1. Product: Leather garment is processed and finished leather formed into jackets, coats and trousers for ladies and men. Products of leather garment especially those of ladies are sensitive to changes in fashion, style and even to economic conditions. Among the clothing industry, lather garments are considered as luxury products.
2. Rationale: All leather garment products consumed in the Region are produced in Addis Ababa. But the raw material is taken from the Amhara region as well as from other regions. Given the sizable quantity of hides and skins produced in the region, it is possible to establish viable leather processing and lather garment industries. This project aims to make the region self-sufficient in leather garment and also to export leather garment to other parts of the country especially to Addis Ababa.
3. Source of Raw material: The main “ raw” material for leather garment is finished leather. Enough hides and skins can be obtained from the livestock resources of the Region to produce finished leather. Production of finished leather can be made by a separate plant or it can be combined with garment making. In either case the main raw material- hides and skins are available for the establishment of a small leather garment plant in the region.
4. Market Potential: Depending on the size or capacity of the plant, the market potential could be the region, national or foreign market. As stated above leather garment is a luxury product which implies consumers are of the high income group within the target population. Within the Region, there are potential customers such as high level civil servants who receive relatively high income. Currently these people buy leather garments in Addis Ababa. The leather garment can also be exported.
Source: Customs Authority, External Trade Statistics, 1997-2006.
CSA, Statistical Abstract, 1997-2005.
5. Production Process: The making of leather garment is a very simple process. It requires, measuring and marbling the various parts or sections of the garment, cutting (manually or mechanically) the parts, sticking or sewing together the parts, inspecting and packing or delivering it to customers.
6. Production Technology- Leather garment only requires the use of automatic or power driven sewing machines. The machines can be specialized machines for stitching different parts of the garment.
7. Estimated Investment: A small size leather garment plant with annual production of 15,000 pieces will require a total investment of Birr 500,000 of which Birr 200,000 is for building.
8. Location- The market of the Amhara region can be divided into two major segments-one segment constitutes the eastern part and the other the western part of the region. The eastern part covers markets along the Debre Birhan- Woldiay Road and the western part covers markets along the Dejen-Debark road. The general points of these market areas are Bahir Dar for the west and Dessie- Kombolcha for the east. A leather garment plant that will cater to the Regional market can be located in Bahir Dar; and for export market in Combolcha.