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Electric Iron Making Plant

 

1.         Product Description:  The electric iron consists of a heavy base plate heated by means of a coil of nichrome wire.  It is provided with an insulated handle and a control by means of which the heat can be regulated.  Some models which are provided with a thermostat to control the heat at the desired level are called “automatic irons”.

 

2.         Rationale:  It is safe to assume at least 50 percent of the urban families in our country have one electric iron each.  This translates into about 1.21 million electric irons being present in the country.  If we assume that at least 10 percent of these electric irons are replaced every year and additional demand is about 4 percent per year, total annual demand for electric irons in the country will be 169,400 (10% of 1,221,000+4% of 1,210,000).  Up to now all the electric iron needs of the country have been met by imports spending a substantial amount of foreign exchange.  The manufacture of this electrical appliance is not complicated and it does not require huge production machines.  For some time we might not be able to produce “elegant” electric irons like the ones produced by Philips of Holland and exported to our country.  But we can produce electric irons which are functional, dependable and durable.  Improvement in product quality, style, shape and esthetic value is achieved through time and experience.  What is important is to start producing the product if it can be done with financial viability.

 

3.         Market Share:  The potential market of electric iron in Ethiopia is indicated above.  The share of the Amhara Region from the estimated demand is about 44,000 per year.  This quantity alone could justify the establishment of an electric iron making factory in the Region.  The national and the regional demands for electric irons are more than sufficient to sustain more than one electric iron making factories.

 

4.         Source of Raw Materials:  Mostly to be imported, but some insulation materials can be obtained from domestic sources.

 

5.         Process and Technology:  In assembling parts of an electric iron, the following technical parameters should be observed.  The input at rated voltage and at normal operating temperature shall not deviate from rated input by ± 10 percent.  Handle grips of iron shall be designed so that they may not rotate even in the event of slackening of their means of fixing.  The provision of the thermostat or thermal output is optional in case the sole plate temperature does not exceed 2600C.  Machines needed for the plant include power press, spray gun, drilling machine, shearing machine, dies and hand tools besides test and measuring instruments.

 

6.         Estimated Investment:  For a plant that will produce about 20,000 electric irons, the estimated investment will be:

§        Building/Shade 250m2 at Birr 1500/m2         = Birr 375,000

§        Machinery                                                      = Birr   90,000

§        Working Capital                                             = Birr 100,000

                                                                                        565,000

 

7.        Benefits:  Saves foreign exchange and regional financial resources, brings in financial resources to the Region, introduces new skills and technology, contributes to industrial self-sufficiency, etc.

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

 


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