Infolinks In Text Ads

Saturday, December 17, 2011

Small scale foundry: Assembly business ideas in Ethiopia


Product Description: A foundry plant is a plant where metal is melted, and where the molten metal is poured into a mold for producing a certain product.  Examples of cast metal products are automobile engines, agricultural machine parts, water pumps, pipe fittings, weaving machine parts, manhole covers, etc.

Rationale: Establishing a foundry plant is like planting the seedlings of heavy industry- which is based on metal casting and metal fabrication.  In a region like Amhara, the main purpose of a foundry plant is for producing (casting) spare parts and some components for the machinery and equipment which are in operation in the transport, manufacturing, agriculture and building sectors.

Market Potential: There is not a single foundry plant in the whole Amhara Region.  However, there are various types of machinery and equipment whose many parts need replacement every year.  Many of the parts can be produced using foundry technology.  The need of the thousands of grain mills, motor vehicles, machinery and equipment of the textile, beer, food, leather and other factories for parts that could be produced locally justifies the establishment of the foundry.

Source of Raw Material: Import material is ingot iron and this will be imported.

Production Process & Technology:  The main foundry operations consists of melting, moulding, sand

Sunday, December 11, 2011

Sample Business Proposal explained

In the last blog post sample business proposal, I have listed the contents of a typical business proposal.In this blog i would like to give examples to illustrate the contents.

Business proposal starts with executive summary that summarizes the proposal in short. Below is an example.


The project envisages production of xxx,xxx pieces of item name..... per annum. The total investment outlay requirement of the project including the working capital is estimated at about Birr .......; of which Birr ......is for machinery and equipments and Birr ........ is the cost of the working capital. Based on the cash flow statement, the calculated internal rate of return (IRR) and simple rate of returns (SRR) of the project are ..... % and ........%, respectively. The net present value (NPV) at ........ discounting rate is about Birr ........ The plant is expected to create employment opportunities for about ...... persons.

Product Description and Application

As the tittle shows this section should introduce the product and mention the applications of the product. The following example shows product description and applications of knitwear.  Notice the level of product description required in business proposals. Simple definitions are given but they are not too much. Instead comparative advantages are also introduced and applications are put comprehensively.

Example
Knitting is a process which involves interloping of thread with the aid of needles. Unlike woven cloth, knitted fabrics are made of only serious of yarns; and it involves simple process and machinery. It is now among the best products for small scale investment. Knitted fabrics are more elastic than woven cloth, and therefore provide better fillings. It is more durable and many times provides elegant appearance.

Synthetic knitted outwears are common items used by all people during the winter season. Synthetic fiber by virtue of its low weight, high bulk, super soft touch, high color variety and wrinkle resistance property fills a wide range of applications. 

Market study
This is the crucial part of the project and determines the success of a proposal. Here is a great post explaining the market study with worked out examples. Market study in process plant design
Coming soon, 
Raw materials and utilities
Site selection
Technology and engineering
Financial analysis

Related posts


Sample Business Proposal

Here is the format of successful business proposal sample required for small to big investments in Ethiopia.


Product Description and Application    
 
Market Study, Plant Capacity and Production Program
    Market Study   
       Present Demand and Supply    
       Projected Demand        
       Pricing and Distribution               
    Plant Capacity  
    Production Program  
   
Raw Materials and Utilities        
    Availability and Source of Raw Materials             
    Annual Requirement and Cost of Raw Materials and Utilities    

Location and Site        
    
Technology and Engineering     
    Production Process       
    Machinery and Equipment        
    Civil Engineering Cost    

Human Resource and Training Requirement     
   Human Resource           
   Training Requirement   

Financial Analysis           
   Underlying Assumption              
   Investment       
   Production Costs            
   Financial Evaluation      

Economic and Social Benefit and Justification    

Download free samples of full business proposals applicable for Ethiopia here
400 sample business proposal summaries that can help you develop business proposals that can win you funds is found here.

Chemical plant design explains the details of manufacturing industry design.