1. Product: Clothing which is made out of woven or knitted fabrics are essential item to large section of population knitted cloth like outwear, that is sweater and the like useful for wear in cold seasons and also are used as casual wear for all season wear.
2. Rationale: Most of the Amhara region is mountainous and has cold climate. The people use warming out fit cloths like of "Netela" and "Gabi" to protect them selves from cold. The availability of knitwear cloth will serve the same purpose and is conducive to their casual daily wear. Industrial knitwear like sweaters will satisfy the huge demand. Presently the rural people use hand weaven-knitted wear. Most of the knitwear is imported from outside the region. Knitwear manufacturing is a small-scale industry.
3. Market: There is a high-unsatisfied demand for knitwear in the region. The product serves both the rural and urban population. The demand increases with the rise in population and income. The primary and secondary school student use uniform made of knitwear of acrylic wool material. Knitwear products are also used for bed covers children blankets and as a covering material. It is advantages to establish knitting mills as they provide employment and import substitute.
4. Supply of Raw Material
The main raw materials for knitted wears are:
- Yarn (acrylic and/or other)
- Sewing thread
5. Production Process and Technology: Process knitwear production processing involves simply the winding of raw material yarn on cones, setting of the cones on knitting machine inspection of knitted fabrics (for knitting damage) seaming and linking of the different parts of the products.
a) Production Equipment
- Hand flat knitting machine
- Over look sewing machine
- Miscellaneous (steam iron, beaches... etc)
Except the benches all machinery and equipment are assumed imported.
6. Estimated Investment: The total investment that includes building machinery and equipment and working capital is estimated to be Birr 50,000.
7. Location: Knitting mills are small-scale industries and can be established in all towns to serve both the urban and rural population.