AZEB TILAHUN ALEMAYEHU FLOUR FACTORY

FEASIBILITY STUDY FOR

WHEAT AND MAIZE
FLOUR MILL PRODUCTION
FACTORY

PROMOTOR: AZEB TILAHUN ALEMAYEHU

PROJECT PROPOSAL SUBMITTED TO GET FINANCIAL

SUPPORT FROM BANK.

MIZAN AMAN, ETHIOPIA

OCTOBER, 2024

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 AZEB TILAHUN ALEMAYEHU FLOUR FACTORY

Table of Contents
Executive Summary......................................................................................................................1

1. Introduction...........................................................................................................................3

1.1 Project Rational...................................................................................................................5

1.2 Project Description.............................................................................................................7

1.3 Background of Project Promoter.........................................................................................7

1.4 Business Purposes of the Company-..................................................................................8

1.5 Project Objectives..........................................................................................................9

2. Market Study.........................................................................................................................9

2.1 Overview of Current Local Market...................................................................................10

2.2 Supply and Demand Analysis...........................................................................................11

2.2.1 Demand Analysis.......................................................................................................12

2.2.2 Supply Analysis..........................................................................................................14

2.2.3 Demand –Supply Gap................................................................................................16

2.3 Currently Flour Factory operated around Bishan Guracha area......................................17

2.3.1 Local Demand and Local Supply Analysis................................................................18

2.4. Price Analysis..................................................................................................................18

2.5 Marketing Strategy............................................................................................................19

2.6 Market share of the project...............................................................................................19

3. Technical Study......................................................................................................................20

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 AZEB TILAHUN ALEMAYEHU FLOUR FACTORY

3.1 Location............................................................................................................................20

3.2 Physical Layout.................................................................................................................21

3.3 Raw Materials for flour production..................................................................................22

3.4. Utilities.............................................................................................................................22

3.5. Marketing Plan.................................................................................................................23

3.6. Production Capacity of the Factory to Be Establish........................................................23

3.7 Machinery.........................................................................................................................24

3.8 Production Process.......................................................................................................25

3.9. Source of Technology......................................................................................................26

4. Human Resource and Management........................................................................................27

4.1 Organizational Structure...................................................................................................27

7.2. The management team.....................................................................................................27

4.2 Human Resource...............................................................................................................29

5. Financial Analysis..................................................................................................................30

5.1. Investment costs and financial structure..........................................................................30

5.2. Assumptions used in the projection.................................................................................31

5.3 Initial working Capital Break down..................................................................................32

5.3.1 working Capital..........................................................................................................32

5.3.2 Depreciation and Amortization.................................................................................33

5.4 Cost and Expense Forecast...............................................................................................33

5.4.1 Cost of Raw and Auxiliary Materials Forecast..........................................................33

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 AZEB TILAHUN ALEMAYEHU FLOUR FACTORY

5.4.2 Expense Forecast........................................................................................................34

5.5 Revenue Projection...........................................................................................................34

5.6 Financial Statement Projection.........................................................................................35

5.6.1 Income Statement Projection......................................................................................35

5.6.2 Cash Flow statement Projection.................................................................................36

5.7 Sensitivity Analysis...........................................................................................................37

5.7.1 Scenario One.............................................................................................................37

5.7.2 Scenario Two..............................................................................................................38

5.7.3 Scenario Three...........................................................................................................39

5.8 Loan Repayment...............................................................................................................40

Loan Repayment Schedule.........................................................................................................40

6. SWOT Analysis......................................................................................................................41

7. Economic Benefits and Environmental Impact.....................................................................41

8. Conclusion and Recommendation..........................................................................................42

8.1 Conclusion........................................................................................................................42

8.2 Recommendation..............................................................................................................43