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Consultant in Ethiopia
Certified Audit Firm, Feasibility Study, Business Plan,
Home Blog About us Feasibility Study| Business Plan Project Profiles
Project Proposal, Investment Consulting Firm in
Ethiopia.

Feasibility Study for

Tractor Assembly Project
Proposal Business Plan in
Ethiopia.
by Suleman Mossa

Assembly of Tractor Project Proposal

Project Proposal on Assembly of Tractor Business Plan in Ethiopia.

This profile envisages the establishment of a plant for the assembly of tractors with a
capacity of 600 units per annum.

The present unsatisfied demand for the proposed product is estimated at 729 units per
annum. The unsatisfied demand is expected to reach at 1,309 units by the year
2020.

The total investment requirement is estimated at about Birr 29.67 million, out of which
Birr 5.13 million is required for plant and machinery. The plant will create employment
opportunities for 69 persons.

The project is financially viable with an internal rate of return (IRR) of 18.30 % and a
net present value (NPV) of Birr 15.60 million, discounted at 8.5%.

The establishment of such factory will have a foreign exchange saving effect to the
country by substituting the current imports. The project will have a substantial
contribution in improving the agricultural sector of the economy.

Product Description and Application

Tractors are engine driven wheeled tracting machinery. They are widely used in
agricultural operations for hauling various agricultural implements. Coupled to
trailers, tractors are also used for transporting agricultural inputs and outputs to
and from farms.

Plant Capacity

On the basis of the projected demand and technology recommended, it is envisaged

that the plant would have a capacity of assembling 600 tractors per annum.

Production Program

The plant would utilize 70% of its capacity in the first and second years; 85% and
100% of its capacity in the third and fourth years respectively. This programme
would allow optimum learning experience to be attained.

The plant would operate single shift of 8 hours a day for 300 days in year.
The production programme is shown in Table 3.3.

Raw and Auxiliary Materials

Materials requirement of the plant would initially comprise of imported components

and parts. It is proposed that the plant should produce simple components that
would not compromise the quality of the assembled tractor. It is envisaged that
local production of components / parts would progressively be increased, thereby
increasing the proportion of the local content of components and parts in the
assembled tractors. Materials requirements of the plant at full capacity utilization
are shown in Table 4.1. Material requirements have to be imported.

Assembly Process Discription

Components in completely knocked down forms (CKD) or semi-knocked down kits

(SKD) are transported from the warehouse to the assembly line. The components are
batched for sub and final assembly. Sub-assemblies are prepared. The whole tractor
unit is then assembled on the main assembly line.

Plant Machinery and Equipment

The list of machinery and equipment required is shown in Table 5.1. The total cost is
estimated to be about Birr 5.1 million, out of which Birr 4.36 million is required in
foreign currency.

Land, Building and Civil Works Cost

2
The total land requirement of the project is estimated to be about 3,000 m . The
2 2
built- up area is estimated to be about 2,000 m , of which 1,000 m would be for
2 2 2
assembly hall, 900 m , for store, 100 m for office, etc .The balance 1000 m would
be open space for parking finished tractors and green area. The building and civil work
cost at a rate of Birr 2,300 per m2 is estimated at Birr 4.6 million.

…………………………………….#######……………………………………………

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Feasibility Study for Laundry Soap Producing Plant Business Plan in Ethiopia Pdf.

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Standard Project Report – Map of National Bank of Ethiopia

A Standard project report for new business ventures is quite important in getting
the project itself off the ground. Therefore the project Feasibility Study report
should be prepared as per National Bank Standards.

The project report covers all the aspects of business; from analyzing the market,
confirming availability of various necessities such as plant & machinery, raw materials to
forecasting the financial requirements. The project also provides sectoral information,
brief on Government policies and international scenario, which have some bearing on
the project itself.

The scope of the report includes assessing market potential and investment decision
making. in a very planned manner by formulating detailed manufacturing techniques
and forecasting financial aspects by estimating the cost of raw material, formulating the
cash flow statement, projecting the balance sheet etc.

A SWOT analysis is often carried out in the initial reports. This helps to identify the
strengths, weaknesses, opportunities and threats of the business or a project.

The project so formulated considering the below-mentioned aspects and submitting

to any bank for availing credit facility for establishment of the project. The bank will
then examine the project for its technical feasibility, financial viability and
bankability.

Need Customized Feasibility Study or Business Plan for Bank Loan?

Ask for FREE project related details with our consultant/industry expert.

Our realistic project reports for bank Loan accompanied by a detailed financial plan
can make all the difference to get the funding you need.

Our consulting firm can prepare successful and standard project reports for
commercial agriculture, agro-processing, manufacturing and service enterprises as
per National Bank Standards.

Al lProject Feasibility Studies| Business Plans will be prepared by experienced certified

consultants and the market research and analysis are supported by computerized data
bank.

Our Service Packages

Haqiqa Business Solution helps entrepreneurs all over the world to start and grow businesses successfully
and profitably. We provide you with business ideas and smart solutions that help you to build a
profitable business empire. We have plenty of resources that will assist you in your

Auditing Financial Statements

Preparation of Successful Business Plans | Feasibility Study, Project Profiles for Manufacturing Plant, Commercial Agriculture. Agro Processing
Preparation of Project Proposals for NGOs,
Market Research Study, which will make it easier for your to start and run your business profitably.
Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

entrepreneurship journey.

PROJECT REPORT TABLE INDEX.

Each ‘Haqiqa Business Solution’ MARKET OVERVIEW CUM DETAILED TECHNO

ECONOMIC FEASIBILITY REPORT (Complete Report) tentatively covers.

01 Executive Summary
02 Product Description and Application
03 Market Study

Present Demand and Supply

Export & Import Statistics
Data Projected Demand
Names and Addresses of Existing Units (Present
Manufactures) Pricing and Distribution

01 Technical Study

Plant Capacity and Production Program

Availability and Source of Raw and Auxiliary materials
Material Requirement and Cost
Electrification, Electric Load and Water
Location and Site

01 Technology and Engineering

TECHNOLOGY
Production Process
Machinery and Equipment
ENGINEERING
Construction Process
Civil Engineering Cost
Plant Layout

01 Human Resource and Training Requirement

Human Resource.
Training Requirement

01 Economic and Social Benefit and Justification

Profit Generation
Import Substitution and Foreign Exchange Saving
Employment and Income Generation
Environmental Impact

Financial Analysis details as under:

01 Underlying Assumption
02 Initial Investment Cost
03 Production Cost
04 Sources of Finance
05 Financial Evaluation:
Break-Even Analysis and profitability analysis
Simple Rate of Return
Internal Rate of Return/IRR and Net Present Value/NPV
Sensitivity Analysis

Annexure-Financial Statements will be for 5 to 10 Years:

Annexure:: Net Working Capital

Annexure:: Projected Cash Flow
Annexure:: Discounted Cash Flow
Annexure:: Projected Income Statement
Annexure:: Projected Balance Sheet
Annexure:: Loan Amortization Schedule
Annexure:: Project Implementation Schedule

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Get In Touch//

Suleman Mossa General Manager

Mobile = +251 944-22-82-55

WhatApp, Telegram, imo and Messanger Contact = +251 944-22-82-55

Piazza, Kelifa Business Center Office No.507 Addis Ababa, Ethiopia

E-mail: [email protected]

Website ፡ www.ethiopianauditor.wordpress.com

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