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Electric Backing Ovens Making Plant


1.         Product Description:  It is a small portable oven.  It is used to make bread and cakes at home.  The product basically consists of electrical heating elements.  It has thermally insulated casing for protection purposes.  Thermostat control is used for setting desired temperature level.  For indicating the supply of electric, an indicator lamp is provided.  For temperature control a regulator is attached.

 

2.         Rationale:  The use of kerosene and electric baking ovens for the purpose of cooking food and drinks such as tea and coffee saves a lot of wood from being used for producing heat.  This, in turn, saves trees from being cut down for fuel wood which conserves our forests and our soil.  The Amhara Region is one of the Regions of the country, where deforestation and soil erosion are so severe.  The Region should promote any measure that promotes the protection and conservation of its forest and soil resources.  Production of baking ovens in the Region will save our forests and hence it should be promoted.

 

3.         Market Potential:  A pre-condition for using electric baking oven is the presence of electric supply in the area.  Most of the larger urban areas of the Region are connected with the national electric power grid system; hence they have electric power supply.  About 300,000 families live in these larger urban areas.  If we assume that at least 20 percent of these families will use electric baking ovens, there will be a demand of 60,000 units for these products.  As other sources of fuel become more expensive (kerosene, fuel wood---) and as the electric power supply expands to other urban areas, more people will shift to the use of electric baking ovens.  This expected demand and its future increase will justify the establishment of an electric baking oven making plant in the Region.

 

IMPORT OF BAKERY OVENS (UNIT)

Year                                                                       Year

Import

1997

60

1998

399

1999

171

2000

342

2001

78

2002

220

2003

149

2004

231

2005

83

2006

409

       Source:- Ethiopian Custom Authority.

4.         Source of Raw Material:  Most of the inputs are metals such as aluminum, steel sheet, copper, etc.  These will be imported.

 

5.         Process & Technology: Electrical heating elements are fixed in the aluminum body.  Then the aluminum body is fitted into a steel frame.  Different components like regulator, thermo-states, indicator lamp, etc. are fixed into appropriate places.  Finally the unit is tested and the outer case is painted.  Machinery required include center lathe hydraulic press, welding unit, shearing machine, bending flanging machine power hacksaw, bench drill, coil winding machine, bench grinder, spray painting unit, tools, dies and accessories.

 

6.         Estimated Investment:  For a plant which will produce 20 ovens per day, the estimated investment will be as follows.

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

n      Machinery                                                   = Birr  200,000

n      Working Capital                                          = Birr  100,000

 450,000

 

7.          Benefits: Contributes to the conservation and protection of the Region’s forest resources, saves foreign exchange resources by replacing imports, saves regional financial resources, introduces new skills and technology, possibility to export to other regions.

 

8.         Location:  Combolcha.

 

 


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