Introduction

The primary goal of this report is to provide all the necessary

information regarding a business proposal on the territory of
Tanzania. The country has been developing at rapid rates and the
demand for quality products is incredibly high.
The Confectionery industry is especially fascinating because the
number of firms that operate in this sector is relatively small. It
suggests that the problem is that most of the Sugar is imported and
the Cocoa beans produced here are transported overseas, and the
industry is dominated by Westerners. Many think that it should be
viewed as an outstanding opportunity to open up a business in
Tanzania, and it would be beneficial to a company that has
enormous experience in this area.
Market Analysis

Product Evaluation

The product will be perceived as

innovative by target market because
of unique packaging, and a variety of
tastes is also a significant advantage.

However, it may not be viewed as

compatible with the current behavior
of consumers because they prefer
products that are not that flashy most
of the time.

We suggest that trialability should be

considered in this case, and it is
entirely possible that some types of
products will have to be excluded.
Products like Soft toffees, Chocalates,
Eclairs, Jellies etc should be made
temperature & humidity tolerant.

We think that It is not possible that

there would be any risks related to
bad experience because the product
will be tested.
 The Market

Geographic Regions

It is assumed that the product will be sold in the territory of Tanzania. It

should be possible to establish long-term relationships with Kenya
because it is interested in Tanzanian products and is willing to invest
enormous amounts of funds into the transportation. Moreover, it is
entirely possible that the business will be able to expand, and the
products will be delivered to nearby countries.

Transportation and Communication

It is necessary to mention that all of the standard tools of transportation

can be used in the country. The sector is well-developed, and it is not
likely that any significant issues will occur. Other communication tools as
the Internet and cell phones are available in the region.

Buying Habits
Globally, sugar confectionery accounts for about 39% of candy
consumption and chocolate confectionery about 61%. This ratio can vary
widely among countries. As populations become more prosperous,
chocolate consumption tends to increase.

It is imperative to mention that the consumption of such products in

Tanzania has been increasing, and customers prefer to stay loyal to one
brand. The expatriates and people with high income prefer supermarkets
most of the time.
 Distribution
Numerous outlets are operating on the territory of the country, and it
would be beneficial to consider and exclusive contract with selected
few. We think that Supermarket Chains should be viewed as an
outstanding choice.

Competitors
Some of the primary local competitors are

CANDYMAN LTD
FURAHA NYANZA CO. LTD

IRINGA FOODS AND BEVERAGES LIMITED

JAMBO FOOD PRODUCTS COMPANY

LIMITED

ALFA CONFECTIONERIES (T) LTD

"Chocolate Mamas" describes itself as an organic chocolate that is

positioned as hundred percent African. Packaging is relatively simple
and cheap, but it is well-designed and attracts customers.
Competitor’s Prices

The products that are offered by the competitors are sold at low price
shops, Grocery Markets and Convenience Stores. Also many of the
traders are selling imported goods that attract duty and hence are sold
at high costs. It should be viewed as a significant advantage by the
Company. Hence, the company should provide products that are much
cheaper.
 Market Size
(TANZANIA)

 Revenue in the Confectionery market amounts to US$4.40bn in

2023-24. The market is expected to grow annually by 7.15%
(CAGR 2024-2028).

 In relation to total population figures, per person revenues of

US$65.61 are generated in 2023-24.

 In the Confectionery market, volume is expected to amount to

1.04bn kg by 2028. The Confectionery market is expected to
show a volume growth of 4.1% in 2025.

 The average volume per person in the Confectionery market is

expected to amount to 13.6kg in 2023-24.
Most Exports from Tanzania to:

1.Democratic Republic of the Congo

2.Rwanda

3.Uganda

Most Imports into Tanzania from:

4.Kenya

5.India

6.China

It is necessary to note that the market is not yet well-developed, and

it is entirely possible that the company will have to take some risks.
Traders state that there have been about 20 million fair trade Hard
Boiled Candies, Lollypops, Toffees, Gums etc. and 3 million Chocolate
bars sold during the last year according to the statistics.

The retail price range for Tanzania Hard Boiled Candies, Lollypops,
Toffees, Gums etc is between US$ 0.37 and US$ 0.46 per kilogram
and retail price of Chocolate is between US$ 11.67 and US$ 19.46
per kilogram. The Tanzanian market for candies, sweets, and
nonchocolate confectionery had dropped to less than US$ 2.5bn in
2022 due to a trade war between Kenya & Tanzania.
 Pricing Strategy

 Expenses on shipment and transportation will be minimized

because the product will be produced on the territory of Tanzania,
and there is access to enormous amounts of resources. Shipping
and transportation are relatively cheap in the country, and it will not
have a significant impact on the cost of the product, and price.

 The demand for such products is incredibly high, but it is entirely

possible that the pricing strategy may have to be altered if new
competitors appear or market situation changes.

 We think that the number of competitors is rather limited so it will

be beneficial to set a low starting price. Moreover, it can be
increased in the future if the firm will be able to establish a following
and develop relationships with consumers.

 The product SKUs will be positioned as an affordable

confectionery that is primarily aimed from low & middle income
locals to expatriates, tourists, and upper class.
 Conclusion

In conclusion, it is evident that this proposal has a range of benefits

that should not be overlooked. One of the most significant advantages
is that the company is quite experienced in this country, and numerous
marketing strategies have already been developed and promotion
techniques have proven to be effective.

However, numerous barriers are still present. Many companies that

are focused on the production of confectionery have been hesitant
about business in this area because of the economic situation and
prefer other approaches.
PROJECT AT A GLANCE:

Product lines

The manufacturing facility requires a substantial amount of

capital investment and superior technology for the
manufacturing process. We propose that it should be capable of
manufacturing the entire range of confectionery products, in
each one of the following categories:

1)Toffees: Centre fill, Non centre fill

2)Candies:Centre fill, Hard Boiled

3)Gums: Bricks, Balls, Sticks

4)Lolly Pops: Oval, Square - Centre filled, Non centre filled

Manufacturing Processes:

Sugar Confectionery, as the name suggests, is rich in sugar; any

sugar or type of sugar. There are two types of sugar confections: boiled
sweets and fondant. Boiled sweets are “Sugar and water boiled at such
a high temperature (150–166 °C) that practically no water remains and
a vitreous mass is formed on cooling” whereas fondant has been
defined as “Minute sugar crystals in a saturated sugar syrup; used as
the creamy filling in chocolates and biscuits and for decorating cakes.
This is prepared by boiling sugar solution with the addition of glucose
syrup or an inverting agent and cooling rapidly while stirring”

The principal ingredients of sugar confectionery comprise sucrose,

invert sugars, and glucose syrups. Invert sugar is “The mixture of
glucose and fructose produced by hydrolysis of sucrose, 1.3 times as
sweet as sucrose. So called because the, optical activity is reversed in
the process. It is important in the manufacture of sugar confectionery,
and especially boiled sweets, since the presence of 10–15% invert
sugar prevents the crystallization of sucrose”
A typical boiled sweets formulation will contain 48% w/w sucrose, 32% w/w glucose syrup,
and 20% w/w water. Three methods are used to melt the sugar which is followed by molding
or forming and rapid quiescent cooling: (1) boiling to ≈150 °C in an open pan bearing the risk
of discoloration due to the long process; (2) boiling under vacuum; (3) extrusion. A typical
fondant formulation contains more sucrose, for example, 62% w/w sucrose, 16% w/w
glucose syrup, and 22% w/w water. The mixture is boiled to 88% w/w solids at 117 °C and
then cooled to 37 °C. Beating will induce crystallization of small sucrose crystals (≈10–
15 μm)

Major Equipment List:

CONTINUOUS VACUUM BATCH COOKER

ROTARY KNEADING MACHINE HORIZONTAL PULLER

THREE TIER HORIZONTAL COOLING CONVEYOR

LOLLIPOP COOLING TUNNEL

Cooling Drums

CONTINUOUS FONDANT SYSTEM

BATCH FORMING AND SIZING MACHINE

BALL LOLLIPOP FORMING MACHINE

SWEET FORMING MACHINE Suitable for forming Eclairs, Hard boiled, Liquid filled
candies, toffees and gums. The machine can form seamless sweets with high depth or
thickness.

CONTINUOUS DIE POP FORMING AND PACKING MACHINE The continuous die
pop forming & packing machine is a continuous rotary operation machine. It feeds, sizes,
cuts, forms, inserts sticks, and crimp-wraps lollipops

CONTINUOUS SHEETING SLITTING LINE

CHOCOLATE DECORATOR MACHINE

AUTOMATIC PILLOW PACK

MACHINE

SINGLE TWIST BALL LOLLIPOP

WRAPPING MACHINE

AUTOMATIC CUT WRAP MACHINE

suitable for Toffee, Bubble gum and Fudge.
AUTOMATIC CANDY WRAPPING MACHINE enables you to wrap a variety of different
types of pre-formed sweets by wrapping in Double Twist Wrapping Or Single Twist Wrapping
style.

AUTOMATIC CUT FLOW WRAP MACHINE Suitable for automatic cutting and flow
wrapping of toffee, candy, bubble gum, nougat or fudge. Continuous operation with easy
size change capability.

COATING , POLISHING AND REVOLVING PANS

AUTO COATER The autocoater is suitable for coating chocolate, yoghurt, peanuts,
almond, raisin and dates

HARD CANDY SCRAP BREAKER Suitable for breaking candies or bigger scrap lumps
into required particles for proper mixing on the cooling table / kneading machine.

The equipment has to be sourced from multiple vendors in Europe & Asia, including

Togum, France;

AMP Rose,

Baker Perkins UK, US.

Dhiman Engineers India,

Miranda Automation Private Limited, India

Nuova Euromec, Italy

Loynds, UK

The use of these highly efficient machines allows the highest possible standards of quality
even when producing large quantities.

The capital investment in the facility and machinery and relentless quality consciousness
ensures that the Company meets the most stringent food manufacturing standards prevalent
anywhere in the world.

We suggest that the Company should enter into a technical collaboration with CURT
GEORGI, a leading flavour company of Europe and EURO BASE, one of the largest
manufacturer of gum base in the world. These collaborations can help the Company add the
qualitative edge to its products, thereby making them at par with international brands.
ASSUMPTIONS & PRESUMPTIONS:

COST ESTIMATION

Plant Capacity 40 Tons/Day

L a n d ( 1 2 0 0 0 0 s q . mt . ) a p p r o USD 237 , 00
x. 0
P l a nt B u i l d i USD 240 , 00
ng 0
Plant & Machinery USD 535,000

Working Capital for 3 Months USD 220,000

Total Capital Investment USD 1,232,000

Rate of Return 25%

Break Even Point 60%

The Company should get a Feasibility Report done with detailed information related to
the hard sugar candy manufacturing process flow and various unit operations involved in
a manufacturing plant. Furthermore, information related to mass balance and raw material
requirements should also be provided in the report with a list of necessary quality assurance
criteria and technical tests.

 Project Details, Requirements and Costs Involved:

o Land, Location and Site Development
o Plant Layout
o Machinery Requirements and Costs
o Raw Material Requirements and Costs
o Packaging Requirements and Costs
o Transportation Requirements and Costs
o Utility Requirements and Costs
o Human Resource Requirements and Costs

The report should provide a detailed location analysis covering insights into the land
location, selection criteria, location significance, environmental impact, expenditure, and
other hard sugar candy manufacturing plant costs. Additionally, the report should provide
information related to plant layout and factors influencing the same. Furthermore, other
requirements and expenditures related to machinery, raw materials, packaging,
transportation, utilities, and human resources should also be covered in the report.
  Project Economics:
o Capital Investments
o Operating Costs
o Expenditure Projections
o Revenue Projections
o Taxation and Depreciation
o Profit Projections
o Financial Analysis

The report should cover a detailed analysis of the project economics for setting up a hard
sugar candy manufacturing plant. This includes the analysis and detailed understanding of
capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation,
depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty
analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of
the regulatory procedures and approvals, information related to financial assistance, along
with a comprehensive list of certifications required for setting up a hard sugar candy
manufacturing plant.