Page 1 of 25

Contents
1. BACKGROUND INFORMATION OF COMPANY AND PROJECT......................................................................
2.1 BASIC DATA........................................................................................................................................
2.1.1 Applicant........................................................................................................................................
2.2 Loan requested...................................................................................................................................
2. MARKET ASSESSMENT 8
3.1 Description of the product and application........................................................................................
3.2 Past supply analysis............................................................................................................................
3. TECHNICAL STUDY 10
4.1 Description of the project area.........................................................................................................
4.2 Description of plant..........................................................................................................................
4.2.1 Lay out of processing plant...........................................................................................................
4.2.2 Factory layout and building..........................................................................................................
4.2.3 Production process of food processing plant................................................................................
4.2.4 Operational capacities..................................................................................................................
4.2.5 Material requirement...................................................................................................................
4.2.6 Availability of utilities and infrastructure.....................................................................................
4.3 ORGANIZATIONAL & MANAGEMENT PLAN......................................................................................
4.3.1 Form of business...........................................................................................................................
4.3.2 Human resources requirements....................................................................................................
4.3.3 Organizational structure...............................................................................................................
4.3.4 Training requirement....................................................................................................................
4.4 Pre-operating activities....................................................................................................................
4. PROJECT FINANCIAL STUDY......................................................................................................................
5.1 Total investment...............................................................................................................................
5.2 Source of finance..............................................................................................................................
5.3 Fixed capital investment assumptions............................................................................................
5.3.1 Building Renovation......................................................................................................................
5.3.2 Machinery & equipment...............................................................................................................
5.3.3 Water and Waste Water Technologies.........................................................................................
5.3.4 Laboratory Machinery and equipment.........................................................................................
5.3.5 Motor Vehicle...............................................................................................................................
5.3.6 Furniture & Fixture.......................................................................................................................
5.4 Pre-production costs.........................................................................................................................

Page 2 of 25
 5.5 Working capital assumptions...........................................................................................................
5.6 Revenue assumptions.......................................................................................................................
5.6.1 Production Plan and Capacity Utilization of Plant........................................................................
5.6.2 Annual Revenue Plant...................................................................................................................
5.7 Direct production cost estimate and assumptions............................................................................
5.7.1 Raw Material................................................................................................................................
5.7.2 Packing Materials.........................................................................................................................
5.7.3 Labor (Production Staff)...............................................................................................................
5.7.4 Utilities.........................................................................................................................................
5.7.5 Summarized Direct Cost of Production.........................................................................................
5.8 Indirect production cost estimate.....................................................................................................
5.8.1 Salaries.........................................................................................................................................
5.8.2 Utilities.........................................................................................................................................
5.8.3 Insurance Expenses.......................................................................................................................
5.8.4 Rent Expense................................................................................................................................
5.8.5 Office Miscellaneous Expenses.....................................................................................................
5.8.6 Summarized Direct and Indirect Cost of Production.....................................................................
5.9 Summarized direct and indirect cost of production..........................................................................
5.10 Income statement assumptions........................................................................................................
5.10.1 Bank loan Interest.....................................................................................................................
5.10.2 Depreciations............................................................................................................................
5. Financial projections 36
6.1 Projected income statement.............................................................................................................
6.2 Projected balance sheet...................................................................................................................
6.3 Projected cash flow statement.........................................................................................................
6.4 Financial evaluation.........................................................................................................................
6.4.1 Project worth measure ( NPV, IRR)...............................................................................................
6.4.2 Sensitivity Analysis........................................................................................................................
6.4.3 FINANCIAL EVALUATION RESULT..................................................................................................
6.5 SENSITIVE ANALYSIS.........................................................................................................................
6.6 ECONOMIC AND SOCIAL BENEFITS...................................................................................................
Annex Proposed Technologies over view..........................................................................................................
Meat processing over view...........................................................................................................................
SALUTARY HOUSE COLD STORAGE.....................................................................................................................

Page 3 of 25
 Vegetable Processing Technologies over view.............................................................................................
Finishing line Technologies over view...........................................................................................................
Packaging can Preparation line....................................................................................................................

Page 4 of 25
EXECUTIVE SUMMARY

This investment proposal of study for the envisages Canned Food Manufacturing Agro

Industry Plc. by Maalale Canned Food Manufacturing Agro Industry Plc. at Sidama

National Regional State , Yergalem Integrated Agro Industry Park over 5,000 m2

workshop area . The total investment cost of project is 163 Million Birr. The production

capacity of canned food from meat and vegetables as main ingredient is 576 Tone/ year.

The site is 40 km far from, Hawassa capital city of Sidam Regional state. Yiraglem

Integrated Agro Industry Park was inaugurated on March 13, 2021 by Prime Minster Abiy

Ahmed over 294.5 hectares for agro processing of potential value chain includes fruits and

vegetables, dairy, meat, poultry, coffee, cereal and pulses, using produce from local farmers

as input. The propose Maalale Canned Food Manufacturing Agro Industry Plc. plans to

operate in Meat and vegetable value chains with surrounding farmers.

The country`s requirement of processed food is met through local production and

import. Currently there are 5 meat processing plants of which 2 (in Gonder and

Combolcha) are located in ANRS, and the rest 3 are located in SNRS, Dire Dawa and Addis

Ababa. However the factories were established before 30-40 year ago and the machineries

are out dated. As a result the export and domestic supplies of processed meat, soup, and

sausage production has huge gap.

The principal raw material required is meat, vegetable, spice, oil, butter, salt, and packaging

materials. Most of raw materials are available locally available while the remaining small

Page 5 of 25
raw materials will be imported. The plant will work with 2200 farmers around the project

area, woredas, and region to supply the main input to agro industry factory.

Working Capital 25,560

Pre- Production cost 4,506

Office equipment. and furniture's 562

Car and Vehicle 37,940

Laboratory equipmnt and macahinery 1,008

Wataer and Waste Water 7,834

Machinery 78,526

Building Renvoaton 7,064

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

The total investment cost of the project including working capital is estimated at Birr 163

million. From the total investment cost the machinery has the highest share, 48.18% , car

and vehicle ( 23.28 %) , working capital 15.68 %) . The pre-operating cost also has 2.76 % share.

The project is financially viable with an internal rate of return (IRR) of 43% and a net present

value (NPV) of Birr 126 million birr discounted at 10%.

The project can create employment for 120 persons. The establishment of such factory will

have a foreign exchange saving effect to the country by substituting the current imports.

The project will also create backward linkage with the agricultural sector and also

generates income for the Government in terms of tax revenue and payroll. The farmers

working with the factory sale at an average 34 million annually.

Page 6 of 25
1. BACKGROUND INFORMATION OF COMPANY AND PROJECT

2.1 BASIC DATA

2. MARKET ASSESSMENT
2.2 Description of the product and application
Animal products, specifically the red meats of cattle are essential to the human diet.
Meat is
significantly high in zinc, iron, protein, and vitamins of the B group, particularly B12,
and also has a full complement of the essential amino acids. Coming from animals, these
micronutrients can also be easily absorbed by the human body.

Although there are different meats processing types, this project profile deals with
the establishment of canned foods from meat dedicated to urban consumers. Within
this activity, raw materials (meat and other ingredients) are complemented by value
added product obtained from the processing. For the consumer, the interest lies both in
preparation and storage easiness as well as hygienic security. The middle and upper income
urban dwellers remain the most favorable market since it combines both the need of saving
time and the purchasing power to get this kind of product. Military and others
government servants working at remote and unfavorable location prefer to use ready to
eat canned meat and other vegetables cooked with meat. In Ethiopia due to the increase of
military number from hundreds to million the gap of ready to eat food is huge.
2.3 Past supply analysis
With the largest livestock population in Africa, Ethiopia has an ample supply base for the
export of live animals and meat. Livestock husbandry is mostly carried out under natural
grazing, making the meat and meat products obtained from the animals very tasty
and nutritionally Healthy for human consumption. Currently there are 5 meat
processing plants of which 2 (in Gonder and Combolcha) are located in ANRS, and the rest
3 are located in SNNPR, Dire Dawa and Addis Ababa. These plants supply their product
for domestic market as well as for export.
Reports in this connection inform that the major consumers of processed meat in our
country are members of the armed forces. The report further reveal that these
supplying factories are very old.

On the other hand, Ethiopia exports live animal and semi processed meat to abroad.
The main items exported include live animals and meat products, steers and yearlings;
lowland sheep and goats; fresh and chilled lamb and mutton carcass; fresh and chilled goat

Page 7 of 25
carcass; fresh and chilled veal carcass and beef four quarter; fresh and chilled boneless veal
and beef; frozen lamb, mutton and goat carcass and veal and beef special cuts. The
major meat trade partner countries with Ethiopia include Saudi Arabia, Dubai, Egypt,
Yemen, Congo Brazzaville, Cote d'Ivoire and South Africa while major destinations for
live animals from Ethiopia are Saudi Arabia, Dubai, Yemen and Egypt. Canned
(processed) meat is also imported from abroad and it is available in supermarkets.
However, the import data obtained from Customs Authority aggregates the canned meat
with other related products such as tuna and the like so that exact data on import could
not be documented. Table 1, therefore, shows only the annual domestic production of
meat by the meat processing plants
Table 1 Domestic production of Processed Meat (tons)
Year Production (Tones)
1997/98 96.00
1998/99 615.00
1999/00 526.00
2000/01 555.00
2001/02 1,194.00
2002/03 849.00
2003/04 224.00
2004/05 208.00
2005/06 212.00
Source- CSA, Report on Large and Medium Scale Manufacturing and Electricity Industries
Survey,

The above table shows that production of processed meat has shown a declining trend in
recent years under consideration. The highest level of production has been registered in
2001/02 which then continuously decreased up to 2004/05 which then marginally rises in the
following period.

The reduction in production partly is low capacity of operation as many of the plants are old
and use obsolete machineries. However, the consumption of meat in general is showing a
substantial increase in the country as a whole. For instance, research study by Abbey Avery
sponsored by International Livestock Research Institute (entitled “Red Meat and Poultry
Production and Consumption in Ethiopia and Distribution in Addis Ababa” - 2004)
confirmed that about 2.1 million cattle had been slaughtered in 1993. This number has
increased to about 2.8 million Cattle in the year 2003. Roughly speaking this is about 350
thousand tons of meat and represents the presence of huge demand in the country.

Page 8 of 25
3. TECHNICAL STUDY
2.4 Description of the project area
2.5 Description of plant
2.5.1 Lay out of processing plant
Plant : The plant has a capacity of 240 Kg/ha and a total capacity 1,920 Kg/day of three
products production line in eight hours ( one shift) and three hundred days a year.

Vegetable Soup

Beef Soup Line

Canned Minchet Steew

Main Production Line
Line

Food Tin Can Making Reciving/ Sorting/ Grading/

Production Line Washsing Line
FOOD PROCESSING
PLANT
Filling , Seaming ,
Laboratory and Qauality
lableing , and Fiinishing
Control
Line

Slouthery House

Figure 1 Layout of processing plant

2.5.2 Factory layout and building
Page 9 of 25
The projects will rent minimum of 5,000 m2 area for Yiragalem Integrated Agro Industry
Park. The area of building shade will be partitioned and modified according to area plan
shown at table below. .

Table 2 Designed area of processing buildings

Section Area ( m2)
Reception, Weighing & Grading 150
Washing and Disinfection 100
Cutting and Peeling Area 300
Processing, Filling & Boiler Area 1850
Storing Area 600
Labor Area: 175
Dressing Rooms/ Lockers/Bath Room 110
Administration Block 500
Loading Area / Ground 1215
Total 5000

2.5.3 Production process of food processing plant

2.5.3.1 Process Flow of Cattle Slaughterer house
The operation starts with 8 hours rest of the animal before slaughter. This process is known
as lairage. The Animal should be served with water only in lair age. While in lairage,
veterinary doctors will conduct an anti-mortem in which animal is thoroughly checked.
 Once anti mortem and lair age are completed slaughtering process starts by sending
animal to the slaughtering area.
 Slaughterer’s will slaughter animal one by one and the helpers will hang the animal
for blood drainage and removal of skins.
 Once the blood is fully drained from the animal, slaughterers start removing the skin
of animals. This is known as the skinning process.
 The next step is to cut open the animal body to dislodge the contents and produce
the carcass. It is important that the carcass remains or is placed in the hanging
position on the railing. This process is known as evisceration.
 After evisceration, veterinary doctors and nutritionist conduct post-mortem, in
which meat quality and hygiene examination are conducted as per the required
standards.

Page 10 of 25
  After post-mortem the hanged carcasses are sent to refrigeration plant for
required chilling. After the required chilling process, meat is ready for dispatch to
other sections for further processing
2.5.3.2 Process Flow of Vegetable Beef Soup and Minchet Abish processing Line
The process flow simply described at figure -2 below.
The process flow are describe as follows,
 Raw ingredients – Selecting fresh meat and vegetable sources is extremely
important in the canned soup manufacturing process, as companies partner with
farmers who provide only the freshest ingredients possible.
 Meat process- Sorting of fat and meat, cutting, deboning, and grinding of read meet
with mincing machine.
 Making the stock – The raw ingredients for making the stock are placed together in
a large vat and boiled for a period of time to produce the base stock for the soup.

Figure 2 Plant Process Flow Chart

Page 11 of 25
  Preparing the ingredients – Several steps at the plant are executed to prepare the
raw ingredients for the soup recipe, including washing, chopping, straining, and
sorting through them to ensure exceptional quality prior to cooking.
 Combining all parts – Finally, the stock and ingredients are combined to cook and be
canned. Spices and preservatives to prolong shelf life are also added. The final
canned product is then labeled and stored in designated warehouses ready to ship
to stores and millions of customers.
2.5.4 Operational capacities
The proposed unit will have an installed capacity of producing 2.88 Million packs (200 Grams
of weight for each pack) of three types of canned products Stew beef, Vegetable beef soup,
and Boone meat sups products annually. However, the initial operational capacity of the
project will be 73% with an annual growth of 8 %. Maximum capacity utilization of the
project is assumed at 90%.

Table 3 Production Plan and Capacity Utilization Production Line

Description Unit Y-1 Y-2 Y-3 Y-4 Y-5
All Lines Plan Cattle /Year 1,365 1,516 1,685 1,685 1,685
Cattle /Day 5.00 6.00 6.00 6.00 6.00
Kg/Day 1,555 1,728 1,920 1,920 1,920
Tones/Year 466.56 518.40 576.00 576.00 576.00
% 73% 81% 90% 90% 90%
Minchet Abish (50% Tone/ Year 233.28 259.20 288.00 288.00 288.00
of Product Share) Packs /Year 1,166,40 1,296,000 1,440,000 1,440,000 1,440,000
Packs /day 0
3,888 4,320 4,800 4,800 4,800
Vegetable Soup( 30% Tone/ Year 139.97 155.52 172.80 172.80 172.80
of product Share) Packs /Year 699,840 777,600 864,000 864,000 864,000
Packs /day 2,333 2,592 2,880 2,880 2,880
Bone and Meat Tone/ Year 93.31 103.68 115.20 115.20 115.20
Soup( 20% of product Packs /Year 466,560 518,400 576,000 576,000 576,000
share) Packs /day 1,555 1,728 1,920 1,920 1,920
2.5.5 Material requirement
2.5.5.1 Local Raw Materials
Most of main raw materials are available locally. The plant will work with 2207 farmers
around the project area, woredas, and region to supply the main input to agro industry
factory.
Table 4 Local Material Requirement and sources
S/ Description Unit Y-1 Y-2 Y-3- Y-10 Source of
n Materials
1 Slaughtered Cattle No/Year 1,365 1,516 1,685 1685 Farmers
2 Oil Tone/ Year 11.10 12.33 13.70
3 Ghee Tone/ Year 14,013.53 50.14 55.71 Out Source
4 Chili powder Tone/ Year 38.03 42.25 46.95

Page 12 of 25
 5 Spice Tone/ Year 25.60 28.44 31.60 281 farmer
6 Red onions No/Year 84.73 94.15 104.61 106 Farmers
7 Tomato Tone/ Year 30.39 33.76 37.51 42 Farmers
8 Turnip Tone/ Year 12.56 13.95 15.50 16 Farmers
9 Potato Tone/ Year 24.02 26.69 29.65 6 Farmers
10 Carrot Tone/ Year 19.32 21.46 23.85 8 Farmers
11 Celery Tone/ Year 4.29 4.77 5.30 5 Farmers
12 Baron Onion Tone/ Year 4.45 4.95 5.50 6 Farmers
13 Spinaches Tone/ Year 24.63 27.37 30.41 22 Farmers
14 Others Tone/ Year 1.40 1.56 1.73 5 Farmers
2207 Farmers

2.5.5.2 Imported materials Requirement

The packaging raw materials will be imported from aboard. The imported food grade
electrolytic Tinplate Coils of .22 mm thick. The imported steel tinplate will be converted to
two pieces of steel cane and one piece of cover.
Table 5 Imported materials Requirement
Description Unit Y-1 Y-2 Y-3 to Y-10
No Pac/Year 2,332,800 2,592,000 2,880,000
Food Grade Electrolytic Tones/Year 114 127 141
Tinplate Coils, .22 mm thick
Label No/Year 2,356,128 2,617,920 2,908,800
Carton No/Year 306,180 340,200 378,000
2.5.6 Availability of utilities and infrastructure
The project site full fills all requirements of validity of utilities and infrastructure that has to
be taken into considerations for the viability of the commercial food processing industry.
Some of the factors at which the site full fills are, Adequate facilities for effluent and waste
disposal: Availability of suitable labor and technical staff; all weather asphalt road access;
electricity grid line availability , and sufficient water supply municipal water . The major one
is being located at Yiraglem Integrated Agro Industry Park made for Meat and Vegetable
value chain product agro processing with others.

An essential cost to be borne by the project is the cost of electricity which is

estimated to be Et Birr 105,000 Birr / month in the first year of operations. The
telephone and fax expense being essential for factory are estimated to be Et birr 30,000/
month. The total power requirement of farm is about 230 Kw. The water need of factory is
100m3 / day. The factory is also uses boiler which demand 50 lt/hr. The envisaged factory
twelve cars fuel and oil annual demands amounts 870,000 Birr/year.

Page 13 of 25
2.6 ORGANIZATIONAL & MANAGEMENT PLAN
2.6.1 Organizational structure
The Owner follows the performance of the organization and gives the general direction
and guidance, but the business will be managed by an experienced Chief Executive Officer
( CEO ) having three functional structures. The organizational structure is depicted in the
organization chart, figure -2

Admine & Warehouse

Accounts
Accounts Incharge

Lab Technicaians
Food
Technologist
Quality Control
Production Expert
Manager
CEO
Prodution
Operators
Supervisors

Sales and
Purchaser

Marketing Supplies Chain

Manager Co-ordinator

Store Keepers

Figure 3 Fig 3- Organization Structure

2.6.2 Training requirement
Training of key personnel is very essential and shall be conducted in collaboration with the
supplier of the plant machineries and consultants. The training for production staffs will
primarily focus on the production technology, quality control, sanitation program. Quality

Page 14 of 25
Control manager should be trained to run a modest laboratory, sanitation program, GMP
and HACCP. Most often, this person performs production planning and maintains proper
supply of raw materials and finished products.
2.7 Pre-operating activities
During the implementation period, the different activities likely to be undertaken have
been classified as follows on the basis of activities category and schedule in one year period
as shown in the activity chart shown at figure-3.
Months
ACTIVITIES
1 2 3 4 5 6
Acquiring Investment Licen
Applying for the Bank Loan and Sigh
Opening
AgreemntProject Office and Revising Plans
Purchase Machineries and Equipments
Purchasing Vehicles
Hiring Key Professional
Renting Factory Building
Modification of Shade for the purpose
Manpower recruitment
Value Chain Study and Contacting
Commission of machinery
Training to Technical Staff by Supplier
Preparation to Production
Purchasing and supplying all inputs
Fuel Scale Production
Figure 4 Fig -4 Gantt chart for pre-operating activities

Page 15 of 25
 4. PROJECT FINANCIAL STUDY
2.8 Total investment
The total investment cost of the project is estimated to be Birr 163 million of which Birr
1216.11 million (77.85 %) is fixed investment, Birr 24.40 million (15.06 %%) working capital and
Birr 11.47 million (7.09 %) is pre operating costs.
Table 6 Raw materials Table 7 Total Investment cost
Sr. Description Total financial Share
No requirement
Planned (Birr )
1 INVESTMENT IN FIXED ASSET
1 Building Renovation 7,060,468.04 4.33%
2 Machinery
2.1 Reception, Weighing & Grading equ, machinery 9,302,000.00
2.2 Meat Processing 6,701,200.00
2.3 Vegetable Beef Soup Line 4,490,200.00
2.4 Minchet Abish sauce line 2,697,600.00
2.5 Bone and Meat Soup line 3,364,000.00
2.6 Packing and Finish Line 22,404,160.72
2.7 Utility Machinery 4,423,518.00
2.9 Steel Can Manufacturing Plant 15,500,000.00
Freight, Insurance, customs & Bank charges, Material 9,643,575.02
handling cost , Installation Cost
TOTAL OF MACHINERY 78,526,253.74 48.18%
3 Water and Waste Water 7,834,080.00 4.81%
4 Laboratory equipment and machinery 1,008,000.00 0.62%
5 Car and Vehicle 37,940,000.00 23.28%
6 Office equipment. and furniture's 562,000.00 0.34%
CAPAITAL INVESTEMNT 132,933,854.01 81.55%
7 Pre- Production cost 4,505,756.15 2.76%
8 Working Capital requirement 25,560,389.84 15.68%
GRAND TOTAL 163,000,000.00

2.9 Source of finance

The source of finance is from the bank loan of Birr 1445.88 million (70%) and from
promoter’s contribution of Birr 19.66 million (30%)
Table 8 Raw materials Table 9 Investment cost and source of finance
Sr Description Sources of finance Total financial
. requirement
Owner's Equity LOAN (Birr)
N Planned (Birr )
(Birr )
o

1 Capital investment 39,880,156.20 93,053,697.80 132,933,854.01

2 pre- production cost 1,351,726.85 3,154,029.31 4,505,756.15
3 Working Capital requirement 7,668,116.95 17,892,272.89 25,560,389.84
Page 16 of 25
 Total (1+2+3) 48,900,000.00 114,100,000.00 163,000,000.00
Debt: Equity ratio 30.00% 70.00% 100.00%
2.10 Fixed capital investment assumptions
2.10.1 Building Renovation
Sr.n Description size/Qty Unit Total cost
o Price(Birr) (Birr)
1 Building Renovation
1.1 Office Renovation and partitioning M2 1000 2500 2,500,000
1.2 False Ceiling for office M2 250 2,000 500,000
.00
1.3 Electrical Installations and net work Ls 1 1264302.203 1,264,302
1.4 Carpet for office M2 250 2,000 500,000
1.5 Air Conditioner for office and warehouse No 8 250,000 2,000,000
1.9 Construction and fabrication of slaughter m2 100 6000 600,000
house
7,364,302
2.10.2 Machinery & equipment
Sr.no Description size/Qty Unit Price(Birr) Total cost (Birr)
2 MACHINERY
2.1 Reception, Weighing & Grading
2.1.1 Hanging Scale < 500 Kg Set 5 15,000 75,000.00
2.1.2 Floor Scale 1 Tone Set 2 50,000 100,000.00
2.1.3 Sorting and grading Conveyor L=20 m Set 2 30,000 60,000.00
2.1.4 Vegetable washing and grading Set 1 360,000 360,000.00
machine
2.1.5 Beef Cutting Table Set 2 20,000 40,000.00
2.1.6 Cold storage M2 20 250,000 5,000,000.00
2.1.7 Vegetable Pre-processing equipment Set 4 450,000 1,800,000.00
2.1.8 Meat Processing equipment Set 2 120,000 240,000.00
2.1.9 Trolley Set 5 15,000 75,000.00
2.1.10 Inspection Belt Conveyor Ml 20 80,000 1,600,000.00
2.1.11 Vegetable slicer Set 2 180,000 360,000.00
2.1.12 Pressurized washer Set 2 6,000 12,000.00
Sub- total ………… 9,722,000.00
2.2 Meat Processing
2.2.1 Industrial slaughter House , 20 Set 1 1,880,000 1,880,000.00
Operating Station
2.2.2 Hanging Cutters Set 5 10,800 54,000.00
2.2.3 Meat Cutting Machine Set 5 102,000 510,000.00
2.2.4 Meat Slicer Machine Set 2 160,800 321,600.00
2.2.5 Meat Trolley Set 5 9,600 48,000.00
2.2.6 Metal industry hanging system Ml 50 30,000 1,500,000.00
2.2.7 Deep Freeze Set 3 720,000 2,160,000.00

Page 17 of 25
 2.2.8 Pressure Washer set 2 28,800 57,600.00
Sub- Total ………… 49 6,531,200.00

Page 18 of 25
Sr.no Description size/Qty Unit Total (Birr)
Price(Birr)
2.3 Vegetable Beef Soup Line
2.3.1 Blanching machine Set 2 360,000 720,000.00
2.3.2 Cooling Tank Set 2 345,000 690,000.00
2.3.3 Mixer Pressure Cooker 200 Lt Set 2 468,000 936,000.00
2.3.4 Auto Clave Set 2 244,000 488,000.00
2.3.5 Metal stand /container Set 8 30,000 240,000.00
2.3.6 Digital Scale Set 3 5,400 16,200.00
2.3.7 Top Chain conveyor Ml 20 80,000 1,600,000.00
Sub- total ………… 22 4,690,200.00

2.6.1 Seamers (50 Can/m) Set 2 1,100,000 2,200,000.00

2.6.2 Eight Station Can filler Set 2 420,000 840,000.00
2.6.3 Aseptic storage and filling systems Set 2 652,000 1,304,000.00
2.6.4 Exhaust box , 300 Can/hr Set 2 730,080 1,460,160.72
2.6.5 Label the outside of the can Set 2 590,000 1,180,000.00
2.6.6 Pressure Cooker 300 Lt Set 2 468,000 936,000.00
2.6.7 Pasteurizer unit Set 2 378,000 756,000.00
2.6.8 Cooling Tank Set 2 144,000 288,000.00
2.6.9 Top Chain conveyor Ml 10 80,000 800,000.00
2.6.10 Cold storage M2 50 250,000 12,500,000.00
2.6.11 Metal stand /container Set 8 30,000 240,000.00
Sub- total ………… 22,504,160.72

Sr.no Description size/Qty Unit Price(Birr) Total (Birr)

2.8 Utility
2.8.1 550 KVA Standby generator Set 1 2,203,200 2,203,200.00
2.8.2 Compressor 12 Bar Set 1 300,000 300,000.00
2.8.3 Boiler 2 Tone, Gas Set 2 624,159 1,248,318.00
2.8.4 Steam water and gas pipeline Set 1 672,000 672,000.00
Sub- total ………… 4,423,518.00
MACHINERY TOTAL 51,578,518.0
0

Page 19 of 25
 2.10.3 Motor Vehicle
Sr.n Description size/Qty Unit Price(Birr) Total cost (Birr)
o
4 Vehicle
4.1 Cold Storage Truck 5 Tone No 2 4,200,000 8,400,000.00
4.2 Double Cabinet 4WD No 5 3,650,000 18,250,000.00
4.3 Truck 5 Tone No 2 3,845,000 7,690,000.00
3.4 Service Car No 3 1,200,000 3,600,000.00
Sub- total 12 37,940,000.00
Freight, Insurance, customs & Bank charges, Material 12.00% 4,552,800.00
handling cost
42,492,800.00
2.10.4 Furniture & Fixture
Sr.n Description size/Qty Unit Price(Birr) Total cost (Birr)
o
5 Office Equipment. And
furniture’s
5.1 Pedestal Table and Chair Set 12 20,000 240,000.00
5.2 Waiting Chair Pcs 18 5,000 90,000.00
5.3 File Cabinet (Metallic) Pcs 6 12,000 72,000.00
5.4 Shelf and Other Drawers Set 20 8,000 160,000.00
5.5 Computers Set 5 22,000 110,000.00
5.6 Printer Set 3 26,000 78,000.00
5.7 Fax Machine Set 1 26,000 26,000.00
Sub- total 562,000.00
2.11 Pre-production costs
Sr.n Description size/Qty Unit Price(Birr) Total cost (Birr)
o
6 PRE-OPERATING COST
6.1 Feasibility study Ls 1 150,000 150,000.00
6.2 Legal and admine % 1 132,933,854 1,329,338.54
6.3 Training and Skill transfer % 1 68,882,679 688,826.79
6.4 1,068,226.79
% 1
Spare parts 106,822,679
6.5 Miscellaneous Expenses Ls 1 100,000 100,000.00
6.6 Marketing and Promotion % 1 129,872,808 649,364.04
6.90 Uniforms- Slaughter House No 10 5,000 50,000.00
6.10 Uniform for Supervisors and 70,000.00
No 20
Quality Control 3,500
6.11 Uniform for Others workers 200 2,000 400,000.00
Sub- total 4,505,756.15

Page 20 of 25
2.12 Working capital assumptions
Description Period Total
1.Direct Costs Months
Raw Materials and inputs 3 14,192,799
Packaging cost 3 5,246,964
Salary and wage 3 2,952,000
Utility Expenses 3 911,262
Washing powders and detergents 3 141,928
Sub-total 23,444,953
2.Indirect Costs
Shade Rent 3 150,000
Salary and wage 3 1,374,000
Vechel Rent( Workers Service) 3 42,000
Fuel, oil & lubricant 3 21,129
Repair & Maintenance 3 0
Insurance 3 315,121
Employee Benefit and Protective's 3 183,200
Travel & Perdium 3 18,320
Office Supplies 3 2,000
Telephone, Postage and Internet 3 4,000
Audit and Legal Fee 3 1,667
Administrative Expense 3 1,667
Utility Expenses 3 833
Cleaning Expense 3 667
Miscellaneous Expense 3 833
Sub-total 2,115,437
Total 25,560,390
Proposed Permanent Working Capital
25,560,390
Requirement

Page 21 of 25
 2.13 Revenue assumptions
2.13.1 Production Plan and Capacity Utilization of Plant
Description Unit Y-1 Y-2 Y-3
Cattle /Year 1,365 1,516 1,685
All Types of Products Cattle /Day 5.00 6.00 6.00
Kg/Day 1,555 1,728 1,920
Minchet Abish Tone/ Year 233.28 259.20 288.00
Vegetable Soup Tone/ Year 139.97 155.52 172.80
466.56 518.40 576.00
Minchet Abish ,200 MG Packs /day
1,166,400 1,296,000 1,440,000
Vegetable Soup,200 Mg Packs /day 699,840 777,600 864,000
2,332,800 2,592,000 2,880,000
2.13.2 Annual Revenue Plant
Description Unit Y-1 Y-2 Y-3 Y-4 Y-5
Production
Minchet Abish Packs/ 1,166,400 1,296,000 1,440,000 1,440,000 1,440,000
Vegetable Soup Year
Packs/ 699,840 777,600 864,000 864,000 864,000
Sales Price Year
Minchet Abish /Canned Birr/Pack 60.00 66.00 72.60 79.86 87.85
Beef
Vegetable Soup Birr/Pack 48.60 53.46 58.81 64.69 71.16
Revenue form Factory
Minchet Abish /Canned Birr/Year 69,984,000 85,536,000 104,544,000 114,998,400 126,498,240
Beef
Vegetable Soup Birr/Year 34,012,224 41,570,496 50,808,384 55,889,222 61,478,145
Birr/Year 129,190,464 157,899,456 192,988,224 212,287,046 233,515,751
Revenue of Byproduct
Slaughters Cattle’s No/Cattle’s 1,365 1,516 1,685 1,685 1,685
By product sales price Birr/ 500 525 551 579 608
Revenue Cattle’s
Birr/Year 682,344 796,068 928,746 975,183 1,023,942
Gross Revenue Birr/Year 129,872,80 158,695,52 193,916,97 213,262,23 234,539,69

Page 22 of 25
Annex Proposed Technologies over view

Meat processing over view

SALUTARY HOUSE
SALUTARY HOUSE COLD STORAGE

BONE MEAT SOUP TECHNOLOGY MINCHET ABISH MAKER

Page 23 of 25
Vegetable Processing Technologies over view
WASHING AND GRADING BLANCHING

Vegetable Pealing / Cutting Washing/ Grading

Cooling Tank Vegetable beef Soup Maker

Page 24 of 25
Finishing line Technologies over view
Seamers 50 Can/m Eight Station Can filler

Exhaust box , 300 Can/hr Labeling Machine

Canned Food Pasteurization Machine

Page 25 of 25