Development Bank of Ethiopia

Research Process

Commodity Study on
Clothing Button Manufacturing

Prepared by: Case Team 4

Kedir Beshir, Principal Officer

Tadesse Tolcha, Sr. Research Officer
Gelila Worku, Jr. Research Officer

December, 2008
Addis Ababa
Revised by
Research Process Manager
1. Introduction......................................................................................................................3
1.1. Background of the study...........................................................................................3
1.2. Objectives of the study.............................................................................................4
1.3. Methodology.............................................................................................................4
1.4. Scope and limitations of the study............................................................................4
1.5. Problems Encountered During the study..................................................................5
2. Definition of Button.........................................................................................................6
2.1. Types of buttons.......................................................................................................6
2.2. Button sizes...............................................................................................................7
3. Raw materials for button manufacturing.........................................................................8
3.1. Types and description of the raw materials..............................................................8
3.1.1. Major raw materials for shirt or polyester button..............................................8
3.1.1.1. Polyester resin........................................................................................8
3.1.1.2. Promoter (M.E.K.P.)...............................................................................9
3.1.1.3. Accelerator or Catalyst (Octivate of cobalt)......................................10
3.1.1.4. Pearl essence........................................................................................11
3.1.1.5. Additional ingredients...........................................................................11
3.1.2. Raw material for Jeans or Metal button...........................................................11
3.2. Availability of the raw materials in Ethiopia..........................................................12
3.2.1. Import of the raw materials for polyester button.............................................12
3.3. per sheet requirements of polyester, promoter (accelerator) and Pearl essence.....14
3.4. Prices of raw material for polyester button ............................................................15
4. Production process of polyester button..........................................................................17
4.1. Sheet processing.....................................................................................................17
4.2. Button blank cutting...............................................................................................18
4.3. Button making........................................................................................................18
4.4. Wavy pressing........................................................................................................18
4.5. Shank button making..............................................................................................18
5. Market study of button...................................................................................................19
5.1. Button demand........................................................................................................19
5.2. Button Supply.........................................................................................................23
5.2.1. Domestic Production.......................................................................................24
5.2.2. Imports of Ethiopia..........................................................................................25
6. Button prices in Ethiopia...............................................................................................29
6.1. Import prices...........................................................................................................29
6.2. Domestic prices......................................................................................................30
6.3. Domestic versus import prices................................................................................30
6.4. Button imports of Ethiopia and neighboring countries...........................................32
7. Product quality...............................................................................................................34
8. Market Strategy.............................................................................................................35
8.1. General....................................................................................................................35
8.1.1. Promotional Strategy.......................................................................................35
8.1.2. Distribution Channel........................................................................................36
9. Project engineering and technical study........................................................................37
9.1. Required machinery and equipment of polyester button........................................37

1
 9.2. General Arrangement of Polyester shirt button making plant................................38
10. Organizational set up and Manpower requirement......................................................39
10.1. Organizational setup.............................................................................................39
10.2. Required Man Power............................................................................................40
11. Environmental consideration and socioeconomic impact assessment.........................41
12. Main Actors in the commodity....................................................................................41
13. Key success Factors in a clothing button manufacturing............................................42
14. Opportunities and threats.............................................................................................43
14.1. Opportunities........................................................................................................43
14.2. Threats..................................................................................................................43
15.Credit performance of button manufacturing financed by DBE..................................44
16. Conclusion..................................................................................................................45
17. Parameters, Technical coefficients and basic assumptions.........................................46
Major Sources of Information...........................................................................................50
Websites:............................................................................................................................50

2
1. Introduction

1.1. Background of the study

Buttons are one of the very essential manufactured items used as inputs to
garment industries. Due attention should be given to garment accessories in
general and the button sub sector in particular if the garment sector is to develop
well.

The garment sector is one of the government priority sectors in the country.
Hence, as one of the major accessories of the garment sector, button production
should be provided with financial and technical assistance. Development Bank of
Ethiopia, the sole development finance in the country, has a key role to play in
every government priority sectors in general and in button production in particular
by providing financial and technical assistance to domestic as well as foreign
investors involved in the sector.

1.2. Objectives of the study

The general objective of the study is to avail data and information to be used for
decision making by the Project Rehabilitation and Loan Recovery Sub Process of
the Bank. The specific objectives of the study are:
 to undertake market study of the commodity
 to contribute to strong database formation in the bank
 to improve decision making capacity
 to increase customer satisfaction

3
1.3. Methodology
Methods employed for the study include:
 Internet browsing
 Questionnaires
 Observations
 Interviews and
 Document reviews

1.4. Scope and limitations of the study

Buttons are of various types. They can be made from glass, shell, bone, wood,
leather, metal or cloth. However, only metallic and plastic buttons are considered
in this study.

The study is based on CSA’s definition of an ‘industry’ which is an establishment

engaging 10 persons and above and use power driven machines. This implies
that all tailors and all other individual garment and textile producers employing
less than 10 persons and/or those who use manual types of sewing or
manufacturing machines are excluded from the study. The study also does not
contain civil engineering and machinery requirement studies.

Moreover, the study has the following limitations:

 Lack of data/information on raw materials for metallic button production
 Lack of number as well as button consumption levels of tailors at national level
 Lack of button consumption levels of garment producing factories in the country.

4
1.5. Problems Encountered During the study
The only button producing factory, ELNAL PLC, was not willing to respond to our
questionnaire. Hence, the team resorted to using the follow up report undertaken
by the Project Rehabilitation and Loan Recovery Sub process of the Bank on the
project.

5
2. Definition of Button
In clothing and fashion design, a button is a small plastic or metal disc or knob
shaped, typically round, object usually attached to an article of clothing in order
to secure an opening, or for ornamentation. Functional buttons work by slipping
the button through a fabric or thread loop, or by sliding the button through a
reinforced slit called a buttonhole.

2.1. Types of buttons

There are about five types of buttons.

Three sew-through buttons (left) and one shank covered button (right).
 Shank buttons- have a small ring or a bar with a hole called the shank
protruding from the back of the button, through which thread is sewn to
attach the button.
 Covered buttons- are fabric-covered forms with a separate back piece that
secures the fabric over the knob.
 Flat or sew-through -buttons have two or four holes punched through the
button through which the thread is sewn to attach the button. Flat buttons
may be attached by sewing machine rather than by hand, and may be
used with heavy fabrics by working a thread shank to extend the height of
the button above the fabric.
 Worked or cloth buttons - are created by embroidering or crocheting tight
stitches (usually with linen thread) over a knob or ring called a form.
 Mandarin buttons or Frogs - are knobs made of intricately knotted strings.
Mandarin buttons are a key element in Mandarin dress (Qi Pao and
cheongsam in Chinese), where they are closed with loops. Pairs of
mandarin buttons worn as cuff links are called silk knots

6
2.2. Button sizes
The following button size chart is shown to see the standard sizes of
button available. Buttons are commonly measured in lignes. The word ligne is a
French word that became the standard reference used by German button
manufacturers in the early eighteenth century. Ligne is the internationally
recognized standard. Consensus at the time was that a "ligne" measured the
inside diameter of a "round wick folded flat." One inch is equal to 40 English
ligne, 11 French ligne, and 25.5 mm.

Table 2.1 The size of button in different units

LINGE MILLIMETERS INCHES
14 9.2 0.362
16 10.5 0.413
18 11.6 0.457
20 12.5 0.492
21 13.5 0.531
22 14.2 0.559
23 14.8 0.583
24 15.0 0.590
27 16.8 0.661
28 17.8 0.701
30 19.0 0.748
32 20.5 0.807
34 21.5 0.846
36 22.9 0.902
40 25.4 1.00
Source:-www.apparelsearch.com

7
3. Raw materials for button manufacturing

3.1. Types and description of the raw materials

Buttons can be manufactured from an extremely wide range of materials,
including natural materials such as antler, bone, horn, ivory, shell, vegetable
ivory, metal or brass and wood; or synthetics such as celluloid, glass, bakelite
polyester and plastic. But we only see in regard to the raw material of polyester
button and metal button.

3.1.1. Major raw materials for shirt or polyester button

3.1.1.1. Polyester resin

It refers to unsaturated resins formed by the reaction of dibasic organic acids and
polyhydric alcohols. Unsaturated polyesters are condensation polymers formed
by the reaction of polyols (also known as polyhydric alcohols, organic
compounds with multiple alcohol or hydroxy functional groups) and
polycarboxylic that contain double bonds. Polyester resins are thermosetting;
"thermosetting" means the plastic softens when initially heated, but sets
permanently rigid once it has cooled (as opposed to "thermoplastics", which re-
soften with heat). Polyester resin is often purchased in liquid form for the
production of glass-reinforced plastic. In this case, a catalyst (typically methyl
ethyl ketone peroxide (MEKP) also known as butanone peroxide is used to
initiate the polymerization reaction.

A liquid polyester resin with medium viscosity, very versatile and suitable for a
broad range of applications (laminations, spray applications, castings, etc.). It
Can be filled with inert materials so to obtain various density mixtures.

Physical and chemical characteristics

Hardener: Perexter B18 2 - 3% weight ratio
Appearance: transparent liquid
Viscosity: 550 - 650 mPas
Setting time: 10 - 12 min. at 25°C

8
3.1.1.2. Promoter (M.E.K.P.)
It is colorless, mobile liquid, consisting of peroxides based on methyl ethyl
ketone, essentially desensitised with phtalate plasticizer. This ketone peroxide is
used as an initiator (radical source) in the curing of unsaturated polyester resins.
Main application curing of molded parts at ambient temperature in combination
with cobalt accelerators.

Technical indexes
Appearance.......................................................colorless liquid
Density at 20°C............................................... ca. 1.1 g/cm3
Viscosity at 20°C.............................................ca. 23 mPa•s
Miscibility.........................................................immiscible with water, soluble in
phthalates
Critical temperature (SADT)........................... ca. 60°C
Cold storage stability................. …….……….to below -25°C
Recommended storage temperature .............below 30°C
Maintenance of activity at 25°C..................... min. 6 months

The application is through a standard curing agent for all unsaturated polyester
resin types at ambient temperature in combination with cobalt accelerators.
Standard dosage level: 1-3% as supplied, with 0.2-2% of a 1% cobalt solution.

9
3.1.1.3. Accelerator or Catalyst (Octivate of cobalt)
It is a metallic salt used as an active surface drier for oil and alkyd based
products.
Technical indexes:
1. Appearance: Purple, clear liquid
2. Gelatins time (25): d10min d5min
3. Density (25): 0.900-0.922g/m³
4. Color index of resin casting: Slight bluish Slight bluish

Characteristics
1. High efficiency- the application volume is only a half of a normal accelerator.
2. The solidified resin is tint, but the colored product is bright. It is especially
suitable to use in tint product.
3. Excellent stability with a shelf life of over 6 months.

Use-The product is the best accelerator in tint color, is widely used, in the
quantity of 0.5-2.5% of resin and generally combined with an initiator of peroxide,
such as cyclohexanone peroxide or methyl ketone peroxide, in shaping of
products from toughened glass, especially suitable to use in tint casting for
artificial agate, buttons, polyester furniture, and tint technological casting.

3.1.1.4. Pearl essence

It is a translucent substance that occurs in the silvery scales of various fish (as
herring) and is used in making artificial pearls, lacquers, polyester buttons and
plastics.

3.1.1.5. Additional ingredients

Paraffin wax
It is a waxy white or colorless solid hydrocarbon mixture used to make candles,
wax paper, lubricants, and sealing materials. In the case of polyester button it is
used to rise to the top of the sheet, and sink to the bottom, so that the hardening
polyester is eventually held between two layers of wax.

10
Various colors- A variety of chemical dyes are added to the polyester to make
different colors. To make buttons with the pearlescent sheen of shell buttons, red
carbonate is added to the polyester. Black buttons are made with the addition of
carbon black, and white buttons are made with titanium.

3.1.2. Raw material for Jeans or Metal button

Metal buttons are made of various materials, the variety known as gilt buttons
being made of a mixture of copper, with a small portion of zinc or brass mixed
with copper, common brass being unfit for gilding. The gilding is performed by
means of an amalgam of quicksilver and gold. The buttons are cut out of large
wide sheets of this metal, and the shanks are affixed by solder. This work is all
done by machines, the process being so rapid that one workman can prepare 12
gross in an hour. Brass buttons are simply stamped out of sheet brass, and the
ornaments are struck by a die. Plated buttons are made out of copper, plated
with silver, and are chiefly used in liveries and uniforms. The figures or designs
upon them are formed by stamping with dies

Metals such as brass is for the cheaper kinds, and for more expensive ones,
gold and silver. Brass sheet is available in gauges 14, 16, 18, 20, 22, 24 and 26.

11
3.2. Availability of the raw materials in Ethiopia

There is no domestic production found on the major raw materials. All the major
raw materials are imported from abroad.

3.2.1. Import of the raw materials for polyester button

The table below shows the import of unsaturated polyester resin, M.E.K.P and
paraffin for the past 4 years and 10 months. There is no domestic production of
unsaturated polyester resin and M.E.K.P but paraffin can be produced in
Ethiopia.

12
 Table 3.1. Import of the raw materials and their source.
Net Weight in CIF value in
Year Hs code Hs Description Origin
kg ETB

39079900 Unsaturated Polyester in

118,923 2,824,332 Saudi Arabia, China ,UAE,US
primary form

2008 29141200
M.E.K.P 47979 1149776.12 Saudi Arabia, India, Belgium, Netherlands, South Africa

Egypt, India, UK, France, Slovakia Iran, Korea, China, Germany,

27122000 Paraffin 1943374.21 25735961.2
Pakistan, US, Saudi Arabia, Italy, South Africa ,UAE

39079900 Unsaturated Polyester in Spain, Saudi Arabia, India, Germany, Belgium, China,
192,372.00 3,987,290.70
primary form Netherlands,UAE,Spain,India,UK,

2007 29141200 M.E.K.P 6873 225314.43 China,

Egypt, India Iran,Korea,China Germany Saudi Arabia Turkey,

27122000 Paraffin 2529095.61 23326088.62
UK

39079900 Unsaturated Polyester in Ukraine, Saudi Arabia, UK, Germany, UAE, India Slovenia
324,291.56 6,218,897.90
primary form Italy, Netherlands

29141200
M.E.K.P 19531.95 339373.75 Ecuador,Spain,Belgium,Netherlands, UAE, Spain,India,UK
2006

Egypt,India,UK,France,SlovakiaIran,Korea,China,
27122000 Paraffin 2358493.2 20821075.3
Germany,Pakistan,US, Saudi Arabia, Italy,

39079900 Unsaturated Polyester in

104,066.39 1,733,809.08 Ukraine, Saudi Arabia, UK, Germany, UAE
primary form

29141200 Kenya,Germany,Italy,Belgium,Greece
M.E.K.P 51607.88 1075147.91
2005 Netherlands,UAE,Spain,India,US,UK,

Egypt,India,United Kingdom,Iran, Korea, China,

27122000 Paraffin 1806010 11532442.67
UAE,GermanyPakistan, US, Saudi Arabia

39079900 Unsaturated Polyester in

- - -
primary form

29141200
2004 M.E.K.P 21,557 276,875 Great Britain, Netherlands, South Africa ,United Arab Emirates

Denmark, Egypt, Great Britain, Netherlands,

27122000 Paraffin 869,648 5,065,954 India, Iran, Korea, South Africa ,United Arab Emirates

39079900 Unsaturated Polyester in

- - -
primary form
29141200
2003 M.E.K.P Ireland,Netherlands,Saudi Arabia,Jordan,U.N.E
25186.00 245404.36
China, Egypt, Great Britain, Netherlands, Iran,
27122000 Paraffin India, Iran, Korea, South Africa ,United Arab Emirates
755567.00 4315847.34
Source: - Customs authority Import Export data

13
From C.S.A. it is found that only paraffin is produced in Ethiopia which is one of
the additional raw materials for polyester button. The table below shows the
production for five years in ton.

Table 3.2 Production of Paraffin from 1994-1998 in Ethiopia

Production 1994 1995 1996 1997 1998
per annum

Paraffin (ton) 2803 759 838 5112 7535

Source: - C.S.A. small and medium scale manufacturing, 2007

3.3. per sheet requirements of polyester, promoter (accelerator)

and Pearl essence

Generally the materials required for manufacture of sheets are 100 parts of
polyester resin, 1 part each of promoter and catalyst, and 1-1.3 parts of pearl
essence.
With a plant designed to turn out polyester plain flat buttons of
14,16,18,20,22,24,26,28 and 30 line sizes and of maximum and minimum grades
with a daily output ( 8 hrs/day) of 400 great gross or 10000 great gross/month (25
days/month) the monthly requirement of raw material is given below.

Table 3.3. Monthly requirement of raw material for polyester button (daily
output of 400 great gross or 10000 great gross/month)
Item Quantity
Polyester resin 6500kg
Promoter 65 kg
Accelerator 65 kg
Pearl essence 65 kg
Source: Japan Consulting Institute, UNIDO

14
3.4. Prices of raw material for polyester button (Polyester Resin,
M.E.K.P, Pearl essence, Paraffin) and Brass sheet.

The following two tables show the price of raw material for polyester and brass
button. Since there is shortage of information on prices of the raw material, the
prices are taken from different sources. Price for paraffin is taken from paraffin
safety association in Southern Africa .Price for Polyester resin and M.E.K.P
prices are taken from U.K. and Amazon.com. Pearl essence from U.S.

Table 3.4 Prices of the raw material for shirt or polyester button
Prices(dollar)
Items
2007 2008 Average
Polyester 4.5 14.99 9.75
resin
M.E.K.P 4.38 14.36 9.37
Pearl essence - 150 -
Paraffin 8.7 12.18 10.44

Source:- Unsaturated Polyester Resin GRP Fiber Glass Fiber Composites.htm,

www.plastemart.com/plasticnews_desc.asp, www.plastemart.com/plasticnews_desc.asp?news, paraffin
safety association Southern Africa. www.enailsupply.com/index.asp

15
Table 3.5. Price of brass sheet per piece as at October 2008.
Brass by No of Pieces(PCS)
Size
Gauge* 1 - 5 PCS 6 - 10 PCS 11 + PCS
6x6 $8.64 $7.64 $6.64
14 gauge
6x12 $12.71 $11.71 $10.71
brass sheet
12x12 $22.21 $21.21 $20.21
1.5mm
12x24 $43.93 $42.93 $41.93
thickness
12x36 $62.38 $61.38 $60.38
6x6 $5.64 $4.64 $3.64
18gauge
6x12 $8.21 $7.21 $6.21
brass sheet
12x12 $14.21 $13.21 $12.21
1mm
12x24 $27.91 $26.91 $25.91
thickness
12x36 $36.56 $38.56 $37.56
6" x 6" $4.57 $4.07 $3.57
20 gauge
6" x 12" $6.61 $6.11 $5.61
brass sheet
12" x 12" $11.36 $10.86 $10.36
0.75mm
12" x 24" $22.21 $21.71 $21.21
thickness
12" x 36" $31.44 $30.94 $30.44
22 Gauge 6" x 6" $3.98 $3.48 $2.98
brass Sheet 6" x 12" $5.60 $5.10 $4.60
0.625 MM 12" x 12" $9.37 $8.87 $8.37
thickness 12" x 24" $18.00 $17.50 $17.00
12" x 36" $25.33 $24.83 $24.33
24 Gauge 6" x 6" $3.42 $3.17 $2.92
Brass Sheet 6" x 12" $4.76 $4.51 $4.26
0.4 MM 12" x 12" $7.87 $7.6 $7.37
thickness 12" x 24" $14.99 $14.74 $14.49
12" x 36" $21.04 $20.79 $20.54
26 Gauge 6" x 6" $2.88 $2.63 $2.38
Brass Sheet 6" x 12" $3.95 $3.70 $3.45
0.4 MM 12" x 12" $6.43 $6.18 $5.93
thickness 12" x 24" $12.11 $11.86 $11.61
12" x 36" $16.94 $16.69 $16.44
Source:-www.hagstoz.com
Note * 1 Gauge = 0.001Inch and measures the thickness of very small sheet or paper.

16
4. Production process of polyester button
There are various manufacturing processes of polyester buttons, as outlined
hereafter:

4.1. Sheet processing

This is the primary process of the plant, generally called the material plant. The
materials required for manufacture of sheets are 100 parts of polyester resin, 1
part each of promoter and catalyst, and 1-1.3 parts of pearl essence. And
sometimes paraffin is used to float the hardened polyester resin. The only
machine used for sheet making is centrifugal spinning machine.

4.2. Button blank cutting

In this process different machines are employed according to the hardness of the
sheet desired. High speed automatic punching machines are used when
punching soft sheet, and automatic blank cutting machine when punching harder
sheets.

4.3. Button making

Button blanks are then fed into:
a) An automatic face shaping machine with electricity eye
b) An automatic drilling machine or automatic fish eye cutting and drilling
machine, so as to manufacture buttons into the required designs.
There is a rotary type automatic button making machine (vertical and horizontal)
which carries out face shaping, fish eye cutting and drilling on a single machine.
In Japan there are two types of plants one adapting a and b process and the
other using the rotary type machine. So far as quality is concerned the former is
better. The above processors both refer to manufacturing of flat buttons the
remaining process for which being polishing in the tumbling barrel.

4.4. Wavy pressing

If a wavy effect is required for the surface, a wavy pressing process is necessary
with hydraulic press while the sheet is still soft after manufacturing. Buttons made
from wavy sheets are called wavy buttons.

17
4.5. Shank button making
There are two processes. One is a process in which sheet is made into a fixed
thickness in the conventional manner for the making of shank by shaping the
back side of the sheet. Afterwards, face shaping, rear side cutting and drilling
take place .In this process
a) An automatic face shaping machine for back side shaping
b) Automatic face shaping machine for surface and
c) Automatic rear side cutting and drilling machine are required.
In another process developed recently the shank is to be stitched onto the
back of the sheet .The shanked sheet is then cut and drilled with the semi
automatic blank cutting and drilling machine , and lastly given design by the
face shaping machine. In this process
1) Shank stitching machine
2) Semi automated blank cutting and drilling machine and
3) Automatic face shaping machine are required

18
5. Market study of button

5.1. Button demand

To determine the demand for button, the most sensible approach assumed is to
use the so called ‘per unit button consumption or utilization’ (hereafter PUBC) per
product type. The product here is textile and leather garment. The ‘PUBC’
method is chosen because of the following reasons:
Garment manufacturing industries’ button consumption trend is difficult to
obtain due to poor and inefficient recording system.
The number as well as button consumption of informal tailories’ is
extremely difficult to estimate.

The study therefore attempts to estimate button consumption demand level

through the use of what is termed in this study as per unit button consumption
(PUBC) for each type of textile and leather garments excluding Belts, Ladies
Bags, Conference Bags, Cap and Field Jacket. This per unit button consumption
figure is collected from the sampled garment manufacturing industries and the
average ‘PUBC’ is used for estimation purpose since garment products differ by
design and hence button consumption.

Once these ‘PUBC’ figures are obtained, the next task is to estimate the volume
of production of various textile garments (shirts, complete suit for males and
females, trousers, uniforms, etc.) and leather garments (leather jackets, coats,
lady’s dress, bags, etc.)

As shown in the table below, based on ‘Market Study for Garment Accessories’
undertaken by Industrial Project Service (IPS) of the Privatization and Public
Enterprises Supervising Agency, the average annual production of garment
products per factory is shown below. Then using the total number of producing
factories in the country, the average annual garment production in the country is
computed.

19
Table 5.1. Average Annual Production of Garment Products And Time Trend Growth
Rates of The Sector

20
 Number of
Average Producing
Annual Factories Average Annual Production of Garment/Shoe Products Averag
Production e
per Factory 1999 1996 growth
1995 1997 1998 1999
(2002/03 - (2003/04 rate
Meas. (2002/03) (2004/05) (2005/06) (2006/07)
2006/07) )
Product Name Units
TEXTILE
GARMENT
Shirts In Pieces 141516 167700 57852 69596 83724 20%
In Pieces
Complete Suit (M) 1048 20 20960 22218 23551 24964 26462 6%
In Pieces
Complete Suit (F) 293 20 5860 6212 6584 6979 7398 6%
In Pieces
Trousers 31274 77 2408098 2552584 2705739 2868083 3040168 6%
In Pieces
Textile Jacket (M) 20433 77 1573341 1667741 1767806 1873874 1986307 6%
In Pieces
Textile Jacket (F) 20433 77 1573341 1667741 1767806 1873874 1986307 6%
In Pieces
Ladies Dress 9695 77 746515 791306 838784 889111 942458 6%
In Pieces
Coat 672 77 51744 54849 58140 61628 65326 6%
In Pieces
Rain Coat 12938 77 996226 1056000 1119360 1186521 1257712 6%
In Pieces
Over Coat 8451 77 650727 689771 731157 775026 821528 6%
In Pieces
Field Jacket 20433 77 1573341 1667741 1767806 1873874 1986307 6%
In Pieces
Gown 549 77 42273 44809 47498 50348 53369 6%
In Pieces
Overall Uniform 15295 77 1177715 1248378 1323281 1402677 1486838 6%
In Pieces
School Uniforms 900 77 69300 73458 77865 82537 87490 6%
In Pieces
Graduation Gown 1500 1800 1980 2200 4000 30%
In Pieces
Children Dress 700 26 18200 19292 20450 21676 22977 6%
In Pieces
Sports Wears 45000 3 135000 143100 151686 160787 170434 6%
In Pieces
Pajama 265 26 6890 7303 7742 8206 8698 6%
In Pieces
T-Shirt 1728000 3 5184000 5495040 5824742 6174227 6544681 6%
In Pieces
Military Uniforms 2000 3 6000 6840 7798 8889 10134 14%
LEATHER
GARMENT
In Pieces
Jacket (M) 649 14 9086 10176 11397 12765 14297 12%
In Pieces
Jacket (F) 649 14 9086 10176 11397 12765 14297 12%
In Pieces
Lady's Dress 479 14 6706 7511 8412 9421 10552 12%
In Pieces
Trousers 479 14 6706 7511 8412 9421 10552 12%
In Pieces
Coat (M) 608 14 8512 9533 10677 11959 13394 12%
In Pieces
Coat (F) 608 14 8512 9533 10677 11959 13394 12%
Source: Privatization and Public Enterprises Supervising Agency, Market Study for Garment
Accessories, Industrial Project Service, September 2008.

The per unit button consumption per each garment type is as shown in the table
below.
Table 5.2. Button requirement per unit of Garment

21
 Average button
Button requirement consumption per unit
Product Name Meas. Units per unit of product of product
TEXTILE GARMENT
Shirts In Pieces 10-14 small 12
Complete Suit (M) In Pieces 9-15 small,4-5 big 16

Complete Suit (F) In Pieces 8 small,2-4 big 11

Trousers In Pieces 4-6 small 5

Textile Jacket (M) In Pieces 2 small 2 big 4

Textile Jacket (F) In Pieces 2 small 2 big 4

Ladies Dress In Pieces 3-8 big 6

Coat In Pieces 4 big 10 small 14

Rain Coat In Pieces 5 big 1 small 6

Over Coat In Pieces 4 big 4

Field Jacket In Pieces 2 small 2 big 4

Gown In Pieces 4 big 4

Overall Uniform In Pieces 4 big 5 small 9

School Uniforms In Pieces 12 small 12

Graduation Gown In Pieces No button -

Children Dress In Pieces 1-8 small 5

Sports Wears In Pieces No button -

Pajama In Pieces 4 big 4 small 8

T-Shirt In Pieces No button -

Military Uniforms In Pieces 18-30 big 24

LEATHER GARMENT
Jacket (M) In Pieces 2 small 2 big 4

Jacket (F) In Pieces 2 small 2 big 4

Lady's Dress In Pieces 3-8 big 6

Trousers In Pieces 4-6 small 5

Coat (M) In Pieces 4 big 8 small 12

Coat (F) In Pieces 4 big 8 small 12

Source: Case Team 4 Sample Survey.

The total button consumption is then determined by relating the per unit buttons
consumption per each garment type (Table 5.2) with the computed average
annual garment production in the country. (Table 5.1). The product of the two will
give us the total consumption figure as shown in the table below.

22
Table 5.3. Total buttons consumption during 2002/03-2006/07
Total Consumption Total Consumption
(in Number) (in Gross)
Year (a) (b)= (a)/144
2002/03 59,043,353 410,023
2003/04 62,830,837 436,325
2004/05 65,198,478 452,767
2005/06 69,250,996 480,910
2006/07 73,572,165 510,918

By using the average growth rates indicated in Table 6.1 above, the average
annual production of garment products is projected from the year 2007/08-
2011/12. The projected average annual production of garment products together
with the per unit button consumption figures yield button consumption projections
as shown in the table below.

Table 5.4. Total buttons consumption projection during 2007/08-2011/12

Total Consumption Total Consumption
(in Number) (in Gross)
Year (a) (b)= (a)/144
2007/08 78,182,696 542,935
2008/09 83,105,772 577,123
2009/10 88,365,681 613,651
2010/11 93,994,381 652,739
2011/12 100,019,881 694,583

5.2. Button Supply

There is no button factory registered in the list of investment projects approved

by the Ethiopian Investment Authority from July 1992 to October 31, 2008.

23
 Moreover, there is no official data about existing number of button factories as
well as their capacities and capacity utilizations.

Time series data of the Central Statistical Authority is also assessed to see if
there is any recorded button production figure in the country. Unfortunately,
however, there is not any recorded production figure of button in the country.

Furthermore, there is not any information obtained from the Ministry of Trade and
Industry regarding the number of investors licensed to undertake button
production in the country for the past five years. However, Development Bank of
Ethiopia’s follow up report of ELNAL Private Limited Company shows that the
project is licensed to undertake button production on 05/06/1990 by Trade &
Industry & Tourism Bureau of Addis Ababa City Administration.

5.2.1. Domestic Production

Here, the production trend of the only existing company, ELNAL Private Limited
Company, is considered even though there are informal button producers in Merkato
town. As per the information obtained from garment producers (button consumers)
there is also another button producer in the country called Belayneh Beka button
factory. The team tried to contact the project manager through telephone and in
person but he is not willing to respond to our questionnaire.

Hence, the production and cost trend of ELNAL Private Limited Company for the
past six years is shown in the table below.

Table 5.5. Production and cost trend of ELNAL PLC.

24
 Production and cost
Year Total Qty Total cost Cost per gross
Total Qty
(in gross) (in Birr) (Birr)
(in number)
2003 62,724.5 9,032,328 579,969 9.25
2004 54,288.5 7,817,544 542,229 9.99
2005 83,177.5 11,977,560 845,547 10.17
2006 38,835.5 5,592,312 405,947 10.45
2007 52,708 7,589,952 448,668 9.52
2008 55,380.5 7,974,792 838,718 15.14
Source: Follow up report of DBE on ELNAL Private Limited Company.

The type of Buttons produced by the factory differs in size, color and design. The
production levels and trends for the past four years of the different colored and
designed buttons produced by ELNAL plc and listed by their size is presented in
the table below.

Table 5.6. Time series data on local buttons production.

Local buttons production by size from

2002/03 – 2005/06
Different
Sizes of
Buttons 2002/03 2003/04 2004/05 2005/06
14 inch 0 0 67 0
18 inch 921 8,800 0 4,818.5
23 inch 17,457 15,604 23,956 11,583.5
25 inch 0 12,245 0 510
30 inch 37,285.5 20,360.5 52,175 20,978
32 inch 1,232.5 1,517.5 3,440.5 13
36 inch 0 18.5 616 462
40 inch 0 15 0 472.5
44 inch 0 0 0 0
Source: Industrial Project Service, September 2008.

The table above depicts that the production of 30 inch button size dominates the
factory’s production followed by the 23 inch button size. There are irregularities in
the production of other button sizes as production is observed to be on and off.

25
5.2.2. Imports of Ethiopia
The import statistics, as per the information obtained from Customs Authority of
Ethiopia, for the past six years is shown in the table below. The information
obtained is grouped into four categories by HS Codes in compliance with
international classifications rounded off to six digits. The import trend showed
that the highest volume of imports was observed for the product category by HS
Code of 960629 followed by HS Code 960621 from 2003 to 2006. In 2007
however, the product category by HS Code 960610 is ranked second whereas in
2008 it is the product with HS Code 960622 which is ranked second.

26
 Table 5.7.Ethiopian imports of button products for the past six years.
Years
HS Code 2003 2004 2005 2006 2007 2008

Quantity Value Quantity Value Quanti Value Quantity Value Quantity Value Quantity Value
(kg) (Birr) (kg) (Birr) ty (kg) (Birr) (kg) (Birr) (kg) (Birr) (kg) (Birr)
960621 6,317 160,261 13,406 414,750 9,628 218,343 7,749 227,780 10,248 313,426 12,749 369,136
960622 6,105 96,913 2,567 35,264 3,144 68,400 5,004 127,339 10,174 245,399 16,655 234,299
960610 604 46,332 2,564 52,314 4,398 81,726 4,685 121,063 21,030 490,039 247 4600
960629 39,041 604,434 58,936 1,326,51 25,082 617,667 32,726 840,140 26,620 701,777 27,453 581,011
0
Source: Ethiopian Customs Authority
N.B: HS Code 960621 = buttons of plastics, not covered with textile material
HS Code 960622 = buttons of base metal, not covered with textile material.
HS Code 960610 = press-fasteners, snap-fasteners and press-studs and parts thereof.
HS Code 960629 = buttons, nes

27
On average, Ethiopian import trend for the past six years showed that the highest
volume as well as value of imports was registered for button product by HS Code
of 960629 followed by button products by HS Codes of 960621, 960622, and
960610. [See table below]

Table 5.8.Average volume and value of imports of button products for the past
six years

HS Code Quantity (kg) Value (Birr)

960621 10,016 283,949

960622 7,275 134,602

960610 5,588 132,679

960629 34,976 778,589

Source: Ethiopian Customs Authority

N.B: HS Code 960621 = buttons of plastics, not covered with textile material
HS Code 960622 = buttons of base metal, not covered with textile material.
HS Code 960610 = press-fasteners, snap-fasteners and press-studs and parts thereof.
HS Code 960629 = buttons, nes

28
 6. Button prices in Ethiopia
Button prices can be determined by ability to compete by design, color, quality
and ability to penetrate into the market. In particular, to start a new button
producing factory in our country and enable it to penetrate in to the market, there
is a need to consider competitors’ price in the market without ignoring the
consideration of the cost of production.

The average import button prices are computed from the data obtained from the
Customs and Revenue Authority of Ethiopia. Moreover, the market selling prices
are also collected from garment factories in addition to the price collected from
retail sellers in the market.

6.1. Import prices

Data on button of plastics, not covered with textile material, imported from China
and India for the past six years is considered for comparisons in the table below.
It is shown in the table that, on average, import price was cheaper for the product
from India than that from China.

Table 6.1. Import prices of button in Ethiopia.

Country of Years, Price (Birr/ kg.)
HS Code origin 2003 2004 2005 2006 2007 2008 Average

960621 China 76.78 81.71 44 95.10 73.10 24.02 65.79

960621 India 22.54 14.02 - 43.61 34.13 23.78 27.62

Source: Ethiopian Customs Authority
N.B: HS Code 960621 = buttons of plastics, not covered with textile material.

29
6.2. Domestic prices
Button Prices as at 13/11/08 in Addis Ababa, Merkato, the largest open market in
Africa as per case Team 4 visit to the site is indicated in the table below. Note
that retail prices differ from prices per gross. For instance, retail price of coat
(suit) buttons of big size made of horn is Birr 0.75 per piece whereas the same
button type of small size can be purchased at Birr 0.35 per piece. Genes button
made of metal, however, is sold at Birr 1 per piece on the date of the team’s visit
to the market.

Table 6.2. Prices per gross at Merkato Market on 13/11/08.

Button type Unit of measure Price per unit (Birr) Remark
Shirt Gross 14 1gross = 144buttons, out of which
48 are big in size and 96 are
small in size
¢ƒ c<]“ cÅ]Á Gross 12.50-16.00 ”
Genes Gross 40 ”
Eyelet Gross 45
Females clothes Gross 14 Small buttons
Gross 26-30 Big buttons
19 Not shiny and made of plastic
ŸUc<` Gross 27 Chromed and designed
40 Coloured and made of metal
Source: Case Team 4 sample survey.

6.3. Domestic versus import prices

Comparisons of domestic and imported buttons prices have been constrained by
various factors. Among which lack of data on the same type, size, colour, and
design button and so on.

However, as per the information obtained from consumers of button (garment

factories), the team tried to compare prices for the same size of button measured
by ligne (LN). Note that import prices shown in the table below are prices in
Addis Ababa i.e. including all the costs until the products reach Addis Ababa.

30
Table 6.3. Prices of imports by button sizes
Button size Unit of measure Country of origin Price per gross
(Birr)
24 LN Gross China 74.88
25 LN Gross China 26.22
28 LN Gross China 27.33
32 LN Gross China 74.88

Table 6.4. Prices of domestically produced buttons (ELNAL PLC)

Button size Unit of measure Major supplier Price per gross
(Birr)
18 LN Gross ELNAL PLC 5.30
23 LN Gross ELNAL PLC 9.85
25 LN Gross ELNAL PLC 11.85
30 LN Gross ELNAL PLC 15.95

The tables above show that for 25 LN button import price is 26.22 Birr/gross
while the domestic price for the same ligne for domestically produced button is
Birr 11.85/gross. This shows that the domestically produced button is cheaper
than imports. However, some button consumers argue that the domestic one is
not shiny and sometimes the colour is not matching their requirement. The colour
also fades away after washing particularly with dry cleaning. They also argue that
there is lack of design and size of button they require.

31
6.4. Button imports of Ethiopia and neighboring countries

Ethiopia and neighboring countries average volume of imports (kg) for the past
five years is indicated in the table below.

Table 6.5. Ethiopia versus other countries imports of button.

Countries
HS Code
Ethiopia Kenya Egypt Sudan Uganda Tanzania
960621 10,182 116,808 79,371 454 4,739 26,835
960622 6,933 27,804 40,223 1,718 803 10,547
960610 6,908 185,787 131,195 1,779 2,225 12,182
960629 37,756 433,269 29,079 1,978 15,058 50,184
Source: Data.un.org/data.aspx?=ComTrade
Commodity Trade Statistics\United Nations Statistics Division
N.B: HS Code 960621 = buttons of plastics, not covered with textile material
HS Code 960622 = buttons of base metal, not covered with textile material.
HS Code 960610 = press-fasteners, snap-fasteners and press-studs and parts thereof.
HS Code 960629 = buttons, nes

The table above shows that Kenya is the biggest importer of all button types
except for the button of HS Code 960622 which is much demanded by Egypt
than other countries.

The table also shows that Ethiopia imports much of buttons of HS code 960629,
and buttons of HS Code 960621 and 960610 are ranked second and third
whereas button of HS Code 960622 are ranked last. Kenya’s rank of imports is
such that buttons of HS codes 960629, 960610, 960621 and 960622 are ranked
from first to fourth.

32
For Egypt, however, the rank is different. Egypt demands much quantity of
buttons of HS Code 960610 than any other type. The other button types of HS
Codes 960621, 960622, and 960629 are ranked 2nd, 3rd, and 4th respectively.

When we compare the average import quantities of the countries for button of HS
Code 960629, we observe that Kenya, Tanzania, Ethiopia, Egypt, Uganda and
Sudan are ranked from 1st to 6th respectively.

What one can also observe from the table above is that there is a potential
market for button in Ethiopia as well as neighboring countries.

33
7. Product quality
Quality of a product plays an important role equivalent to selling price. The
quality of textile and leather garments is dependent on the quality of its raw
materials and accessories used one of which is button. In order to be successful
in modern markets, especially in international markets, the garment-producing
firms must be provided with good quality accessories in which buttons are part
and parcel. So, garment accessory manufacturing factories need to pay due
attention to the production of the required button quality by employing good
quality raw material and modern technology.

During the team’s sample survey, button consumers (garment factories) were
asked to comment on the quality of locally produced button. And they responded
as follows:
 it is not shiny and sometimes the colour is not matching their requirement.
 the colour also fades away after washing particularly with dry cleaning.
 there is lack of design and size of button they require.

So, when one says quality of button, it refers to:

the ability to resist heat during ironing
the ability of retaining color when washed
un breakability
not easily damaged, etc.

It is therefore expected that such a project to be established in Ethiopia should at

least possess the above qualities which is comparable to those which are
imported. Moreover, it is advisable to have a close communication with
consumers.

34
8. Market Strategy

8.1. General
In addition to pricing decision strategy, marketing strategy also matters a lot for
the success of a business. The type of marketing strategy i.e., the choice of
distribution channel and the selection of best promotion method vary from
business to business and from product to product. If the product is scarce in the
market, there might be less need to promote it much as the customer him/her self
seeks for it. Similarly if the users of a certain product are located in scattered
places, then there arises a need to have agents at different locations. There are
a number of factors that must be taken in to account while selecting the
appropriate marketing strategy.

8.1.1. Promotional Strategy

For such projects’ outputs a one time advertisement strategy seems appropriate
as the project is new in type for the country, buyers must be provided with the
information that such factory exists locally and the type of accessories it
manufactures. So one time TV advertisement is proposed by the time the project
starts operation.

In addition there is also a need to promote the export of accessories to the

potential neighboring countries’ markets. This can be done through our
embassies located at least in COMESA and other African countries in the short
run. So the use of leaf lets, newsletters, etc. would be advisable means for the
purpose.

However, in the long run the projects’ sales persons as well as the concerned
managers need to participate in different international trade fairs and exhibitions
in selected potential markets. These may include COMESA countries and those
developed countries’ markets to promote and start export of garment
accessories.

35
8.1.2. Distribution Channel
Based of the revealed preferences of the visited garment and shoe factories, it is
learnt that they prefer to buy directly from the factory instead of middlemen (i.e.,
agents, whole sellers, retailers, etc…). This helps both sellers and buyers in
avoiding, if not minimizing, unnecessary price scale ups as well as in getting
immediate feedback from the direct users.

For customers that are located in regional states, it is proposed to have one
reliable agent through which the factory can reach those users.

36
9. Project engineering and technical study

9.1. Required machinery and equipment of polyester button

Table 9.1 Required machinery and Equipment of polyester button

Item No. of set

1 Centrifugal spinning machine 6

Portable type mixer 2
Pressure glass 100
Scale 1
Tube 1
2 High speed automatic punching machine 1
Cutter for all sizes 9
Cutter grinder 1
3 Automatic face shaping 28
4 Automatic drilling machine 28
5 Wood polishing tumbler (1st process) 8
Same for 2nd process 64
Same for 3rd process 2
6 Auxiliary machines -
Automatic thickness sorter 1
Automatic siever 1
Button selecting machine 2
Washing tumbler for bamboo 1
Dehydrator 1
Auxiliary tools such as bench grinder , hand siever, oil stones , 1
diamond stones, drill gauge, button calculator , packing machine, etc
Source: Japan Consulting Institute, UNIDO

37
9.2. General Arrangement of Polyester shirt button making plant

38
 10. Organizational set up and Manpower requirement
10.1. Organizational setup
The organizational setup of button manufacturing is shown below.

General Manager

Finance and Human Quality

resources Control Processing
Sales

Technician Chemist

39
10.2. Required Man Power

The management body must have high potential of educational background and
work experience in the same business. It also needs proper and strong
organizational structure and efficient management mechanism.

This industry must have professional employees, particularly in technique of

machines operation and chemistry of input mixing, which has great value in
increasing productivity and keeping the quality of output at the required level.
Additionally training should be given to the technicians based on the existing
technology.

Taking lesson from the previous button factory which is financed by D.B.E there
should also be strong organizational structure, resourceful and forward-looking
management and professionals and well experienced employees.

Table 10.1 Required man power.

Item Number
Director 1
Clerical worker 2
Chemist 1
Technician and Assistant 2
Quality control 1
Other Workers (Driver, Guard Cleaner, 11
Laborers ,Packers)
Total 18
Source:-Japan Consulting Institute and ELNAL Feasibility study.

40
11. ENVIRONMENTAL CONSIDERATION AND SOCIOECONOMIC
IMPACT ASSESSMENT

Production of buttons does not have any negative impact on environment and so
the process is environment-friendly with out causing any negative impact on
environment It has forward linkages to garment industry in the country.

12. Main Actors in the commodity

 Ministry of Trade and Industry
 Investment Authority of Ethiopia
 Textile and Garment Support Institution

41
13. Key success Factors in a clothing button manufacturing

The key points that are important for the successful operation of a clothing button
manufacturing enterprise are:
1. The expansion of garment and textile factories in the country. Establishing
strong and regular contact with garment factories
2. Surety of high consistent quality
3. Surety of on time delivery
4. Competitive rates
5. Cost efficiency
6. Better communication development with costumers
7. Surety of sufficient consistent quantity, quality, color and design and variety of
clothing button
8. Government incentive and high priority of garment sector

42
14. Opportunities and threats

14.1. Opportunities
-high market potential in domestic and neighboring countries
-government incentives for the garment sector under AGOA
-garment and textile sector are priority areas of the government
-availability of easily trainable labor force

14.2. Threats
Threats for the business include:
-Raw material shortage and costly
-supply does not fit demand in terms of size, color and design.
-High competitions from imports
-illegal importation

43
15. CREDIT PERFORMANCE OF BUTTON MANUFACTURING
FINANCED BY DBE
Development bank of granted a loan of birr 921,200 to one button factory in
Addis Ababa fifteen years ago, additional loans were also injected three times to
finance cost of additional machineries requirements. In the meantime, a working
capital loan was also extended, which was latter settled. Furthermore, the loan
repayment was rescheduled four times with capitalized interest of Br. 343,966.

As at July 31, 2008 the loan position is summed up to be Birr 998,529 of which
Br. 799,799 is principal and Br. 198,730 is interest. Out of this total outstanding
balance, the arrears portion is Br. 468,335 and Br.198, 730 from principal and
interest respectively. The repayment is 8 times behind the schedule.

DBE’s Loan Balance on button as at July 31, 2008

Not due Arrears

Loan Number
Principal Interest Principal Interest
00-10103-00022 331,464.00 0.00 468,335.05 198,729.97
Source: DBE project rehabilitation & Loan recovery sub process follow up report.

44
16. Conclusion
Garment accessories are very essential and various types of manufactured items
used as inputs to garment industries. Buttons are among the widely used
accessories in men’s dresses (coats and trousers), jackets and jeans, shirts,
children’s cloth and ladies dresses. The expansion and growth of the textile and
garment sector necessitates the supply of garment accessories in general and
button in particular.

Unlike the other types of accessories, there is domestic production of button in

Ethiopia. Garment factories (button consumers) asked to comment on the quality
of the locally produced button responded that sometimes there is mismatch
between their requirement and what is produced in terms of color, design and
size. Hence, the study ascertained that any project to be established in Ethiopia
should try to meet these customer expectations if it is to be successful i.e. the
competitiveness of the project’s outputs in terms of certain factors. These are the
ability to compete by design, color, price, quality and ability to penetrate in to the
garment accessories market.

There is unsaturated markets and higher demand for garment accessories in

general and that of button in particular both domestically and internationally. This
can be attributed to high demand for the related textile and leather garments
together with the growth of world income and the fashion industry. So, if the
management of the project actively engages itself in promoting its products after
establishment, there is a likely hood in the long run of penetrating in export
market as long as the two basic factors are up to the needs of importers i.e.
quality and price.

45
17. Parameters, Technical coefficients and basic assumptions
1. Annual working days………………………………………………300
2. Number of shifts……………………………………………………..1
3. Number of working hours per day…………………………………8

Per sheet requirements of polyester, promoter (accelerator) and Pearl

essence

Generally the materials required for manufacture of sheets are 100 parts of
polyester resin, 1 part each of promoter and catalyst, and 1-1.3 parts of pearl
essence.
With a plant designed to turn out polyester plain flat buttons of
14,16,18,20,22,24,26,28 and 30 line sizes and of maximum and minimum grades
with a daily output ( 8 hrs/day) of 400 great gross or 10000 great gross/month (25
days/month) the monthly requirement of raw material is given below.

Monthly requirement of raw material for polyester button (daily output of

400 great gross or 10000 great gross/month)
Item Quantity
Polyester resin 6500kg
Promoter 65 kg
Accelerator 65 kg
Pearl essence 65 kg

Prices of the raw material for shirt or polyester button

Prices(dollar)
Items
2007 2008 Average
Polyester resin 4.5 14.99 9.75
M.E.K.P 4.38 14.36 9.37
Pearl essence - 150 -
Paraffin 8.7 12.18 10.44

Price of brass sheet per piece as at October 2008.

46
 Brass by No of Pieces(PCS)
Size
Gauge* 1 - 5 PCS 6 - 10 PCS 11 + PCS
6x6 $8.64 $7.64 $6.64
14 gauge
6x12 $12.71 $11.71 $10.71
brass sheet
12x12 $22.21 $21.21 $20.21
1.5mm
12x24 $43.93 $42.93 $41.93
thickness
12x36 $62.38 $61.38 $60.38
6x6 $5.64 $4.64 $3.64
18gauge
6x12 $8.21 $7.21 $6.21
brass sheet
12x12 $14.21 $13.21 $12.21
1mm
12x24 $27.91 $26.91 $25.91
thickness
12x36 $36.56 $38.56 $37.56
6" x 6" $4.57 $4.07 $3.57
20 gauge
6" x 12" $6.61 $6.11 $5.61
brass sheet
12" x 12" $11.36 $10.86 $10.36
0.75mm
12" x 24" $22.21 $21.71 $21.21
thickness
12" x 36" $31.44 $30.94 $30.44
22 Gauge 6" x 6" $3.98 $3.48 $2.98
brass Sheet 6" x 12" $5.60 $5.10 $4.60
0.625 MM 12" x 12" $9.37 $8.87 $8.37
thickness 12" x 24" $18.00 $17.50 $17.00
12" x 36" $25.33 $24.83 $24.33
24 Gauge 6" x 6" $3.42 $3.17 $2.92
Brass Sheet 6" x 12" $4.76 $4.51 $4.26
0.4 MM 12" x 12" $7.87 $7.6 $7.37
thickness 12" x 24" $14.99 $14.74 $14.49
12" x 36" $21.04 $20.79 $20.54
26 Gauge 6" x 6" $2.88 $2.63 $2.38
Brass Sheet 6" x 12" $3.95 $3.70 $3.45
0.4 MM 12" x 12" $6.43 $6.18 $5.93
thickness 12" x 24" $12.11 $11.86 $11.61
12" x 36" $16.94 $16.69 $16.44
Note * 1 Gauge = 0.001Inch and measures the thickness of very small sheet or paper.
Prices per gross at Merkato Market on 13/11/08.
Button type Unit of measure Price per unit (Birr) Remark
Shirt Gross 14 1gross = 144buttons, out of which
48 are big in size and 96 are
small in size
¢ƒ c<]“ cÅ]Á Gross 12.50-16.00 ”
Genes Gross 40 ”
Eyelet Gross 45
Females clothes Gross 14 Small buttons
Gross 26-30 Big buttons
19 Not shiny and made of plastic
ŸUc<` Gross 27 Chromed and designed
40 Coloured and made of metal
Prices of imports by button sizes

47
Button size Unit of measure Country of origin Price per gross
(Birr)
24 LN Gross China 74.88
25 LN Gross China 26.22
28 LN Gross China 27.33
32 LN Gross China 74.88

Prices of domestically produced buttons (ELNAL PLC)

Button size Unit of measure Major supplier Price per gross
(Birr)
18 LN Gross ELNAL PLC 5.30
23 LN Gross ELNAL PLC 9.85
25 LN Gross ELNAL PLC 11.85
30 LN Gross ELNAL PLC 15.95

Working capital requirement

Description
Raw material 3 months
Packing material 1 month
Energy 1 month
Salaries &Wages 1 month

. Insurance : 0.75% of the fixed assets

. Repair & maintenance
- 3% of original cost for building
- 5% of original cost for machinery & equipment
- 2% of original cost for furniture and fixture
- 10% of original cost for vehicle

48
 . Depreciation and amortization
- 5% of original cost for building
- 12% of original cost for machinery and equipment
- 10% of original cost for furniture and fixture
- 20% of original cost for vehicle

Packaging
Packets- 1 gross (1 gross= 144 buttons)
Cartoons- 100 packets

Man power Requirement:

Item Number
Director 1
Clerical worker 2
Chemist 1
Technician and Assistant 2
Quality control 1
Other Workers (Driver, Guard Cleaner, 11
Laborers ,Packers)
Total 18

49
Major Sources of Information

1. Ethiopian Customs and Revenue Authority

2. Follow up report of DBE on ELNAL PLC
3. Market Study for Garment Accessories, Privatization and Public
Enterprises Supervising Agency, Industrial Project Service, September
2008
4. Ministry of Trade and Industry
5. Investment Authority of Ethiopia

Websites:

Data.un.org/data.aspx?=ComTrade
Commodity Trade Statistics\United Nations Statistics Division

Brass Sheet.htm
Glass Fiber Composites.htm
www.plastemart.com/plasticnews_desc.asp,
Paraffin safety association Southern Africa.
www.enailsupply.com/index.asp
Japan Consulting Institute, UNIDO
ELNAL Button Factory Feasibility Study
C.S.A. small and medium scale manufacturing, 2007

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