of processed Aluminum doors and windows, XY series of core
processed Aluminum doors and windows based on research and development of the
XY-44M / XY-8M-type shaft assembly and Turntable as one of the exploration
doors and windows. Mainly applied to the core of alloy and diamond-sized core
processed Aluminum ; metal, non-metallic solid exploration; oil and natural gas to
open precincts; geothermal doors and windows exploration; mine tunnel ventilation,
drainage and large diameter foundation pile construction.
10 TECHNICAL STUDY
10.1 Technology and Engineering
10.1.1 Technology and Machineries
Doors and windows machines and equipment are required for the Aluminum and
PVC processed produce based on the type of input and products proposed. The
machinery should be as per the specifications. In order to pool the customers and
carry out its activity fast and to Aluminum processed will use technologically
machines for products purposes. In addition, higher quality machines will be used
for different products programs. Furthermore, best machines and equipment with
Page 24
management practices and needed input will be in place in order to produce
superior products to customers.
In general, up-to-date technologies and research results are assumed to be utilized
by the firm.
Somal Turki Aluminum and PVC CO... In future will handles about 5% per cent of
total Aluminum and PVC processed products in the region. This indicates there is
a wide scope for products of Aluminum and PVC processed to customers. The
total investment costs of Aluminum and Pvc processed machinery and equipment’s
is estimated to be Birr 24772000.00 out of which 19000000 (60%) required in
foreign currency rest Birr 10,000,000 (40%) required in local currency .The
business will operate its wide program of quality management system. This covers
all aspects of his business from installation to delivery of products and after produce
s support.
10.1.2 Location and Site
A total land area of 500 m2 is required for (office, facilities) site of the Somal Turki
Aluminum and Pvc CO. Doors and windows, out of which 200 m2 for an office,
250 m2 for shade to doors and windows and the remained will be used for
workshops area and open space of 550 m2. The framed Aluminum is the main and
mini facilities like stores, offices, Laboratory, Guest house, Staff changing, Toilet,
generator stage, guard house and fence.
According to the Federal Legislation on the Lease Holding of Urban Land
(Proclamation No 721/2004) in principle, urban land permit by lease is on auction
or negotiation basis, however, the time and condition of applying the proclamation
shall be determined by the Jigjiga city administration depending on the level of
development. The legislation has also set the maximum on lease period and the
payment of lease prices.
The lease period ranges from 80 years for land based on the town’s grade and type
of investment.
Page 25
10.2 Proposed Location
Somali region with a total population of over seven million and highly affected by
drought and its demand derive due to high depth framed Aluminum is the ideal
location for the project. Ultimately it has to be observed that how to compete and
build the name of the firm. Somali region is a region located at east and south
direction of the Ethiopia has high demand of doors and windows.
10.3 Site Surroundings:
The site (office, facilities) is located at Jigjiga outside of the resident area they are
serving different types of functions. In the front there high way. In the east houses.
The site surrounded with a dense green belt which plays a vital role to keep the site
calm. It protects the site from having the noise pollution.
Qordhere are is important in avail the enough space and which is in need of
framed Aluminum standard l. Somal Turki Aluminum and Pvc CO. Has selected
the site outline already and the feasibility study is done. The potentials of the site by
its location, road and land pattern, existing and it has come appropriate.
10.3.1 Machinery and Equipment Requirement and Cost
The list of machinery and equipment required by the project is shown in Table 4.
The cost of machinery and equipment is estimated to be Birr 24772000 of which
Birr 19000000 is required in foreign currency.
Machinery an equipment
Description
Truck Make : SINO 400HP (2023)
Support SINO for mounting compresssor
Rods: 4 5" Rods: 114.3mm x 8.56mm x 20Ft
6",10"& 12" Digger Hammer Assembly
62,8",10",12", 14", 16" Button Bit suitable for Hammer Assembly
12" Button Bit suitable for 12" Hammer Assembly
12 V4 TC Bit
Spare
Page 26
10.4 Processes Involved in Processed Aluminum and PVC doors and windows
10.4.1 PROCESSED ALUMINUM
10.4.1.1 Rotary Processed Aluminum
Most doors and windows applications in the field will require rotary processed
Aluminum. True rotary processed Aluminum techniques allow much frameder
doors and windows to be constructed, and use circulating fluids to cool and
lubricate the cutting tools and to remove debris from the hole.
10.4.1.2 Percussion Processed Aluminum
Processed Aluminum by percussion is done by simply dropping a heavy cutting

tool, of 50 kilograms or more, repeatedly in the hole. The processed Aluminum
tools are normally suspended by a rope or cable; and – depending on the weight of
the string, which, for manual operation, is obviously limited – it is possible to to
considerable depths in both soft and hard formations. Basic percussion processed
Aluminum systems are still widely used in to doors and windows. They consist of
a strong steel tripod, cable and power winch, percussion tools, and a
baler.Thisbusiness is now use only rotary processed Aluminum.
10.4.2 Doors and windows Completion
10.4.2.1 Sanitary seal
With doors and windows cleaning completed, the final job is the construction of a
sanitary seal, which, as the name suggests, seals the doors and windows from
surface contamination. This should also be the responsibility of the processed
Aluminum contractor, and written into the work agreement. At least the uppermost
two meters or so of annular space (probably that section formerly protected by the
conductor pipe during processed Aluminum ) should be cleaned out and dug into a
fresh larger hole – perhaps square in shape – surrounding the permanent casing.
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10.4.2.2 Pumps and test pumping
After processed Aluminum has been completed and the sanitary seal put in place,
doors and windows test pumping is carried out. It has the following objectives:
 To measure the performance of the doors and windows

 To determine the efficiency of the doors and windows, or variation of its
performance under different rates of discharge
10.5 Quality Management
The National Policy of framed Aluminum which was promulgated in April 1999 as
Sectional Paper No. 1 of 1999 calls for decentralization of operational activities
from the central government to other sectors, including local authorities, the private
sector and increased involvement of communities in order to improve efficiency
and quality in products delivery. It also tackles issues pertaining to framed
Aluminum supply and sanitation facilities development, institutional framework
and financing of the sector. According to the policy, in order to enable sustainable
framed Aluminum supply and sanitation products, there is need to apply alternative
management options that are participatory through enhanced involvement of others
in the provision of these products but particularly the private sector.
11 ORGANIZATION STRUCTURE AND HUMAN RESOURCE

The organizational structure of the envisaged Aluminum and PVC processed is
constructed considering the extent of the doors and windows. The Aluminum and
PVC doors and windows structure follows the functional organizational structure
approach to achieve operational efficiencies within a group. The Aluminum and
PVC doors and windows has four department and two sections. The functional
units are namely: products and technique departments, commercial department,
finance and administration departments. The two sections are quality assurance and
safety products and planning and operation staffs. The project will have 13
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employees with annual cost of salary at full capacity operation is estimated to be
Birr 792000 ETB annually per month when it commence operation.
11.1 Leadership
Somal Turki Aluminum and PVC CO. provide the leadership and inspiration to
motivate the employees and members towards the measurable objectives of the
organization. The confidence exhibited by the Board and management team, their
openness in listening to and flexibility in implementing employees' and members’
ideas will provide the organizational leadership required to make the business a
success.
11.2 Organizational Structure
Processed Aluminum and PVC products will be wholly owned and operated by
business owner and its management staffs respectively. Ahmed will perform all
office and accounting functions such as calculating the initial costs, operational
costs and products times. The Project manager will supervise the work and to
produce part-time delivery drivers as doors and windows as bookkeeper.
11.3 Project Management Team
G/Manager of Somal Turki Aluminum and PVC CO. will actively manage the
business management duties will include General & Technical Manager Coordinate
all the operations and providing technical support to the field teams, quality
assurance and final reporting will be used with no reliance on off-Aluminum and
PVC doors and windows inputs and raw materials. Products methods include,
applying national standard based on market demand, and encouraging employees,
management, selling and marketing. Mr Ahmed Accountant will also be
responsible for preparing detailed accounting records for their tax accountant.
He will also actively participate in managing the Aluminum and PVC doors and
windows during the busy months.
Page 29
Abdirashid, operations manager coordinate with team leaders, logistics and drafting
final report. Mohammed Ahmed field logistics manager Writing doors and windows
logs and keeping daily records, logistics, & representing contractor on site
Abdirahman Yusuf Field doors and windows logging Writing doors and windows
logs in the field
Osman jama er Responsible for machine operation Okwir Tony Ass er Assists in
machine operation/processed Aluminum
Hamze Test pumping, casting and installation crew Assisting in Test pumping,
casting and Installation Anyii Elvis Test pumping, casting and installation crew
11.4 Management
H.R:- Requirement, allocation and Salary

Somal Turki Aluminum and PVC CO. will employed a team of highly skilled
technicians and experienced management professionals to establish Aluminum and
Pvc processed products business Also employed are experts in R & D and support
systems for the Aluminum and Pvc processed extra supports are also made
available see table 5.
Table 3 Employment Plan
wage and salary of staf

No Positions Qualification Monthly Annual
salary salary
General & Technical

Manager
Operations manager 1 Mech Eng 10000 120000
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Subtotal 1 10000 120000
Supervisors & 1 8000 96000
experts
Hrd and personnel 1 Mgt 5000 60000
Finance and accounts 1 Acct 5000 60000
Material and supplies 1 Mgt 5000 60000
Property and logistics 1 Mgt 5000 60000
Subtotal 5 28000 336000
Technical staffs
er 1 Mechanics 8000 96000
er Assists 1 5000 60000
Test pumping 1 0 0
Repair and 2 Auto 5000 120000
maintenance
Field doors and 1 Mgt 5000 60000
windows logging
Subtotal 6 23000 336000
Other staff
Total man power and 13 61000 792000
cost
12 Environment
12.1.1 Social, Economic and Environmental Impact
12.1.1.1 Significant Impacts and its Contribution
The 299/2002 Article 5 Environmental Impact Assessment Proclamation defines

any projects that are likely to have a negative impact on the environment and
requires an EIA process for any planned development project or public policy. With
regard to development projects, the proclamation stipulates that no person shall
Page 31
commence implementation of proposed project identified by directive as requiring
EIA without first passing through environmental impact assessment process and
obtaining authorization from the competent environmental agency.
It is difficult to imagine any clean and sanitary environment without framed

Aluminum . without framed Aluminum no any kind of life on this land Somal
Turki Aluminum and Pvc CO. believe that increasing the number and capacity of
doors and windows increase the Aluminum and Pvc processed which is tend to be
reason for increase framed Aluminum and contribution of the peoples health,
efforts will made jointly together with government to improve and extend products
and their quality. Lessons will be drawn from other countries and integrated in the
initiatives to be taken to improve the Aluminum and PVC processed sectors
contribution to the health system. Mobilization of external finance, together with
domestic finance, in order to fund GTP
Positive impacts: Increased access to framed Aluminum , creation of employment
opportunities, improved health and sanitation of community members, reduced
travel times to framed Aluminum Environmental and Social Impact Assessment for
the proposed doors and windows in Area, increased participation of women in
socio-economic development and improved household and community income
generating activities.
Negative Impacts: Loss of vegetation, alteration or destruction of wildlife habitat,
oil/grease spillage, noise pollution, air pollution, occupational health and safety
hazards, soil erosion, financial burden to community members, framed Aluminum
vectors, and lowering of framed Aluminum table.
12.1.1.2 Climate
The climate is tropical in Fafan zone. In winter there is much more rainfall in
Jigjiga than in summer. According to Köppen and Geiger climate is classified as.
The average annual temperature in Jigjiga is 28.8 °C. The average annual rainfall
Page 32
is 325 mm, above sea level 1646m ,Wind Load Max 50km/h ,Normally 14km/h
EWS.
Climate
The climate of Jijiga is a subtropical highland climate (Köppen climate
classification: Cwb), with the influence of mountain climate, the seasonal difference
is minor. This is attributed to the fact that Jijiga is located on a plain surrounded by
mountains and to its distance to the sea and its effects.
Figure 5: Climate of Jigjiga
[hide]Climate data for Jijiga
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
Average 28.2 25.6 26.7

25.8 26.7 26.7 27.3 26.7 25.9 26.5 26.2 25.6 26.49
high °C (82.8 (78.1 (80.1
(78.4) (80.1) (80.1) (81.1) (80.1) (78.6) (79.7) (79.2) (78.1) (79.7)
(°F) ) ) )
Daily 20.3 20.5

16.4 18.4 20.2 20.9 21.1 20.6 20.7 18.9 17.4 16.9 19.36
mean °C (68.5 (68.9
(61.5) (65.1) (68.4) (69.6) (70) (69.1) (69.3) (66) (63.3) (62.4) (66.84)
(°F) ) )
Average 12.4 15.5 11.2

7.1 10.2 13.7 14.6 15.5 15.3 14.9 8.7 8.2 12.27
low °C (54.3 (59.9 (52.2
(44.8) (50.4) (56.7) (58.3) (59.9) (59.5) (58.8) (47.7) (46.8) (54.11)
(°F) ) ) )
Average
47 84 41
rainfall 11 25 105 93 56 127 101 16 6 712
(1.85 (3.31 (1.61
mm (0.43) (0.98) (4.13) (3.66) (2.2) (5) (3.98) (0.63) (0.24) (28.02)
) ) )
(inches)
Page 33
13 FINANCIAL ANALYSIS AND ECONOMIC BENEFITS
The financial analysis of the project (benefits and costs) is computed over seventeen
years assuming 24 months implementation period and 10 years of operation. In
addition depreciation and amortization, customs duty and income tax, repair and
maintenance costs, terminal (salvage) values as doors and windows as working
capital have been worked out based on the existing laws of the country and standard
assumptions. Accordingly, the major findings of the financial analyses are given
below.
The total investment cost of the project doors and windows is estimated at Birr
from the total investment cost the highest share (Birr 19817600 or 60. %) is
Page 34
accounted by main doors and windows machinery cost (Aluminum and PVC doors
and windows) followed by doors and windows framed Aluminum resource
vehicles like Sino truck initial working capital Birr 849590 .The total annual cost of
products and revenue at full capacity utilization is estimated at 8194188.181 and
99,572,271 Birr. The project will generate a profit throughout its operation life.
Annual net profit after tax will increase from Birr 7131564.7 during first year of
operation to Birr 47067605.73 during the last year of the project life.
The projected cash flow of the envisaged project shows that the project would
generate positive net cash flows throughout the operation years. Based on a 10%
discount rate the Internal Rate of Return (IRR) is computed to be 46.77% and NPV
is Birr 3774809.8, indicating the viability of the project? The initial investment cost
of the project will be fully recovered within five years, which is a reasonably short
period of time. Other measures of profitability net profit as a % of produce s
revenue, net profit to equity and net profit to total investment are also attractive.
The efficiency ratios like current assets to current liabilities and net cash flow to
produce s calculated from the balance sheet show that the project is highly users
with sound financial performance... Moreover, the sensitivity analysis carried out
indicates that the project could be viable at adverse conditions i.e. either a decrease
of 12% in produce s price or increase of 20% in A.
13.1 Total initial investment cost
The total investment cost of the project including working capital is estimated at
Birr 24.7 million (see Table 7). From the total investment cost, the highest share
(Birr 24 million or 99.03%) is accounted by fixed investment cost. From the total
investment cost, Birr 19 million or 60% is required in foreign currency
Table 4: Estimated investment outlay
Description
Existed Planned Ex+Pla Equity loan Total
Inves. inve. investment
Page 35
Door and 24772000 24772000 4954400 19817600 24772000
windows
Machineries and
equipment
Electric 0
Generator
Sub-total 24772000 24772000 4954400 19817600 24772000
Pre-operation cost 450000 450000 90000 360000 450000
Pre. products 150000 150000 30000 120000 150000

charge
Working capital 200000 200000 40000 160000 200000
Total investment 24772000 24,772,000 4954400 19817600 24772000
Total 24772000 24772000 4954400 19817600 24772000
Loan & Equity in % 20% 80% 100%
13.2 Pricing and Distribution
Currently, the produce price of Aluminum and Pvc processed of locally

standardized Aluminum and Pvc processed s in SRS is from 2350- 7410 birr per m3
of Aluminum and Pvc processed products price is differ in different size. The
envisaged Aluminum and PVC doors and windows can distribute its products
through direct produce . The price of products variedly depending upon the specific
products used, dimension of Aluminum and PVC processed and the like...
Table 5 Annual Produce s Forecast
Annual Produce s Year 1 Year 2 Year 3

forecast In ETB
No. of Processed 3 4
Aluminum doors 3
and windows (300m-
800m) Depth
Price per doors and 8,400,000 8,820,000
windows 8,000,000
Gross income from 27,720,000 32,016,600
24,000,000
Total 27,720,000 32,016,600
24,000,000
Page 36
Because Somal Turki Aluminum and PVC CO. has available chance to get market
for continuous and increase their income. In future for this products system base is
already established on a commercial scale and in fact already making whipped
dream for use on the products.
Today especially in Ethiopia the demand of Aluminum and Pvc processed is very
high because there is no enough Aluminum and Pvc processed supply and ensured
quality of the products. To solve this, business will production require skilled
management staffs that will be gotten from online announcement. The business plan
to take pride in the uncompromising quality of products. The products shall be
produce Ed in ordered time by a number of shift owner distributors in the
Aluminum and PVC processed for customers and consumers.
13.2.1 Revenue and operation cost projection
The project is expected to generate revenue amounting Birr 24,000,000 and will rise
to Birr 87,790,819 at the tenth project year. For more detailed figure refer to the
projected revenue estimation of the project.
13.3 Bank loan
Somal Turki Aluminum and PVC CO. believe that it is compulsory to take
financial fund to avail various subsidy schemes of government therefore, business is
desirous of availing financial support should adhere to the means of investment i.e.
the quantum of bank loan /project financing and margin prescribed according to
rule and regulation of DBE scheme.
13.4 Working capital
Working capital is the most crucial input for viability of any Aluminum and PVC
processed marketing unit. Nowadays, banks are free to finance working capital
based on actual need of the borrower. A production of adequate working capital
Page 37
needs to be considered by the financing banks. Ethiopian development bank provide
in kind /Lease financing.
The required investment of birr for initial capital investment supposed to be
financed by DBE and business owners own equity. The bank loan will be 19817600
(80%) and that the remaining of Birr 4954400 (20%) is financed with business own
(Hussen and Mohammed) equity for meeting the Aluminum and PVC processed s
products establishment both in cash and in-kind.
13.5 Budget and Financial Control Systems
There are usually three budget scenarios included in the feasibility study. Each
scenario represents very different outcomes. The first purpose of a budget is to set
measurable targets or performance standards for the organization while selling a
motivating force for the group as a whole. The second purpose of the budget is to
provide a basis for financial control and management decision-making. A monthly
comparison of actual results to the budget will give management an idea about
needs to be done next. Third purpose may be providing the financial arguments
required to raise start-up or growth capital. Timely and accurate financial
information is a pre-requisite to a successful operation. As new information
becomes available, the budget should be updated to reflect appropriate Changes.
The targeted return on investment will directly influence the budgeting process.
13.6 Capital Investment
As shown on the above tables the major investment items of the Aluminum and
PVC processed are machinery vehicles Utility cost & equipment and working
capital. The required investment of Birr 24.7 Mil for capital investment is supposed
to be financed by the bank loan and firm's own equity.
13.7 Revenue and Operating Cost Projects
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13.7.1 Revenue projection
The project is expected to generate revenue amounting Birr 24,000,000 and will rise
to Birr 87,790,819 at the tenth project year. For more detail figure analysis, refer to
the projected revenue estimation of the project in the table below.
13.7.2 Operating Cost of the projection
This cost basically includes direct material cost, direct labor cost, direct machinery
cost and overhead costs. The total projected operating cost of the project for the first
year is expected to be Birr 6260378 and will be raised to Birr 8194188.181 at the
tenth year of the project life. The detailed operating costs projection for the first
eight years of the project life time is depicted on the table below.
13.7.3 Financial projections
There are three financial statement projections made to analyze the financial
viability of the project. These are the income statement projection made to analyze
the financial viability of the project. These are the income statement projection cash
flow statement projection and the balance sheet projection.
13.8 Profit/loss projection
The project is expected to generate a net income of Birr 47067605.73 at the tenth
year of operation period which shows that the project is a highly profitable business
at its startup stage and throughout its life. The detail income/loss statement
projection is as shown in the table below.
13.9 Cash Flow Projection
This is the future forecast of the position of the project over its life time. In this
regard the project under caption is expected to generate a net and cumulative
positive cash flow. The cash flow projection statement shows net cash balance of
Page 39
Birr 183223944.6 in the tenth year. The cash flow statement projection depicted in
the table shows that the project is enough to meet its short term and long term
dept. obligations and even to meet its investment expansion plan in the future. See
the table below for more detail figure analysis of the cash flow forecast of the
project for the coming ten years
13.10 Financial Evaluation

13.10.1 Profitability
According to the projected income statement, the project will start generating profit
in the first year of operation. Important ratios such as profit to total produce s, net
profit to equity (Return on equity) and net profit plus interest on total investment
(return on total investment) show an increasing trend during the life-time of the
project.
The income statement and the other indicators of profitability show that the project
is viable.
13.10.2 Break-even Analysis
The break-even point of the project including cost of finance when it starts to
operate at full capacity (year 5) is estimated by using income statement projection.
BE= FIXED COST/ (SALES PRICE PER UNIT-VARIABLE COSTS PER UNIT)
= 46.77%
13.10.3 Pay Back Period
The investment cost and income statement projection are used to project the pay-
back period. The project’s initial investment will be fully recovered within 3 years.
13.10.4 Internal Rate of Return
One of the financial viability indicating tools in the investment decision is financial
internal rate of return (FIRR); which shows a percentage return earned on an
investment over the economic life of project. In case of the project under Feasibility
Study, the FIRR is 25% after tax
Page 40
13.10.5 Net Present Value
Based on the financial statement, the calculated Net Present Value of the project at
10%% discount rate is 3774809.8 Birr.
14 1 CONCLUSION AND RECOMMENDATION ON THIS PROJECT
14.1 1.1 Conclusion

Before making any investment decision, it is advisable to evaluate the associated risk factors by
taking into consideration certain key elements. For establishing Aluminum and PVC ing
Aluminum and PVC doors and windows the critical factors that should be considered before
launching are described below:
• The market for Aluminum and PVC processed is a growing market, but produce tough
competition. Perception / positioning of the new demand usually the top target market for
Aluminum and PVC processed follows the perception. If the perception is positive, the results
will be higher produce s. The positive perception for distributors and final customers may result
from direct consumer experience, awareness, direct promotional activities, print media and TV
advertising.
• Distribution is very important for the success and the stronger the distribution the more
successful will be the supplier.
• Pre-launch advertising is vital for positive perception of the products which will result in
higher products acceptance.
• During the compliance of the Aluminum and PVC processed quality, authorized body
from SRS should be cheek and give license of quality assurance.
15 1.2 Recommendation
The study covers a limited number of Aluminum and Pvc processed Doors and windows machine
on sits, it is recommend that all Aluminum and Pvc processed s demand and supply .quantity,
quality, and price shall be monitored by the concerned authorities to safe guard consumers willing
to buy and controlling supply and rising price which imposed on the citizens, and ensure the
sustainability.
Finally, recommend to proposedbusiness (Somal Turki Aluminum and Pvc CO. Aluminum and
PVC ing ):
 should be check each sample from the foreign matter, texture and hardness? Properness of
the stones to be ed in machine.
Page 41
 should be get certificate of quality and Standard for its products provided and supply safe
and quality.
 Somal Turki Aluminum and Pvc CO. Should concern economical pricing and demand of
its products so as the users able to buy the products.
16 Assumption Employed in the Projected Financial Analysis
Pre-Production Cost
Description Cost (Birr)

Consultancy Fee 20,000
Land Acquisition & License Fee 50,000
Plant Erection 60,000

Expenditure for sale of shares 100,000
Total 330,000
Machinery, Vehicles, Office and Furniture
Machinery Equipment
b Code Description of goods Size Quant Unit Price Total Price

ity
1. D-550 9 SERVO PROCESSED AND CUTTING PCS 1 83.000,00 83.000,00 $

CENTER $
2. WRC-2500 4 HEAD WELDING -COOLING ROBOT PCS 1 68.000,00 68.000,00 $

CNC CORNER CLEANING $
3. SVD-520-E 2 HEAD SCREW DRIVER PCS 1 6.000,00 $ 6.000,00 $
4. NM-03 MULTI FONCTION MACHINE - PCS 1 9.000,00 $ 9.000,00 $

TRIPLE -METAL
5. HC F-3015 FIBER LASER CUTTING -RABBIT PCS 1 126.000,00 126.000,00 $
Page 42
6000W HCMODEL 3015 6000 $
6. HY3010 HYGM 3010 NC SWING BEAM PCS 1 35.310,00 35.310,00 $

CUILLOTINE SHEAR (SPRING TYPE) $
SHIPPING COST PCS 2 0,00 $ 0,00 $
TOTAL 327.310,00 $
16.1 Operating Costs
Salary and Wages, 10% increment per annum
No Positions Qualification Monthly Annual

salary salary
Subtotal 1 10000 120000

Supervisors & experts 1 8000 96000
Hrd and personnel 1 Mgt 5000 60000
Finance and accounts 1 Acct 5000 60000
Material and supplies 1 Mgt 5000 60000
Property and logistics 1 Mgt 5000 60000
Subtotal 5 28000 336000
Technical staffs
er 1 Mechanics 8000 96000
er Assists 1 5000 60000
Test pumping 1 0 0
Repair and maintenance 2 Auto 5000 120000
Field doors and windows 1 Mgt 5000 60000
logging
Subtotal 6 23000 336000
Other staff
Total man power and 13 61000 792000
cost
Fuel, Lubricants and Chemicals
Fuel, Lubricant, Spare parts and maintenance consumption for machineries and its
cost is resented in the following table:
Page 43
Fuel, Lubricant, Spare parts and maintenance cost
Description Consumption Birr/liter Cost/three
(Liter/Month) months
(Birr)
truck (two Sino ) 840 80 403200
Light Vehicles 309 80 148320
Total cost 551520
Lubricants Cost = 10% of fuel cost
709809.6x0.1= 70980.9Birr and assuming 10% increment per annum
Total fuel and lubricant cost =790,790

16.2 Repair and Maintenances
Repair and maintenance = 2% of the fixed assets
Repair and Maintenance cost
Repair and Maintenance

Items Odoors and Rate Repair and
windowsinal Maintenance cost
Value
Machinery and 24,772,000 0.02 495440
Equipment
Furniture and comp 150,000 0.02 3000
Total 24,922,000 498440
Utilities
Utilities are materials to enhance the day-to-day activities of the project. It also
includes the electric power supply to run the crushing machinery, and electric light
products for the campsite. Ten percent incremental per Annum is assumed. The
details for first year represent as follows.
Utilities Expense
Item Cost (birr/year)

Stationary 20,000
Telephone, Fax, Postage, Internet 20,000
Framed Aluminum 10,000
Page 44
Electric Consumption Charge @ first 8,600
year
(5,000Kw x1.4Birr)
Total 190,600
16.3 Miscellaneous, (Ten percent incremental per Annum)
Item Cost (Birr/year)

Personnel Insurance (= 3% of annual salary) 23760
Fixed asset Insurance (=0.75% of fixed 185790

capital)
Medical expense 50,000
Uniforms for (machine operator, helpers and 1857900
guards) twice per year(Birr 550x10x2)
Environmental cost 20,000
Total 93,760
16.4 Depreciation (Straight Line Method)

Description Initial Cost Dep. Rate Project year
Machinery an Equipment 24772000 0.1 2477200

Furniture and comp 150,000 0.2 30000
16.5 Initial Working Capital

Three months of salaries and Wage expense. Birr 183000
Three months of fuel lubricants & chemicals expense… Birr 551,520

Three months of utilities expense………….. Birr 52,415
Three months of miscellaneous expense………Birr 62,655
Total…………………Birr 849590
Capacity Utilization
Products is assumed to start at 50% of installed capacity and increase by 5% each
year
Until it reaches the assumed attainable capacity of 95%.
Page 45
Assumption employed regarding time
The project envisages an adaptation of the following regime of operation:
 Working hours/day = 8
 Number of shift/day = 2
 Number of working days/month = 25
 Number of working days/year = 300
Page 46
INDEX 1 Fund allocation and source of finance
Fund allocation and source of finance

Description
Existed Planned Ex+Pla Equity loan Total
Inves. inve. investment
Aluminum Processing 9442760 23242760 4648552 18594208 23242760

Machineries, equipment
and inputs
Sub-total 23242760 23242760 4648552 18594208 23242760
Pre-operation cost 2324276 450000 90000 360000 450000
Pre. Prouction charge 385,000 150000 30000 120000 150000
Working capital 456390 200000 40000 160000 200000
Total investment 3165666
Total 26408426 3165666 5281685.2 21126741 26408426
Loan & Equity in % 20% 80% 100%
Page 47
Revenue at Different Capacity Level
YEAR
Taype of product/Service Income at 100%Capacity 1 2 3 4 5 6 7 8 9 10
Income at
Income at Income at Income at 60% Income at Income at Income at 75% Income at 80% Income at 85% Income at 90% Income at 95%
100%
50% Capacity 55% Capacity Capacity 65% Capacity 70% Capacity Capacity Capacity Capacity Capacity Capacity
Capacity
Sale of processed
Aluminioum doors 50 pcs 844,986,631 150,200,000 404,250,000 466,908,750 539,279,606 622,867,945 719,412,477 830,921,411 959,714,229 1,108,469,935 1,280,282,775
per day for 200 days
Sale of processed
Aluminioum windows 50 pcs 633,739,973 150,000,000 173,250,000 200,103,750 231,119,831 266,943,405 308,319,633 356,109,176 411,306,098 475,058,543 548,692,618
per day for 200 A48 days
Total 1,478,726,605 300,200,000 577,500,000 667,012,500 770,399,438 889,811,350 1,027,732,110 1,187,030,587 1,371,020,328 1,583,528,478 1,828,975,392
Somal Turki Aluminum and Pvc CO. ALUMINIUM DOOR AND WINDOS MANUFACTURING Page 48
BUSINESS PLAN
Total investment costs
Description/
YEAR
Year
0 1 2 3 4 5 6 7 8 9 10
Total fixed
23242760 0 0 0 0 0 0 0 0 0 0
investment costs
Total pre-
production 385,000 0 0 0 0 0 0 0 0 0 0
expenditures
Increase in net 479209. 528328.473 611606.249 674295.8
working capital 0 456,390 5
503169.975
8
554744.8974 582482.1423
4
642186.5619 708010.6845
9
Total investment
23627760 456,390 479,210 503,170 528,328 554,745 582,482 611,606 642,187 674,296 708,011
costs
BUSINESS PLAN
Operating cost projection
Description Project year

1 2 3 4 5 6 7 8 9 10
Direct cost
11633832
Row materials 110798400 122155236 128262998 134676148 141409955 148480453 155904475 163699699 171884684
0
295012.67
Utility 209660 220143 231150.15 242707.66 254843.04 267585.192 280964.452 309763.308 325251.474
5
1114423.5
Salary and wage 792000 873180 916839 962680.95 1010815 1061355.75 1170144.71 1228651.95
831600 3
Repaire and Maintenance 464855.2 512502.858 538128 565034.401 593286.121 464855.2 464855.2 464855.2 464855.2
488097.96
Travel and Perdium 79200 79200 79200 79200 79200 79200 79200 79200 79200 79200
111442.35
Employees benefi 79200 87318 91683.9 96268.095 101081.5 106135.575 117014.471 122865.195
83160 3
Stationery and P.T.I 36530 36530 36530 36530 36530 36530 36530 36530 36530 36530
Uniform 11000 11000 11000 11000 11000 11000 11000 11000 11000 11000
Insurance 1743207 1743207 1857900 1857900 1857900 1857900 1857900 1857900 1857900 1857900
3414593.7
Fuel and Lubricants 2426688 2548022.4 2675423.52 2809194.7 2949654.43 3097137.15 3251994.01 3585323.4 3764589.57
1
Legal and Audit service 16000 16000 16000 16000 16000 16000 16000 16000 16000 16000
Administrative cost 160000 160000 160000 160000 160000 160000 160000 160000 160000 160000
Miscellaneous 103,760 103,760 103,760 103,760 103,760 103,760 103,760 103,760 103,760 103,760
12265904
Total Operation cost 116920500.2 128799201 135125941 141769019 148744250 155910148 163569193 171611190 180055288
0
BUSINESS PLAN
Revenue Projection ( ETB 000)
Description Year
2,024 2,025 2,026 2,027 2,028 2,029 2,030 2,031 2,032 2,033
Sale of
processed
Aluminum
doors 50 pcs
per day for 200
days 10,000 11,000 12,100 13,310 14,641 16,105 17,716 19,487 21,436 23,579
Price per
profile frame 20,000 21,000 22,050 23,153 24,310 25,526 26,802 28,142 29,549 31,027
Gross income
266,805,00 355,924,54 548,408,13
from
200,000 231,000,000 0 308,159,775 0 411,092,844 474,812,235 1 633,411,391 731,590,157
Sale of
processed
Aluminum
windows 50 pcs
per day for 200
A48 days 15,000 16,500 18,150 19,965 21,962 24,158 26,573 29,231 32,154 35,369
Price per
profile frame 10,000 10,500 11,025 11,576.25 12,155 12,762.82 13,401 14,071.00 14,775 15,513.28
Gross income
from 150,000,000 173,250,000 200,103,750 231,119,831 266,943,405 308,319,633 356,109,176 411,306,098 475,058,543 548,692,618
Total 719412476.7
150,200,000 404,250,000 466,908,750 539,279,606 622,867,945 830,921,411 959,714,229 1,108,469,935 1,280,282,775
BUSINESS PLAN
Projected Income Statement('') In ETB
Description Year
2024 2025 2026 2027 2028 2029 2030 2031 2032
Gross Revenue 150,200,000 404,250,000 466,908,750 539,279,606 622,867,945 719412476.7 830,921,411 959,714,229 1,108,469,935 1,2
Less: Operating
116920500.2 122659040 128799201 135125941 141769019 148744250 155910148 163569193 171611190
cos
Income before
Prinicipal & profit 33279499.8 281590960 338109549 404153665 481098926 570668226.7 675011263 796145036 936858745 1
share &Depr
Less :Prinicipal & 2786403.75
4542249.272 4019890.61 3557603.19 3148478.82 2465967.324 2182381.081 1931407.257 1709295.422 15
Rent 5
Income 478312522.
28737250.53 277571069 334551946 401005186.2 568202259.4 672828881.9 794213628.7 935149449.6 1
beforDepretion 2
17750030.9
Less :Depr. 2324276 4183696.8 1673478.72 21606469.7 15036764.13 12364107.04 9556589.891 11195278.1 54
6
460562491.
Profit befor tax 26412974.53 273387373 332878467 379398716.5 553165495.2 660464774.9 784657038.9 923954171.5 1
3
Less: Incom Tax 161196871.
116507463 132789550.8 193607923.3 231162671.2 274629963.6 323383960 38
(35%) 9
299365619.
Net Profit 26412974.53 273387373 216371004 246609165.7 359557571.9 429302103.7 510027075.3 600570211.5 71
3
BUSINESS PLAN
Projected Cash Flow Statement In ETB
Description Year
0 1 2 3 4 5 6 7 8 9 10
Cash Inflow
Owners Equity 5,281,685
Bank Loan 21126740.8
Net Profit 17168433.44 177701792 216371003.9 246609165.8 299365619.7 359557571.9 429302103.5 510027075.5 600570211.1 710650553.8
Depreciation 2324276 4183696.8 1673478.72 21606469.7 17750030.96 15036764.13 12364107.04 9556589.891 11195278.1 5406216.292
Total Cash Inflows 26408426 19492709.44 181885488.8 218044482.6 268215635.5 317115650.7 374594336 441666210.6 519583665.4 611765489.2 716056770.1
Cash outflows
Investment on
23627760
Machineries
Working Capital 456390
Increase in W.Capital 0 760677.75 0 0 0 1161677.86 0 0 0 0
Pre prod.expediture 385,000
Replacement 0 0 0 0 0 0 0 0 0 0
Loan Repayment 4542249.272 4019890.606 3557603.186 3148478.82 2786403.755 2465967.324 2182381.081 1931407.257 1709295.422 1512726.449
BUSINESS PLAN
Working Loan
Repayment
Pre-operation cost
Withdrawal 0 0 0 0 0 0 0 0 0 0
Total Cash Outflows 24469150 4542249.272 4780568.356 3557603.186 3148478.82 2786403.755 3627645.183 2182381.081 1931407.257 1709295.422 1512726.449
Net Cash Flow 1939276 14950460.17 177104920.4 214486879.5 265067156.7 314329246.9 370966690.8 439483829.5 517652258.1 610056193.8 714544043.7
Comulative Cash Bal. 0 14950460.17 192055380.6 406542260 671609416.7 985938663.7 1356905355 1796389184 2314041442 2924097636 3638641680
Projected Cash Flow Statement In ETB
Description Year
0 1 2 3 4 5 6 7 8 9 10
Cash Inflow
5,281,68
Owners Equity
5
2112674
Bank Loan
1
17168433.4 216371003. 246609165. 299365619. 359557571. 429302103. 510027075. 600570211. 710650553.

Net Profit 177701792
4 9 8 7 9 5 5 1 8
17750030.9 15036764.1 12364107.0 9556589.89 5406216.29

Depreciation 2324276 4183696.8 1673478.72 21606469.7 11195278.1
6 3 4 1 2
2640842 19492709.4 181885488. 218044482. 268215635. 317115650. 441666210. 519583665. 611765489. 716056770.
Total Cash Inflows 374594336
6 4 8 6 5 7 6 4 2 1
BUSINESS PLAN
Cash outflows
Investment on 2362776
Machineries 0
Working Capital 456390
Increase in W.Capital 0 760677.75 0 0 0 1161677.86 0 0 0 0
Pre prod.expediture 385,000
Replacement 0 0 0 0 0 0 0 0 0 0
4542249.27 4019890.60 3557603.18 2786403.75 2465967.32 2182381.08 1931407.25 1709295.42 1512726.44

Loan Repayment 3148478.82
2 6 6 5 4 1 7 2 9
Working Loan
Repayment
Pre-operation cost
Withdrawal 0 0 0 0 0 0 0 0 0 0
2446915 4542249.27 4780568.35 3557603.18 2786403.75 3627645.18 2182381.08 1931407.25 1709295.42 1512726.44
Total Cash Outflows 3148478.82
0 2 6 6 5 3 1 7 2 9
14950460.1 177104920. 214486879. 265067156. 314329246. 370966690. 439483829. 517652258. 610056193. 714544043.
Net Cash Flow 1939276
7 4 5 7 9 8 5 1 8 7
14950460.1 192055380. 671609416. 985938663.

Cumulative Cash Bal. 0 406542260 1356905355 1796389184 2314041442 2924097636 3638641680
7 6 7 7
Cash Flow Projection for Discounting
BUSINESS PLAN
YEAR
0 1 2 3 4 5 6 7 8 9 10
12
80
350 959714229
Total cash inflow
0 404250000 466908750 539279606 622867945 719412477 830921410 1108469935 28
000000 .
27
7
12
80
830921410 959714229
Inflow operation 350000000 404250000 466908750 539279606 622867945 719412477 1108469935 28
. .
27
75
Salvage valu 0 0 0 0 0 0 0 0 0
Increase in fixed 23627760 0 0 0 0 0 0 0 0 0 0

assets
70
80
Increase in net 0 456390 479209.5 503169.975 528328.47 554744.89 582482.14 611606.24 642186.56 674295.89 10
work capital .6
8
18
00
155910147 163569192
Operating costs 116920500 122659040 128799201 135125941 141769019 148744250 171611190. 55
. .
28
7.
Income (corporate) 0 79174541. 95685580. 116507464 132789551 161196872 193607923 231162671 274629963 323383959. 38
tax (35%) 1 . . 26
BUSINESS PLAN
57
99
0
12
70
950883970
Net cash flow
-23627760 343724500 397660725 459990011 532014931 615240036 711403172 822511640 1099198163 54
.
74
1
71
79
170976240 232500244 303640561 385891725 480980122
Cumulative net -23627760 320096740 717757465 1177747476 5908999388 54
cash flow 7 3 4 5 5
68
03
Net present value

Internal rate of
return 46% ]
Payback period 3 years
Breakeven analysis projection

Description 1 2 3 4 5 6 7 8 9 10
Sales revenue 87,790,819

24,000,000 27,720,000 32,016,600 36,979,173 42,710,945 49,331,14 56,977,468 65,808,97 76,009,367
BUSINESS PLAN
1 6
Break-even 1065902 1026302 984722 941064 895222 847089 796548. 743481 687761 629254
sales value
Break-even 46.77% 57.37% 24% 24% 24% 24% 24% 24% 25% 26%
ratio (%)
INDEX 1 Breakeven analysis Projection
BUSINESS PLAN
THANKS
BUSINESS PLAN
Somal Turki Aluminum and Pvc CO. ALUMINIUM DOOR AND WINDOS MANUFACTURING
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Somal Turki Aluminum and Pvc CO.

ALUMINIUM DOOR AND WINDOS MANUFACTURING

SUBMITTED TO:- DEVELOPMENT BANK OF ETHIOPIA / JIGJIGA BRANCH

G/Manager:- HUSEN ARALE MOHAMMED

Prepared By DAYAH CONSULTING SURVICE

INDEX 2 DEPRECIATION AND AMORTIZATION 38

ACRONYMS & ABBREVIATIONS

A full-fledged project proposal study which was undertaken pursuant to the

2 INTRODUCTION AND BACK OF PROJECT

Review of the country’s macroeconomic performance trends over the period

2.1 Project Description

2.1.1 Overall goal

Beside the scarcity of processed Aluminum products in Somali region of Ethiopia,

2.1.2 Specific Objectives

 To establish loyal customers

2.1.3 Mission Statement

To supply highest quality products that satisfy customers’ needs by optimizing

2.2 Market Study

2.2.1 Market Description

The Processed Aluminum Market in Ethiopia

Source; FDRE MOWAE report

2.5 Market Share

Apparent utilization of Aluminum and PVC processed in the country shows

2.5.2.1 Products Quality

3 PROJECT PROFILE AND PRODUCTS DESCRIPTION

3.1 Project Profile

3.2 Proposed Business Legal Status

Products business can be started as a sole proprietorship or a partnership, individual

3.3 Financial Summary

Table 1 financial cost of the project

Debt Equity Split 25-75

In Ethiopia, great distances, poor infrastructure, a rudimentary financial sector are

3.6 Opportunity Rationale

3.7 Sector Players

• Public Sector (State Enterprises)

3.8 Market Entry Timing

3.9 Key Success Factors

 Products range selection and introduction.

Costs and prices

Mobilization and demobilization – The costs of getting the machineries and

9 PROJECT IMPLEMENTATION SCHEDULE

9.1 Completion of Aluminum and PVC Machineries

Normally, it takes about 2 to 4 months’ period for getting obtaining project

S. No Activity Time (months)

9.1.1 Essential Facilities

 Firm’s vehicles will be stand by on the site under the shed

9.2.1 Municipal Benefit

So as a government office will collect a products charge from all users.

9.2.2 Promoter’s Benefit

Project Capacity and Rationale

10.1 Technology and Engineering

10.1.1 Technology and Machineries

10.1.2 Location and Site

10.3 Site Surroundings:

10.4.1 PROCESSED ALUMINUM

10.4.1.1 Rotary Processed Aluminum

10.4.1.2 Percussion Processed Aluminum

Processed Aluminum by percussion is done by simply dropping a heavy cutting

10.4.2.1 Sanitary seal

 To measure the performance of the doors and windows

10.5 Quality Management

11 ORGANIZATION STRUCTURE AND HUMAN RESOURCE

11.2 Organizational Structure