I.

Executive Summary
1. Project Background

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

and refreshing Plant

 Owner of the Project: Anteneh Meselle G/yes

 Project Location: Gelan Town

2. Total Investment Cost of the Project

 Fixed Investment Cost 21,385,967.87

 Working Capital 5,399,032.14

 Preliminary and Pre-Operating Expenses 3,215,000.00

 Total Cost of the Project 30,000,000.00

3. Financial Sources of the Project

 Owner Equity (30%) 9,000,000.00

 Bank Loan(70%) 21,000,000.00

 Total 30,000,000.00

4. Estimated Annual Net Profit of the project

 Over Ethiopian Birr 3 Million

5. Employment Opportunity of the Project

 At Total of 97 Permanent and 100 Temporary employment opportunity

6. Land Required for this Investment 10. 000 M2

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 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
the roads of all most all cities by some citizens. All these motor bikes are getting imported from

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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 Gelan Town. The town of Gelan in the East
direction bordered by Dukem town where the rail way and the high way cross each other. In the
South East by Dalota and Mero mountains. In the North East by Kora Mariam church, in the
North by Wedesso Mountain and Abayi Silto farmers ‘ganda’. In the West and North-West by
Finfinne city administration and in South-West by lake Aba Samu’el.

Gelan is an emerging new town. It got its name from the name of the area which in turn derived from
the oromo clan which had settled the area. Gelan is one of the Tulama oromo clans. According to
tradition Gelan is the eldest son of Daci one of the Tulama branch along with Bacho and Jilee. The
Gelan oromo controlled all the land south east and south of Finfinne during the foundation of the city.
According to our in formats Gelan is widely settled the area bordering Barrak in the north, sabata-
Awas in the east and Awash. (OCTB, 2004). The area on which Gelan town has emerged is then a
Gelan oromo settlement (OI. 2, 3, 4).

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The study shows that Gelan has been an area to which industrial establishments from Finfine always
directed, ever since the foundation of Finfine as the capital of the nation. The people of this area were
under pressure to give way to the ever expanding industrialization, without direct benefit from it.
Today there is a policy option that requires investment to contribute to the national economic
development, giving emphasis to the impacted society. Therefore, cautious planning is required to
consider the people that are dislocated as the result of investment and industrial establishment from
Gelan.

Further more, despite large scales expansion of investment in the area the people of Gelan do not
have adequate service such schools, health services and others. This also demands attention from
all responsible bodies, government and NGOS, local as well as international

2.1 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 and Transport

According to the data obtained from the Municipality of Gelan the total length of Asphalt road is a
bout 7.1 k.ms. Without inclusion of asphalt road the total length of all weather roads is about 3 km. and
the roads which are found in the town have a width of 4 meters to16 meters. According to the field
observation the existing roads that are found in Gelan town area are high way, motor race road,
Finfinne Dane Limat project road, road to Akaki, road to Dambi Gara Dhera and road to Dabra Gelan.

The high way which connects Addis Ababa with the Southern and Eastern part of Ethiopia as well as
Djibouti passes through the town of Gelan. This high way divides Gelan in to Right and Left hand
sides. The local people are using this high way to go Finfine, Dukem , Akaki and Bishoftu by public
transport vehicles .

This road is extending from the high way towards the East-Southern part of the town. It extends from
the high way towards the settlements of Gemmada, Marino, Sakallo, Babboo including to Dembi
Garedhera area. As its name indicate this road uses for Motor racing. Even if, the main function of this
road is motor racing, organizations like Ethiopian Electric power and light Authority have high tension

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lines and the Addis Ababa Water and Sewerage Authority has Akaki under ground water reservoir
from the southern part of Gelan town. These organizations are using this road to enter and exit the area.

This road is extending from the high way towards the North direction. This road is connecting the
settlements of Wedasso,Weserbi and Korra Maram. In addition to this, Eucalyptus plantation trees of
Gara Bushu,Gara Gurracha and Gara Yerer mountains are accessible by vehicles only through this
road. Sidamo Awash Road – This road branches out from the main high way around the Southern part
of Gelan town and passes through the settlement of
Sidamo Awash and returned to high way. It is asphalt road.

This road is extending from the main high way in Gelan to Akaki town. It is asphalt road. This road is
serving to connect the people of Akaki district which are located to the East of Gelan, Gelan town
hinterland and Dukem town hinterland with Akaki town.

This road is extending from the high way (around the center of the town) towards Southern part of
Gelan. The initial point for this road from the high way is near to Dalota Elementary School. It extends
up to Dambi Garedhera. The pedestrians from the surrounding Southern part of Gelan including to
Dambi Garedhera settlements as well as vehicles to enter and exit the area are using this road.

These are collector roads which help to enter and exit especially the pedestrians to Debre Gelan
village. The road which passes in front of telecommunication office towards Debera Gelan,

 Bus station

Currently the town of Gelan has n’t bus station. With the establishment of settlement, commercial
centers, markets, industries in the town the movement of people from Gelan to Finfinne, Dukem,
Bishoftu, Adama as well s the Southern & Eastern part of Ethiopia will be high. Due to this the
establishment of buss station in Gelan is very important. The planning team has allocated bus station
site by taking in to consideration the centrality of the area, the appropriateness of the topography and
observation of the soil of the area. Thus by taking in to consideration these criteria the planning team
has proposed bus station to the South of the existing high way near to the created center for the town of
Gelan.

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  Freight terminal

From the Southern part of Ethiopia different types of Agricultural products like fruits, coffee, hides &
skins, etc. are transported to Finfinne. Moreover from Arsi & Bale grains are also transported to
Finfinne by numerous medium fright cars like Isuzu. When these vehicles are transporting these
agricultural items to Finfinne, they pass through the town of Gelan. These vehicles are arriving
Finfinne in evening & could not unloading their cargo at that time. As the result they are obliged to
spend their night in Finfinne and exposed to extra cost for parking and hotel service. Thus the drivers
when they arrive in the evening prefer to spend their night time to the near by towns like Gelan to load
off their cargo on the next day early morning in Finfinne ware house.

In addition to these, the heavy tracks are transporting commodities & fuel from the port of Djibout to
Finfinne. These tracks are arriving Finfinne in the evening. They are obliged to unload their cargo on
the next day morning in ware house. The cost of parking and hotel service will be high for drivers and
transport workers in Finfinne. Moreover there is a lack of space for parking especially for heavy tracks
in Finfinne.

2.2 Communication and Power Services

 Telecommunication: there is one telecommunication station which is on the verge of giving
service. It is expected to render digital and mobile communication service. Prior our study, there was
no such service in the area.
 Postal Service: East Shewa is said to be relatively in better condition as the distribution of
postal service is concerned. In spite of the fact, there is no such service in the study area probably for
the fact it is a newly emerging town. One postal office worth mentioning is found in the neighbouring
district capital-Dukem. Thus, there is a need for having standardized postal offices in the town.
Power Services

As far as this service is concerned, the town gets its power supply from EELPA. According to the town
municipal, the service is for 24 hours a day. Though the service is for such long hour, it is still
complained that the power service is not sufficient for the existing population. This is more reflected
when the town population grow big in the coming planning times. Therefore, on the spot remedy shall
be given.

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There are other problems that are tied up with the power supply at present in the town. To start with,
the existing power installation lines are not well planned. Secondly, sometimes there is power
breakdown and the electric poles are found intermingled with trees and forests. This obviously can
cause danger especially in windy days.

Thus, to overcome the problems mentioned in the foregoing paragraphs, it is good to install new
electric power lines following the structural plan. In addition since the area is industrial zone, there is
a need for allocating a transformer with high power supply as well as changing the worn out electric
poles.

2.3 General Market

3. Around the settlement of Sidamo Awash there is a weekly for livestock. This livestock market
is incompatible with the existing settlement & for the future proposed land used pattern. But
around the southern area of Sidamo Awash settlement there is an area on which the local
people have intended to establish the General market before the arrival of the planning team to
the town. To allocate this area for the general market, analyze it with reference to the criteria of
General market establishment is very important.

4. One of the criteria is location. This are is located to the South-Western direction of the town.
Although this area is described as south-Western direction of the town, it is almost the central
area for the area which are found at the different corners of the town.

5. Accessibility is another factor for selecting market site. When this area is analyzed interims of
accessibility, it has a good location. This area is nearest to the existing high way. Since
collectors & feeder roads are designed and proposed to be connected with the high way and big
roads which round around the periphery of the town. This market area has good accessibility
from different corners of the town & to the rural grain as well as agricultural product suppliers.

6. Other factor which has to be taken in to consideration to select market place is slope of the area.
The area selected for the market in Gelan town is slope surface. This means the area is higher at
one end than the other. Due to its good slope the water which comes from the precipitation of
the area during summer drained to North-East direction.

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 7. The soil of the area is determinant factor for the area to be the market place. The soil of the area
is vertisols (biyyee gurracha). The main characteristics of this soil is swelling during summer &
cracking during winter. But the problem is most of the land mass in Gelan town is covered by
Vertisols (biyyee gurracha). So, it is difficult to find other soils than vertisols in Gelan town.

8. Incase of compatibility, around the area which is selected for the market, settlement and
commerce as well as mixed use of land is proposed. These things which are found around are
compatible with the market.

9. One of the most important things in market establishment understands the catchment’s area.
Based on the adjacent areas and resources which are supplied to the market, it is possible to
estimate the catchments areas of Gelan town. The farmers Gands of Southern part of Akaki
district which are 16 in number, the periphery of Sout-West Shewa zone, the farmers Gandas of
Northern Akaki district which are 5 in number including to North Shewa zone and the district
of Gumbichu are better suppliers of agriculture products like animals, animal products, grain,
vegetables, etc to this market. On the other hand the city administration of Finfinne, Dukem,
Bishoftu & Adama could be best suppliers of industrial products.

2.4 Population and Economic Activities

 Population
Town had more than 40,000 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. This had its own impact on the
development and investment potential of the Town.

 Economic Activities

Economy of the town is the fundamental instrument for the sustainable growth of urban infrastructure.
The growth of urban economic activities should be creates the pre-condition of comprehensive and
optimal development in the area. Hence, major economic activities, potential, problems and solutions
of Gelan town were analysis side by side on the base of collected data.

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The investigated economic data are including structure and economic role, unemployment, re-allocated
farmers condition, urban agriculture, investment, trade, tourism, micro and small enterprise,
municipality finance, human resource of the town, as well as zonal economic situation.

There are various advantages or opportunities of investment activities that exist in the town for the
local residents. According to our observation and some of the investors in the area, these activities
have opened a door of employment for many inhabitants of the area.

The multiplier outcome of economic study in healthy thought to be the basis of the town
development when overcome the problems demonstrated in the document. While the sought out
of problems only not the solution of the existing economic conditions in the area, so that the
municipality and communities tied together have to recognizes the economic problems and apply
the solution illustrated in the document

The total investment activities practicing in the area secondary economic activities stood first and
accounts (83.5%) and followed by tertiary economic activities (14.6%) and primary economic
activities (1.9%).

According to the raw data from East Shewa investment office, some investors are never indicating
their invested capital and number of employees in their organization. From the document, investments
were not indicated the amount of invested capital and number of employees calculated under the three
economic activities, in such primary, secondary and tertiary.

o In Primary economic activities, two investors were not indicated their employees
o Out of the investors who engaged in secondary economic activities 31 of them, were not
indicated their amount of capital likewise 38 investors also did not show their number
of employees
o 10 investors who engaged in tertiary economic activities were not justified their capital
and at the same time 19 of them did not illustrated their number of employees

When investigating the current backlog of investment activities in the area somewhat indicating
that in the future the town will be has good incident for investment activities. Advantage of
Proximity to internal and external market

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  Relatively the present of adequate infrastructure
 The existence of suitable weather condition
 Accessibility to any media
 The existence of fertile land
 Accessibility to transport and
 Land form and drainage system.

3. 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, Gelan 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

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3.1 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.

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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.

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

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3.3 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.
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

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 (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.

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

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  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

5. Market Analysis

5.1Past 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:

• 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

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 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 E

5.2Supply 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
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.

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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

5.3 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.

5.4 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.

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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.

5.5 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

6. ORGANIZATION AND MANAGEMENT

6.1 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

18

General Manger
 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.

Audit Legal Service

Section Section

Raw Material Supply Automotive Assembling and

Finished Product and
Department Parts Manufacturing Dep’t
Sales Department

Administrative and Finance

6.2 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.

19
 Table 1

MANPOWER REQUIREMENT AND ANNUAL SALARY

S.N Description Manpower with Qualification Quantity Monthly Salary in Annual Salary In
Birr Birr

I General Manager Office        

General Manager 1 10,000.00 120,000.0

BSC Agricultural Eng 0
 
Secretary 1 750. 9,000.0
Diploma in Sec. Science 00 0
 
Administrative and Finance Department
II       -
Head Administrative and Finance 1 4,50 54,00
BA in Accounting 0.00 0.00
 
Accountant 3 1,50 54,00
BA in Accounting
  0.00 0.00
Casher 2 1,00 24,00
Diploma in Book Keeping 0.00 0.00
 
Drivers 2 1,80 43,20
Public Driving License
  0.00 0.00
Market, Sales and Promotion Department 3 1,500 54,00
BA in Commerce
III .00 0.00
Farm Production Staff    
 
IV -
Manager 1 5,00 60,00
BSC Mechanical Eng
  0.00 0.00
Assembling Dep’t 5 4,50 270,00
BSC Mechanical Eng 0.00 0.00
 
Mechanics 5 1,00 60,00
Dip in Mechanics
  0.00 0.00
Care Marts Workshop Staffs 10 1,00 120,00
TVT 0.00 0.00
 
Assistant 3 1,00 36,00
TVT in Mechanical Eng 0.00 0.00
 
Machine Operator 5 1,00 60,00
Diploma in Mechanical Eng 0.00 0.00
 
Daily Laborer 30 1,00 360,00
Reading and Writing
  0.00 0.00
Other Workers 10 1,50 180,00
Read and Write 0.00 0.00
 
Other Machine Protector 5 50 30,00
TVT in Mechanical Eng
  0.00 0.00
Finished Product Dep't Staffs    
 
V -
Store Keeper, distribution, Guard and Other 10 1,00 120,00
staffs)   0.00 0.00
 
Total 97 38,550. 1,654,200.
 
  00 00

20
6.3 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.

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.

7. Financial Analysis

7.1. 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

21
 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.

 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

22
 Table 2 Total Capital Requirements
S.N Description Total

1 Fixed Capital Cost 21,385,967.87

2 Working Capital 5,399,032.14

  Sub Total 26,785,000.00

  Preliminary and Pre-Operating Expenses 3,215,000.00

  Total 30,000,000.00

7.2. 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: 3 - Fixed Investment cost of the project

S.N Description Total Cost
1 Land  

1 Building and Civil Work 6,750,000.00

2 Machinery and Equipment 14,294,467.87

3 Office Furniture and Fixture 91,500.00

4 Other Misalliance fixed 250,000

  Total 21,385,967.87

7.3. Work Capital Requirements

Table 4 Working Capital Requirements

23
 S.N Description Local Cost Foreign cost Total

1 Raw Materials (3 month) 4,298,271.25 - 4,298,271.25

2 Utilities (3 months) 166,666.67 - 166,666.67

3 Wage and Salaries (2 275,700.00 - 275,700.00
month)
  Others Operating Expense 167,573.12   167,573.12
(3months)
  Sub total 4,908,211.04   4,908,211.04
  Contingencies (10%) 490,821.10   490,821.10

  Net working capital 5,399,032.14 - 5,399,032.14

Table 5 Annual Operating Costs of The Project

S.N Description 1st Year 2nd Year 3rd Year 4th Year
Materials and Input s
1 12,035,159.50 13,754,468.00 15,473,776.50 17,193,085.00
Utilities
2 350,000.00 400,000.00 450,000.00 500,000.00
Wage and Salaries
3 1,157,940.00 1,323,360.00 1,488,780.00 1,654,200.00
Other Operating
4 Expenses 469,204.73 536,233.98 603,263.23 670,292.48
  Sub Total
14,012,304.23 16,014,061.98 18,015,819.73 20,017,577.48
  Contingencies (10%)
1,401,230.42 1,601,406.20 1,801,581.97 2,001,757.75
  Total Operating
Expenses 15,413,534.66 17,615,468.18 19,817,401.70 22,019,335.22

Table: 6. Source of Finance

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

1 Owner Equity 30%

9,000,000.00
2 Bank Loan 70%
21,000,000.00
  Total 100% 30,000,000.00

Table 7 Loan Repayment Schedule

No Years Installment Interest Principal

  0 - - 21,000,000.0
0
  1 2,100,000.0 1,785,000.0 18,900,000.0
0 0 0
  2 2,100,000.0 1,606,500.0 16,800,000.0
0 0 0
  3 2,100,000.0 1,428,000.0 14,700,000.0
0 0 0
  4 2,100,000.0 1,249,500.0 12,600,000.0
0 0 0
  5 2,100,000.0 1,071,000.0 10,500,000.0
0 0 0
  6 2,100,000.0 892,500.0 8,400,000.0
0 0 0
  7 2,100,000.0 714,000.0 6,300,000.0
0 0 0
8 2,100,000.0 535,500.0 4,200,000.0
  0 0 0
9 2,100,000.0 357,000.0 2,100,000.0
  0 0 0
10 2,100,000.0 178,500.0 0.
  0 0 00

Table: 8 Annual Depreciation

25
 No Description Total Fixed Depreciation Total Cost
Cost Rate
1.0 Building and Civil 0.0 337,500.0
0 Work 6,750,000.00 5 0
2.0 Machinery and 0.0 714,723.3
0 Equipment 14,294,467.87 5 9
3.0 Furniture and fixture 0.0 4,575.0
0 91,500.00 5 0
4.0 Other Fixed Assets 0.0 21,135.9
0 2,113,596.79 1 7
  Annual Depreciation     1,077,934.3
6

8. 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.

8.1 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

26
 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.

Table 9 Projected Annual Revenue of the Project

S.N Sources of Revenue 1st Year 2nd Year 3rd Year 4th Year 5th Year

Citrus
1 5,328,750.00 6,090,000.00 6,851,250.00 7,612,500.00 8,700,000.00
Papaya
2 6,090,000.00 6,960,000.00 7,830,000.00 8,700,000.00 9,942,857.14
Banana
3 16,050,000.00 18,342,857.14 20,635,714.29 22,928,571.43 26,204,081.63
Apple
4 1,890,000.00 2,160,000.00 2,430,000.00 2,700,000.00 3,085,714.29
Mango
5 29,358,750.00 33,552,857.14 37,746,964.29 41,941,071.43 47,932,653.06
Other Crops
6 1,467,937.50 1,677,642.86 1,887,348.21 2,097,053.57 2,396,632.65

  Total Annual Revenue 30,826,687.50 35,230,500.00 39,634,312.50 44,038,125.00 50,329,285.71

27
 8.2 Projected Income Statements

No Description Project Years Project Years    

0 1 2 3 4 5 6 7 8 9 10

I Total Sales -
44,038,125.0 55,921,428.5
30,826,687.50 35,230,500.00 39,634,312.50 0 50,329,285.71 7 62,134,920.63 69,038,800.71 76,709,778.56 85,233,087.29

  Operating Expenses - 15,413,

534.66
17,615,468.
18
19,817,4
01.70
22,01
9,335.22
22,019,3
35.22
22,019
,335.22
22,019,3
35.22
24,465,928.03 27,184,364.47 30,204,849.42

  Administrative and Sales Expenses - 1,541,

334.38
1,761,525.
00
1,981,7
15.63
2,2
01,906.25
2,516,4
64.29
2,79
6,071.43
3,106,7
46.03
3,451,
940.04
3,835,48
8.93 4,261,654.36

  VAT(15%)   4,624,
003.13
5,284,575.0
0
5,945,14
6.88
6,6
05,718.75
7,549,3
92.86
8,388
,214.29
9,320,2
38.10
10,355,820.11 11,506,466.78 12,784,963.09

II Total Cost of Good Sold   21,578,872.1

6
24,661,568.18 27,744,264.20 30,826,960.22 32,085,192.37 33,203,620.94 34,446,319.35

38,273,688.17 42,526,320.19 47,251,466.87

  Operating profit - 9,247,815.34 10,568,931.82 11,890,048.30 13,211,164.

78
18,244,093.35 22,717,807.6
3
27,688,601.28

30,765,112.54 34,183,458.38 37,981,620.42

  Less Depreciation - 1,077,

934.36
1,077,934.3
6
1,077,93
4.36
1,0
77,934.36
1,077,9
34.36
1,07
7,934.36
1,077,9
34.36

1,197,704.85 1,330,783.16 1,478,647.96

  Interest - 1,785,
000.00
1,606,500.0
0
1,428,000
.00
1,2
49,500.00
1,071,0
00.00
892
,500.00
714,0
00.00

793,333.33 881,481.48 979,423.87

  Sub Total   2,862,934.36 2,684,434.36 2,505,934.36 2,327,434.3

6
2,148,934.36 1,970,434.36 1,791,934.36

1,991,038.18 2,212,264.64 2,458,071.83

  Profit Before Tax - 6,384,880.98 7,884,497.46 9,384,113.94 10,883,730.4

1
16,095,158.99 20,747,373.2
7
25,896,666.92

28,774,074.36 31,971,193.73 35,523,548.59

  Less Income Tax (40%) - 2,553,

952.39
3,153,798.9
8
3,753,64
5.57
4,3
53,492.17
6,438,06
3.59
8,298
,949.31
10,358,6
66.77

11,509,629.74 12,788,477.49 14,209,419.44

  Net Profit - 3,830,928.59 4,214,021.45 4,635,423.59 5,098,965.9

5
5,608,862.55 6,169,748.80 6,786,723.68 7,465,396.05 8,211,935.66 9,033,129.22

28
 8.3 Projected Cash flow Statements
Description Projected years        
No  
0 1 2 3 4 5 6 7 8 9 9
10
  Cash Inflow                      
 
  Equity 9,000,0
00.00
- - - - - - - - -  
 
  Bank Loan 21,000,0
00.00
- - - - - - - - -  
 
  Net Profit -
3,830,928.59
4,214
,021.45
4,635,42
3.59
5,098,96
5.95
5,608,86
2.55
6,169,74
8.80
6
,786,723.68
7,465,39
6.05
8,211,
935.66
9,033,129.2
2 9,033,129.22

  Depreciation -
1,077,934.36
1,077,
934.36
1,077,93
4.36
1,077,93
4.36
1,077,93
4.36
1,077,93
4.36
1
,077,934.36
1,077,93
4.36
1,077,934 1,077,934 1,077,934

  Total 30,000,000.0
0 4,908,862.95
5,29
1,955.81
5,713,3
57.95
6,176,90
0.31
6,686,79
6.91
7,247,68
3.16
7
,864,658.04
8,543,33
0.41
9,289,870 9,289,870 9,289,870

  Cash out Flow                      

 
  Fixed investment 21,385, - - - - - - - - - -
967.87
 
  Working Capital 8,614,
032.14
- - - - - - - - - -

 
  Total Cost of Capital 30,000,00
0.00
- - - - - - - - - -

 
  Loan Repayment -
2,100.00 2,100.00
2,10
0.00
2,10
0.00
2,10
0.00
2,10
0.00 2,100.00
2,10
0.00
2100 2,100 0

  Total 30,000,000.00
4 2,100.00
2,10
0.00
2,100.
00
2,100.
00
2,100.
00
2,100.0
0 2,100.00
2,100.0
0
2,100 2,100 2,100

  Net inflow (0
.00) 4,906,762.95
5,289,85
5.81
5,711,257.
95
6,174,800.3
1
6,684,696.9
1
7,245,583.1
6
7,862
,558.04
8,541,230.4
1
9,287,770 9,287,770 9,287,770

29
9. 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.

10. Land Use Plan and Activities Plan

10.1Implementation 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.

30
 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.

31
 10.2 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

32
10.3Project 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 and Assembling 150x80 12,000
Plant Building
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 10,000

33
10.4 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.

34
Table of Contents
I. Executive Summary.................................................................................................................................1

1. Introduction.........................................................................................................................................2

2. Project Area.........................................................................................................................................3

2.1 Infrastructure...............................................................................................................................4

2.2 Communication and Power Services.................................................................................................6

2.3 General Market..................................................................................................................................7

2.4 Population and Economic Activities..................................................................................................8

3. Description of the Project......................................................................................................................10

3.1 Automobile Assembling..................................................................................................................11

3.2 Automotive Parts.............................................................................................................................12

3.3 AUTO REPAIR & SERVICE WORKSHOP.................................................................................13

4. Objectives of the Project....................................................................................................................14

5. Market Analysis.................................................................................................................................15

5.1 Past Supply and Present Demand...............................................................................................15

5.2 Supply Analysis.........................................................................................................................16

5.3 Market Strategy.........................................................................................................................17

5.4 Market Operational Dimension..................................................................................................17

5.5 Marketing Information System..................................................................................................18

6. ORGANIZATION AND MANAGEMENT......................................................................................18

6.1 Organizational Structure..................................................................................................................18

6.2 Man Power Requirements with Qualifications................................................................................19

6.3 TRAINING REQUIREMENT.........................................................................................................21

7. Financial Analysis.............................................................................................................................21

7.1. Total Investment Costs...................................................................................................................21

7.2. Fixed Investment Cost....................................................................................................................23

35
 7.3. Work Capital Requirements............................................................................................................23

8. Projected Financial Statements..........................................................................................................26

8.1 Revenue Projection..........................................................................................................................26

8.2 Projected Income Statements...........................................................................................................28

8.3 Projected Cash flow Statements.......................................................................................................29

9. Environmental Aspects..........................................................................................................................30

10. Land Use Plan and Activities Plan.......................................................................................................30

10.1 Implementation Strategies of the Project...................................................................................30

10.2 Project Implementation Schedule/Activities Plan......................................................................32

10.3 Project Land Use Plan................................................................................................................33

10.4 Risk Assessment............................................................................................................................34

36
 Project Proposal for Investment on

Automobile Assembling, Parts Manufacturing and Refreshing Plant

Project Promoter: Anteneh Meselle G/yes

Project Location: Gelan Town

December, 2013

Addis Ababa, Ethiopia

37