44-2
TABLE OF CONTENTS
PAGE
I.
SUMMARY
44-3
II.
PRODUCT DESCRIPTION & APPLICATION
44-3
III.
MARKET STUDY AND PLANT CAPACITY
44-3
A. MARKET STUDY
44-3
B. PLANT CAPACITY & PRODUCTION PROGRAMME
44-5
RAW MATERIALS AND INPUTS
44-6
A. RAW MATERIALS
44-6
B. UTILITIES
44-7
TECHNOLOGY & ENGINEERING
44-8
A. TECHNOLOGY
44-8
B. ENGINEERING
44-9
MANPOWER & TRAINING REQUIREMENT
44-11
A. MANPOWER REQUIREMENT
44-11
B. TRAINING REQUIREMENT
44-12
FINANCIAL ANLYSIS
44-13
A. TOTAL INITIAL INVESTMENT COST
44-13
B. PRODUCTION COST
44-14
C. FINANCIAL EVALUATION
44-14
D. ECONOMIC BENEFITS
44-15
IV.
V.
VI.
VII.
44-3
I.
SUMMARY
This profile envisages the establishment of a plant for the production of Mineral Water with a capacity of 14.4 million liters per annum.
The present demand for the proposed product is estimated at 32 million liters per annum.
The demand is expected to reach at 108 million liters by the year 2010.
The plant will create employment opportunities for 54 persons.
The total investment requirement is estimated at Birr 16.4 million, out of which Birr 1.8 million is required for plant and machinery.
The project is financially viable with an internal rate of return (IRR) of 13.46% and a net present value (NPV) of Birr 6.1 million, discounted at 8.5 %.
II.
PRODUCT DESCRIPTION AND APPLICATION
The simple definition of water is that it is the liquid that descents from the cloud as rain, forms streams, lakes and seas, issues from the ground in form of springs and is a major constituent of all living matter and that when pure consists of an oxide of hydrogen H2O or
(H2O)x in the proportion of 2 atoms of hydrogen to one atom of oxygen and is an odorless, tasteless, very slightly compressible liquid. Water freezes at 0oC and boils at 100oC, has a maximum density at 4oC and a high specific heat