1. Product Description: Electric water heaters provide a ready supply of hot water at not more than 85%c temperature. Water is electrically heated and the temperature is thermostatically controlled. The normal capacity of electrical water heaters is between 50 to 200 litters. Electrical water heaters are installed in home, hotels, hospitals, restaurants and in other places where there is need of hot water for washing and cleaning.
2. Market Potential: With the exception of urbanization, the urban population of the country increases every year. This increases the need of washing and cleaning facilities which in turn stimulates the demand for water heating apparatuses. Given the present form of energy available in almost all urban centers of the country, the most common water heating apparitions is the electric water heater. All the electric water heater requirement of the region comes from imports via Addis Ababa. Producing electric water heaters is a fabrication process which is not subject to economies of scale operations. The demand for the heaters in the Amhara and other neighboring regions could justify the establishment of a small scale electric water heater making plant in the Region.
3. Source of Raw Materials: The main inputs for fabricating electric water heaters are, heating elements, asbestos, metal sheets and some other electric pats except the sheet metals, the other inputs will be imported.
4. Process and Technology: First the metal sheets which house the heating components will be fabricated i.e. measured, cut and welded. The heating elements and other accessories are assembled and put in the metal case. Test are undertaken to ensure proper working and safety. Finally the outer part of the metal sheet case is painted.
5. Estimated Investment: For a plant that will produce about 500 units per month and 5000 units per year, the investment requirement will be:
§ Building 200m2 at Birr 2000/m2= Birr 400,000
§ Machinery = Birr 300,000
§ Working capital = Birr 300,000
Total = Birr 580,000
6. Benefits: save foreign exchange and regional financial resources, improves the level of hygiene of users
7. Location: Bahir Dar