1. Product Description: Different types of umbrellas are used by men and women and also by clergymen during religious holidays. The main use of umbrellas is to protect people from rains or from heat generated by the sun.
2. Rationale: There is a small umbrella assembly plant in Addis Ababa built more than 35 years ago. The plant was established not for purely commercial purposes but also to create employment opportunities for disabled people. For some reason, the plant has never been able to produce quality umbrellas especially for women who are more sensitive to quality, style, color and fashion. Probably because of this, most of the demand for umbrellas is met from imports.
3. Market Potential: Domestic Production of umbrellas is about 450,000 annually. Imports are about 1,800,000 pieces. The Amhara Region has about 27 percent of the population and consumption of umbrellas can be 607,000 units per year. Hence, there is sufficient market for umbrellas in the Region.
4. Supply of Raw Material: Umbrella is made of multicolor fabrics (the quality of the fabrics differ), metal rods, and handles. The fabrics especially the unicolor ones can be produced in our country but the metal parts have to be imported.
5. Production Process: Umbrella making or assembly involves cutting the cloth or fabrics to size, stitching or sewing, assembling or joining the cloth with the metal ribs, brass and pipe together, checking and packing.
6. Estimated Investment:- Machineries needed are sewing machines, cutting machines, drilling and revetting machines and some auxiliary machines. Cost of machinery and building could be about Birr 350,000.
7. Location: The metal parts and some of the fabrics have to be imported. Hence the first umbrella assembly plant has to be located in the Dessie combolcha area; and the second one in Bahir Dar.