1.

Introduction
Ethiopia, being one of the African countries, requires continuous improvement in agriculture,
manufacturing and automobile sectors. In accomplishing the development on these sectors, the
role of infrastructure is vital. The developments of the infrastructure in turn highly depend on the
availability of various types of vehicles (cars, pickups, trucks etc) construction machineries and
agricultural equipment’s. In addition, Ethiopia is one of the land – locked countries in Africa. It
uses mainly Djibouti port, which is located about 1000 KM. from Addis Ababa for import and
export of goods. The transportation of goods from Djibouti port to parts of Ethiopia and from
various parts of the country to port is done using trucks. Since Ethiopia doesn’t manufacture
automotive, construction machinery and agricultural equipment’s locally at present, it imports
those from various countries of the world. Automotive importing companies are importing
vehicles to the market. The marketing trends of automotive is necessary to clearly see the
demand supply gap and for the growth. This paper mainly prepared to reveal the truck market
trend in Ethiopia and to indicate ways of increasing the contribution of the automotive sector to
the economy. The over view of investment opportunity in relation to the automotive industry. It
is observed that the present status of automobile industry in Ethiopia, the potential of the industry
and the demand of automobile vehicles including their spare parts. In Ethiopia many imported
vehicles from different parts of the world are in daily use. Maximum numbers of vehicles are of
Toyota. Also the spare parts are imported spending lot of money and time. The main source of
transport is for all the classes of people are taxis and busses in the country. There are some
private taxies playing in almost all the cities like vans, three wheelers Bajaj and TVS from India
which is the cheapest mode of transport for the poor people.
Buses, mini buses are operated linking inter states or regions by fleet of transport agencies to
transport the public. Also many trucks and Lorries are being used to transport the goods of
different categories. There is no train facility in the country and no railway links to connect the
cities of the country. People are using flight connections of airlines to travel long distance in
order to meet emergency needs. Ethiopia land consist of high lands most of the part hills and
uneven surface. The Ethiopian Highlands cover most of the country. Buses, trucks with trolleys
and minibuses including earth moving equipment, Luxury cars and light duty vehicles all are
imported as used vehicles from other countries. Now trend is picking up to run motor bikes on

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the roads of all most all cities by some citizens. All these motor bikes are getting imported from
India (TVS& Bajaj) & China (Lifan). The export and import agencies, Djibouti port authorities
and Government duty all are added to the value of the products and the traders demand more
profits from all this products, all these are taxed to the customers and the customers have to pay
more money for the product.

The spare parts manufacturing company Akaki industry is well established company in the
country apart from the other industries like Mesfin Industrial Engineering, Maru metal and
automotive company, are operating for manufacturing the trolleys and for tankers production.
BISHOFTU automotive industry, FDRE metals & Engineering Corporation, Metals and
Engineering Corporation Adama, Agricultural Machinery Industry, Bus body units and auto
garages/works shops are in operation for the full capacities. There are some steel manufacturing
units producing nails and zinc sheet manufacturing. As mentioned earlier the spare parts and
vehicle manufacturing industry is not in operation. Main focus of the above mentioned industries
is assembling, upgrading and localizing city and cross country buses, mid and mini-buses,
construction, military and agricultural vehicles. So emphasis is to be made to establish this
industry in the country to have their own products.

2. Project Area
The project envisage is aimed to be established in Laga Xaafoo - Laga Daadhii town located at a
distance from the regional capital Addis Ababa, is approximately 21 kms from the centre of the
town; its distance from the zonal capital, Fitche, is 133 kms and from district (Barak) capital,
Sendafa, is 24 kms. The proposed project site is located near the City Administration office to
the right of Laga Tafo Primary school at 50 meter distance when we come to Addis Ababa from
Dasiea.

The geographical (astronomical) location of Laga Xaafoo - Laga Daadhii town is approximately
between 9º01'29" N - 9º06'N latitude and between 38 º 53'42" E - 38 º 55'30" E longitude. (From
Magilan handheld GPS & 1:50,000 topographic map sheets obtained from Ethiopian Mapping
Agency).

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According to the information obtained from the informants, the town is relatively located within
three farmers' kebele associations. These farmers’ Kebele associations are "Ekka Sadeen" in the
North & North West, Laga Daadhii & "Oborii" in the East & North east and "Daallee Danbal-
Gawwaasa" in the north central, south & south west. Finfinne (Finfinne) is bordered in the West
& South West of "Laga Xaafo - Laga Daadhii" town.

River Laga Xaafoo stands as a boundary line between Finfinne (Finfinne) region & Laga Xaafo-
Laga Daadhii town in west & South West while river Laga Daadhii Stands as a boundary line in
East & South east of the town. As the data obtained from topographic (base) map of 1:2000 of
the town (From Oromiya Urban Planning Institute), the distance of the town from the western tip
to the Eastern tip is approximately 6.5 Kms (From river bridge of Laga- Xaafoo to river bridge of
Laga-Daadhii). The Average width distance of the town (North - South) is 3.2 Kms.

 Infrastructure
The existence of adequate infrastructure development supplement for the establishment of this
project in this city. The Project area is well adequate with sufficient infrastructure and services
among some of which are as follows.

 Road
Roads are the vital component of a transport system. The coverage and quality of roads in the
project town remains very low. Currently, there is only 31.00 km road coverage through the
total area of the town (about 2431 hectare) of which only 6.50 km of road -Finfinne – Northern
part of the country- and the way to Ropack International PLc / Real estate 3.10km total 9.60km
is asphalted. The graveled surface collector and local roads that exist in limited parts of the town
around the existing industry area, which are around 21.4km found in poor condition. Almost all
local/feeder roads in the existing built up areas except those of the existing industries are not
properly designed and constructed as urban street. Moreover, the existing roads are not
hierarchically structured rather they are simply opened privately by the potential investors. The
same is true for the existing 3.10km asphalted road of Ropack international PLc real estate road,
which is built by the real estate itself.

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  Transport
Since no distribution of collector and local roads in the town, motorized transport service is
limited only along the major asphalt road i.e Addis – Dessie highway those services by also do
not function in the town.

Walking is the major mode of mobility the share of which is estimated to be between 75-85
percent (the corresponding figure is 60% for major towns of Ethiopia, ERA, 2005). Due to the
absence of hierarchically structured access/feeder roads, most of the residents are pedestrians.
Taxis, city buses and horse-drawn carts provide intra- urban transport service only along the
main asphalted road. There is only one horse-drawn carts operating in the town and 9 bicycles.
They give regular service in the town due to absence of short distance motorized transports are
not available in the town. Operating areas/routes of this mode extends from Laga xafo area up to
Gawassa Village, Kella then Laga dadhi and vice versa. Their service area coverage is very
limited; this is mainly attributed to absence of inter connected internal road network system
through out the town. Thus, the spatial development framework (spatial planning) has given due
attention to the establishment of safe operation of non-motorized modes of transport.

A regular city bus service is provided in between Laga Xafo Finfinne City from 12:00 am up to
8:30pm. But, since the city bus service in the town (# 7) do not have fixed time gap as that of the
other, the town community had fait in great problem due to time wasting waiting for the service.
On the average about 1200-1500 people get city bus transport service from Laga xafo to Finfinne
and vice versa.

Taxi transport is one of the main modes of transport between ‘Laga Xaafoo-Laga Daadhii’ town
and Finfinne City (i.e. Karra Laga-xafo). Though data on the exact figure is not available, there
are large numbers of taxis that provide transport service.

There is also informal medium bus service early in the morning and late in the afternoon (i.e.,
during rush hours) from ‘Laga Xaafoo-Laga Daadhii’ to Finfinne (sholla, kotobe, karra and vice
versa) especially on the market days of sholla Gebeya (Wednesday and Saturday). Moreover,
large and medium mass transport vehicles owned by private companies, industries, real estates,
etc provides regular transport service to their workers from and to the town on working days.

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Moreover, long distance public transport vehicles (large and medium buses), which pass through
the town from Finfinne to Sandafa, Shano, Debre Brihan and the other towns of the northern part
of the country provides the service for the inhabitants of the town on the way to these towns if
there are unoccupied seats. Similarly, the residents of the town use city buses from Finfinne to
Laga dadhi and Sandafa. It is, therefore, possible to conclude that the project town has a strong
transport linkage with Finfinne City.

As it has been mentioned above, the project town is located along the main highway connecting
Finfinne with the Northern Ethiopia, Which is the major grain and industrial product producing
regions of the country. As a result, freight vehicles, which pass through the town and transport
the industrial products from the town, make a stop over for fueling and other Purposes. In
addition, a considerable number of freight vehicles unload raw materials and load manufactured
products on a daily bases as the town is a center of more than 15 industries and several
warehouses. Thus, in view of the high volume of freight transport traffic adequate space is
reserved for a freight terminal.

‘Laga Xaafoo-Laga Daadhii’ town is one of the industrialized towns in Oromiya National
Regional State since it also established primarily due to the establishment of different level
industries where currently called Laga Xafo. Though; there are more than 15 industries such as
NAS Foods P.L.c., Seka business group, Hilina encroachment foods factory and others.
Moreover, since it is located adjacent to Finfinne considerable number of vehicles heading to and
from the Northern and North Central Region of Ethiopia (Sandafa, Bake, Shano, Mendida,
Debre-Brihan, etc) passes through it. On an average, more than 2000 vehicles (all types) enter in
to and exist from Finfinne through the town per day. This volume of traffic is expected to
increase to more than 4000 vehicles by year 2017. Besides, the oldness, narrowness and twisting
nature of the main road as well as road side parking also contribute a lot for high traffic
congestion especially during the morning and late afternoon. Therefore; efficient road network
has to be designed and implemented to further alleviate the existing traffic congestion in the
inner part of the town.

There is only one fuel station i.e. National oil company (Noc) with the capacity of 90,000 lit
gasoline, 30,000lit benzene (regular) and 30,000 lit kerosene in ‘Laga Xaafoo-Laga Daadhii’
town and one Shell fuel station in Sandafa town and others in Finfinne at its Northern edge that

5
have linkage effect to the town, but; there is no any garage service and 2 (two) tyre repair shops
(Gomistas) located along the main road called Dassie road.

 Telecommunication and Postal Services

The town has no telephone service except the existing VISAT telephone sited in the previously
called Laga dadhi town and the on and off mobile phone services. Regarding postal service, there
is no postal service in the town even in agent level. Thus, the residents do not get quick
domestic and international mail correspondence in the town.

 Electric Power Supply

The town is connected to a 24 – hour hydroelectric power supply but which is from two stations
(from Sandafa to Laga dadhi area and Kotobe to Laga xafa area). Most of the newly developed
parts of the both areas do not have formal supply of electricity service. Moreover, the
discussions made with stakeholders (manufactures) indicated that there is also a persistent power
fluctuation, which is affecting their level of operation especially of those who are engaged in
manufacturing activities/ industries.

 Water
Rivers the catchments of which encompass both potential and intermittent streams of small
discharges drain the study area. Among such streams; Laga Xafo, Laga waqo, Laga dadhi, Laga
hola and Cilalu are the major potentials. Laga dadhi water server which is located near by the
town at its catchment's is also the water potential of the town even if the town community unable
to use this resource. Most of them are emerging at the foot of the associated slope situated at the
Norther-Western direction of the town and discharged in to Southeastern part to Akaki River.

Low discharge springs and seasonal springs are common among these potential springs and its
catchment's areas. It was also known that in the central part of the river catchments the springs
have no flow during dry period because of the lowering of the water table.

In general, the springs show yield variation because of the rainfall fluctuation. As mentioned
already, the catchments get recharge mainly from direct precipitation and reflect shallow
groundwater circulation due to the shallow depth rock weathering and fracturing.

Apart from the above listed streams or rivers; there are also ground water potentials in the form
of springs in the area. As the town community informed us during our survey that there are many

6
under ground water potential in the area as conducted by Oromia Water Resource Bureau
(OWRB).

The town has no access to clean water supply except one borehole having very low yield for laga
dadhi area, which is insufficient even for this particular area. Oromia Water Resource Bureau
(OWRB) is on movement (on land excavation level) to provide this service for the community
from under ground water potential of the town. In the study area there are about 15 bore holes
which are drilled by the existing potential investors (industries) both to process their activity and
private use especially in Laga xafo area. There are numerous hand dug well sites. There are also
hand-dug wells, which is drilled by the community in order to cope up this serous water supply
problem exacerbated in the town.

 General Market
The existing general market is situated at the center of previous Laga-dadhi town, which is in
Northern fringes of the town jurisdiction, which is too far from the opposite direction.
Therefore; it lacks centrality for the community and its area also too narrow to hold current
capacity of the town. Thus, sanitation problem and functional incompatibility have been serious
problems. It is, therefore, necessary to make immediate planning intervention. Regarding the
location of the market, it is more or less accessible and centrally located in a suitable topography.
This gives an opportunity for the establishment of number of Modern Business center in the city.

 Population
Laga Xafo Laga Dadhi Town is found in North Shoa Zonal Administration along the main
highway to Desie. The recent data obtained from the official sources of the Town implies that the
Town had more than 20,000 population which will estimated to be doubled with in short period
of time as a result of natural as well as high migration of population to this city as a resulted of
high investment activities on residential , services and industries.

The projected population of Laga Xafo Laga Dadhi Town using only the counted population of
the City is as follows.

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Table: Projected Population of Laga-Tafo-Laga Dadhi Town 2007-2027

Variant Growth Total 2012 Projected Population

Rate Population
2007 2012 2017 2022 2027

Low 3.11 18,117 21,197 24,801 29,017 33,950

Medium 4.11 18,117 22,284 27,410 33,714 41,468

High 5.11 18,177 23,371 30,149 38,892 50,170

Source: Own estimation based on counted population

Investment Potential of the Town

The major potentials that attract investments to Laga Xafo Laga Dadhi City are:

 Proximity to the capital city of Finfinne and thereby national and international market
 Conducive whether condition to live
 Accessibility of every infrastructure
 Availability of skilled and unskilled manpower
 The ongoing master plan for the city
 The establishment of this town as reformed town
 Government encouraging policy direction

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 3. The Project

3.1. Description of the Project

This project envisaged is for the establishment of Automotive Assembling, Automobile Parts
Manufacturing and refreshing Plant in the National Regional Sate of Oromia, Finfinne
Surrounding Special Zone, Laga Tafo - Laga Dadi Town.

The framework and Stapes of Automotive Assembling, Automobile Parts Manufacturing and
refreshing Plant will be in the following Digrame.

Automotive Assembling, Automobile Parts Manufacturing and refreshing Plant

The phase of the project would be

1. From 1st to 5 years Auto Parts Manufacturing and Repairs and Maintenance
Workshop

2. From 6th years to 10th Years Automotive Assembling Project

3. From 8th years on words Engine and Care Mar Manufacturing Continued

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3.1.1 Automobile Assembling

The Parts

Individual parts of the car are constructed in various plants around the country. The parts are
shipped to the construction plant via trains or trucks, and it is here that the car is actually
assembled.

Start With the Frame

Cars are constructed from the ground up. The car's frame is secured to the assembly line, and
from here, the car will be pieced together.

Installing the Parts

The frame moves down the line, and installation of parts begins. The suspension, gas tank, axles,
drive shafts, wheel drums, steering boxes, gear boxes and breaking systems are all installed at
this phase.

Engine and Transmission Installed

The engine and transmission are paired together and hoisted into place in the car. This is usually
done by robots, as the parts can be extremely heavy. The parts are bolted into place by workers.

Building the Shell

The shell of the car is built next. The floor pan is laid down, and the quarter panels are attached.
The front and rear door pillars are attached. Robots are also generally used in this phase.

Final Body Components

The final body components are installed, including, doors, hood, fenders, trunk lid and bumpers.

Inspection and Washing

The body of the car is brought into an inspection area, where it is checked for any dents or
damages. Once it is approved, the entire body is washed thoroughly to remove residual oils.

10
Paint

Calibrated robots apply the paint job, and the car is then put into a baking area where the paint
dries into the typical sheen.

The Inner Workings

Workers take the car's shell and install all of the electrical wiring, lights, seats, door trim, brake
pedals, gas pedals, carpeting and all the glass, except for the windshield.

The Shell and the Frame

Robots suction cup onto the windshield and put it in place on the car. The shell of the car is then
mounted on top of the car frame. Once properly connected, the car receives its battery, tires, anti-
freeze and gasoline.

Test the Car

The vehicle is started and driven to a test area to make sure it meets the proper quality standards
of the manufacturer.

3.1.2 Automotive Parts

Automotive parts are defined as either Original Equipment (OE), or aftermarket parts. Original
equipment parts that are used in the assembly of a new motor vehicle (automobile, light truck, or
truck) or are purchased by the manufacturer for its service network are referred to as Original
Equipment Service (OES) parts. Suppliers of OE parts are broken into three levels. The first
level is “Tier 1" suppliers who sell finished components directly to the vehicle manufacturer. The
next level is “Tier 2" suppliers who sell parts and materials for the finished components to the
Tier 1 suppliers. The third level is “Tier 3" suppliers who supply raw materials to any of the
above suppliers or directly to vehicle assemblers. There is often overlap between the tiers.
Original equipment production accounts for an estimated two-thirds to three-fourths of the total
automotive parts production. Aftermarket parts are divided into two categories: replacement
parts and accessories Replacement parts are automotive parts built or remanufactured to replace
OE parts as they become worn or damaged. Accessories are parts made for comfort,

11
convenience, performance, safety, or customization, and are designed for add-on after the
original sale of the motor vehicle.

3.1.3 AUTO REPAIR & SERVICE WORKSHOP

A typical Auto Repair Workshop is assumed to provide the following four major services:
i. Mechanical, and
ii. Denting & Painting
iii. Wheel Alignment & Balancing
iv. High Pressure Cleaning

The Auto Workshop that provides mechanical and denting & painting services follows a basic
process flow as follows:

A. Mechanical Repairs
It is assumed that cars coming into the workshop soliciting mechanical repairs would subscribe
to the following main services:
i. Maintenance Services which mostly constitute running repairs / services like Gear oil /
Engine Oil / Break Oil change, Oil Filter change, spark plugs / point repair, lubricant
replenishment / replacement, tuning, break shoe repairs, minor suspension repairs etc.
These maintenance services are usually characterized by their very little job turnaround
time and are usually disposed of within a half a day’s work.
ii. Major Repairs mainly related to repair and replacement services that require
comparatively greater job turnaround time and include activities like engine

B. Denting & Painting Services

The main denting and painting services provided to the customers would be as follows:
i. Cosmetic Repairs which are also known as ‘touching services’ where minor body
defacements (like scratches, dents, paint shrouding etc.) are repaired.
ii. Accidental Repairs which constitute chassis, mudguard, bumper, bonnet repairs /
replacement services etc. Most of the cars coming for denting & painting services come
under this category.

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 iii. Body Restoration Services which include complete restoration of vehicle body for
example restoration of decayed body, completely destroyed accidental body restoration
etc.

C. Wheel Alignment & Balancing

(i) Wheel Alignment which consists of adjusting the angles of the wheels so that they
are perpendicular to the ground and parallel to each other. The purpose of these
adjustments is to maximize tires’ life and ensure a vehicle that tracks straight and true
when driving along a straight and level road.
(ii) Wheel Balancing refers to the proper distribution of weight around a revolving tire
and wheel assembly. Poor wheel balance can have a marked impact on both the car
and safety. Proper wheel balance ensures that the wheels, while spinning, do not have
a heavy spot that can cause vibration and premature wear of tires, struts, shocks and
other steering and suspension components. When combined with proper wheel
alignment, balanced wheels ensure smooth and enjoyable driving.

D. High Pressure Cleaning

High Pressure Cleaning mainly involves the cleaning of the outer body of the car through high
pressure water spray which contains a car body detergent and then a little wax to smoothen the
car paint.
E. Sublet Services
Sublet services are those ancillary services that are outsourced to other specialized workshops /
personnel that are not a part of the service mix offered by the Auto Repair workshop. These
sublet services include items like Air Conditioner Repair & Coolant Replenishment, Machine
Shop Items, Radiator Repairs, Silencer Repairs, Road Spring Repairs, Upholstery Items (seats,
bumpers, plastic repairs etc.), Wheel Alignment /Balancing, Axle End / Tire Rod Repair &
replacement etc.
These sublet services usually form a part of the total job order of the Auto Repair Workshop and
are usually a portion of the lump sum amount charged to the customer by the Auto Repair
Workshop.

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3.1.4 Objectives of the Project

The general objectives of this project are as any business company to get return on investment in
the Form of net profit. Thus the General objectives of this project will be.

 To be profitable on return on investment

 To contribute for the country economic Development

 To contribute by filling the Demand and supply Gap for this product in our country

 Contribute for the production of Products that are import substitute

 To create employment opportunity for the citizens

 To Contribute for foreign earnings for our country by exporting some parts of the project
product to other countries

4. Market Analysis
4.1 Past Supply and Present Demand

The auto parts manufacturing industry is not yet able to cater the increasing demand of
automobiles spare parts in the country. The demand for auto parts exists at local as well as
international level. According to different study on a trade body for auto part manufacturers,
Ethiopia manufactures only few of almost nil of the total annual global production of auto parts,
the export numbers are not very encouraging as compared to import of spare parts which is
approximately double. Ethiopia’s automobile manufacturing segment has a significant presence
in the local market, which manufactures and assembles cars to meet the local need; thereby the
manufacturers of these cars have outsourced the procurement of auto parts from local vendors, in
turn the local vendors are not able to satisfy the local and International demand for spare parts.
The demand could be met by better availability of resources aiding infrastructure development
and thereby capacity development and expansion of existing vendors. This will help Ethiopia to
emerge as a global manufacturer of auto parts in the international market.
Ethiopia has Strong market with excellent market access:

14
 • Strong internal market with a population of 80 million which is the second largest
in Sub-Saharan Africa.
• The large and fast-growing domestic market offers good prospects for investment
in and the development of consumer good industries such as food, beverages,
tobacco, plastic products, soap and detergents, glass and ceramics, chemical and
chemical products, drugs and pharmaceuticals, paper and paper products as well
as electrical and electronic products.
• Located in the ‘Horn of Africa’ at the crossroads between Africa, the Middle East
and Asia, Ethiopia offers a strategic market access.
• Membership of the Common Market for Eastern and Southern Africa (COMESA)
embracing 23 countries with a population of more than 420 million. Ethiopia
enjoys the benefits of preferential tariff rates on exports to these countries.
• Ethiopia is an ACP member (African, Caribbean and Pacific Group) and
accession to the WTO is under negotiation.
• Ethiopia also enjoys Duty Free and Quota Free (DFQF) privilege extended by,
among others, USA –Africa Growth and Opportunity ACT (AGOA), EU –
Everything But Arms (EBA), China – ‘0 Tariff ’ privilege and India - DFQF.
• Investors engaged in the export sector of Ethiopia will have competitive edge in
these markets.

IN

4.2 Supply Analysis

The development level of automobile industry in the country is low in comparison to other
developing countries. ETHIOPIA, being a trucking country, the potential is high but not being
exploited properly. There are various factors which contribute for hindrance of the sectors
development. The main points are Government regulation, tax inconsistent, production output,
shortage of road access, lack of foreign currency and finance for the purchase of trucks. The
contribution of the automobile industry for the economy and employment creation is big
compared with the investment outlay to the industry. Therefore attention to be paid in
strengthening the Automobile industry is must. Upgrading the capacity in maintenance and
servicing of auto motives is important. Major decision to improve and enhance the operation of

15
the automotive industry lies in the hands of Transport authority, which is believed to be staffed
with under qualified personnel. Strengthening automotive industry is one of the ways to increase
the growth of the national economy.

The unorganized segment of Auto parts manufacturers constitutes Government and private
establishments as we discussed in the introduction part; SMEs comprise very in its emerging
stage of the segment. The units produce a wide range of parts for the replacement market. The
Auto parts segment of Ethiopia constitutes are very few, most of which are registered Company
to assemblers and manufacturers of automobiles.
These units efficiently manufacture sophisticated engine and body parts like piston, engine
valves, gaskets, camshafts, shock absorbers, struts, steering mechanism, cylinder head, wheel
hubs, brake drums, wheel bumpers, instruments and instrument panel, gear of all types, radiators,
cylinder liners, blinkers and light/lamps, door locks and auto air conditioners. Many of these are
bound to supply only to assemblers and manufacturers as per their agreements, which creates a
short fall for the replacement market. The shortfall is mostly met by import of auto parts from
China, Thailand, Malaysia and Japan. The demand for auto parts is also fulfilled by obtaining
engine and body parts through gray channels

4.4 Market Strategy

The marketing strategy will be by sharing the existing consumer and searching for the substitute
consumer. The promoter will have a capacity to supply a quality product and compete at local market. In
addition to this the investor will make price reduction and product differentiation, increasing quality and
quantity of the product in order to attract more customers.

Connection with direct buyers and are lucky to secure markets, which normally take a longer as is well
known in the cash and industrial crops for export industry there are two major marketing channels: the
commission agent and the direct sales to other impendent importers. This will give them big support
while having an immediate feedback from the markets and even sum tolerate from the buyers in the first
steps. The price level for the produces that can be achieved by direct sales is higher and the commissions
paid relatively low. The main advantage of direct sales, though, is that the price is known and cash flow
can be better managed.

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4.5 Market Operational Dimension

The marketing tools of this product will be a marketing mix of the 4 P’s product, promotion, price
reduction and product distribution. Maintaining the quality of the product and maintaining warranty after
sale of the product and so on. The product promotion will be starting the supplying of few and simple to
extensive supply of product.

The investor has marketing strategy and operational dimension for implementing the project strategy.
Free sample distribution, conducting key persons at the target region, town and a promoter will also be
used. The investor will make price reduction for the first 2 to 3 years in order to inter into the market and
attract many costumers. The project promoter will have different channel of distributions at different
region.

4.6 Marketing Information System

The phenomenal growth in information technology represents both a challenged and opportunity of any
business organization. Therefore, marketing information system of this project, in order to be benefited
forum opportunities uses the following sub-system for collecting analysis and utilization of data.

1.1 Internal Accounting system

1.2 Marketing intelligence system

1.3 Marketing intelligence system

1.4 Market research

2. General Accounting Manual

This manual enables the farm to employ, as much as possible uniform accounting terminology, effective
control procedures, efficient budgeting, recording and reporting system.

3. General Corporate policy: Includes

3.1 Analysis of strength and weakness

3.2 Important Goals and area of effectiveness

3.3 Environmental threat and opportunity matrix

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 5. ORGANIZATION AND MANAGEMENT

5.1 Organizational Structure

The organizational structure of the company will include all General assembly, Board of
directors, General Manager and Production Department chief technical head and Technical
qualified staffs, Administrative and Finance section, Marketing Section, and Legal and Audit
department section. The General Manager is responsible for the General assembly and board of
director while All technical departments and supportive staffs and Legal and Audit section is
directly responsible for the General Manger. The Organizational structure of the company is as
follows.

General Manger

Audit Legal Service

Section Section

Raw Material Supply Automotive Assembling and

Finished Product and
Department Parts Manufacturing Dep’t
Sales Department

Administrative and Finance

5.1 Man Power Requirements with Qualifications

The plant requires both direct and indirect manpower. The direct manpower consists of
designers, operators of workshop equipment, mechanics, welders, paints. Laborers are engaged
in manufacturing of the products executed by production & technical departments. The
administrative activities are executed by indirect workers that include plant manager, executive
secretary, heads of finance and administrations, and personnel officer, accountant and other
support giving personnel.

The manpower list and the corresponding monthly and annual salaries including fringe benefits
are given in Table 7.1 below.

18
 Table 7.1

MANPOWER REQUIREMENT AND ANNUAL SALARY

S.N Title Requirement No Monthly Salary Annual Salary

1. Project Manager at site BA/BSC with exp 1 3500.00 42,000.00

2. Engineers BSC with exp 2 3500.00 84,000.00

3. Technician BA/Dip. with exp. 10 700.00 84,000.00

4. Senior surveyor BA/Diploma 4 850.00 40,800.00

5. Program officer BA/BSC with exp 1 2,000.00 24,000.00

6. Accountant BA with exp 1 1,500.00 18,000.00

7. Cashier/Secretary Diploma with exp 2 650.00 12,600.00

8. Program coordinator BA with exp 1 1,200.00 14,400.00

9. Unskilled worker/ Labor --- 200 500.00 100,000.00

10 Operator - 5 1,500.00 90,000.00

11 Driver - 4 750.00 36,000.00

Grand Total 231 548,800.00

5.3 TRAINING REQUIREMENT

Employees have to acquire the requisite skill and knowledge to properly operate the production
machinery and equipment through short-term training. The designer, machinery operation
mechanics, welders, and manufacturing supervisor will have to participate in the training
programme that will be conducted for a period of 4 to 6 weeks. The manufacturing supervisor is
expected to have long years work experience in similar production activities.

19
The training programme can be conducted in enterprises (either private or public) having wide
experience in production of similar products. Other possibility is to make special arrangements
with machinery supplier.

Accordingly, the training of personnel can be part of the agreement such that all the employees
involved in production activities can be trained during erection and commissioning at the project
site. Thus, a total of Birr 5,000 is allotted for this purpose.

20
6 Financial Analysis

6.1. Total Investment Costs

Total capital requirement, also known as total project cost or total investment requirement, is composed
of three items: fixed assets, pre-operating expenses and working capital. Fixed assets is the sum total of
all costs of land and improvements, building, machinery, furniture and fixtures, vehicle, etc.

Pre-operating expenses are those necessary expenses which are incurred before the business starts
operating. These include registration fees and licenses, training costs, cost of preparing business plan,
trips to raw material and equipment suppliers, etc.

Working capital is the amount of money permanently needed in cash or in kind to keep the business
operating while it is awaiting full payment for goods sold to customers.

Working capital can be calculated by adding five factors:

1) The cost of maximum raw material stocks that will have to be stored to ensure continuous
production. In some cases this may be three to six months worth, if the raw material is difficult to
obtain or has to be imported, whereas in other cases (where raw materials are readily available)
only one or two weeks’ worth may be needed;

2) The cost of finished goods which will be kept in stock awaiting distribution to the customers;

3) The cost of work-in-process which are on the project floor but have not yet been converted into a
final product or finished goods;

4) The cost of goods already distributed to customers but which have not yet been paid for (accounts
receivable);

5) The amount of ready cash needed to pay workers and overheads.

 To determine the cost of raw material stocks, simply multiply the quantity needed by its
purchase price;

 To determine the cost of finished goods stock, multiply the number of units to be kept by
the unit production cost

 To determine the cost of work-in-process, first estimate the number of days it takes to
convert the raw material into finished goods, then multiply this by the daily production
level, then multiply the figure obtained by the unit production cost determined in. Finally
divide this figure by two.

21
  To determine the cost of goods already distributed but not yet paid for, estimate the
quantity that will be given on credit and multiply this number by the unit production cost.

 To determine the amount of cash needed in the business, add the monthly  labour cost and
overheads to the monthly  marketing expenses and the administrative expenses.

Add these five cost elements together to arrive at the total capital requirement of this project.
To calculate the total capital requirement, add the following:
+ Fixed Assets
+ Pre-Operating Expenses
+ Working capital
= Total Capital Requirement
Table 6.1 Total Capital Requirements
S.N Description Total
1 Fixed Capital Cost 41,052,910.36
2 Working Capital 15,881,504.34
  Sub Total 56,934,414.70
  Preliminary and Pre-Operating Expenses 3,660,000.00
  Total 60,594,414.70

6.2. Fixed Investment Cost

This includes every cost of capital investment including civil works and basic assets for the
project to run its activities. It includes, cost of construction, machineries, furniture, computers
with their accessories, vehicles, and the like which are tangible asset of the project any time.
Majority of these assets are imported from which the promoter earn encouraging advantage from
importing free of tax. On the other hands, these assets are the assets of the country economy in
general thinking not only the assets of the promoter.

Table: 6.2 - Fixed Investment cost of the project

22
No Description Model 1 Engine Model Manufacturer Purchased Price Birr
date
1 Construction of 8,000,000.00
Production plant
2 Construction of 3,000,000.00
warehouse
3 Office Furniture 60,000.00
and computer
4 Surface Grinder M7140/G 280,000.00
5 Feed Reel Machine WD67X- 185,000.00
100TX/32
6 Oil pump Testing BD850-F 452,000.00
7 Milling machine CA6140A 256,000.00
8 Shearing machine Q11/8x2500 254,000.00
9 Crankshaft MQ8260A 302,000.00
Grinding Machine
10 Hack Sawing G7132 241,000.00
Machine
11 Roll Machine W11-6x2500 368,000.00
12 Cutting Machine LGK80-C 376,000.00
13 Driller & Milling Z7040 169,000.00
Machine
14 Dump Truck UD, 29OHP WD615.50 BEIBEN 2009.3 5,400,000.00

15 Loader XG953-II D9-220 XIAGONG 2009.2 1,744,000.00

16 Loader ZLM50E-5 C6121ZG50 CHANGLIN 2008.9 1,278,000.00

17 Roller CA610D 6BTA5.9C DYNAPAC 2008.8 3,676,000.00

18 Excavator SAA6D114E- 12,127,000.00

CAT 336 DC KOMATSU 2009.3
2

19 Bulldozer D8R WD615.2 SHANTUI 2008.9 2,020,000.00

20 Concrete Mixer JS500x2 152 1998 904,000.00

Grand total 41,052,910.36

6.3. Work Capital Requirements

Table 6.3 Working Capital Requirements

23
S.N Description Local Cost Foreign cost Total

1 Raw Materials (3 month) 7,383,750.00 - 7,383,750.00

2 Utilities (3 months) 6,750,000.00 - 6,750,000.00

3 Wage and Salaries (2 month) 91,466.67 - 91,466.67
  Others Operating Expense (3months) 212,514.55   212,514.55

  Sub total 14,437,731.22   14,437,731.22

  Contingencies (10%) 1,443,773.12   1,443,773.12

  Net working capital 15,881,504.34 - 15,881,504.34

Table 6.4 Annual Operating Costs of The Project

S.N Description 1st Year 2nd Year 3rd Year 4th Year
Materials and Input s
1 20,674,500.00 23,628,000.00 26,581,500.00 29,535,000.00
Utilities
2 18,900,000.00 21,600,000.00 24,300,000.00 27,000,000.00
Wage and Salaries
3 384,160.00 439,040.00 493,920.00 548,800.00
Other Operating
4 Expenses 595,040.75 680,046.57 765,052.39 850,058.21
  Sub Total
40,553,700.75 46,347,086.57 52,140,472.39 57,933,858.21
  Contingencies (10%)
4,055,370.07 4,634,708.66 5,214,047.24 5,793,385.82
  Total Operating Expenses
44,609,070.82 50,981,795.22 57,354,519.63 63,727,244.03

Table: 6.5. Source of Finance

24
S.N Sources of Finance Percentage Share Total fund (‘000)

1 Owner Equity 30% 18,178,324.41

2 Bank Loan 70% 42,416,090.29
  Total 100% 60,594,414.70

Table 6.6 Loan Repayment Schedule

No Years Installment Interest Principal

  0 - - 42,416,090.29

  1 4,241,609.03 3,605,367.67 38,174,481.26

  2 4,241,609.03 3,244,830.91 33,932,872.23

  3 4,241,609.03 2,884,294.14 29,691,263.20

  4 4,241,609.03 2,523,757.37 25,449,654.17

  5 4,241,609.03 2,163,220.60 21,208,045.15

  6 4,241,609.03 1,802,683.84 16,966,436.12

  7 4,241,609.03 1,442,147.07 12,724,827.09

8 4,241,609.03 1,081,610.30 8,483,218.06

 
9 4,241,609.03 721,073.53 4,241,609.03
 
10 4,241,609.03 360,536.77 (0.00)
 

Table: 6.7 Annual Depreciation

No Description Total Fixed Cost Depreciation Rate Total Cost

1.00 Building and Civil Work 0.1 1,328,708.
13,287,080.76 0 08
2.00 Machinery and Equipment 0.2 6,812,725.
27,250,900.00 5 00
3.00 Furniture and fixture 0.1 9,870.
98,700.00 0 00
4.00 Other Fixed Assets 0.0 20,811.
416,229.60 5 48
  Annual Depreciation     8,172,114.
56

25
7. Projected Financial Statements
The proposed project shall enter in to its activity with reasonable return as planned to perform.
Accordingly, it shall start providing its service after 1 st year of contraction work which is used as
the time for preparation period, capital good purchase and man power recruitment.

The business project shall start its activity with some few workers in the 1 st phase and extend its
activity as it plans to perform by increasing the number of its employees on two shifts starting
from its 2nd phase forward with the remaining planned services. In line with this, the amount of
raw materials shall increase with the increase of the service that also increases other expenses at
which the project starts to provide its services in its full potential.

The target market of the project for the 1 st year is local market on which the expected revenue
plan is based. The project customer will be increase and expand its market area expectation to
international level that may also increase its cash flow capacity as time increases and have its
own positive impact to GDP of the country as a whole.

In line with this, if the increment of cash flow of the project is positive balance, the revenues of
the capacity of the project will also increase that in turn results for the increment of the project
net profit.

7.1 Revenue Projection

The total revenue expected from this project is assumed to derive from the planned activities to
perform. These are going to be provided by the project promoter selling of assembled
machineries, manufactured construction materials, revenue from construction of buildings and
other supporting activities. The project will be fully operational after three years time starting
from the first phase. Therefore, the project income is assumed to increase from the third years to
the planning period by increasing and improving their services to hold the existing, expected and
attract new customers.

26
 Table 7.1 Projected Annual Revenue of the Project

.N Sources of Revenue QTY 1st Year 2nd Year 3rd Year 4th Year 5th Year
Refreshed Automotive and Auto LPS
1 parts(LPS) I 135,000,000.00 154,285,714.29 173,571,428.57 192,857,142.86 220,408,163.27
Pre Fabricated Assembled Auto parts LPS
2 (LPS) II 2,475,000.00 2,828,571.43 3,182,142.86 3,535,714.29 4,040,816.33
Pre-Fabricated Assembled Automotive LPS
3 (LPS) III 1,406,250.00 1,607,142.86 1,808,035.71 2,008,928.57 2,295,918.37
LPS
4 Assembled Automotive (LPS)V 2,362,500.00 2,700,000.00 3,037,500.00 3,375,000.00 3,857,142.86
LPS
5 Others 1,500,000.00 1,714,285.71 1,928,571.43 2,142,857.14 2,448,979.59
LPS
Total Annual Revenue 142,743,750.00 163,135,714.29 183,527,678.57 203,919,642.86 233,051,020.41

27
28
 7.2 Projected Income Statements
Description Project Years Project Years    

0 1 2 3 4 5 6 7 8 9 10

Total Sales -
142,743,7 163,135, 183,527,67 203,919,642 226,57 251,752 279,725, 310,805, 345,339,705 383,710,784
50.00 714.29 8.57 .86 7,380.95 ,645.50 161.67 735.19 .76 .18
Operating Expenses - 44, 57 63, 63,7 63,7
609,070.82 50,981,795.22 ,354,519.63 727,244.03 63,727,244.03 63,727,244.03 63,727,244.03 63,727,244.03 27,244.03 27,244.03

Administrative and Sales - 1 2, 3,4 3,

Expenses 1,427,437.50 1,631,357.14 ,835,276.79 039,196.43 2,265,773.81 2,517,526.46 2,797,251.62 3,108,057.35 53,397.06 837,107.84

VAT (15%)   2 30,

1,427,437.50 1,631,357.14 7,529,151.79 587,946.43 33,986,607.14 37,762,896.83 41,958,774.25 46,620,8 51,800,95 57,556,61
60.28 5.86 7.63
Total Cost of Goods Sold   47,463,94 54,244, 86,718,948 96,354,386 99,979 104,007 108,483,2
5.82 509.51 .20 .89 ,624.98 ,667.31 69.90 120,536, 133,929,962 148,811,06
966.55 .83 9.81
Operating profit - 95,279,80 108,891, 96,808,730. 107,565,25 126,59 147,744 171,241,
4.18 204.78 37 5.97 7,755.97 ,978.19 891.77 190,268, 211,409,74 234,899,714
768.64 2.93 .37
Less Depreciation -
8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56
9,080, 10,089,030 11,210,033
127.28 .32 .68
Interest - 2,
3,605,367.67 3,244,830.91 884,294.14 2,523,757.37 2,163,220.60 1,802,683.84 1,442,147.07 1,602, 1,780,428 1,978,253
385.63 .48 .87
Sub Total   11,777,4 11,416, 11,056,40 10,695,87 10,33 9,974, 9,614,2 10,682, 11,869,45 13,188,28
82.23 945.46 8.70 1.93 5,335.16 798.39 61.63 512.92 8.80 7.55

Profit Before Tax - 83,502,32 97,474, 85,752,321 96,869,384. 116,26 137,77 161,627, 179,586, 199,540,28 221,711,42
1.95 259.31 .68 04 2,420.81 0,179.80 630.15 255.72 4.13 6.82

Less Income Tax (40%) - 33, 34,3 38 79 88,6

400,928.78 38,989,703.73 00,928.67 ,747,753.62 46,504,968.32 55,108,071.92 64,651,052.06 71,834,502.29 ,816,113.65 84,570.73

Net Profit - 50,101,3 58,484, 51,451,39 58,121,63 69,75 82,662, 96,976,5

93.17 555.59 3.01 0.43 7,452.49 107.88 78.09 107,751 119,724,17 133,026,856.
,753.43 0.48 09

29
 7.3 Projected Cash flow Statements
No Description Projected years        

0 1 2 3 4 5 6 7 8 9 9

  Cash Inflow                    

  Equity 18,178,324.41 - - - - - - - - -

  Bank Loan 42,416,090.29 - - - - - - - - -

  Net Profit - 50,101,393.17 58,484,555.59 51,451,393.01 58,121,630.43 69,757,452.49 82,662,107.88 96,976,578.09 96,976,578.09 96,976,578 96,976,578

  Depreciation - 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,114.56 8,172,115 8,172,115

  Total 60,594,414.70 58,273,507.73 66,656,670.14 59,623,507.56 66,293,744.98 77,929,567.04 90,834,222.44 105,148,692.65 105,148,692.65 105,148,693 105,148,693

  Cash out Flow

  Fixed investment 44,712,910.36 - - - - - - - - - -

  Working Capital 15,881,504.34 - - - - - - - - - -

  Total Cost of Capital 60,594,414.70 - - - - - - - - - -

  Loan Repayment - 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4242 4,242

  Total 60,594,414.70 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,241.61 4,242 4,242

  Net inflow
-
58,269
,266.12
66,652,4
28.54
59,619,2
65.95
66,289,503.
37
77,925,32
5.43
90,829,98
0.83
105,144,45
1.04
105,144,451
.04
105,144,451 105,144,451

30
8. Environmental Aspects
The project will seriously involve itself in protecting, conserving and developing the natural and
flora of the project area in line with the Millennium development goal. To this end it will play a
vital role in participating in various organizations and the community around the project area to
form an environmental committee in charge of all environmental issues to be handled in
accordance to various environmental and water policies of 1997/1999. The owner of the project
believes to undertake several environmental issues for the conservation, development and
creation of sustainable environment around the project area like resource conservation.

The promoters of the project will participate in any forum that might be organized by concerned
authorities and the community to promote environmental issue and concept for sustainable
development in the area. In addition to this, it will introduce and use environmental friendly
technologies such as tree planting and conserving the existing tree species in the compound.

In line with this, the company is willing and more interested in protecting and even planting
natural forest of indigenous trees to make its compound attractive by creating conducive cool
climatic condition. The company as clearly described above is critically based on satisfying the
needs of the locality to be exemplary for others on nature conserving activities that contributes to
nature conservation activities for locality, national and/or Global environment in its contribution
far from the project area. It is also ready to perform EIA for the proposed project to make it
environmentally friendly and competitive industry in National wide.

31
9. Land Use Plan and Activities Plan
9.1 Implementation Strategies of the Project
When we plan to establish this project, we have plan to implement it in three phases.

 1st Phase: - requires its own machineries and working capital including construction of the
building for the project. It covers about 50% of the total investment cost of the project.

 2nd Phase: - will start at a year of completing the 1 st Phase of the project. It is worth at around
30% of the total investment cost of the project. The working hour will be doubled and
number of employees increase by 50% in this phase.

 3rd Phase: - will start immediately after completing the 2nd Phase of the project. It covers the
remaining 20% of the total the project cost. But, it can increase the service capacity of the
project by more than 30% including addition of the remaining services. The working hour
and the number of employees can also be increased.

The projects estimated cost of working capital is covered by the promoters. The fund that is to be
generated from various sources is ready to cover the cost of construction of the buildings, the
purchase of machineries, furniture, equipments, vehicles and other requirements.

32
 9.2 Project Implementation Schedule/Activities Plan
S.N Activities 20013 2014

Oct Nov Dec Jan Feb March April May June July Aug Sep Oct Nov

1 Acquisition of Land

2 Site Clearance

3 Installation Main Plant

4 Where house and Storage

5 Administrative and Office

Building

6 others

7 Acquisition of Machinery and

Equipment

8 Installation of Machinery

9 Acquisition of Raw Materials

10 Start Up of the Project

33
9.3 Project Land Use Plan

Apart from other requirements and inputs, land is primarily used to realize the proposed project.
The total area of land required to realize the proposed project is 40,000 m2 of land in the area of
existing industries performing their activities. Land utilization plan of the project is proposed to
be 85% to be built for the objective of the company and the remaining 15% of land will be left
for green development in the compound for the purpose of its environmental benefits,
beautification as well as air condensation. In general, to implement the project an ample land is
required based on the activities incorporated in the project.

Table: 3.1 Land Budgeting for the Proposed Project

S.N Description Area LXW Area in M
Com
bin Remark
1 Auto Spare Parts Manufacturing Plant Building 150x80 12,000
2 Auto and Machinery service Garage including 100x100 10,000
Garage office, store & toilet etc
3 Warehouse 50x20x2 3,750
5 Car parking and green area 80x50 4,000
6 Staff living room mix50 person= 40m2/person 5x8x5 2,000
7 Project office Building 4x4x4 200
8 Staff Cafeteria Building 45x30 64
9 Free space for Loading/un loading 30x19 670
10 Canteen for staff including store and office for 25x10 250
canteen
11 Guard house 5x3x12 180
12 Septic tank 6x6 36
13 Toilet and shower room 10x4 40
14 Concrete mixing plant installation area and pre 60x15 900
cast production are
15 Office for store man 6x5 30
16 Space for greenery, open space & aeration Rough 5,880
Total 40,000

34
9.3 Risk Assessment
a. Threats
Local products and assembled machineries shall be considered as inferior by the local
customers. But through intensive promotion and quality production and other options
shall be applied to penetrate the local market with less profit margin.

b. Competition
Development competition shall bring change. Thus the change in design, technology,
quality service and others shall be addressed through local and international
communication.

c. Contingency Plan
With all these efforts, if the product of the industry demand may reduce, rebased or
failed, the industry shall go in to warehouse, or fully production of construction materials
or training center business which may not require much additional skill and means of
production.

35
 Project Proposal for Investment on

Automotive Assembling, Automobile Parts Manufacturing and refreshing Plant

Project Promoter: Mulu Dejane Toba

Project Location: Laga Tafo Laga Dadie Town

October, 2013

Addis Ababa, Ethiopia

36
 I. Executive Summary

1. Project Background

 Title of the Project: Automotive Assembling, Automobile Parts Manufacturing

and refreshing Plant

 Owner of the Project: Mulu Dejane Toba

 Project Location: Laga Tafo Laga Dadie Town

2. Total Investment Cost of the Project

 Fixed Investment Cost 41,052,910.36

 Working Capital 15,881,504.3

 Preliminary and Pre-Operating Expenses 3,660,000.00

 Total Cost of the Project 60,594,414.7

3. Financial Sources of the Project

 Owner Equity (30%) 18,178,324.41

 Bank Loan(70%) 42,416,090.29

 Total 60,594,414.70

4. Estimated Annual Net Profit of the project

 Over Ethiopian Birr 30 Million

5. Employment Opportunity of the Project

 At Total of 331 Permanent and Temporary employment opportunity

37
6. Land Required for this Investment 40. 000 M2

Contents
1. Introduction.........................................................................................................................................1

2. Project Area.........................................................................................................................................2

 Telecommunication and Postal Services..........................................................................................6

 Electric Power Supply.....................................................................................................................6

 General Market................................................................................................................................7

3. The Project..........................................................................................................................................9

3.1. Description of the Project.................................................................................................................9

The Parts................................................................................................................................................10

Start With the Frame.............................................................................................................................10

Installing the Parts.................................................................................................................................10

Engine and Transmission Installed........................................................................................................10

Building the Shell..................................................................................................................................10

Final Body Components........................................................................................................................10

Inspection and Washing.........................................................................................................................10

Paint......................................................................................................................................................11

The Inner Workings...............................................................................................................................11

The Shell and the Frame........................................................................................................................11

Test the Car...........................................................................................................................................11

4. Market Analysis.................................................................................................................................14

4.4 Market Strategy...............................................................................................................................16

4.5 Market Operational Dimension........................................................................................................17

4.6 Marketing Information System..................................................................................................17

38
5. ORGANIZATION AND MANAGEMENT......................................................................................18

5.1 Organizational Structure..................................................................................................................18

5.1 Man Power Requirements with Qualifications................................................................................18

6 Financial Analysis.............................................................................................................................21

6.1. Total Investment Costs...................................................................................................................21

6.2. Fixed Investment Cost....................................................................................................................22

6.3. Work Capital Requirements............................................................................................................24

7. Projected Financial Statements..............................................................................................................26

7.1 Revenue Projection..........................................................................................................................26

7.2 Projected Income Statements...........................................................................................................29

7.3 Projected Cash flow Statements.......................................................................................................30

8. Environmental Aspects..........................................................................................................................31

9. Land Use Plan and Activities Plan.........................................................................................................32

9.1 Implementation Strategies of the Project...................................................................................32

9.2 Project Implementation Schedule/Activities Plan......................................................................33

9.3 Project Land Use Plan................................................................................................................34

9.3 Risk Assessment..............................................................................................................................35

39