Product Description: Television is an electric and electronic indium of communication by which images and voices are transmitted from a specific location (station) to viewers. The device is made up of electrical and electronic components usually enterprises but assembled in one place.
Market Potential: Of the 400,000 urban families in the Amhara region only 20 percent are believed to have television sets. The other 80 percent want to own this particular electronic device but they are not able to posses the device mainly because they can not afford. One factor that makes television sets unaffordable to Ethiopian families is that the imported sets are too expensive. The reason for this is that labor cost for television assembly is expensive in television exporting countries. On top of this, there are transport costs and various taxes levied on imported electronic devices.
Considering the labor cost in our country, assembling television sets locally could be much cheaper than importing them. Of course this assumes that labor force will be intensively trained and have the necessary discipline which will insure higher productivity.
A television assembly plant in the Amhara region will have young and educated labor which needs only training. Wages could be lower than in most other countries. There is a huge market for television in the region if the prices affordable. Hence, a television assembly renter could be a profitable renter in the region.
Source of Raw Material: Almost all the inputs or components will be imported. Process and Technology: A sort of an assembly line will be established. The line will operated both mechanically and manually. Components will be distributed to workers sitting or standing at specific locations. Stage by stage components will be fitted in the various parts of the sets until complete sets are assembled. Different types of hand tools, some drilling cutting and grinding machines will be required.
Estimated Investment: Capacity - 15,000 units/year
Building /shade 200m2 at 2000/m2 400,000
Machines 200,000
Working capital 500,000
1,100,000
Benefits: Saves foreign exchange improves the general knowledge of the public
Location: Bahir Dar.