Kassa & Sons Furniture Factory Plc

1. EXCUTIEVE SUMMARY

1. PROJECT EXECUTIVE SUMMARY

1.1 PROJECT BRIEF
The proposed business plan is for setting up a Wooden Furniture Manufacturing Unit in Addis
Ababa, Ethiopia. This project will be capable of integrated manufacturing of wooden furniture starting
from cutting of wood to retailing of product to the customer.
The factory will produce six different types of products and each made from different material inputs. The
total sales value at the end of first year is estimated as birr 48,477,678.72 at working capacity. And with
various capacities building programme, annual sales value will increase by 15-20% higher in the second
year and grow up to 58,173,214.46.
The total capital cost of the project is Birr. 4,623,544. The major raw material used will be good quality
Pine wood which is readily available for use in furniture production. Approximately 51 employees will be
employed in this furniture factory. This factory will start Manufacturing approximately in 10-12 months.

1.2 FINANCIAL SUMMARY

Estimated Sales Birr 48,477,678.72
Estimated Gross Profit Margin 36% = 17,451,964.34
Estimated Net Profit Margin 23.40%= 12,927,380.99
2. MARKET OPPORTUNITY
Wooden furniture forms the major portion of sales in Ethiopia. With the rapid increase in the
development of new housing schemes, the increased demand of wooden furniture is anticipated.
Furthermore, introduction of new schemes by different banks for house and consumer financing
have also raised the purchasing power of public. In the local market, demand for wooden furniture
is increasing for its unique style and elegant appearance. There seems to be a growing trend in the
gap of supply and demand in the future.

3. VISION AND MISION

VISION

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Kassa & Sons Furniture Factory Plc

To be the first choice to customers in meeting their needs for quality, delivery, & innovative design
furniture products.
MISSION
To provide high quality functional furniture at competitive prices to Individuals, Contractors,
Governmental and Nongovernmental organizations by implementing large scale modern
manufacturing process and systems.
4. GOALS AND OBJECTIVES

To standardize our product designs and ranges of furniture to fulfill varying customers

choice.
Increase monthly sales by offering customers short delivery times through stocking semi

processed standard products.

To increase production capacity by giving continuous training to employees.
To increase manufacturing efficiency by target based production control.
To utilize raw materials that has minimum impact on the environment and develops a
sustainable supply chain of raw materials through partnership.

5. CRITICAL SUCCESS FACTORS

The key to success have been effective market segmentation and implementation of strategies. Along
these lines of proven success, Kassa & Sons Furniture Factory plc will implement product line
specialization.

Commitment to the quality of the product via quality design, input and workmanship.
Ensuring quality workman via continuous training and nurturing new talent.
Anticipating and plan for risk often have an easier time of adapting to unforeseen

complications or problems which may arise.

Opening of show room at the right location in the City
Wider potential for expansion and diversification with better position than our competitors!

Machines Requirement Planning

No

Machine Type

Origin

Units

Qty

Unit Price/AED/

Total Price

Circular Saw/SCM/

Italy

pcs

35,000.00

70,000.00

Surface Planner/SCM/F 520

Italy

pcs

29,000.00

58,000.00

Thicknesses Planner/SCM/ S 520

Italy

pcs

34,000.00

68,000.00

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Kassa & Sons Furniture Factory Plc

4

Chain Mortise/Centauro/

Italy

pcs

48,000.00

48,000.00

Spindle Molder/SCM/

Italy

pcs

26,000.00

26,000.00

Hot Press/Two daylight/

Italy

pcs

90,000.00

90,000.00

Copy Wood lathe machine

Italy

pcs

45,000.00

4mt Spray booth

Italy

pcs

26,000.00

26,000.00

Band Saw/Centauro/

Italy

pcs

15,500

15,500.00

10

Radial Arm Saw

Italy

pcs

9,500.00

9,500.00

11

Belt Sanding M/c

Italy

pcs

15,000.00

15,000.00

12

100L Air compressor

Italy

pcs

1,900.00

3,800.00

13

Bench arm saw

Italy

pcs

1,000.00

2,000.00

14

Clamp

UK

pcs

20

200.00

4,000.00

15

Tools Kit

UK

pcs

2,100.00

10,500.00

16

Different Tools and Spares

Italy

set

15,000.00

15,000.00

17

Automatic Grinding M/c

Italy

pcs

12,500.00

12,500.00

18

Grinding wheel sharpener(for band

saw & Circular saw)

Italy

pcs

13,000.00

13,000.00

19

Butt Welder

Italy

pcs

9,000.00

9,000.00

Total(EX Works)[AED]
Estimated Transportation cost from store to Sea Port[AED]
Estimated Sea freight cost[AED]
AED Unit Portion

495,800.00
5,053.00
25,265.00
526,118.00

Estimated Inland Transportation cost(birr)

40,000.00

Estimated Marine and inland Insurance cost[Birr]

75,795.00

Installation and Commissioning Cost(Birr)

75,000.00

Birr Unit Portion

Power Requirement
~3~

190,795.00

Kassa & Sons Furniture Factory Plc

N
o

Qty Approximate Power in

.
KW
7
2
7
2
7
2
6
1
8
1
25
1
8
1
3
1
3
1

Machine Type

Circular Saw/SCM/

Surface Planner/SCM/

Thickness Planner/SCM/

Chain Mortise/Centauro/

Spindle Molder/SCM/

Hot Press/Two daylight/

Band Saw/Centauro/

Radial Arm Saw

Sanding M/c

10

4mt Spray booth

11

Copy Wood lathe machine

12

100L Air compressor

13

Bench arm saw

14

Automatic Grinding M/c

15

Grinding wheel sharpener(for band saw &

Circular saw)

16

Butt Welder

5
11

Total Power Required(KW)

111

Manpower Requirement Planning

Manpower requirement

Qt
y

Estimated Salary

Total Salary

General Manager+

12,000.00

12,000.00

Production & Technique Manager

7,000.00

7,000.00

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Kassa & Sons Furniture Factory Plc

Machine Section

Qty

General Foreman

3,000.00

3,000.00

Senior Machinist

2,000.00

6,000.00

Junior Machinist

1,250.00

6,250.00

650.00

2,600.00

2,000.00

4,000.00

Helpers

Mechanical Section
Maintenance workers

Joinery Section

Qt
y
2

Qty

Assembling Supervisor

3,000.00

3,000.00

Senior Carpenters

2,000.00

12,000.00

Junior Carpenters

1,250.00

5,000.00

Helpers

650.00

2,600.00

Painting Section

Qty

Senior Painter

2,000.00

4,000.00

Helpers

650.00

2,600.00

Storage Section

Qty

Store Officer

2,000.00

2,000.00

Store Clerk

1,500.00

1,500.00

5,000.00

5,000.00

2,500.00

2,500.00

4,500.00

4,500.00

4,000.00

4,000.00

Procurement Section
Section Head
Purchasing Officer
Sales & Marketing Section
Section Head
Sales & Designer

Qty

Qty

HR Section

Qt
y

HR Officer

2,500.00

2,500.00

1,500.00

1,500.00

HR Clerk
Finance Section

Qt
y

Section Head

6,500.00

6,500.00

Accountant

3,500.00

3,500.00

Casher

2,000.00

2,000.00

5,000.00

5,000.00

750.00

1,500.00

Total Estimated Salary per Month in Birr

112,050.00

Internal Auditor
General Service Section
Janitors

Qty
2

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Budget Requirement planning For 1st

Three Months
No

Raw Material

Plywood

2
3

Units Qty

Unit price

Total Price

pcs

800

300

240,000.00

Commercial Plywood

,,

700

130

91,000.00

4mm laminated board

,,

100

250

25,000.00

50

6000

300,000.00

Pinus Timber

Wanza wood

M3

20

6500

130,000.00

10

8500

85,000.00

10

8500

85,000.00

Tid wood

Kosso wood

Card Board

pcs

70

100

7,000.00

Sanding Paper 60

LM

75

120

9,000.00

10

Sanding Paper 80

LM

75

120

9,000.00

11

Sanding Paper 120

LM

75

120

9,000.00

12

Sanding Paper 240

LM

75

120

9,000.00

13

Glue

Kg

200

50

10,000.00

14

Sealer

Kg

200

80

16,000.00

15

Thinner

Kg

200

40

8,000.00

16

Mastish

Kg

20

120

2,400.00

17
18
19

Iron nail
Screw
Fisher

Kg
Pkt
Pkt

20
100
100

40
50
50

800.00
5,000.00
5,000.00

20

Veneer

M2

50

120

6,000.00

21
22
23
24

Door Stoper
Door Hinge
Spring Hinge
Cupboard key

pcs
,,
,,
,,

390
1134
690
100

10
25
15
20

3,900.00
28,350.00
10,350.00
2,000.00

25

Coat hanger 3mt

,,

30

180

5,400.00

26
27
28
29
30
31
32
33
34

Office consumables
Workers salary
Workers perdium
Fuel Expense
Lubricants
Electric charge
Water bill
Mobile card and fixed line call expense
Estimated Bank interest & insurance

5,000.00
336,150.00
9,000.00
18,000.00
1,000.00
4,500.00
3,000.00
3,000.00
5,000.00

Total Expense for three Months in Birr

1,486,850.00

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