Araki Last
Araki Last
Araki Last
BAHIR Dar
Sep 2014E.C
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TABLE OF CONTENTS
Contents
1. EXECUTIVE SUMMARY...............................................................................1
1. PRODUCT DESCRIPTION AND APPLICATION......................................1
2. MARKET STUDY, PLANT CAPACITY AND PRODUCTION.................2
3.1 . Market Study...................................................................................................................2
3.1.1 Present Demand and Supply......................................................................................2
3.1.2 Projected Demand......................................................................................................3
3.1.3 Pricing and Distribution.............................................................................................4
3.2 Plant Capacity...................................................................................................................4
3.3. Production Program..............................................................................................................4
4. RAW MATERIALS AND UTILITIES...........................................................4
4.1. Availability and Source of Raw Materials........................................................................4
4.2. Annual Requirement and Cost of Raw Materials and Utilities.......................................11
5. Location and Site.............................................................................................11
6. TECHNOLOGY AND ENGINEERING......................................................12
6.1. Production Process..........................................................................................................12
6.2. Machinery and Equipment..............................................................................................13
6.3. Civil Engineering Cost....................................................................................................13
7. HUMAN RESOURCE AND TRAINING REQUIREMENT.....................14
7.1. Human Resource.............................................................................................................14
7.2. Training Requirement.....................................................................................................15
8.1. Underlying Assumption..................................................................................................15
8.2. Investment.......................................................................................................................16
8.3. Production Costs.............................................................................................................18
8.4. Financial Evaluation.......................................................................................................18
9. ECONOMIC AND SOCIAL BENEFITS OF PROJECT...........................19
10. THE LAYOUT OF FACTORY....................................................................21
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1. EXECUTIVE SUMMARY
This project envisages the production of alcoholic drinks. The estimated demand for alcohol
products is increasing day to day in the world as well as in Ethiopia.
The investment cost of the project is estimated at Ethiopian Birr 60 million. The project will
create employment opportunities for 230 persons. The internal rate of return of the project is
24.84 %. The annual net cash flows discounted at the rate of 18%, yields a net present value of
Birr 32.359 million.
Alcohol is a depressant, which in low doses causes euphoria, reduces anxiety, and increases
sociability. In higher doses, it causes drunkenness, stupor, unconsciousness or death. Long-term
use can lead to an alcohol use disorder, an increased risk of developing several types of cancer,
and physical dependence.
Alcohol is one of the most widely used recreational drugs in the world, and about 33% of all
humans currently drink alcohol.[3] In 2015, among Americans, 86% of adults had consumed
alcohol at some point, with 70% drinking it in the last year and 56% in the last month.[4]
Alcoholic drinks are typically divided into three classes—beers, wines, and spirits—and
typically their alcohol content is between 3% and 50%.
Discovery of late Stone Age jugs suggest that intentionally fermented drinks existed at least as
early as the Neolithic period (c. 10,000 BC).[5] Several animals (but not all) are affected by
alcohol similarly to humans and, once they consume it, will consume it again if given the
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opportunity, though humans are the only species known to produce alcoholic drinks
intentionally.
Key trends are clearly and succinctly summarized alongside the most current research data
available. Understand and assess competitive threats and plan corporate strategy with our
qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key
categories, where applicable:
Beer
Wine
Spirits
RTDs
If you're in the Alcoholic Drinks industry in Ethiopia, our research will help you to make
informed, intelligent decisions; to recognize and profit from opportunity, or to offer resilience
amidst market uncertainty
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The Alcoholic Drinks in Ethiopia report includes:
Historic volume and value sizes, company and brand market shares
In addition, a study conducted in South Africa (SA) revealed that 9% of the population aged 15
years or older engaged in risky or hazardous or harmful drinking. More men had hazardous
drinking than women, 17 and 2.9% respectively. Similarly, another hospital-based study in South
Africa adults using Alcohol Use Disorder Identification Test (AUDIT) found that 41.2% of men
and 18.3% of women had hazardous drinking and 3.6% of men and 1.4% of women met criteria
for probable alcohol dependence or harmful drinking as defined by AUDIT.
In Ethiopia, studies indicated that the prevalence of alcohol consumption has shown a significant
increment, and generally hazardous drinking and alcohol dependence were more prevalent in
men than in women. In recent years, alcohol advertisements have become widespread in Sub-
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Saharan Africa (SSA) and in other regions of the world. Most advertisements propagate drinking
as modern and associated with occupational and sexual achievements.
Epidemiologic evidence found that alcohol consumption has been linked with increased rates of
pancreatitis, liver cirrhosis, cardiovascular disease, tuberculosis, mortality, decrease productivity,
disability, renal, lung cancer and diabetes, crime, risky sexual behavior, unemployment, poor
academic performance, stroke, and traffic fatalities. The medical and social costs of treating
drinking and smoking-related illnesses are estimated to be in the billions
3.2Plant Capacity
Taking the likely fierce international competition into consideration, starting small is opted as a risk
minimization strategy. It is proposed that the plant produce 50,000hl alcoholic drinks.
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person may legally buy or drink them. This minimum age varies between 16 and 25 years, depending
upon the country and the type of drink. Most nations set it at 18 years of age. [1]
Drinks by raw material, All raw material available 100% in local source.
gin, Scotch whisky, Irish
whiskey, jenever (Central
Europe), ginebra (Spain,
Barley beer, barley wine
Argentina, Philippines), shōchū
(mugijōchū) (Japan), soju (Kore
a), baijiu (China)
buckwheat
Buckwheat whisky (Brittany), shōchū
(sobajōchū) (Japan)
bourbon whiskey, moonshine,
Corn chicha, corn beer, tesguino
also vodka (rare)
millet beer (Sub-Saharan
Millet Africa), tongba (Nepal), boza (the Balkans,
Turkey)
beer, brem (Indonesia), ruou aila (Nepal), rice
Rice gao (Vietnam), tuak (Borneo baijiu (China), shōchū
Island), sato (Thailand), huangjiu and choujiu (komejōchū) and awamori (Japa
(China), sake (Japan), makgeolli and cheongju n), soju (Korea), hkaung rai
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(ခေါင်ရည်)
(Korea), sonti
(Myanmar), arrack (Indonesia),
चु आक/Chuak (India), thwon (Nepal)
lao khao (Thailand)
rye
Rye rye beer, kvass whiskey, vodka (Russia), korn (
Germany)
burukutu (Nigeria), pito (Ghana), merisa (sout
Maotai, Kaoliang liquor, certain
Sorghum hern Sudan), bilibili (Chad, Central African
other types of baijiu (China).
Republic, Cameroon)
horilka (Ukraine), vodka,
Wheat wheat beer wheat whiskey, weizenkorn
(Germany), soju (Korea)
jabukovača (Serbia), applejack (
Apples cider (U.S.: "hard cider"), apfelwein or apple brandy), calvados,
cider
kajsijevača (Serbia), kaisieva
Apricots rakia (Bulgaria), pálinka (Hung
ary)
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Blueberries Borovnica (Croatia)
brandy, cognac (France), vermo
uth, armagnac (France),
Grapes wine branntwein
(Germany), pisco (Peru, Chile,
Grozdova), Rakija (The
Juniper jenever (Netherlands/Belgium),
berries borovička (Slovakia)
Mulberry oghi (Armenia)
Myrica
yangmei jiu (China) yangmei jiu (China)
rubra
Kruškovac
(Croatia), viljamovka (Serbia),
Poire Williams, pear
Pears perry, or pear cider; poiré (France)
brandy, eau-de-vie (France), pál
inka (Hungary), krushova
rakia / krushevitsa (Bulgaria)
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Pineapples tepache (Mexico), Pineapple Wine (Hawaii)
šljivovica (Croatia), slivovitz, ț
uică, umeshu (Japan), pálinka, s
Plums plum wine, plum jerkum
livova rakia / slivovitsa
(Bulgaria)
Pomegranat
pomegranate wine (Armenia)
e
Quinces dunjevača (Serbia)
Himbeergeist (Germany,
Raspberries raspberry wine (US, Canada)
Switzerland)
Sausage
tree fruit
muratina wine (Kenya)
(Kigelia
africana)
Madhuca
(Madhya Pradesh, Chhattisgarh)
longifolia
Agave juic
pulque tequila, mezcal, raicilla
e
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cauim
chicha:
kasiri (Sub-Saharan Africa)
nihamanchi )
parakari (Guyana)
Ginger root
ginger beer (Botswana)
juice
horilka(Ukraine), vodka(Poland
)(Germany), akvavit (Scandinav
ia), poitín
Potato potato beer
(poteen) (Ireland), tuzemák (Cz
ech
Republic), brennivín (Iceland)
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Konyagi
(Tanzania), Cocoroco (Bolivia),
caña (Argentina, Uruguay),
espinillar (Uruguay), caña
blanca (Paraguay), ginebra
(Philippines)
shōchū
Sweet
(imojōchū) (Japan), soju (Korea
potato
)
Ti root okolehao (Hawai'i)
Other raw
Name of fermented beverage Name of distilled beverage
materials
Sap
of Arenga
pinnata, Co
palm wine, tubâ (Philippines) arrack, lambanog (Philippines)
conut, Bora
ssus
flabellifer
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rum
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5. Location and Site
Location: Bahir Dar zuria woreda, since the required human and local material resources are available
and have sufficient infrastructure for the plant.
alcoholic beverage, any fermented liquor, such as wine, beer, or distilled spirits, that
contains ethyl alcohol, or ethanol (CH3CH2OH), as an intoxicating agent. A brief treatment of
alcoholic beverages follows. For full treatment, see alcohol consumption.
Alcoholic beverages are fermented from the sugars in fruits, berries, grains, and such other
ingredients as plant saps, tubers, honey, and milk and may be distilled to reduce the original
watery liquid to a liquid of much greater alcoholic strength. Beer is the best-known member of
the malt family of alcoholic beverages, which also includes ale, stout, porter, and malt liquor. It
is made from malt, corn, rice, and hops. Beers range in alcoholic content from about 2 percent to
about 8 percent. Wine is made by fermenting the juices of grapes or other fruits such as apples
(cider), cherries, berries, or plums. Winemaking begins with the harvest of the fruit, the juice of
which is fermented in large vats under rigorous temperature control. When fermentation is
complete, the mixture is filtered, aged, and bottled. Natural, or unfortified, grape wines generally
contain from 8 to 14 percent alcohol; these include such wines as Bordeaux, Burgundy, Chianti,
and Sauterne. Fortified wines, to which alcohol or brandy has been added, contain 18 to 21
percent alcohol; such wines include sherry, port, and muscatel.
The making of distilled spirits begins with the mashes of grains, fruits, or other ingredients. The
resultant fermented liquid is heated until the alcohol and flavourings vaporize and can be drawn
off, cooled, and condensed back into a liquid. Water remains behind and is discarded. The
concentrated liquid, called a distilled beverage, includes such liquors
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as whiskey, gin, vodka, rum, brandy, and liqueurs, or cordials. They range in alcoholic content
usually from 40 to 50 percent, though higher or lower concentrations are found.
2 Fermentation tank 2
3 Distillation 2
4 Bottle Washing machine 2
4 Filling machine 2
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7. HUMAN RESOURCE AND TRAINING REQUIREMENT
Administration
1 General Manager 1 25,000.00 25,000.00 300,000.00
Production area
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Total 229 6,033,600.00
Employment Benefits
20% of Annual Salary 1,206,720.00
Total 7,239,320.00
8. FINANCIAL ANALYSIS
Capital 60million
*Since the plant is import substituting and may also engage in export, five years tax holidays is
assumed, as per ANRS’ investment policy
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B. Depreciation
Box 2: Depreciation
Building 5%
Vehicles 20%
Raw Material-Local 30
Work in Progress 10
Finished Products 15
Accounts Receivable 30
Cash in Hand 30
Accounts Payable 30
8.2. Investment
The plant requires Birr 60 million worth of initial investment. It is assumed that 30% of this amount will
be covered by owners’ equity while the remaining 70 % is borrowed at annual interest rate of as per bank.
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Table 3: Total Initial Investment
Item Cost
Land 250,000.00
Vehicles 3,500,000.00
Total 59,107,500
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8.3. Production Costs
The production cost of the envisaged plant is about Birr 16.983 million at full capacity.
Items Cost
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IV. Simple Rate of Return
The simple interest rate of investment is 27.6%.
A. Profit Generation
The project is found to be financially viable and earns on average a profit of Birr 32,359,987 per year.
Such result induces the project promoters to reinvest the profit which, therefore, increases the investment
magnitude in the region.
B. Tax Revenue
In the project life under consideration, government will collect about Birr 1 million from corporate tax
payment alone (i.e. excluding income tax, sales tax and VAT). Such result creates additional fund for the
regional government that will be used in expanding social and other basic services in the region
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D. Employment and Income Generation
The proposed project is expected to create employment opportunity to several citizens of the country.
That is, it will provide permanent employment to 239 professionals as well as support staff and operators.
E. Inter-sectoral Linkage
This project creates strong urban-rural linkage and also among various sectors of the economy.
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10.THE LAYOUT OF FACTORY
10.1 Machine layout
In this case two alternatives can be used. First the machine width and length get from the
machine specification; second the material and personal area get from the smart
estimation and motion study for a given operator. Type:
1. Filling Machine
Applicable Industries: Hotels, Restaurant, Food Shop, Food & Beverage Shops
Showroom Location: Canada, Turkey, United States, France, Germany, Russia, Spain,
South Korea, South Africa
Condition: New
Voltage: Customized
Brand Name:HG
Dimension(L*W*H):4600*2200*1700
Weight:4200kg
Warranty:1 Year
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Key Selling Points: Automatic
Core Components:
model:HG-24/24/8
Washing nozzles:24
Filling nozzles:24
Capping nozzles:8
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2. Bottle material: Glass Bottle
Material: SUS304
Capacity:6000-8000 BPH
Bottle height:120-360mm
Condition: New
Product Type: milling machine
Place of Origin: Fujian, China
Brand Name: Xinda machinery
Voltage: 220V50HZ/380V50HZ
Power: 5KW
Dimension(L*W*H): 5.2X1.1X1.5m
Weight: 1.5-2.5T
Warranty: 1 year
After-sales Service Provided: Engineers available to service machinery overseas
Capability speed: 400-600pcs/min
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3. plastic dental bib machine
Raw material: Double layer toilet paper, plastic composite film
Fold type: M folding can design for customer
Brand Name: SOBEN
Dimension(L*W*H): 2100*800*1200MM
Warranty: 1 Year
Key Selling Points: Easy to Operate
Air compressor: 0.5mpa
Weight: 350kg
Power: 800w Quick Details
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4. Distillation column
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5. JH Alcohol Distiller
(Alcohol distillation equipment, distillation tower, alcohol distillation column) is made
up of contractor, tower body, condenser, cooler, buffer tank and high-level storage tank.
Technology parmeter- alcohol distillation column
JH-200 JH-300 JH-400 JH-500 JH-600 JH-800
Tower volume
640 1220 1450 2300 2505 3200
(L)
Tower
6000 7000 7000 7000 7500 7500
heigh(mm)
Volume of
high postion 300 400 650 800 1000 1500
tank (L)
Condensator
5 8 11 18 25 45
area (m2)
Cooling area
1 1.5 2.2 4 6 8
(m2)
Heat area (m2) 3.0 6.0 6.5 10 15 26
Recycling
45~50 90~1000 150~160 280~300 420~440 600~620
capacity(kg/h)
Recycling
concentration( 93~95
%)
Packing form Stainless steel corrugated loading material
Size
2300×700× 2600×800× 2500×1000 3000×1200 3500×1400 4200×1800
Length×width
7300 7500 ×9000 ×9000 ×1000 ×100
×heigh
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6. Fermentation tank
Packing form Stainless steel corrugated loading material
Size
2300×700× 2600×800× 2500×1000 3000×1200 3500×1400 4200×1800
Length×width
7300 7500 ×9000 ×9000 ×1000 ×100
×heigh
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10.2. SPACE REQUIREMENT FOR NON-PRODUCTION AREA
As mention above the non-production area set a standard, this standard multiplies by number of
worker we get the required area
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