1. Product Description: The express coffee maker is a common electrical machine used in hotels, restaurants, canteens, coffee shops, and other places where coffee is prepared for mass consumption. The machine is essentially a simple steam generator which is used to heat the coffee mixture and prepare the coffee for consumption. (Steam has much higher heating capacity hot then water). The main component of the machine is a brass container which is filled with water initially and is heated by means of a series of heating coils. The level of water is indicated by means of a tube on the side. Pressure is indicated by a gauge and there is a safety pressure value to prevent the pressure from being built up to a dangerous level. The outer case is made of sheet metal with decorative fittings.
2. Rationale: There are between 80,000-100,000 coffee making machines in the country; and every year thousands of these machines are imported for replacement and to meet new demands. But no attempt has been made to produce this product at home on commercial level or at industrial level. Given the large demance for coffee making machines, one could have expected the presence of an assembly plant for the product in the country. But this is not the case up to now. One could say that this is time that the country starts assembling/ fabricating these machines to save foreign exchange and to be self-sufficient. If proper promotion measures are taken, the Amhara Region could be the first region to produce coffee making machines for regional as well as national markets.
3. Potential Market: For many small machines like the coffee making machine, the problem for domestic producers is not limitation of market but limitation in quality and price competitiveness. If the quality is on an acceptable level, there is sufficient demand in the country to justify the establishment of small and medium scale industries in the country. Coffee making machine is one of those products with sufficient market.
4. Source of Raw Material: The main components and parts of a coffee making machine are made from copper, brass and steel sheet. The first phase of operation will be assembly of parts and components and fabrications of the outer case. Copper and brass components and steel sheet will be imported for fabrication and assembling.
5. Process and Technology: As indicated above, parts and components will be purchased from domestic or foreign sources and they will be assembled by trained technicians. The steel sheet will be fabricated at the factory site and the necessary testing will be undertaken before packaging. Plant and machinery needed include shearing machine, bench grinder and fly press, drilling machine, welding set and rolling machine.
6. Estimated Investment: For a plant that will assemble/fabricate 50 espresso coffee making machines per month, the estimated investment will be:
§ Building/Shade-300m2 at Birr 1500/m2 = Birr 450,000
§ Machinery = Birr 500,000
§ Working Capital = Birr 300,000
1,250,000
7. Benefits: Saves foreign exchange for the country and financial resources for the Region, brings in financial resources to the region, promotes self-sufficiency in industrial products, and introduces new skills and technology to the Region.
8. Location: Debre Birhan, Combolcha, Bahir Dar.