1. Product Description: A blanket is a piece of woven fabric which is raised to make it warm when used. It is usually made from cotton, synthetic or wool waste. It is mainly used for night wear. Blankets are manufactured in standard sizes. The standards are based on the surface area of the blankets and their specific weight. Blankets could be light or heavy weight. Light weight blankets have a specific weight of 450 gm/cm2. Medium weight blankets have specific weight of 550 gm/ cm2. Standard blankets have sizes of 160X220cm. Family size blankets are either 180X220cm or 200X220cm.
2. Rationale: Until the late 1990’s there was only one blanket making factory in the country, and this factory produces the medium weight type of blanket which is made from wool and acrylic waste. This blanket mainly due to its weight extent has not been appropriate for use in rural areas of “Kola” and “woinadega” climatic zones. What is convenient in these climatic zones is a type of blanket which is lighter in weight, smaller in size and which is made from cotton or light weight synthetic fiber. In recent years, one or two factories have been established which produce light cotton blankets. However, there are no such factories in the Amhara Region where more than 30 percent of the market for blankets exists.
3. Markets Potential: About 3.84 million families live in the Amhara region and 3.26 million of them live in rural areas. Light weight cotton blankets are very convenient for use in the rural areas. If we assume at least 25 percent of the rural families want to use these blankets, total demand for this blankets will be 815000 pieces; which is (1.60X2.20mX815,000) 2.87 million square meters. Total production of blankets in the country in 2004 was about 937,000 pieces which indicates a per capita consumption of domestic blankets as 0.01 pieces or 0.04 m2. Production of cotton blankets during the same year was only 90,300 pieces.
As indicated above, potential demand for cotton blankets in the Amhara region alone is about 815,000 pieces which is 86 percent of the total blankets production of the country in 2004 or nine times higher than the cotton blankets production of 2004. What these figures show is that there is more than sufficient demand for cotton blankets in the Amhara region which warrants the establishment of at least one cotton blanket factory in the region.
4. Source of Raw Material: Main inputs are cotton yarn and chemical dyes. Cotton yarn will be obtained from domestic sources and the dyes will be imported.
5. Process and Technology: The five basic processes in the manufacture of cotton blankets are carding spinning, weaving, dying and raising. There are more than 23 types of production machinery and equipment and other auxiliary machines.
6. Estimated Investment: For a plant which can produce about 700,000 pieces or 2.674 million m2 of blankets, the estimated investment will be
· Buildings 20,000 m2 X Birr 2000/ m2 ……..=Birr 40,000,000
· Machinery and Equipment…………….…. = Birr 20,000,000
· Working Capital …………………………. =Birr 1,000,000
Total ………... = Birr 61,500,000
7. Benefits: Saves financial resources of the region, promotes self-sufficiency in a basic industrial product, stimulates production of cotton and cotton yarn in the region.
8. Location: Bahir Dar