Ethio Tahini PLC Business Plan
Ethio Tahini PLC Business Plan
Ethio Tahini PLC Business Plan
ETHIO
Table of Contents
1. Executive summary............................................................................................................................1
Objectives...........................................................................................................................................1
Vision and Mission..............................................................................................................................1
Vision..................................................................................................................................................1
Mission...............................................................................................................................................1
2. Company Summary................................................................................................................................1
2.1Start-up Summary.............................................................................................................................2
3. PRODUCT.............................................................................................................................................2
ETHIO TAHINI
Business Plan
Prepared by-TektaMideksa
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ETHIO TAHINI
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1. Executive summary
Tahini or Tahina is a Middle Eastern condiment made from toasted ground hulled sesame. It is
served by itself or as a major ingredient in hummus, baba ghanoush, and halva. T ahini is made
by grinding sesame seeds into a smooth paste. Sometimes the sesame seeds are hulled, sometimes
they are left unhulled; sometimes roasted, sometimes raw. Tahini is used in the cuisines of the
Levant and Eastern Mediterranean, the South Caucasus, as well as parts of North Africa. Tahini
is powerful antioxidant and healthy fats to a diet as well as it contains vitamins and minerals.
Tahini will reduce the risk factor of heart disease and protecting brain health.
Objectives
“Ethio-tahini” will be producing tahini pastes with different flavors. This includes with lemon,
garlic and olive oil flavored tahini paste and major tahini recipes requiring products that uses
tahini as a major ingredient. These flavored dessert toppings will be packed in a bottle size of
500grams. In addition to bottle packing a one-time use of 15g tahini will also beproduced and
packed in a plastic sachet in the future. The estimated shelf life of the product is 1 year at
refrigeration temperatures (16 degrees Celsius) and up to six months when frozen.Ethio-tahini
intend to market this product in Special attention has been given to developing an attractive
label that will penetrate consumers’ visualization effects. Distribution of “Ethio-tahini” paste
will begin in Ethiopia mainly capital city Addis Ababa and the ten major regional cities. It is the
company’s vision to expand the business in a couple of years to the international market and
export at affordable prices and excellent quality to consumers worldwide.
It is our vision to be premier manufacturer and supplier of Tahini pastes for local and foreign
consumers that contribute best and affordable food product.
Mission
To ensure the continued satisfaction of our customersby providing best quality and affordable
Tahini pastes.
2. Company Summary
Ethio-tahini is a new tahini paste producing company which is expected to produce 40
tons/month of healthy and delicious dessert from sesame seeds. Ethio-tahini will have a
factory at the heart of Ethiopia Addis Ababa city. The product will be packaged in high quality
plastic bottles of 500grams each. The packaging will include proper labelling (description) of
the ingredients and any allergen information. It will also include production, expiry,
refrigeration and storage recommendations.
Company is expected to deliver quality and standardize tahini paste according to the standards
of FMHACA and ECIA regulations that satisfy and regulate customer needs. Ethio-tahini will
specialize in producing and packing tahini paste and in the future involving hummus
production. The company is forecasted to have positive cash flows starting from the first year
of operation.
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ETHIO TAHINI
2.1Start-up Summary
Ethio- tahini target customers are that are in all age ranges. Producing this paste will be in two
forms.
The financial aspects of Ethio- tahini will have the following focus on the business. It will also
provide a step-by-step plan for the business start- up, establishing favorable sales number,
gross margin, and profitability.
Establishing this Tahini company has benefits as listed below.
3.PRODUCT
3.1 Product description
Tahini is a paste made from sesame seeds and is a staple in many cuisines, especially in
the Mediterranean and Middle East. It is vegan, gluten-free, tastes nutty, and is simple to
make.
Tahini paste is usually made from.
1. Hulled sesame seeds
Hulled are sesame seeds without the husk on. This Tahini pastes with hulled sesame
will be proceeded by removing the husk in a special machine. Tahini paste will be much
smoother when husks are removed.
2. Unshelled sesame seeds
Unshelled sesames will be sees with husk on, with a much better nutrition fact. Tahini
pastes made with unshelled sesames tends to taste much better.
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ETHIO TAHINI
Sesame seed is one of the oilseed crops grown in Ethiopia. Sesame (Sesameindium L.) is one of
the oldest cultivated plants in the world. ... While it has the potential to grow in different parts
of the country, sesame grows mainly in the northern and northwestern regions of Ethiopia
(Humera,Benshanguleand Wollega). Sesames can be found in different market grades. Grade
1,2,3,4,5 UG.
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ETHIO TAHINI
Agro-Ecological Conditions:
Commercialization:
Sales
House hold Consumption
Sale
1%
9%
32% For seeds
Animal Feed
58%
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ETHIO TAHINI
In general, research result shows that, excluding the volume of grain set aside for
consumption, seed, and feed, 28% of total grain production (including oilseeds and pulses) is
marketed, of which 40% is accounted for by oil seed crops in general.
Global Scenario:
Ethiopia is one of the major sesame seed exporter in the global market.
3.3 Processing of Tahini Paste
Soaking Tank
Washing Tank
Capcity=50 tons/hr With Salt
Capcity=150tons
Washing Temp= 45 °C
Soaking Temp= 25°C
Husk Pelleing
Washing Tank
machine
Capcity=50 tons/hr
Capcity=300kg/hr
Washing Temp= 35 °C
Capcity=1 Capcity=1
tons, for tons, Z-
30minute blades,
, 1-5KW 100KW
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ETHIO TAHINI
Capcity=
1tons,
Slow mix
scrapper
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ETHIO TAHINI
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4.Market Analysis
4.1 Market Study
Tahini market is projected to grow at a CAGR (Compound annual growth rate) of 4.8% during
the forecast period, 2020-2025 globally. Similarly,a higher demand for nut butter has indicated
a potential demand of tahini in the Ethiopia market. if the product is affordable and well
introduced in Addis Ababa and in other regional capitals of Ethiopia the demand is high. In
addition; there is a significant increase in consumer preferences of sesame product, as an
ingredient for salads and breakfast meals.
4.1.1. Market needs,Trends and Growth Globally and locally
Tahini is recently gaining popularity in Western culture, as one of the vital ingredients that
make up a good hummus. Tahini is also the base ingredient of numerous Middle Eastern
dishes. The most popular form is tahini-based sauces, which are generally used as a garnish in
salads and topping for meat and vegetables in the Middle Eastern cuisine. Locally; due to the
expensiveness of the existing local as well imported tahini product; most of the time nut butter
is used for vegetable and salad sauce also for fast breakfast with bread. Hence the introduction
of higher quality and affordable tahini products to the mainstream community of
localconsumers is a good move for our company. The growing demand for Arabic food across
the globe and locally, promotion of tahini brands accompanied by health benefits associated
with the product benefit it is a good advantage for our company to penetrate the current
market.
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ETHIO TAHINI
800
620
600 560
480
400
200
0
year 2014 Year 2015 Year 2016 Year 2017 2018
4.1.4. Promotion
Ethio-Tahini producing company plans various promotional strategies; for instance: - Self -
promotion,Mainstream medias, sponsoring invents, Social web-site (Twitter, Facebook,
Instagram, you tube,Tiktok, LinkedIn), attending trade bazar, diplomatic bazar, food and
beverage bazars.
SWOT Analysis
Strength
Considering; higher quality and freshness of the product that easily accessible to all super
market and mini marts.
The products will be launched in different flavors by considering the local community
preference and demand.
Weakness
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ETHIO TAHINI
Ethio –Tahini producing company is new for business; thus lack of experience is our
mainweakness.
The Community lack of awareness about the product. Community bad culture regarding
product preference for instance: - choosing expensive and foreign products over local
products.
Opportunity
Our company has good opportunity in the capital city of Addis Ababa and regional capitals due
to the increasing demand of fast and easily prepared meals. Setting our focus on the urban
area of the country our opportunity will increased on new product introduction advantage on
the other capital city of regional state.
Threats
The threat is the lack of quality packing material. The packing material producing companies
have lack of raw material for plastic bottle production.
Unstable political situation in the major and higher quality sesame producer areas (Humera,
Benshangul and Wollega). Most of the sesame production owned by monopoly owners; the
current political situation affects the production and supply chain of the raw material.
Weather hazard: - Most of sesames planted and cultivated form June to February; if the
weather condition is unstable for sesames cultivation; our production might depend on the
weather condition.
Covid – 19-: -to start our business as per the time schedule Covid -19 is one of the major factor
that affect our production regarding human resource.
External Analysis
External analysis includes (political, economic, law and regulation etc...). This affect and
influence the business performance.
Political, Economic, law and regulation
Political environment.
Currently in Ethiopia the political situation is unstable in some critical sesame producing areas.
For instance: -(Humera, Benshangule and Wollega).The Ethiopia economic growth has been
largely driven by state-run. The instability of the regional state affects the production and trade
economy of the country. for instance: - investment, particularly food processing isaffected by
regional raw material production. In contrary the favorable changes in the political situation
encourage local products to replace the imported products. That aim to savea lot of foreign
currencies to the country. The incentive for local manufacturer and exporters is a good
opportunity for our business.
Economic
Economic growth and the rising Africa narrative include improved political and macroeconomic
(and business) climate, high domestic demand, high commodity prices, an increase in external
financial flows (including foreign direct investment and official development) affect the
economy. The food manufacturing companies are growing in number thesedays. That help us
to penetrate in the business through learning and sharing opportunities and competitive
advantages in the local and foreign export business.
Law and Regulation
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ETHIO TAHINI
In Ethiopia enforcing the regulations dealing with assuring the quality and safety of food
presented to domestic consumers and foreign market is a shared responsibility of different
government agencies. Accordingly, the Ministry of Health, the Ministry of Agriculture and Rural
Development, the Ministry of Trade and Industry, Quality and Standards Authority of Ethiopia,
and the Revenue and Customs Authority of Ethiopia are government agencies cited as the
principal enforcement organs for the food quality regulation in Ethiopia. Mainly the Public
Health Proclamation No. 200/2000 empowers the health sector assuring the quality and safety
of foods presented for human consumption. Under the proclamation and the regulations, the
health sector is given the responsibility to ensure the quality and safety of food products
manufactured and distributed to local and foreign consumers.
Also Ethiopia labeling requirements are provided under Ethiopian standards regulations
No.12/1990. This regulation requires labeling of packaged food items sold in Ethiopia must
bear the product name, list of ingredients, net contents, the manufacturer’s name and
address, country of origin and language to be used at least in two languages Amharic and
English.
(birr)
1 CEO 1 34,500 34,500 414,000
2 Sesames quality checker 2 30,200 60,400 724,800
3 Production Manager 1 30,200 30,200 362,400
4 professional tahini maker 7 10,200 71,400 856,800
staffs(Cooking)
3 Cooling and packing staffs 4 25,000 100,000 1,200,000
Ethio-Tahini production company’s organizational structure will be a simple line style with the
owners putting in as much work as the employees. Also additional managers (to be hired) will
assist in quality checking, sesames collecting from suppliers and sorting of sesames. Production
manager (to be hired) will supervise the main production process. Professional tahini maker
staffs (to be hired) will perform and manage the main production process and be crucial to
maintaining the tahini process as per the standard. Tahini cooling, packing staffs (to be hired)
assisting the main production line. Also delivery, sales staffs (to be hired) permanently. An
assistant manager to be hired who will be salaried employee, pay wage and supervise other
necessary expenses. Part-time personnel will be hired for maintenance and facility functions.
The marketing and accounting function will be handled by independent
contractors/consultants
6. Financial plan
6.1 Initial Investment
The initial investment of the company includes capital expenditures for the purchase of
machinery, as well as rental cost of factory space. For delivery and distribution, the company
will procure two vehicles. It also includes raw materials procurement cost for one year and
initial administrative, HR, legal, Insurance costs as detailed below. All together these costs are
estimated to be around Birr 32,603,000 (Thirty-two million six hundred three thousand).
Requirement The business at least needs 344,360.00 birr for business establishment,
commencement of operations and liquidity support. The shareholders will have equal
share and financing is obtained in two ways.
From shareholders 20% Birr 7,000,000
From Bank loan financing 80% Birr 25,603,276
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Total 2,665,000 5,330,000 694,485,875
Operating expenses including Salaries, benefits, rent are expected to increase by 7%/year
ETHIO TAHINI
Current Assets
Cash 7,000,000
Inventory 21,955,200
28,955,200
Total assets 33,103,276
workers should wear the required safety gear), Safety training, Emergency evacuation, working
with suitable tools and environment.
7.2 Health and Environmental Aspects
Health Aspect
Tahini is easy for body to digest because of its high alkaline mineral content, which is great for
assisting in weight loss., It help heal wounds, improve brain health and central nervous and
system, help bone health. Also Tahini improve kidney function, lower factor of heart disease
and help controlling chronic disease like type 2 diabetes. The phytoestrogens present in tahini
are extremely beneficial in managing hormones in women. Packed with plethora of
minerals, tahini can help improve and strengthen your immune system. Tahini high in protein,
vitamins B, vitamins E, and minerals such us magnesium, Iron and calcium.Generally, tahini is
harm less also gluten- free and not have common food allergy.
Environmental Aspect
Tahini production is relatively sustainable for environment. There is no known significant
damage to air, water, land, soil, forests, etc. as long as pesticides have not been used.
Water foot print: - Tahini relatively has medium water foot print. (relatively have justifiable
water consumption)
Carbon foot print: - likely high 4.2 kg CO2 to produce 1 kg or 2.2 pound of sesame seed. That is
a car driving equivalent of 9.75 Miles or 15.75 kilometer. Tahini has relatively justifiable high
carbon foot print.
7.3 Waste Optimization
The production is considering Waste Optimization as per the set of processes intended to
reduce the amount of waste produced. The Machinery will be environmentally resourceful;
economically efficient and cost effective to manage waste. High capacity automated solution to
separate good sesames seed from soft peels, broken seed and dust help to minimalize waste.
References
1. International journal of African and Asian study; Article Review of sesame value chain in
Ethiopia. By TeferaNegasaa
2. Tahini grand view research journal; published in 2018.
3. Global market sight review articles.
4. Alibaba
5. Ethiopian Commodity Exchange (ECX)
6. Inspired.net
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