Product Description: These are disposable cups and plates made from thin paper material. Due to their disposable nature and attractive designs, paper crockery like cups and plates are used in some occasion substituting glass clean or plastic, stainless steel crockery. Paper cups and plates are used for serving foods and drinks during some informal social gatherings and parties. Paper cups and plates are relatively cheap to buy and there is no danger of breakages during use. They are very convenient to use and affordable almost by all income groups.
Market Potential: There are many occasions in the Amhara region where there are social gatherings during which foods and drinks are served. These include religions and national holidays, wedding ceremonies, cultural events, etc. During these occasions, people gather doors and out doors and are served with foods and drinks. It is at these times that people have the need of using paper cups and plates. As mentioned earlier, these products are affordable to buy and convenient to use and disposes of. The Amhara region has it share of demand for these products. Up to now and or from Addis Ababa. Admittedly due to limited knowledge of the use of these products, existing demand for paper cups and plates id limited to urban centers like Bahir Dar, Gondar and Dessie. However, awareness of the use of these products grows the demand for them which grow to justify the need of establishing a paper cups and plates production unit in the region.
Sources of Raw Material: The main raw materials re paper of certain thickness, wax and coloring material. Paper could be obtained from domestic sources; the other two will be imported.
Process and Technology: For making paper plates, the paper of required thickness is printed in desired designs and circle cut on a cutting machine. These are then pressed in suitable dies to the final shape and then packed. Cups are made in to pars. The printed part is cut and given desired shape by die cutting. The bottom and the upper part are then assembled in a screw press. The finished cups and plates are waxed by chipping in molten wax at suitable temperature.
The main plant and machinery needed include printing press, paper cutting machine, cutting and greasing platen other accessories like dies, moulds and testing instruments.
5. Estimated Investment: For a plant that will produce about 25 million paper cups and plates per year operating one shift per day, the estimated investment will be:
§ Building /shade 200m2 at Birr 2000/m2 = 400,000
§ Machinery = 100,000
§ Working capital = 75,000
575,000
6. Benefits: Saves foreign exchange, has the potential of generating financial inflow to the region, substitutes expensive products.
7. Location: Bahir Dar, Combolcha, Debre Birhan