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Spectacle Frames by Fabrication Plant

1. Product Description: Spectacles are special types of glasses used mostly by people who do not have normal eyesight.  Spectacles frames are the frames which hold the glasses in the desired shape.  These frames can be made form plastic, metals such/as steel, aluminum, gold.  However, most spectacle frames are made from plastic materials because they are cheap and easily replaceable.  Since the development of plastic technology, spectacle frames made from plastics are increasing their market share.  In fact, in low income countries, they constitute the largest share of the market.  If they are well designed, plastic frames add beauty especially to ladies.


2.  Rationale: Ethiopia has about 74 million people.  By conservative estimate about 5 percent of the population wear glasses or spectacles- this is about 3.7 million people.  The 3.7 million pairs of spectacles- the frames and the glasses all are imported.  Of this huge import, 0.9 million is the share of the Amhara Region.  Producing plastic frames at home can be done with modest investment and this can done in the Amhara Region.


3.  Market Potential: As mentioned above, at least 3.7 million people use or wear glasses in the country.  If demand for glasses increases at the rate of population growth (2.9%), there will be additional 107,000 pairs of spectacle frames needed every year in the country.  With this market size, one can safely assume that there will be sufficient demand for spectacle frames which will make a spectacle making plant viable.


4.  Source of Raw Material: Plastics are products of the petroleum chemical industry and since we don’t have this industry, the “raw material” will be imported.


5.  Production Process & Technology:-  Main processes are sheet cutting, forming and welding, wire inserting and assembling.  Important machinery and equipment include sheet cutting machine, forming and welding machine, wire inserting machine, drilling machine and buffing machine.


6.  Estimated Investment:  A small size plant which will produce 500 pairs of plastic frames per day will require a 250 m2 building.  Construction cost of the building will be Birr 375,000.  Plant & Machinery and working capital will be about Birr 85,000.  Total Investment + Birr 460,000.


7.  Benefits: Saving of foreign exchange for the country, conserving financial resources for the Region, new skills and technology.


8.  Location: Debre Birhan