1. Product Description: Canvas shoes are shoes whose uppers are made from canvas (thick and water proof fabric) and plastic soles. These shoes are popular among students. They are also sports wear.
2. Rationale: Canvas and rubber shoes production in the country between 2000 and 2004 was on the average 196,000 pairs per year. The consumption share of these products in the Amhara Region could be around 51,000. In addition to local production the canvas shoes market of the country is flooded by imports from Asia. Probably the import volume is more than twice domestic production. Hence the consumption of canvas shoes in the Amhara region could be in the region of 150,000 pairs per year. This translates to 0.01 pair per capita consumption. Like other industrial products which are basic to the majority of the population, the consumption of canvas shoes will increase every year. This shows that the region needs one canvas shoes making plant at least to meet part of the demand for canvas shoes in the region.
3. Market Potential: As noted above, canvas shoes are popular among elementary and high school students. In the Amhara region, in 2004, there were about 2.2 million elementary and high school students. If we assume that at least 40 percent of these students use canvas shoes, annual demand of canvas shoes could be 880,000 pairs. This potential market size is more than sufficient to make a canvas shoes making plant financially and technically viable.
4. Source of Raw Material: Canvas shoes are mainly made from canvas and rubber sole. The canvas can be obtained from some of the textile factories of the country. The raw material of the rubber sole will be imported and the sole could be made in the plant.
5. Process and Technology: The main processing stages include cutting the canvas uppers of the shoes into various sizes and sewing them, preparing the rubber soles using injection moulds and joining the uppers and the soles by heating process. Main machines required include moulding machine, sewing machines, upper and sole joining machine, and other hand tools.
6. Estimated Investment: Total investment will be in the range of Birr 2.5-3.0 million.
7. Benefits: Saves foreign exchange and regional financial resources, promotes self-sufficiency in the region, and introduces new skills and technology.
8. Location: Any major urban center in the region.