1. Product Description: - An exercise book is a “book” made from paper sheet layers which are ruled, folded to certain dimensions, stapled and trimmed. It is used for writing. Exercise books are usually produced in different sizes (length, width and number of leaves). The most common exercise books have 24, 32 or 50 leaves. In our country and probably in other countries too, exercise books are used by students. Hence the demand for exercise books depends largely on the number of students a region or a country has at a given period of time.
Rationale: - Over 2.3 million students were enrolled from grades 1-10 in the Amhara Region in 2004. There are also students in Grade 11 and 12 as will as in vocational training centers, colleges and universities. If we add these and evening students, the current student population of the Amhara Region could reach around 2.6 million. All these students need exercise books. If we assume that one student uses, on the average, 20 exercise books per school year annual demand for exercise books will be 52 million. If we add other miscellaneous demand for the product, say 5 percent of the student demand, annual regional demand for exercise books will be in the range of 54.6 million. All these exercise books are imported from Addis Ababa or from abroad through Addis Ababa. The technology of producing exercise books is simple. It only requires, assembling ruled paper sheets, cutting them to required dimensions, folding them stapling and trimming. These can be done any where. If this is the case, the Amhara Region should have its exercise books producing plant to be sel-sufficient in the product of this vital product.
Market Potential: - The potential market for exercise books is around 55 million in the Amhara Region. This demand volume is more than the production capacity of five or more exercise books producing plants.
Raw material: - Wood free writing paper, printing ink, cover sheets, stitching wire are the raw materials needed for making exercise books. Apart from the stitching wire, the other raw materials will be obtained from domestic sources.
Process and Technology: - The production process begins by conveying an end-less ribbon of paper via unwinding unit into a printing and ruling machine. The paper is lined (made to have lines) there according to the intended use (mathematics or other subjects). Then the ribbon is cut into sheet layers by means of a rotary cross cutter according to the width of the exercise book. These sheets layers are counted and stacked. In parallel to the sheet layers production the covers are automatically conveyed to the production flow. Then the sheet layers and covers are stapled, folded and pressed. The exercise books so made still have longitudinal size equal to the width of the paper ribbon, minimum 350mm and maximum 720mm. Therefore, they are cut down to their regular size by a cutting unit. The stacking and packing of the finished exercise books. Machinery and equipment required include unwinding unit, printing and ruling machine, rotary cross cutter, counting and collecting unit, stack sheet feeder, wire stitching, folding and spine squaring unit, separation unit, collecting and discharge unit
Estimated Investment:- For a plant which can produce 12 million exercise books per year, the estimated investment will be:-
Buildings 400m2 at Birr 2000/m2 = Birr 800,000
Machinery ……………………………… = Birr 1,900,000
Working capital ……………………… = Birr 500,000
Total = Birr 3,200,000
Benefits: - Saves foreign exchange and regional financial resources, promotes self-sufficiency in an important industrial product, introduces new sills and technology.