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F.H.P. (Fractional Horse Power) Motors Making Plant


1.         Product Description: FHP motor is name given to motors having output power less than one Horse Power.  Such motors

have wide applications.  For example domestic electric appliances like fans, mixers, coolers, etc use FHP electric motors.  These motors are also used for various power driven instruments and tools.


2.         Rationale: FHP motors are basic sources of power which drive many types of small tools, instruments, household and office appliances and other electrical gadgets.  Like in other countries, FHP motors are used for a variety of purposes in Ethiopia.  Unlike many other countries, FHP motors used in Ethiopia are imported.  The road to the development of machine industry in any country goes through the development of small machines like FHP motors.  These and other types of similar machines should be promoted in our country to start the development of the machine industry.  The Amhara Region, if it intends to take the initiatives for developing such industry, it should promote and encourage the establishment of plants which can produce FHP motors and other similar small machines.


3.         Market Potential: Separate import figures for FHP motors are not available.  However, the annual import volume of electrical motors is substantial.  Considering the variety of uses of FHP motors, one could expect that share of these motors in the total import volume of electrical motors of different capacities.  The first phase in the production of machines in a developing country is assembly of parts which are produced abroad, fabrication of some components such as bodies or cases and in some cases manufacturing of some less sophisticated parts.  There is the major pattern of developing machine building industries.  Hence the first stage of producing FHP motors in our country will be assembly of parts and fabrication of components.  This production process is not subject to rigid economic of scales which require a plant to operate above a given level of production.  Assembling of parts to produce a machine does not require huge and expensive production machinery and equipment which require certain level of utilization for being financially viable.  In the case of assembling/fabrication of FHP motors, a plant can be viable at a minimum level of production quantity; and the demand for these motors is more than the minimum level of viable production volume.


4.         Source of Raw Materials: To be imported.


5.         Process & Technology: The castings are procured from outside and they are machined in the plant.  The coils of conducting materials are fitted in the stator slots after proper insulation.  The rotor should be properly balanced and then all mechanical fittings are made.  Finally the piece is tested for performance.  All the parts should be varnished and baked before assembling.


Machines needed for the plant include lathe machine, drilling machine, press, coil winding arrangement, backing oven, grinder, balancing machine testing panel.


6.         Estimated Investment: Cost estimate has been made assuming that motors to be manufactured are 0.25 H.P. where in actual practice motors of various FHPs may be assembled.  Under this assumption, a plant which will produce 50 motors per day will have the following investment estimate.

§        Building/Shade 100m2 at Birr 1500/m2 = Birr 150,000

§        Machinery                                                   = Birr 250,000

§        Working Capital                                          = Birr 400,000


7.       Benefits: Saves foreign exchange and regional financial resources, brings in financial resources to the Region, contributes to the development of machine industry in the Region, introduces new skills and technology, etc.

8.       Location: Debre Birhan, Combolcha, Bahir Dar.