1. Product Description: Pencil sharpeners are commonly used by students, draft persons, engineers, bookkeepers and other people whose job require them to use pencils. It is made from a combination of hard plastic and metal or from metal only. Basically there are two types of sharpeners plastic pencil sharpener and aluminum molded sharper.
2. Rationale: In 2003/04, there were 10.3 million students from grades 1 to 10 in our country. All these students and those above grade 10 and other people who regularly use pencils need pencil sharpeners. And all the pencil sharpeners used in the country are imported. When one considers the student population of the country, it is clear that every year hundreds of thousands of pencil sharpeners are imported to the country. Given the technical simplicity of producing pencil sharpeners, it would have been possible to produce this product at home. But so far no attempt has been made to manufacture pencil sharpeners in the country. We believe that the time has come to start producing this product at least to supply the domestic market.
3. Market Potential: As indicated above, the potential buyers of pencil sharpeners in the country is more than 10.3 million. If we conservatively assume that at least 10 percent of the potential consumers buy pencil sharpeners, the one time demand for these products will be about 1.03 million. Suppose that one pencil sharpener serves about 6 months, total annual demand for the sharpeners by 10 percent of the potential consumers will be 2.06 million. Even with this conservative assumption, there is a huge market for plants which will produce pencil sharpeners.
4. Raw Material Source: Poly propylene (a plastic material) and stainless steel or aluminium are the main raw materials and these will be imported.
5. Process & Technology: Both plastic pencil sharpener and aluminum moulded sharpener are manufactured by moulding presses. To manufacture each type of sharpener separate moulds are required. The mould is adjusted in machine and the body of the sharpener is produced. The blades are fitted with screw in the body. Hand operated or motorized machines can be used for producing pencil sharpeners.
6. Estimated Investment: For a plant whose machines will be operated manually and whose production capacity will be 1000 pieces per day, the estimated investment will be the following
§ Building/Shade 1000m2 at Birr 1500/m2 = Birr 150,000
§ Machinery = Birr 40,000
§ Working Capital = Birr 25,000
215,000
7. Benefits: Saves foreign exchange and regional financial resources, promotes self-sufficiency in industrial products, facilitates the learning process, and introduces new skills and technology.
8. Location: Bahir Dar.