1. Product Description: Paper envelops and other paper bags are important components of stationary products. They are used for packing, letters, documents and other written materials for sending them to other places. Paper bags are common packaging materials used by many types of businesses
Rationale: Apart from some type of paper bags such as “khaki” envelops, most envelops are produced in the country by importing the papers. All envelop production takes place in Addis Ababa. Other parts of the country including the Amhara Region get their envelop need from Addis Ababa. This causes the transfer of financial resources from areas outside Addis Ababa to Addis Ababa which could be avoided if the products are made in the Regions. As a self sufficiency measure, the Amhara Region should produce its envelops and other paper bags requirement in the Region.
Market Potential:- With a population of 19 million and an economy which contributes about 20 percent of the country’s GDP, one can safely assume about the existence of a sufficient market that will make an envelop and other paper bags making plant a viable venture.
Source of Raw Material:- Some types of papers that could be used for making envelops and other paper bags can be obtained from local factories. But for the more quality envelops and other paper bags, papers have to be imported.
Process & Technology:- The main production process includes the following:- Printing, cutting, creasing, folding, gluing and packing. Main machinery include automatic blank fed envelop making machine fitted with flexographic printing units, drying unit, automatic printing units, drying unit, automatic section feeder, sheet separator, glueing and folding attachments with accessories, die cutting machine, etc.
Estimated Investment:- For a plant which will produce 16 million pieces of envelops and paper bags, total investment will be:
§ Building/shade 200m2 AT Birr 1500/m2= Birr 300,000
§ Machinery & Equipment = Birr 500,000
§ Working Capital = Birr 150,000
950,000
Benefits: Self-sufficiency, saving of financial resources of the Region, introduction of new skills and technology.
Location:- Bahir Dar.