Power Fusion Bisley Protective Work Wear

Power Fusion protective work wear

FEASIBILITY STUDY ON ESTABLSIHING TREATED PROTECTIVE WEAR DEPOT IN BOTSWANA (IMPORTS FROM AUSTRALIA MANUFACTURERS) FOR LOCAL DISTRIBUTION AND RE-EXPORTS TO THE SADC REGION AND THE REST OF AFRICA. EXECUTIVE SUMMARY Nasquip(Pty) Limited trading as Power Fusion Solutions seeks to create a competitive protective wear industry in the distribution of unique factory, commercial and industrial wear to the SADC countries and the rest of Africa. The company is seeking to achieve this by acquiring agency distributorship for Bisley Australias treated protective apparel. This would be the first time Bisley products would be touching the soils of Africa; and Botswana gains a great competitive advantage for being the distributing agents for Africa. Most of the textile and garment producers in Botswana offer ordinary industrial and protective wear which lacks the treatment characteristics as that of Bisleys. At 90% capacity the distribution business would require the construction of 2500-3000 square meters warehouse to be located in the Southern region of Botswana. This is a long term plan though arrangements are already in place to secure industrial plot for construction. The cost of construction has not been factored into this projection. The initial start of the business would however require warehousing of relatively 300 to 500 square meter space. The company intends to rent such premise for now. The main cost of this establishment is centred on the purchase of saleable treated protective wear stock. The total establishment capital for this investment is budgeted at P7,930,237 out of which the company injects an initial equity capital of P685,500. Additional equity capital of P3,744,737 would be injected into the business to cater for transportation, clearance of goods as they arrive at the Durban and Botswana port of entry and other miscellaneous costs. The company is seeking to raise the remaining balance of P3,500,000 from prospective financing institutions in Botswana for the purpose of buying material stock from Bisley Australia. The project will be managed along sound commercial lines. The Board of Directors will recruit competent and experienced people to form the management team to run the business. The core management team will be made up of a General Manager, Procurement Manager, Marketing Manager and a Finance and Administrative Manager. It is planned that the incumbents for these positions will have a minimum of 5 years experience in the industry with similar positions. The assessment of the first target markets of the project thus Botswana, South Africa and Namibia is based on secondary data. Primary data shall be collected later after the product has been tested in these markets. Projected industrial growth in these countries give positive market opportunities in the use of industrial wear, most specifically, treated protective wear.

Power Fusion Bisley Protective Work Wear The growth is focused on a few key economic sectors such as mining, construction, manufacturing and tourism. The growth in terms of output was translated into required number of workers in these sectors. At the rate of 10 percent of the share of the needed workforce and the usage of various types of garments per person per year, gave the anticipated demand in each of targeted markets for 2012 and 2013. In 2012,the targeted workforce are 10,748 people in Botswana, 390,088 people in South Africa and 54,940 people in Namibia. In 2013, people targeted are 11,887 in Botswana, 395,976 in South Africa and 57,577 in Namibia. The demand in usage per each category of workwear in each market for the two periods is provided in the attached appendix. The expected input and output of the project was based on the demand of garments in these markets. The results of financial analysis undertaken to determine the viability of the project are as follows. The project will borrow P3,500,000 at an estimated interest rate of 12.5%, which will be repaid in five years with annual debt servicing of P944,913. This loan is mainly meant for buying stock from Bisley Australia to serve the Botswana market as well as testing the South African, Namibian and Zambian markets. This would require re-stocking of similar quantity and cost in the first year of operation. Other market demands would be attended to in the second year of operation. The project will make a net profit of P2,785,921 by the end of the first year. The profit level increases to P3,915,467 by the end of the second year. The profit level increases steadily to P5,107,969 by the end of the third year. The fourth year records profit of P8,203,780; and over P11,000,000 by the end of the fifth year. The Funds Flow analysis also shows that the project would have a cumulative cash balance of P6,229,254 by the first year end of operations and over P34,000,000 by the end of the fifth year. The discounted cash flow analysis shows a favourable Net Present Value(NPV) of P15,717,935 and an internal rate of return of 57.93%. The IRR is far higher than the hurdle rate of 10.5%, being the cost of borrowing in Botswana and the weighted average cost of capital (WACC) of 8%. Results of sensitivity analysis also shows that the project will be viable even if costs increase by 10% because the NPV still stands positive at P9,106,216 and the IRR is 38.64%, which is higher than the weight average cost of capital of 8%. Even when projected revenues decline by 10% the NPV still posts positive to P6,910,973. The pay back period is 5 years. There are socio economic benefits that will be gained from the implementation of the project. Some of these benefits are employment creation from construction of factory units and about 3,000 from those to be employed to work in these factories and additional 700 created indirectly from other ancillary services to be supplied to the project. There will also be substantial earnings in foreign exchange from the export of the garments to other African countries. The project from the above analysis appears feasible and financially viable and therefore worth investing. The limiting factor is the identification of target customers to buy the stock.

Power Fusion Bisley Protective Work Wear 1.0 INTRODUCTION

The business of establishing a distributing depot for Bisley unique protective wear in Botswana was envisaged by Power Fusion Solution during an expo the company attended in Gaborone. In this expo, the company received an award for being the best and the most enhanced engineering and technical support to many industrial sectors of Botswana, most especially, the mining sector. As a way of diversifying its operations, Power Fusion Solution identified an Australian company which had equally attended the expo with the view of partnering with any local company in Botswana to serve as distribution agents to market, promote and sell Bisley Australia Treated Protective Wear in the SADC region and the rest of Africa. Upon subsequent meetings with Bisley delegates, a decision was reached. Two of Power Fusion Solution directors had to pay a visit to Bisley factory in Australia to assess the sophistication and uniqueness of their products. After an extensive tour of the massive factory with unique featured apparel for industrial use in various environmental conditions, the directors bought the idea of bringing Bisleys brand to Africa, with Botswana as a distributing point.

2.0 Bisley Protective Wear History The group was founded in 1958 by an individual called Joe Gazal- who had been in the apparel business for 52 years. The company continues to build and expand its position as one of Australias leading branded apparel companies, focusing on national and international brands. Bisley is a public company listed on the Australian Securities Exchange. The company boasts of having total fixed assets of over $200 million with approximately 1,200 employees in Australia. The company has a multi-branded strategy, concentrating on core products such as businesswear, intimate apparel, workwear and school wear. Bisleys evolution and innovation initiatives have led to the following achievements in the clothing industry: Occupational Health and Safety Apparel Worker comfort and climatic influences- regional specific design Industry sector design- Mining, Construction, Petrochemical, Oil & Gas,and February 2010 approved by Mosquito Zone, independent consultant to ExxonMobil LNG Project in PNG, as supplier of factory treated Insect Protection Clothing.

The objectives of the study The consultants have prepared this feasibility study with the following objectives: To ascertain the cost of establishing the business in Botswana. To determine the technical and market feasibility of establishing the project To determine the financial and commercial viability of the project.

Power Fusion Bisley Protective Work Wear To have a document which will be the basis for discussion with prospective and interested financiers for financing part of the project.

3.0

THE PROMOTER

Nasquip (Pty) Limited is the promoter of this business. It is a private company limited by shares and incorporated under the Companies Act in Botswana. The company was registered on the 3rd of May 2007 with registered number C0 2007/2188 and has since then been in operation providing services to many industries in Botswana. Under Nasquip, the corporate body is the subsidiary, trading as Power Fusion Solutions. This subsidiary is in the business of providing high-tech maintenance support to mining and electrical equipment of such companies as: Debswana Orapa Mines Debswana Jwaneng Mines PUMA Oil Company Botswana Railways Tati Nickel Mines BCL in Phikwe

3.1 Legal Ownership 3.1.1 The Members The company is registered with the under listed as members who have agreed to accept liability in accordance with the regulations of a company limited by shares. Name Tom Morapusi Gracious Dube Nationality Motswana South African Occupation Marketing Mechanical Engineer Position Managing Director Director

Power Fusion Bisley Protective Work Wear 3.2 The Board of Directors The Board of Directors of the company consists of two main shareholders of the company and the following members: Rank Consult Representatives as accountants and finance consultants. Nasquip (Pty) Limited two directors. General Manager. Marketing Manager. Purchasing & Supply Chain Manager.

3.2.1 Bio data of Directors

3.2.1.1 Nasquip(Pty) Limited Directors
Mr. Gracious Dube:

Mr. Dube is a mechanical engineer by profession. He holds a Bachelors Degree in Electro-Mechanical Engineering. He owns and runs a successful multi-million business involved in the maintenance support of heavy duty and hi-tech mining equipment in South Africa. He has been in this business for the past seven years. He initiated the set up of Power Fusion Solution, an equivalent business of Igazilemvana South Africa(Pty)Limited. Prior to setting up his own business, Mr. Dube had worked as an engineer in KSB Pump SA (Pty) Limited and Fuelogic South Africa as a project engineer. He chairs the Board.
Mr. Tlhongbotho Morupisi

An equally successful entrepreneur is Mr. Morupisi. He worked at Minequip (Pty) Limited as an assistant technician. He secured another job at Seapro (Pty) Limited as a marketing and sales personnel. Mr. Morupisi carried his marketing expertise to Meander Welding (Pty) limited , this time, as the marketing executive for both local and external markets. His last employment as an employee ended at Machinery Equipment Engineering (Pty) Limited as a marketing manager. Mr. Morupisi joined hands with Mr. Dube to form Nasquip (Pty) Limited with its subsidiary Power Fusion Solutions when Mr. Dube was looking for market to extend his South African company services to the mining industry in Botswana. Mr. Morupisi has since 2007 been a formidable market player in the industry. 3.3 Bankers Bankers of the company are the Stanbic Bank of Botswana Ltd, Fairground, Gaborone. 3.4 Accountants/Auditors Rank Consult is the Companys accountants. The company proposes to appoint Dobson & Co as its Auditors. 5

Power Fusion Bisley Protective Work Wear 4.0 PROJECT DESCRIPTION The project involves assessing the industrial needs of treated protective wear, procuring the products from Bisley Australia by imports to Durban port, getting the products to the warehouse of Power Fusion Solutions in Gaborone by road transport and selling to various markets as per individual target customer demands country by country and industry by industry. The core products to be procured for sale include the following with their peculiar characteristics: 1. 2. 3. 4. 5. 6. Bisley Protective Wear Bisley Flame Resistant Bisley Insect Protection Bisley Anti Static Wear Bisley Heat Management Bisley Anti-Bacterial.

The above listed products are results of extensive research geared towards designing industrial wears which provide health and safety solutions to most important resource of any organization, that is, the human resource. The Health Solution wear provides: Insect Protection Treatments, Heat Management Treatments and Anti-bacterial Treatments. The Safety Solution wear provides: Fire Resistant fabrications, treated and inherent Anti-Static properties. It is for the purpose of buying the initial stock of the protective wear that the promoters are seeking a loan facility of P3,500,000. The loan will be utilised mainly for the purchase of stock. The cost of acquiring fixed assets comprising office equipment, furniture and fixtures, marketing and promoting the products to the target markets would be financed by equity contributions. 4.1 Location The project will be located at Plot 22041, Units 4 & 12 at Gaborone West Industrial site, of which Unit 4 is currently being occupied by Powerfusion Solutions. Unit 12 is an additional extended unit for the purpose of this new business. The warehouse infrastructure is well developed and will be further partitioned to cater for shelving, point of sale office, procurement and stock control offices, etc. Electricity to the site is available from the mains / national grid. Water is available from the national water company main pipelines. Telecommunication facilities are also available at the site through the national telecommunications network. Loading and off-loading bays are equally available. 6

Power Fusion Bisley Protective Work Wear 4.2 Land and Buildings The company is currently in the process of acquiring a piece of land to build its own structure to accommodate the two types of businesses. Estimated size of the factory shed earmarked for construction is 2,500 square meters. This is a medium term plan and would possibly take the next two years to be effected. 4.3 Vehicles.

The company has got a fleet of four vehicles one of which is a Toyota Hilux utility vehicle. Since buyers would have to collect stock from the warehouse, the company would have to make do with current fleet of vehicle it has for now.
4.4 Office equipment.

A full complement of office equipment will be provided for the offices of management and administrative staff on the project. This will include computers with printers, fax machines and photocopier. The cost of office equipment is estimated in the appended budget.
4.5 Furniture and Fixtures Furniture and fixtures budget are estimated in the appended budget.

Power Fusion Bisley Protective Work Wear 5.0 MARKET CONSIDERATIONS

MARKET ASSESSMENT:

The assessment of the first targeted markets of the project thus Botswana, South Africa and Namibia is based on secondary data. Primary data shall be collected later after the product has been tested in these markets. Before discussing other key phenomenon related to markets of the project first we need to look into the product and the supplier.

5.1. Product:
The protective work wear is manufactured by Bisley Company in Australia and the brand name is BISLEY WORK WEAR. The product has unique characteristics compared to protective work wear which are in the market. The product protects the user from diseases such as malaria and other insect transmitted diseases. Also it is flame resistant, prevents the development of unpleasant odours caused by bacteria (anti bacteria) contains negastatic threads which actively despite electrical charges before accumulation (antic static). The product is made from fabrics that comply with worldwide standards aimed at protecting the wearer in risk environment. Hence, it is good in the protection of industrial workers, health personnel, fire fighters and individuals. The product consists of several lines such as Overalls, Pants, Shirts, Jackets, Vests and Wrist mosquito band.

5.2. Supplier:
The product shall be manufactured and supplied to Power Fusion Company by Bisley Work Wear Company based in Australia. Bisley Work Wear Company manufactures and distributes a large range of industrial high quality work wear. The company was established in 1958 in Australia by Joe Gaza. Today the firm is one of the leading branded apparel Companies. It has achieved the growth through the multi-branded strategy of concentrating on core product categories which are Work wear, Business Wear, School Wear and Intimate Apparel. The second stage in the evaluation is to define target markets, segments and consumers to which the product shall be targeted.

Power Fusion Bisley Protective Work Wear

5.3. Target Markets:

Power Fusion is going to be the sole agent for Bisley Work Wear in the SADC region. Therefore the target markets are the SADC countries and the approach of reaching these markets shall be as follows. Short Term: The markets that shall be targeted for the first two years (2012-2013) are Botswana, South Africa and Namibia. In the same period market survey shall be conducted to assess Zambia and Zimbabwe markets. Medium Term: In the third year of the project, Zambia and Zimbabwe shall be catered for. At the same period Mozambique and Democratic Republic of Congo markets shall be surveyed. In the fourth year, Democratic Republic of Congo and Mozambique shall be covered. Market shall be carried out to assess Tanzania, Angola and Kenya markets. Long Term: In the fifth year, Tanzania, Angola and Kenya markets shall be covered. And in the sixth year markets covered shall consists, Botswana, South Africa, Namibia, Zambia, Zimbabwe, Mozambique, Democratic Republic of Congo, Angola, Tanzania and Kenya. 5.4. Target Segments: The key segments in the target markets are Mining, Construction, Manufacturing, Tourist Hotels and Resorts and Health Services. 5.5 Target Consumers The target consumers in the segments mentioned are workers. The next stage is to a have an overview of protective work wear industry and how competitive it is in each of the three markets (Botswana, South Africa and Namibia). Also consider how the target segments have been performing in the past and their expected output. At the same time examine the emerging opportunities in the segments, the needed workforce to match with the expected output.

Power Fusion Bisley Protective Work Wear

5.6. Protective Work wear Industry: 1. Structure: The protective work wear industry has several key plays which include: (a). Government Organization These are responsible in creating, developing and enforcing regulations and standards. (b). Raw Materials Suppliers These provide raw materials needed for making protective garments. (c). Manufactures Convert raw materials into finished garments. (d). Suppliers Distributes finished garments to sellers. (e). Sellers Sell the finished garments to consumers. 2. Type of protective work wear: Most of major protective work wear manufactured fall under these categories: -Chemical protective garments which cover chemical resistance clothing and gloves. - Heat and Flames garments which consist of industrial resistance garments for use in electric and gas utilities. -Body Armor safety garments against body harm. 5. 7. Evaluation of Target Markets: A. Botswana: The economy of the country has shown impressive growth after global financial crisis. In 2008, economic growth of 3.1 percent was recorded and contraction of 3.7 percent was recorded in 2009. According to 2012/13 budget speech, GDP growth in the third quarter of 2011 was 7.8 percent whilst in the same period 12.5 percent was recorded in 2010. The key sectors contributing to the growth are mining, construction, manufacturing and tourism. (1) Mining: The sector contributes substantially to GDP (approximately 32.4%). For the period covered 2008 2010, the output of the sector fluctuated. In 2008, the output (sales) wasP37,515 (million) and 2009 the output fell to P21,464 (million) . The decline was due to low diamond production caused by worldwide financial meltdown. In 2010, the output rose to P31, 561 (million) which is almost 15 percent increased compared to 2009 output (table1).

10

Power Fusion Bisley Protective Work Wear The key minerals for the sector are Copper Nickel, Copper, Diamond, Soda Ash, Coal, Gold and Uranium. The mines of each type of mineral are: Type of mineral Copper Nickel Diamond Soda- Ash Coal Gold Name of the Mine Selebi Phikwe,Tati, Boseto, Mowana and Thakadu Orapa, Jwaneng, Damtsha, andLetlhakane Sua Pan Morupule Colliery Mupane, Matsiloje

The sector is expected to grow as more as new mining projects are in the pipeline, these project include: 1. Main Copper Project: It is a new Copper mine which was expected to be operational from 2009/ 2010. 2. Nickel Project: These are Sunny side (south of Selebi Phikwe) and Maitengwe Nickel Project under prospecting. 3. Gope Kimberlite Project: The project is in the central of Kalahari Game reserve. 4.Mmamabula Coal Energy project: Commercial operation of the power Station is expected for late 2012 / beginning of 2013. 5. Mmamatse and Asenjo Coal Energy Project: Mmamatse project is in north east of Gaborone while Asenjo is north of Gaborone.

6.Uranium Project: The two projects are located at Letlhakane and Sese.

11

Power Fusion Bisley Protective Work Wear 5.8 Employment : The sector employs approximately 13, 000 people of which 80 percent are employed in Diamond and Copper Nickel mines. A. Construction: (a) Trend : From 2008 to 2010, the sectors contribution to GDP was almost 4.7 percent (on average). In terms of output, the sectors growth was 20 percent from 2008 to 2009 and 19.8 percent from 2009 to 2010. In 2011, the output rose by 7.8 percent from that of 2010. However for the entire period of the first three years, the sector maintained the same growth rate of 20 percent, much of the growth has been driven largely by government projects. 1. Emerging Opportunities: These shall be new projects from the government of which the sector will benefit (2012 budget speech). The project include, (a) Dry Port facility at Walvis Bay in Namibia (b) Morupule B Power Station. (c) Renewable Energy for rural electrification. (d) Major Villages Water Supply. (e) Construction works at dams of Thune, Lotsane, Dikgatlhong and North South Carrier 2 project. (f) Construction of Kasane Airport, Charles to Ncojane road,Tonota to Francistown road. (g) Construction of Shashe, Tholodi,Tati Kazangula and Thamalakane bridges. (h) Maintenance, Repairs and refurbishment of government assets. Besides government projects, there exists other opportunities in tourism and real estate developments. 2. Workforce: The sector employs around 20,000 people average.

12

Power Fusion Bisley Protective Work Wear B. Manufacturing:

B.1 Growth contribution to GDP:

The sector contributed positively to GDP. In 2008 the output was P3,111 (million) in 2009 are increase of 7 percent. In 2010, P3,857 (million) was generated and compared to 2009, the output rose by 15 percent. The sector continued to grow as the output in 2011 was P4,389 (million), a rise of 13.8 percent to 2010 output. The overall growth of the sector from2008 to 2011 was 41 percent. The sector consists of several business activities including protective clothing and wearing apparels,( table 3) because of the fragmentation of the activities in the sector, there no data showing how much protective clothing contributed to the sector though. B.2 Emerging opportunities: The sector is critical in diversifying the economy. The activities with great potential are meat and Meat Production Processing, Textile Tanning and leather Products , Cement Manufacturing, Fabricating Metal Products, Manufacturing of Jewelry and recycling of metal and Metal Waste. Currently, Ministry of trade and Industry has identified key potential investment opportunities in areas such as: B.3Textile, Garments and Accessories: Manufacture of various textile and garments to take advantage of the Continuo Agreement and Africa Growth and Opportunity Act, which enables entry into the European Union and United of State America market free of duty and quota. B.4 Leather Products:

Manufacturing Leather products like bags, jackets and belts. B.5 Glass Products: Raw Materials such as Silica sand quartz, Quartzile, Limestone and Soda Ash are available for glass manufacturing. 13

Power Fusion Bisley Protective Work Wear

B.6 Jewellery: Cutting, Polishing and setting diamond and semi- precious stones. 1. Workforce: The sector employs around 36,365 people (2010). C. TOURISM 1. Growth and Contribution to GDP: The output which came from hotels and restaurants contributed 4.5 percent (on average) to GDP in the periods output rose fromP3,428 (million) in 2008 to P5,009 (million) in 2010 (46 percent increase). It is a growing sector and is considered critical in diversifying the economy. 2. Emerging Opportunities: Opportunities exist in diversification with ecotourism.

3. Workforce: The sector has a workforce of 16,969 people (2010). 5.9 Competition 1. General: Protective Work Wear Industry has few large producers and sellers and many small retailers. The few large producers and sellers control a big share of the market. Currently the two big players in the industry are Premier Work Wear Company and Pienaan Bros Company. Premier Work Wear Company is a leading manufacturer of clothing in Botswana since 1982. The company suppliers work wear to mines, Local Mines District Councils and Military. The types of protective garments supplied are uniforms, security uniforms, high visibility garments, rain wear, safety footwear, disposable wear, specialized work wear and personal protective equipments. The fabrics used in most of these garments contain 65 percent polyester, 35 percent cotton and a few with 100 percent cotton. Pienaan Bros Company is one of the leading manufacturer and supplier of work wear in South Africa. It offers a wide range of personal protective equipments ranging from eye 14

Power Fusion Bisley Protective Work Wear protection, head and face protection, respiratory protection, gloves, protective clothing to safety wear. The industry is highly competitive as there are no barriers of entry and as such you find many small firms selling protective work wear, because of that prices are not stable. 2. Strength: The strength of few large producers and sellers is that they have been in the business of protective clothing and work wear for a long time. 3. Weakness: Their weakness is that the products and garments they supply to the market do not have the characteristics embedded in Bisley garments. B. South Africa 1. General: South Africa is marked as an upper middle income economy by the World Bank. Other countries in the same category in Africa are Botswana, Gabon and Mauritius. The countrys economy is reasonably diversified as sectors contributing to it includes mining, agriculture, fishery, food processing, clothing and textiles, energy, telecommunication, motor vehicle manufacturing and assembly, financial, real estate, transportation, tourism, business services, wholesale and retail trade. 2. Target Segments: The major segments targeted at the start of the project are Agriculture, Mining, Manufacturing, Utilities, Construction and Tourism. Other sectors such as wholesale and retail, real estate and financial services shall be considered at a later stage of the project. 3 .Market of Protective Clothing: The major challenges of the market are product cost fluctuation, completion from low cost imports of protective work wear garments and increased labour costs. However due to sustained activities in the Mining and Construction industries provide permanent employment which in the end benefits protective equipment suppliers. Generally the emerging in energy related infrastructure development projects will offer strong areas of growth to suppliers of protective equipments. 4. Competition: Competition in protective work wear in the country is high as there are several firms which carry out the business. The key players are KRB safety products, Taurus work wear, Shutter lock suppliers, KN safety and protective Sujasebenza, 3M South Africa, 15

Power Fusion Bisley Protective Work Wear Wedge trade, Tshitangu Body Armor. In addiction there are other small dealers who get already-made garments from outside the country (imports). Due to lack of adequate data it is difficult to assess the strength of each of the big suppliers. The fabric contour of these garments lack features found in Bisley garments. 5. Work force: Employment by sector is provided in the table for which covers two years. The sectors (targeted) which experienced decline in workforce were Agriculture (2.5 percent) and Utilities (26.3 percent) workforce in the Mining, Manufacturing and Construction by (6.93 percent) and (1.4 percent) and (0.9 percent) respectively. 6. Target Workforce (2012 and 2013): For Agriculture and Utilities, the workforce shall be the same as that of 2011. For Mining and Manufacturing, Construction workforce shall increase at (6.93, 1.4 and 0.9 percent) respectively. 10 percent of the projected workforce shall be targeted. Hence the targeted workforce for the project shall be 390,976 people in 2013. C. NAMIBIA 1. General: Namibia is a low middle income country and pursues free market economic principles. The countrys economy is based on capital intensive industry and farming. Much of economic earnings are generated from commodity exports of minerals especially diamonds, livestock and fish. Furthermore the economies of South Africa as almost all of its imports originate from that country. The industries which play a vital role in the nation economy are Mining, Agriculture, Fishing, Manufacturing and Tourism. 2. Target Markets Segments: The target segments for the project are Mining, Agriculture, Manufacturing and Tourism. These sectors of the economy show growth from2010. Mining output has improved due to improvement in global demand. Agriculture improved because of good weather conditions. Also manufacturing expanded except Construction which contracted as this has been declining in residential building. The expected annual growth of GDP is going to be in the region of 4.4 percent in 2012, 4.8 percent in 2013 and 4.9 percent in 2014.

16

Power Fusion Bisley Protective Work Wear

3. Labor Force: According to 2010 labor Survey, the labor force for various sectors of the economy was 820,000 people. The workforce was divided among the sectors as follows: Agriculture (47 Percent) 385,400 Manufacturing (20 percent) -164,000 Services (33 percent) 270, 600 Target Workforce: The targeted rate is 10 percent of the total workforce in the segments of interest. In this case Agriculture, Manufacturing, Mining and construction have a total workforce of 549,400 people. So 54,940 people shall be targeted for the project in 2012. Based on the expected growth rate of 4.8 percent in output by 2013, the workforce obviously is going to increase in the same proportion. Then the target workforce in 2013 is going to be around 57,577 people. Protective Work Wear Industry: The industry constitutes large and small suppliers. The key suppliers are: a. Diagram Wear: It provides, lightweight, breakable fire resistant, hi viz clothing that is fire resistant. b. 3M Peltor Communication Solution: It provides communication equipment for noisy and hazardous environment. c. 3M occupational Health and Supply Products: Manufacturers are supplier of protective garments on health. d. Univary Global (pty) Ltd: Manufacturers of personal protective equipment. e. Tilsatei: Is a leading supplier of cut resistant and hard protection. 17

Power Fusion Bisley Protective Work Wear

f.

Lake Industries Fire: Manufacturer of protective clothing such as body protection, hands and arms against chemical, flame and heat.

g. Scott Safety: Manufacturer of innovative respiratory and other personal protective equipment and safety devices. Strength: Most of these suppliers have been operating in the industry some years. They have distributing networks and carry out regular advertisements of their products and provide price discounts or big purchases. Weakness: Fabrics of most garments are simple and dont protect from insect bites such as mosquitoes. e. Market Potential: 1. Workforce: The third step is to ascertain the demand for the target. Consumers are the workers in various economic sectors of the targeted markets. Several basis of obtaining the workforce in the coming two years (2012 and 2013) were used. In the case of Botswana, the expected workforce was based on the expected output. The ratio of output to workforce of the previous years was used to compute the expected workforce once the expected output is calculated. For South Africa the expected workforce for the same period was based on the average rate of manpower increase in each sector for the past two years (2010 and 2011). And Namibias expected workforce for each sector was based on the anticipated growth rate in output of each sector, so the previous years manpower to attain the expected workforce in the following years (see the figure table 5). 2. Target Consumers Since the product is new in the targeted markets, efforts should focus on acquiring 10 percent of the market share in each segment for the first two years of the project. The anticipated number of consumers (workers) in each of the target market is summarized on table 6. 18

Power Fusion Bisley Protective Work Wear 3. Demand: Expected demand depends on the usage of protective work wear by workers. In normal circumstances a worker needs the following work wear in a year? 2 Overalls 2 Jerseys 6 Shirts (3 short sleeves and 3 long sleeves) 4 trousers 2 pairs a glove 12 Mosquito wrist band The demand of each category shall be as follows: Type of Work Wear Usage Number of Workers 2012 Overalls Jersey/Jackets Shirts Trouser Gloves Mosquito Wrist Band 2 2 6 4 2 12 455,776 455,776 455,776 455,776 455,776 455,776 2013 456,440 465,440 465,440 465,440 465,440 465,440

The big question is how the demand is going to be achieved? This brings us to a point of what kind of marketing is required. We suggest the following: 2. Marketing strategies: The project is focusing on a few segments in each targeted markets. Hence focused marketing strategy is appropriate. The main thrust is to create sustainable competitive advantage. To climb and reach at the top of the ladder in a competitive protective clothing industry as we have seen, marketing activities have to be geared towards creating customer value on garments offered. The best route for the firm to take at the start of the project is to differentiate itself from its competitors. This can be done through conveying to customers the following: 19

Power Fusion Bisley Protective Work Wear 1. Additional benefits of the new garments which are not currently offered. 2. Performance features and appearance of garments. 3. Emphasis on brands favorable image and reputation aimed at heating unique emotional proposition. 4. Relating price to quality and price discounts to each type of garment. To achieve the above, the first step is to conduct product testing and this requires the firm to have a strong selling team. There after what is needed is to carry out different types of promotion such as a wider communications mix employing advertising, public relations with media in order to gain promotions during launch and re-launch with different markets. Also a strong linkage between the Supplier and Buyer has to be strengthened so as to ensure that merchandize/garments are supplied on time and respond faster to changes in each market. b. Specific Niche Market Strategies: Various strategies shall be developed after product testing. 6.0 Management 6.1 Business Structure: The project of protective work wear is an additional business activity to the existing one. The current organization structure has to be extended horizontally and vertically in order to accommodate the new project.(figure 1) Horizontally, a new department of work wear has to be created. The department should be headed by a General Manager who will be reporting to the Managing Director of the company. Vertically (downwards), the General Manager shall be assisted by Procurement and Supply Manager, Marketing Manager and Accounts and Administration Manager. 6.2 The General Manager Duties: 1. Implement the procurement of supply marketing policies related to protective work of the project. 2. Continually develop expertise to support growth for the new projects. 3. Build and develop relationship with the Supplier and Customers. 4. Forecast procurement needs for the project. 20

Power Fusion Bisley Protective Work Wear 5. Monitor markets needs, purchasing and the supply of protective work wear and taking corrective actions. 6. Help to lower the cost of handling garments and secure favorable agreements. 7. Liaise with other departments especially Accounts Payable. 8. Identify and develop training opportunities for the departments. 6.3 Procurement and Supply Manager: The Manager shall be assisted by senior supplier and purchasing officers who in turn shall be assisted by Assistants (Buyer and Supplier). The duties of the manager shall include: 1. Developing and implementing policies and procedures for the project. 2. Continuously analyse markets and delivery systems so as to maintain optimal economic order quantities. 3. Control purchasing and supply department budgets. Annually review standard cost and drive cost of garments. 4. To manage the purchasing and supply staff. 5. To oversee staff training of the department. 6.4 Marketing Manager: The Manager shall be assisted by Research officers, Public Relations and creative services Officers. At the start of project part of research and creative services shall be outsourced. The responsibilities of the manager shall include: 1. Formulate, direct and coordinate marketing activities and policies to promote the product. 2. Developing marketing strategies relating to pricing, promotion, distribution of garments in its segment of the targeted market.

21

Power Fusion Bisley Protective Work Wear 3. Conduct regular market surveys to assess consumer needs, competition and other micro and macro factors that might influence on the project. 6.5 Staff Required: The project needs around 20 employees to start with. The breakdown is as follows: Position General Manager Purchasing and Supply Manager Marketing Manager Marketing & Sales Personnel Senior Buying Officer Senior Supplying Officer Assistant Buying Officers Assistant Supplying Officers Public Relations Assistants Secretary Cleaner Driver Loaders Accounts Clerk Number 1 1 1 5 1 1 1 1 2 1 1 1 2 1 20

The Staff complements will increase as the business volume increases.

22

Power Fusion Bisley Protective Work Wear 6.6 ORGANISATIONS AND MANAGEMENT

The governance and management structure of the project is presented in the chart below.

5.1 Organisational Chart. Board of Directors

General Manager

Marketing Manager

Finance & Admin Manager

Secretary /Receptionist

Accounts clerk.

Driver

23

Power Fusion Bisley Protective Work Wear 6.7 The Board of Directors The Board of Directors is the Executive Council of the Company and is legally responsible for managing the activities of the Company. The Board shall appoint a very capable management team to be in charge of the operational management of the company and confines its role to the following: Initiation and formulation of policies and guidelines for efficient management and administration of the company Enforcing sound and proper financial management practices on the part of management Periodic assessment of operational performance of the company Approve corporate strategies plans and budgets Appointment of management Safeguarding stakeholder interests.

7.0 SWOT ANALYSIS The data discussed about the project gives insight into the potential and critical issues that might affect the venture. The potential in this case refers to strength and opportunities that the project has. The critical issues are factors on project weaknesses and threats to its survival.
Strength:

The projects strength lies in the new product/s (work wear) to be offered to target markets. The product has unique characteristics compared to garments which are currently offered by competing companies. The other factor is the supplier. The supplier has been in the business of work wear for many years and has led in protective work wear technology.
Weakness:

The product is new into the markets; as such less known to consumers in those markets. Therefore a lot has to be done to create awareness and build brand loyalty. The industry of protective work wear is highly competitive and less regulated. Through innovation it is easier for competitors to come up with the similar or superior product offerings.
Opportunities:

Several opportunities exist due to the uniqueness of the product. The product is friendly usable in all types of working conditions. For instance, in mining it protects the user from insects bites, cools the body when it is hot and vice versa. The same applies in farming, tourism and manufacturing industries. The product is also usable in hospitals by protecting patients from mosquitoes, bed bugs, etc.

24

Power Fusion Bisley Protective Work Wear

Threats:

The current crisis in Europe might affect the economy of the target markets. This may result into new demand for most of the key export commodities such as minerals, dairy products, fish, textile, etc. The effects are low output of these commodities. Inflation rise and less returns to firms that buy protective work wear for their employees may discourage consistent purchases. Competition is another threat as mentioned earlier; new products innovations in the industry are high. Transportation: The garments are transported from Australia to Botswana via South Africa. Delays may occur due to mechanical breakdown of all means of transport. There may also be a change in customs tariffs. These above mentioned dismal factors may affect the business in the following ways: Price increases thereby possibly lowering demand for the products. Delay in supply of garments Shortage of stock Loss of market share Financial loss to the business.

25

Power Fusion Bisley Protective Work Wear 8.0 FINANCIAL ANALYSIS 8.1 Assumptions

Interest rate on loan is estimated at 12.5 %. Inflation rate of 10% is assumed and reflected in the operating cost. Costs are projected to increase by 10% every year.
Other assumptions are stated in the requisite schedules. 8.2 Market Demand & Sales Projections
8.2.1 Market Demand & Unit Cost of Starting Stock

Product Description

Yearly Demand(Bots wana)(Quantity)

Starting Stock

Cost /Unit from Australia to Durban. AUS $ $18.70 $18.70 $34.75 $29.90 $29.90 $96.10 $5.50 $7.50

(Quantity) 3224 3224 1505 752 752 1075 6,448 9,673

Cost /Unit from Australia to Durban. (BWP) P149.60 P149.60 P278.00 P239.20 P239.20 P768.77 P44.00 P58.00

Shirts- Mns BW Insect Protection Cool/Navy Blu- short sleeves Shirts- Mns BW Insect Protection Cool/Navy Blu- Long sleeves Pants- Mns BW Pnt Vctr Repelant Drl Cool LT Blu- Navy Blu Overalls- Anti Static- P16 BAB0007 Navy Blu BTOE Jackets-BJ6732 Black-BBlk NavyBPCT BC8001 BPCT- Mns BW CRL Flame Retardant Navy Blu VRSX7205 BBLK-MNS SOCK INSECT PROTECTIONBLACK Bisley Anti-Mosquito Wrist Band (Pack of Five)

64,488 64,488 42,992 21,496 21,496 21,496 21,496 128,976

26

Power Fusion Bisley Protective Work Wear

8.2.2 Market Demand & Total Cost of Starting Stock

Product Description

Yearly Demand(Bots wana)-

Starting Stock

Cost /Unit from Australia to Durban(CIF, Customs, Transport to Gaborone) ( BWP) P374.01 P374.01 P565.03 P310.96 P324.47 P1,921.99 P110.00 P75.40

Total Cost from Australia to Durban(CIF, Customs, Transport to Gaborone) (BWP) P1,205,957.84 P1,205,957.84 P850,206.66 P233,953.87 P244,004.86 P2,065,757.60 P709,395.04 P729,359.28 P7,244,592.98

(Quantity) Shirts- Mns BW Insect Protection Cool/Navy Blu- short sleeves Shirts- Mns BW Insect Protection Cool/Navy Blu- Long sleeves Pants- Mns BW Pnt Vctr Repelant Drl Cool LT Blu- Navy Blu Overalls- Anti Static- P16 BAB0007 Navy Blu BTOE Jackets-BJ6732 Black-BBlk NavyBPCT BC8001 BPCT- Mns BW CRL Flame Retardant Navy Blu VRSX7205 BBLK-MNS SOCK INSECT PROTECTIONBLACK Bisley Anti-Mosquito Wrist Band (Pack of Five) TOTAL COSTS 64,488 64,488 42,992 21,496 21,496 21,496 21,496 128,976 386,928

(Quantity) 3,224 3,224 1,505 752 752 1,075 6,448 9,673 26,655

27

Power Fusion Bisley Protective Work Wear 8.2.3

Market Demand & Total Cost of Starting Cost in Australian Dollar

Yearly Demand(Bots wana)-

Starting Stock

Total Cost from Australia to Durban-CIF (starting stock)

Total Cost from Australia to Durban-CIF (Starting stock)

Product Description (Quantity) Shirts- Mns BW Insect Protection Cool/Navy Blu- short sleeves Shirts- Mns BW Insect Protection Cool/Navy Blu- Long sleeves Pants- Mns BW Pnt Vctr Repelant Drl Cool LT Blu- Navy Blu Overalls- Anti Static- P16 BAB0007 Navy Blu BTOE Jackets-BJ6732 Black-BBlk NavyBPCT BC8001 BPCT- Mns BW CRL Flame Retardant Navy Blu VRSX7205 BBLK-MNS SOCK INSECT PROTECTIONBLACK Bisley Anti-Mosquito Wrist Band (Pack of Five) TOTALS 64,488 64,488 42,992 21,496 21,496 21,496 21,496 128,976 386,928 (Quantity) 3224 3224 1505 752 752 1075 6,448 9,673 26,654.68 (AUS$) $60,296.28 $60,296.28 $52,289.02 $22,495.56 $22,484.80 $103,288.28 $35,468.40 $72,549.00 $429,167.62 (BWP) P482,370.24 P482,370.24 P418,312.16 P179,964.51 P180,404.80 826,274.00 P283,747.20 P561,045.60 P3,414,488.75

28

Power Fusion Bisley Protective Work Wear

8.2.4

Cost & Sales Projections

Product Description Shirts- Mns BW Insect Protection Cool/Navy Blu- short sleeves Shirts- Mns BW Insect Protection Cool/Navy Blu- Long sleeves Pants- Mns BW Pnt Vctr Repelant Drl Cool LT Blu- Navy Blu Overalls- Anti Static- P16 BAB0007 Navy Blu BTOE Jackets-BJ6732 Black-BBlk NavyBPCT BC8001 BPCT- Mns BW CRL Flame Retardant Navy Blu VRSX7205 BBLK-MNS SOCK INSECT PROTECTIONBLACK Bisley Anti-Mosquito Wrist Band (Pack of Five) TOTALS

Starting Stock (Quantity) 3,224 3,224 1,505 752 752 1,075 6,448 9,673 26,654.68

Selling Price/Unit (BWP) P542.32 P542.32 P1,015.00 P470.50 P470.50 P2,697.91 P178.65 P105.56

Total Sale Starting Stock (BWP) P1,748,439.68 P1,748,439.68 P1,527,575.00 P 353,816.00 P 353,816.00 P2,900.253.25 P1,151,935.20 P1,021,081.88 P10,805,356.69

Additional sale for the year (BWP) P1,748,439.68 P1,748,439.68 P1,527,575.00 P 353,816.00 P 353,816.00 P2,900.253.25 P1,151,935.20 P1,021,081.88 P10,805,356.69

First Year Sale

(BWP) 3,496,879.36 3,496,879.36 3,055,150.00 707,632.00 707,632.00 5,800,506.50 2,303,870.40 2,042,163.76

21,610,713.38

9.0 Total Project Cost & Financing Plan The total capital outlay involved in the project is estimated to be P7,930,237 as shown in schedule 1. Out of this amount an existing equity investment of P685,500 has been made for securing the warehouse lease, fixed assets purchase and to cover pre-operational costs. Additional equity investment capital of P3,3744,737 would be made available for customs clearance, transporting the goods from Durban to Gaborone and other sundry expenses factored in the budget. An initial working capital requirements estimate is shown in schedule 2.
9.1 Source of Funding and Utilisation of Funds

It is planned to finance the project cost of P7,930,237 with a term loan of P3,500,000 payable over a five year period including four months moratorium on principal and equity contribution of P4,430,237. Loan funds are expected to be sourced from one financing institution or a syndicated. Financing arrangement will be utilised for acquisition of initial stock purchase from Bisley Australia. 29

Power Fusion Bisley Protective Work Wear

9.1.1 Statement of Sources and Application of Funds

Sources

Equity Investment (BWP000)

Term Loan Investment (BWP000)

Total

(BWP000) Equity Loans 4,430 3,500 4,430 3,500

Application Infrastructure Dev. Office Equipment Furniture And Fixture Motor Vehicles Working capital Pre-operating Costs 90 91 60 0 4,044 145 3,500 90 91 60 0 7,544 145

Total

4,430

3,500

7,930

DEBT/EQUITY RATIO: The above capital structure gives the project a debt to Equity ratio of 45:1. This is quite low and therefore acceptable to multilateral lending agencies.
9.2 Loan Repayment Schedule

It is assumed that a four months moratorium will be granted on payment of principal and interest. This is because the first four months after the loan is contracted will be used for testing the market. Thus the first four months interest has been capitalised. An interest of 12.5 % has been used in computing the loan repayment schedule. It is also assumed that interest will be charged on a declining balance basis. Annual principal loan repayment is P994,913 to which is added accruing interest. The loan will be fully repaid by the end of the fifth year of commencement of operations. Schedule 4 shows the loan amortisation schedule. Repayment is calculated on an annual basis. 30

Power Fusion Bisley Protective Work Wear 10.0 Financial Analysis.

10.1 Projected Income Statement

The Projected Income Statement is shown in schedule 6. Revenues: The assumptions showing how the revenues were arrived can be found in schedule 5. It is assumed that the company would turn stock by two times in the year. Revenues, costs and net profits projections are as shown below 10.1.1 Highlights of Operating Performance Year Revenues (BWP) Operating Costs (BWP) Net Profits (BWP) Year 1 21,610,991 18,825,069 Year 2 25,933,189 22,017,721 Year 3 31,119,826 26,012,766 Year 4 37,343,792 29,140,012 Year 5 44,812,550 32,843,480

2,785,922

3,915,468

5,107,060

8,203,780

11,969,070

10.2 Funds Flow Analysis

The Funds Flow Statement in Schedule 11 shows that there will be sufficient cash balance of BWP6,229,254.00 at the end of the first year of operations. The cash balance position improves in the second year to a balance of BWP9,653,530.00 in the second year which increases steadily to BWP34,370,507.00 by the end of the fifth year. This shows that the project will not need critical funding after the initial loan funds are provided for implementation.
10.3 Discounted Cash flow Analysis

The Net Present Value (NPV) is positive value of BWP15,717,935 and the Internal Rate of Return is 57.93%. This is far higher than the cost of borrowing (hurdle rate) which is 10.5% and the weighted average cost of capital of 8%. The discounted cash flow analysis is presented in Schedule 7
10.4 Sensitivity Analysis.

The project is tested for sensitivity by reducing projected revenues and increasing operating costs. Schedules 8 & 9 show the results of the sensitivity tests. When revenues are reduced by 10%, the projected profits fall to P19,449,891 in the first year. The NPV reduces to P6,910,973.

31

Power Fusion Bisley Protective Work Wear When operating costs are increased by 10%, the project still exhibits viability. The Net Present Value is still positive with a value of P9,106,216. The IRR is 38.64% which is still higher than the hurdle rate of 10.5% and the weighted average cost of capital of 8% The above tests show that the viability of the project will not be affected in any way if there should be a shortfall in projected revenues of 10% or costs should escalate by 10%. The underlying factor to the success of the business is to get the target customers to confirm orders for the products and ensure that sales turnover rises over the projected financial projections.
10.5 Payback Period

The payback period for the project is 6 years 5 months.

10.6 Debt Servicing

The average debt-servicing ratio is 5.1 as shown in schedule 11. 11.0 Socio Economic Benefits The project is being developed as part of measures to boost and accelerate the development and production of garments and textiles for exports. Employment creation. It will lead directly to creation of employment for 20 persons and indirectly to over 5,000 persons who will work for Bisley as it is expected to relocate its treatment plant to Botswana. 12.0 RECOMMENDATION The results of the study show that the project is technically feasible and financially viable. The project will be able to generate enough funds from operations to sustain average debt servicing of P944,913 annually for five years. The project will pay back the initial investment in five years four months. Apart from the financial performance of the company, there are substantial socio economic benefits to be gained from the project, the prime ones being employment generation and also the creation of a competitive textile and garments industry in Botswana. The project is highly recommended to prospective financiers.

32

Power Fusion Bisley Protective Work Wear

Organization Structure: POWERFUSION

Manager Director Manager Director

33

Power Fusion Bisley Protective Work Wear TABLE 1: BOTSWANA DOMESTIC PRODUCT BY ECONOMIC ACTIVITY (P MILLION) ECONOMIC ACTIVITY PERIOD (YEARS) 2008 Mining Manufacturing Construction Hotels and Restaurants Water Electricity 37,515 3,111 3,571 3,428 565 1,776 2009 21,464 3,343 4,313 4,062 615 1,794 2010 31,516 3,857 5,169 5,009 622 2,022 2011 34,622 4,389 5,572 5,410 672 2,378

34

Power Fusion Bisley Protective Work Wear Percentage to GDP (%)

Mining Manufacturing Construction Hotels and Restaurant Water Electricity

40.8 3.4 3.9 3.7 0.6 1.9

26.1 4.1 5.3 4.9 0.7 2.2

31.3 3.8 5.1 5.0 0.6 2.2

30.1 3.8 4.8 4.7 0.6 2.1

Total GDP

91.981

82.096

100.935

115.00

Source: Bank of Botswana, Financial Statistics, November 2011.

35

Power Fusion Bisley Protective Work Wear TABLE 2: BOTSWANA

EMPLOYMENT BY SECTOR

SECTOR

PERIOD (YEARS) Sept 2007 Sept 2008 5,100 10,200 37,000 20,000 2,000 46,000 16,000 12,000 7,500 Sept 2009 5,200 10.100 36,000 22,000 3,000 47,000 17,000 13,000 8,000 Sept 2010 6, 376 11,329 36,365 23,164 3,783 47,123 16,969 12,742 8,363

Agriculture Mining Manufacturing Construction Water and Electricity Wholesale and Retail Hotels and Restaurants Transport and communication Finance and Business Services

5,100 10,100 36,000 20,000 2,000 44,000 15,000 13,000 7,000

Sources: Labour Report 2007 2010.

36

Power Fusion Bisley Protective Work Wear TABLE 3: BOTSWANA MANUFACTURING INDUSTRY Types of Activities Meat and Meat Products Dairy Products Grain Mill Products Other Foods products (e.g. sweets, chocolates) Beverages Textile Clothing and Weaving apparel Tanning and leather products Footwear Wood and Wood Products Paper and Paper Products Printing and Publishing Chemical and Chemical Products Rubber and Plastic Products Cement Manufacturing Non Metallic Mineral Products Basic Metals Fabricated Metal products Machinery and Equipment Radio, Television and Communication Products Medical, Optical instruments Motor vehicle, Trailers

37

Power Fusion Bisley Protective Work Wear Furniture Manufacturing of Jewellery Manufacturing of other products Recycling Processing of Metal and Non Metal Waste

Source: Government Statistic report, Sept 2010

TABLE 4: SOUTH AFRICA

38

Power Fusion Bisley Protective Work Wear

EMPLOMENT BY SECTOR

INDUSTRY Sept 2010 Agriculture Mining Manufacturing Utilities Construction Trade Transport Finance and other business services Community and Social Services Private Households Total 640,000 303,000 1, 713,000 99,000 1,076,000 2,947, 000 773,000 1,625,000 2, 678,000 1, 119,000 12, 975,000

YEARS Sept 2011 624,000 324,000 1, 737,000 73,000 1,086,000 3, 012,000 756,000 1, 768,000 2, 836,000 1, 098,000 13, 318,000

Source: Quality Labor force Survey, Quarter 3, 2011

TABLE 5: WORKFORCE PROTECTION

39

Power Fusion Bisley Protective Work Wear A. BOTSWANA A. 1. Output projection Output (P million) Sectors Mining Manufacturing Construction Hotels and Restaurants 2008 2009 2010 2011 2012 2013

37,515 21,464 31,516 34,622 38,084 41,457 3,111 3,343 3,857 4,389 4,994 5,682 3,571 4,313 5,169 5,572 6, 006 6,474 3, 428 4,062 5,009 5,410 5,843 6,311

40

Power Fusion Bisley Protective Work Wear A. 2. Workforce Projections Number of Workers Sectors Mining Manufacturing Construction Hotels and Restaurants 2008 2009 2010 2011 2012 2013

10,200 10,100 11,329 12,445 13,671 14,901 37,000 36,000 36,365 41,381 47,085 53,572 20,000 22,000 23,164 24,970 26,915 29,015 16,000 17,000 16,969 18,328 19,795 21,380

Totals

83,200 85,100 87,827 97,124 107,446 118,865

A. 3. Target Workforce Number of Workers Sectors Mining Manufacturing Construction Hotels and Restaurant 2012 1367 4709 2692 1980 2013 1490 5357 2902 2138

Totals

10,748

11,887

TABLE 5 B. SOUTH AFRICA B. 1. Workforce Projections Number of Workers (2011 figures) 41

Power Fusion Bisley Protective Work Wear Industry Agriculture Mining Manufacturing Utilities Construction Total 2012 624,000 346, 455 1,761,336 73,000 1096,092 3,900,883 2013 624,000 370,467 1,786,013 73,000 1106,277 3, 959, 7572

B.2. Target Workforce

Number of Workers Industry Agriculture Mining 2012 62,400 34,645 2013 62,400 37,047 42

Power Fusion Bisley Protective Work Wear Manufacturing Utilities Construction Total 176,134 7,300 109,609 390.088 178,601 7,300 110,628 395,976

TABLE 6 Targeted Workforce Country Industry Number of Workers 2012 Botswana Mining 1367 2013 1490

43

Power Fusion Bisley Protective Work Wear Manufacturing Construction Hotels and Restaurants 4709 2692 1980 10,448 5357 2902 2138 11,88

South Africa

Agriculture Mining Manufacturing Utilities Construction

62,400 34,645 176,134 7,300 109,609 390, 088

62,400 37,047 178,601 7,300 110,628 395,976

Namibia

Agriculture Manufacturing, Mining and Construction

38,540

40,304

16,400

17,273

54,940 Grand total 455,776

57,577 465,440

TABLE 5 C. NAMIBIA C.1. Workforce Projection Number of workers Industry 2012 2013

44

Power Fusion Bisley Protective Work Wear Agriculture Manufacturing, Mining and construction Total 549,400 575,770 384.580 164,820 403,039 172,731

C.2. Target Workforce Number of Workers Industry Agriculture Manufacturing, Mining and Construction 2012 38,540 16,400 2013 40,304 17,273

Total

54,940

57,557

45

Power Fusion Bisley Protective Work Wear

46

Power Fusion Bisley Protective Work Wear

47