1. Product Description: Knitting and spinning are household activities usually performed after basic household chores (cooking, cleaning---) are done. There are machines (operated manually) which increase productivity). One of these machines is a hand knitting machine. This machine is used for knithing all kinds of cotton, man-made and woolen yarns to produce different kinds of knit wear. With short term training, women in urban and rural areas can operate this machine and they can earn additional income by selling knitwear products which they can produce at home.
2. Rational: Spinning and knitting are income generating activities which supplement the income of many women both in urban and rural areas. In urban areas, some women take knitting as a full-time job, and it is their only source of income. Hand knitting machines are used in some urban areas to a very limited extent. But in the rural areas, these handy and useful machines are not known in the rural areas. But if these machines are widely introduced to the rural areas and women are given training in knitting, rural in come and as a result rural in one will in area. This is why this simple machine should be made in the Amhara Region.
3. Market Potential: If a mere two percent of the households in the Amhara Region start producing knitwear by using hand knitting machines, there will be a demand of 74,000 such machines in the Region for one year. Since these manual machines are not produced in other parts of the country, additional demand will come from outside the Region. Demand for these machines could easily reach 100,000 a year. This will justify the establishment of a riable plant which will produce hand knitting machines in the Amhara Region.
4. Raw Material: to be imported in metal sheet form and in parts.
5. Production Process & Technology: The Main process in the manufacturing of this product is carried on by power press. This is a sheet metal work. In the manufacturing of hand knitting machines, it is assumed that some components will be imported and then assembled in the factory. Main plant and machinery include lathe, pillar, air compressor, double ended bench grinder.
6. Estimated Investment: For a plant whose capacity will be 1000 hand knitting machines per years, estimated investment will be:
Building 200 m2 Br. 2000/m2 = Br. 400,000
Plant and machinery = Br. 100,000
Working capital = Br. 50,000
550,000
7. Benefits: encourages cottage industries, increases the income of urban and rural families, saves foreign exchange and regional financial resources, and introduces new skills and technology---
8. Location: Bahir Dar, Combolcha