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Bahir Dar Textile Share Company's Profile

1.General description (information) of the organization

1.1 Name of the organization, location, and date of establishment Name: BAHIR DAR TEXTILE SHARE COMPANY

Location: 570 kms away North of West from Addis Ababa.

Date of establishment: 1961-with a capital of 5.6 million Birr as government owned Share Company. 99% of the share was owned by the Ministry of Finance and 1% by different organizations.

1.2 Address HEAD OFFICE

Tel. (251) 08 200044 Fax. No. (251) 08 202012 E-mail P.O. Box 15 ETHIOPIA

BRANCH OFFICE Tel. (251) 1 531381 Fax (251) 1 512747 P.O.BOX 1125 ADDIS ABABA ETHIOPIA

1.3 Historical back ground Bahir Dar Textile Share Company was established in 1961 in the town of Bahir Dar, 570 Km North west of Addis Ababa. It was a government owned integrated mill manufacturing 100 % woven cotton fabric. In 1989, the factory rehabilitated its spinning and weaving section replacing most of the machines and renovating the rest. The finishing was left for the second phase treatment, which however did not materialize as scheduled. As of September 30, 1999 the factory is changed form public enterprise to share company and financial restructured As present the total capital is Birr 56,808,379.

The share company’s total land holding is 480,000 square meters of which 39,200 Sq. Mts. is covered by building.

The share company currently has 1800 employees and its average monthly wage bill is Birr 800,000.

1.4 Objective of the Enterprise The main objectives of the factory are:

• To manufacture yarn & all kinds of finished clothes from cotton, • To produce goods for household use • To sell its products locally & abroad • To engage generally in any other trade or business conducive to the Attainment of its objectives.

1.5 Main types of products/services / activities

The current product mix consists of:

- Bed sheeting -export & local (dyed & printed) - Poplin (dyed & printed) - Drill - Twill - Flannel - Kutta - Abujedid - Yarn on hank

1.6 Production capacity /designed, attainable and attained)

The factory operates in 3shifts of 8 hours & has a production capacity of finished Products as follows: U/M Designed Attainable Attained

- Fabrics m2 20,612,914 17,076,772 12,700,000 - Market yarn kg 4,580,342 1,056,594

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1.7 Infrastructures and facilities

The company has full access to the Telecommunications services, light & power service giving institutions, transport services- airways and roads transport services, and also financial institutions.

1.8 Major inputs and annual consumption The major inputs of production are lint cotton, chemical, and dyestuffs. Lint cotton is found locally

which is 170 km. away from the factory site. Chemicals & dyestuffs are imported from abroad. The inputs are available at any time. The consumption of the inputs is shown in the following table.

Major Inputs U/M Consumption Cotton kg 1,862,860

Birr 12,972,487Chemicals kg 170,474

Birr 1,278,543Dye stuffs kg 3,089

Birr 332,1531.9 Enterprise distance & annual utility consumption

a) Enterprise distance From major local raw material inputs: 175kms.

From sales outlets: 570kms for Addis Ababa( the company also delivers its products at the factory gate to the wholesalers.)

From ports: 1496kms away from port of Djibouti.

b) Annual utility consumption and consumption per unit of out put The annual utility consumption taken on an average for the last five five years is as follows:

Electricity & water: Birr3,871,097.00 Telecommunication & post services: Birr174,671.00

1.10 Major suppliers & their distance from the enterprise Major suppliers of lint cotton for the company are:

− Alkader Ahmed - Hiwot 1st − Ambasel - Hiwot 2nd − Zeleke Agri-M 1st - Zeleke Agri-M 2nd − Ato Adane - D & S − Dana Trading - Gondor

The average distance of the above suppliers from the company is 175 kms. 1.11 Organizational set-up

Organizational structure

Manpower Currently the company administrates 1895 employees. Categories in accordance

with education and age is listed as follows

1. Sex Male 1115 Female 780

2. Education Read & Write 259 Primary 799 Secondary 735 Higher 102

3. Age Below30 490 31 – 40 780 41 – 50 431 above 50 194

2. Market

2.1 Domestic /Local Potential size of market and expected growth rate : Addis Ababa & Northern and Southern part

of Ethiopia. Anticipated advantage of the Enterprise in comparison to the competition

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− Geographical location(raw materials, local market, nearest to the port of sudan). Expected market share achieved and to be achieved. − 2nd in Bed sheet.

Expected local sales for next three years and actual for the past three years. Product U/M 2001(1993)

Actual 2002(1994)

Actual 2003(1995)

Estimate 2004(1996)

Plan Fabrics Birr 30007163 36053250 39000605 46030088 Market yarn Birr 8329942 6282528 7415399 8055661 Mattress Birr 534226 483812 504401 720000 Others Birr 778613 649057 634077 800000 Total Birr 39649944 43468647 47554482 55605749

2.2 Export Export target ( in % of the total sales ): 29% of the total sales plan 60554363.00

Expected export sales for next three years and actual for the past three years (if any)

U/M 2001(1993) Actual

2002(1994) Actual

2003(1995) Estimate

2004(1996) Plan

Fabrics m2 0 0 198000 2016363 Birr 0.00 0.00 586000 6217704

Other potential export markets

The company's products potential markets are European countries.

2.1 Distribution and market faculties

The products are distributed through wholesalers and our factory shops.

2.2 Major customers

The major customers of the company are Matheyas PLC, Sayt PLC, Getaneh PLC and other local traders. 3. Production (Services) & sales (actual for the past three years and expected for the next three years )

3.1 In quantity terms U/M 2001(1993) 2002(1994) 2003(1995) 2004(1996)

Production Actual Actual Estimate Plan Fabrics m2 7068468 11119425 11465000 14451259 Market yarn kg 515614 396626 250000 515340 Mattress pcs 9868 9280 9350 9000 Sales Fabrics m2 7942481 10071125 8600000 14351077 Market yarn kg 522822 292150 301000 515340 Mattress pcs 6894 26322 8140 9000

3.2 In value terms U/M 2001(1993) 2002(1994) 2003(1995) 2004(1996)

Production Actual Actual Estimate Plan Fabrics Birr 23549914 32641200 30807682 43232703 Market yarn Birr 6650870 4691354 3487873 6680760 Mattress Birr 584934 426517 415595 748419 Others Birr 776853 82446 442135 Sales Fabrics Birr 30007163 39273733 39585098 52247792 Market yarn Birr 8239942 5114699 7415399 8055661 Mattress Birr 534226 589418 504401 720000 Others Birr 778613 892113 634077 800000 Total Birr 39559944 45869963 48138975 61823453

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4. Financial

4.1 Profit & loss account for the last five years. Bahir Dar DAR TEXTILE SHARE CO. AUDITED COMPARATIVE PROFIT AND LOSS STATEMENT

G.C. 1997/98 1998/99 1999/00 2000/01 2001/02 E.C. 1990 1991 1992 1993 1994

GROSS SALES LESS: SALES TAX NET SALES 45,527,845 37,435,399 33,987,520 34,353,294 39,890,879

COST OF GOODS SOLD Increase/Decrease in FGI (2,560,750) 2,528,947 7,213,073 3,148,864 270,779Increase/Decrease in WIP 4,385,376 512,881 1,182,166 (168,021) (1,239,449)Direct Material Cost 23,255,659 13,524,293 7,596,231 11,175,925 17,133,790Direct Labour Cost 3,592,672 2,913,990 2,205,503 2,776,916 2,573,384Direct Material Use Cost 14,440,708 7,824,226 5,269,993 6,471,375 7,901,291Manufacturing OH Cost/Pro. Exp 12,654,875 12,151,258 7,491,162 5,795,277 7,742,809COST OF GOODS PRODUCED 58,329,290 36,926,648 23,745,055 26,051,472 34,111,825COST OF GOODS SOLD 55,768,540 39,455,595 30,958,128 29,200,336 34,382,604GROSS PROFIT (LOSS) (10,240,695) (2,020,196) 3,029,392 5,152,958 5,508,275OTHER INCOME 935,428 512,411 227,002 565,487 564,212

(9,305,267) (1,507,785) 3,256,394 5,718,445 6,072,487OPERATING EXPENSES SELLING & DISTRIBUTION EXP. 1,641,399 473,834 794,806 844,185 770,089GENERAL & ADMI. EXPENSES 17,234,689 4,014,910 2,538,551 3,648,374 4,520,031CORPORATION LEVY FINANCIAL CHARGES 2,671,212 2,491,923 49,994 8,560 26,001CAPITAL CHARGE AUDIT FEE 19,000 26,880 31,050 28,750 25,200PROVISION FOR STOCK OBSEL. PROVISION FOR DOUBTFULL DEBTE BOARD MEMBER FEES 14,005 43,831 11,040 88,001 23,035OTHER/Amorti. Of Deferred Charge

0 21,580,305 7,051,378 3,425,441 4,617,870 5,364,356OPERATING NET PROFIT(LOSS) (30,885,572) (8,559,163) (169,047) 1,100,575 708,131Prior Year Adjustment EXEPTIONAL EXPENSE (INCOME) 20,762,676 (267,947) (547,223) (435)Net Profit (Loss) Before Tax (10,122,896) (8,827,110) (169,047) 553,352 707,696Profit Tax 193,673 209,177Net Profit (Loss) After Tax (10,122,896) (8,827,110) (169,047) 359,679 498,519Transferred to Res. (Accun. Deficit) 17,984 24,926Transferred to General Reserve (10,122,896) (8,827,110) (169,047) 341,695 473,593Transferred to Residual Surplus Loan Redemption Fund PROPOSED DIVIDEND 23,680BALANCE BROUGHT FORWARD (67,781,784) (77,904,680) (169,047) 172,648BALANCE CARRIED FORWARD (77,904,680) (86,731,790) 172,648 622,561 5. Problems and recommended Solutions A. Problems

• Low capacity in Management and Management Systems • Low capacity utilization • Lack of Technical and marketing professionals • Low level of profit • lack of maintenance people and spare parts

B. Solutions • Entering in a management contract or Joint investment

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Ethio-Japanese Synthetic Textiles S. Co. Profile

1.1 Name of the Organization , Location and date of establishment. Ehio Japanese Synthetic Textiles S.Co. was established in 1964 by a group of Ethiopian & Japanese investors. EJSt is located in Modjo , approximately 70 km South East of Addis Ababa. 1.2 Address A.A Modjo Tel. 51 33 33 / 51 34 76 Tel. 16 00 25 Fax. 51 50 77 16 0008 P.O.Box 2184 E-mail -ejstsc@telecom.net.et 1.3 Historical Background EJST was established principally to manufacture Nylon Fabrics for domestic consumption. EJST is still the sole producer of nylon Fabrics within the country for the last 38 years. EJST at its infant stage i.e in 1966/67 it was able to produce 1,709,865 m2 of Nylon Fabrics using 152 looms. Because of increasing demand the Company has taken expansion programs in the years 1971, 1978 & 1996 with these expansions it has installed a total of 300 shuttle looms and 32 highly efficient water jet looms. By so doing the capacity has increased to 5 ,000,000 m2 and above per annum. The land held by the factory is 151,611 m2, all Municipality charges & rental costs of the land and building for the year 2002 has been settled. The share holders of the company are the Ethiopian government and the Japanese group with share of 65/35% share holding respectively. 1.4 Objective of the Enterprise EJST is established with objective of supplying Nylon Polyester Fabrics to the domestic consumers, saving foreign exchange through import substitution. By so doing the Company make its effort to generate profit there by to maximize the dividend for the share holders and make the Company sustainable. 1.5 Main type of products The major types of products that are commonly produced by ESJT are:- - Nylon and polyester taffetta dyed and printed fabrics used for ladies wear.

- Coated fabrics- used for rain coats, bags, tents, sleeping bags, wind breaker jackets and the like. - Nylon and polyester ribbon- for blanket factories. - water repellent fabrics - used to manufacture umbrellas, traveling bags, and over coast.

1.6 Production Capacity Designed - 7,000,000 m2 Attainable - 6,000,000 m2 Attained - 5,478,000 m2

1.7 Infrastructures and Facilities There is good all- weather road and the factory is found on Mojo national route. EJST has electricity supplies from the government owned electric power authority and has got telephone , Fax, Internate services. All machines and accessories are available for producing the desired synthetic fabrics. 1.8 Major input and annual consumption Major inputs:- yarn , Chemical, Dyestuffs, Fuel & Labour

Annual Consumption ( in ' 000 Birr) 1998 1999 2000 2001 Direct Material Cost 10890.8 8811.00 4414.00 3201.2 Chemicals 1787.1 16305.00 542.3 623.7 Fuel/ Power 2221.1 1992.7 517.2 485.7 Excise 2258.5 1961.2 1170.9 1073.4 Sub total 17197.50 29069.90 6344.40 5787.30 D/L 3854.1 3407.7 3182.7 2934.9 1.9 Enterprise distance and annual utility consumption a. Enterprise distance

- From major local raw material inputs- No raw material in domestic market.

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- From sales outlets - It is about 3 Kms - From ports - 857 Km from Djibuti port. b. Annual Utility Consumption & Consumption per Unit of O/P 2001 2002 Electricity 326,167.30 129,604.31 LP 96,411.85 104,487.56 Fuel 517,229.75 485,272.05 939,808.95 Total Unit Prod. Grey 1,801,311.00 1,134.00 Sales 0.53 0.64 Sample Av. 0.59 1.10 Major supplier and their distance form the enterprise . No domestic supplier of yarn chemical, dyestuff and spare parts.

No Supplier Country 1 Mitsubishi Corporation Japan 2 Cre-Myth Ass. Corporation S.Korea 3 Rotta Germany 4 Lanberti S.P.S Italy 5 Sap international Belgium 6 M.Doha men Germany 7 CIBA Geigy Switzerland 8 diasho Co. Japan

1.11 Organizational Set-up - Organizational Structure - Board, General Manger, 5 Dept mgrs. - Manpower a. By Education Degree Diploma Vocational 9-12 Grade 1-8 Grade Total 7 9 38 77 280 411 b. By age group 25 `25-35 36-45 46-55 Total 2 108 145 156 411 c. Management Members 5 d. By Salry Range Number of Employees by salery scale Salary Range 268-500 501 -800 801- 1100 1100-1400 1401 and

above Number of Emp. 118 207 61 19 6 1.12 Annual Turn Over 2001 2002 Sales tp:- Sales 9,088,502 7,900,889 Net Asset 32,033,032 26,680,616 28,38% 29.62% 2. Market 2.1 Domestic / Local

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EJST was established with the objective of supplying Nylon Fabrics to the domestics consumer s and saving foreign exchange through import substitution . It was sole manufacturer and had got ready made market and was distributing over all the country . But due to the adoption and introduction of free market economic policy imported polyester fabrics has substituted our product in the market, therefore EJST has lost market share with sales reduced by over 65% sicne 1992 Et. cal. we expect that , sales will increase in the coming two years so tha t our market share will increase from 35% to 49% & 74 % in the respective coming two years. 2.2 Export - Export target in % of the total sales . 2003/ 2004 - 4.76% 2004 / 2005 - 4.76% No export till this date. Expected export for the next two years in value is Birr 984.000 and Birr 1,476.000 respectively.

- We still didn't identify the export market potentials that is why we are asking assistance in these areas.

- Major customers are Blanket Factories, Garment Factories and traders.

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3. Production and sales ( actual for the past three years and expected for the next three years) 3.1 In quantity terms - ' 000 sq .mt. 3.2 In value terms - '00 Birr

1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 Product Type Quant. Value Quant. Value Quant. Value Quant. Value Quant. Value Quant. Value

Dyed Nylon Taffeta 1874 5685 248 750 225 682 829 2513 900 2728 1350 4092 Dyed Polyester Taffetta

- - - - 45 137 40 122 340 1037 510 1556

Pr.Nylon taffetta 473 1653 304 1063 275 926 160 539 236 795 354 1192 Nylon Ribbon 506 2529 606 3025 364 1818 451 2253 395 1973 593 2017 Polyester Ribbon - - - - - - - - 580 1766 870 2649 Nylon Coated Fabrics 146 1104 33 189 162 1224 73 552 128 968 192 1452 Water repellent 68 389 119 895 14 80 16 91 28 159 42 238 Others 4 18 - - - - 116 523 343 1546 515 2321 3071 11378 1310 5922 1085 4867 1685 6593 2950 10972 4426 15517 Sales Dyed N.Taffetta 1117 8994 164 1353 344 2451 829 4526 900 6491 1350 9737 Dyed Polyester Taffetta

- - - - - - 40 169 340 1733 510 2600

Pr. Nylon Taffetta 329 3596 138 1243 190 1444 160 1057 236 1850 354 2775 Nylon ribbon 506 4515 585 5315 358 3132 451 3719 395 3269 593 4904 polyester ribbon - - - - - - - - 580 3239 870 4859 N.Coated fabrics 137 1577 108 1348 85 1030 73 930 128 1628 192 2442 Water repellent 64 594 34 299 28 244 16 137 28 240 42 360 Export - - - - - - - - 140 984 210 1476 Others 25 480 - 768 - 777 - 697 - 1220 - 1830 2241 19716 1029 10326 1005 9078 1569 11235 2747 20654 4121 30983

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4. Financial 4.1 Ethio -Japanese Synthetic textiles S.Co. Profit & Loss Account 1998 1999 2000 2001 2002 Sales 36,034,314 36,751.556 17,613.418 9,088.502 7,900.889 Cash of products sold 31,053.103 31,452.863 14,610.531 9,230.022 10,813.445 Gross operating profit 4,981.211 5,298.693 3,002.887 ( 141.520) ( 2,912.556) Other Income 48,552 316.111 47.652 116.820 832.439 5,029.763 5,614.804 3,050.539 ( 24,700) (2,080.117) Expenses General & Administrative 2,759.158 2,656.731 2,493.386 2,451.535 2,323.981 Financial charges 986.497 891.798 811.488 571.857 494.957 Directors remineration 98.125 46.204 17.930 14.275 17.020 Audit fee 22,272 22,885 22,231 24091 22,231 Provision for doubt for debit 3,806.052 3,617.618 9.068 3,061.758 313.251 Net profit before Taxation 1,223.711 1,997.186 3,354.103 (3,086.458) ( 3,171.404) Provision for taxation 428.299 699.015 ( 303.564) (5,251.521) Net profit after taxation 795,412 1,298.171 - Balance brought forward 28,640.212 29,435.624 (303.564) 30,686.769 26,476.700 Balance Carried forward 29,435.624 30,733.795 30,990.333 27,600.311 21,225.179 5. Problems and Recommended Solutions A. Problems

• Low capacity in Management and Management Systems • Low capacity utilization • Lack of Technical and marketing professionals • Low level of profit • lack of maintenance people and spare parts

B. Solutions Entering in a management contract or Joint investment.

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COMPANY PROFILE ARBAMINCH TEXTILE SHARE COMPANY

1. GENERAL DESCRIPTION OF THE ORGANIZATION

1.1 Name of the organization: Arbaminch Textile Share Company Location : Located in Arbaminch Town, Gamo Gofa Zone of the Southern Nations, Nationalities and peoples Regional state, 500kms away from Addis Ababa Establishment : It was established in 1991 G.C

2.1 Address : Mailing Address - Arbaminch 41 - Addis Ababa 5622 : Telephone - Arbaminch 251- 06-810409, 810219 - Addis Ababa 251- 01- 535036/37/38 : Fax - Arbaminch 251 -06- 810404

- Addis Ababa 251- 06- 535035 : E-mail - Arbaminch

- Addis ababa am_textile@telecom.net.et 1.3 Historical Background :

Arbaminch Textile Share Company was established in 1991 with the aim of satisfying the enormous need for polyester/cotton-blended fabric in the country. It is a public enterprise with a total work force of 850-1000 at present and is one of the modern textile factories to date featuring the latest state of the art in the manufacture of yarns and high quality fabrics.

The factory had equipped with a new and modern spinning technology, open-end spinning, the conventional per-spinning stages of 2nd passage drawing and roving, the post spinning stage of winding that can be accomplished at just one point.

The factory is also equipped with high-speed shuttless rapier looms, each of which is fitted with microprocessor facility to enable the operators to adjust and configure required production and machine parameters.

A modern air-conditioning system, well-equipped physical testing laboratory, an efficient water treatment plant, and a complete for fighting and protection system as well as fully organized mechanical, electrical and automotive workshops are its additional aspects of modernity.

As the factory does not have its own finishing plant at its present stage of organization, its products are manufactured and sold in grey for in local and export markets respectively.

1.4 Objective of the enterprise: - To manufacture yarn and all kinds of finished cloths from cotton, synthetic fibers and filaments. - To prepare goods for household use from cotton, yarn fabric products and by-products. - To sell the above- mentioned products locally and abroad, and - To engage generally in any other trade or business conducive to the attainment of the above mentioned

purposes. 1.5 Main Types of Products

- 100% cotton any poly/cotton twill weaves with different construction. - 100% cotton sheeting and poplin plain weaved fabrics. - Poly-cotton panama weaves and - 100% polyester, 50/50PC, 65/35Pc plain weave fabrics

1.6 Production Capacity - Designed capacity of the factory is 16,970,509mt. grey fabrics - Attainable capacity of the factory is 12,975,756mt grey fabrics - Attained capacity in 1992 5,291,000mt.

1.7 Infrastructures and facilities Transport Accessibility - there is a well-constructed road (Aspalt) from Addis Ababa to Arbaminch town and a two day Air flight program in a week Electric: - There is a supply of high power electric upto the factory. Water : - A well treated water resource from the town and from the factory's own ground water.

Telephone, Fax, and E-mail - The factory premises is well endowed on these facilities Accommodation: accesse to well constructed and furnished guest - houses

1.8 Major inputs and Annual Consumption

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The major inputs of the factory are:- 1- Lint cotton………………. 3138 Ton/year 2- Sizing chemical…………. 40Ton/year 3- Softner………………….. 12Ton/Year 4- Polyester fiber…………… 475.5 Ton/year 5- Salt……………………… 28.6Ton/year 6- Fuel oil…………………. 780,000lit/year

1.9 Enterprise distance & annual utility consumption

a) Enterprise Distance - From major local row materials input with in the range of 5km -- 785km - From sales outlay 275km -- 505 km - From Djibouti port 1284 km and from Addis Ababa Airport 505km

b) Annual utility consumption & consumption per unit of output. - Electricity 13.5 mega watt/year

- Water 282,240 m3/year -Telecommunication & post service about Birr 105,000.-/year

1.10 Major suppliers & their distance from the enterprise - Local market: Semen Omo Agricultural Development Enterprise about 7 km far from the factory

: Middle awash Agricultural Development Enterprise about 680km far from the factory : For other small items from different suppliers at Addis Ababa which is 505km far from the factory.

- Foreign market: Asia countries for polyester fiber European countries for spare parts and sizing chemicals. - Local market: Awassa Textile share company which is 275km. far (Sales) from Arbaminch

: Kombolcha Textile Share company, which is 885kms far from Arbaminch : Other private textile enterprises

- Foreign Market: Chemites S.A of Belgium and (Sales) Cogetex S.A of Switzerland Manpower

- By Education By Education Male Female Total

Basic Education 2 - 8 grade 239 130 369 9 - 11 51 54 105 12 completed 209 69 278 12+1 36 02 38 12+2 9 -- 9 12_3 11 -- 11 1st degree 1 -- 1 2nd degree 3 -- 03 PHD -- -- -- Total 559 255 814

- By age group Age Male Female Total

18 - 30 109 80 189 31 - 40 384 156 540 41 - 50 61 18 79 51 - 55 5 6 Over 55 -- -- -- Total 559 255 814

- Management Members S/No Position Planned Actual

1 General Manager 1 1 2 Production & Technical Manager 1 1 3 Finance & Administration " 1 -- 4 Procurement & Marketing " 1 -- 5 Finance Head 1 1

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6 Administration Head 1 1 7 Procurement " 1 1 8 Technical Service " 1 1 9 Store & Suppliers " 1 -- 10 Weaving " 1 1 11 Spinning " 1 1 12 Quality Control " 1 1 13 P.T.P.C " 1 1 Total 13 10

- By Salary Range Salary Range Male1 Female Total

231 - 300 49 30 79 301 - 400 182 87 269 401 - 600 144 117 261 601 - 800 116 18 134 801 - 1000 46 3 49 1001 - 1500 13 -- 13 1501 - 2000 7 -- 7 2001 - 2500 1 -- 1 Over 2500 1 -- 1 Total 559 255 814

1.12 Annual turn over under normal condition 28,000,000 Birr 2. MARKET

2.1 Domestic (Local) Potential size of the market is limited to the grey fabrics users like Awassa Textile Share Company, Komblcha Textile Share Company and other private Textile uses especially that uses grey fabrics to take advantage of printing on their own design and their customer needs. The expected growth rate in the local market is very low because of the inflow of finished fabrics to the market. The anticipated advantage of the enterprise in comparison to the competitors is the capability of producing best quality grey fabrics especially polyester/ cotton blend fabrics since it is equipped with the latest technology machinery. Since the Share Company is a producer of grey fabrics only the achieved market Share and expected market Share is very low compared to the finished (Printed and dyed) fabrics.

Expected Local sales for the next three years and actual for the past three year Expected Local Sales for next three years & actual for the past three years

1999 2000 2003 2004 2005 2006 1991EC 1992EC 1995 EC 1996 EC 1997 EC 1998 EC N

o

Type of Product

Uni

t

Qty Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr

1 Grey fabrics Mt 3,391,069 19,288 3,458,497 19,582 3,860,083 16,968 6,091.100 32,283 7,622,300 40,296 8,126,600 63,651 2

Dyed & Printed Fabric

Mt.

--

--

--

--

--

--

--

--

--

--

--

--

3 Yarn Kg 132,272 2,387 162,292 2,853 -- -- 470,000 0,870 558,190 11,722 670,190 14,066 Total 21,675 22,435 16,968 42,153 52,018 77,717

NB. Year 2001 and 2003 excluded from the actual sales due to lack of actual data created by the lease period. 2.2 Export

- Our export target is 25% of the total sales valeue - Expected export sales for next three years and actual for the past one year

2003/1995 2004/1996 2005/1997 2006/1998 No

Type of product

Unit

Qty Value in

Birr Qty Value in

Birr Qty Value in

Birr Qty Value in

Birr 1 Grey

fabrics Mt. 120,000 485 1,885,500 8,179 3,450,300 14,978 4,268.200 19,794

Total 485 8,179 14,978 19,794 - Other potential export market

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- There are requests from different foreign suppliers from England and Italy which is promising one.

2.3 Distribution & Market Facilities - The distribution is affected by the existing location of the factory which is far from the port area.

2.4 Major Customers - Chemitex S.A of Belgium - Cogetex S.A of Switzerland 3- Production & Sales (actual for the past three years and expected for the next three years)

3.1 - Production interms of quantity and value actual for the past three years and expected for the next three years Value in 000 Birr

1999 2000 2003 2004 2005 2006 1991 EC 1992 EC 1995 EC 1996 EC 1997 EC 1998 EC

No Product Type

Uni

t

Qty Value in Birr Qty

Value in Birr Qty

Value in

Birr Qty Value in Birr Qty

Value in Birr Qty

Value in Birr

1 Grey fabrics Mt 3,363,496 18,881 2,672,201 27,232 3,556,289 25193 9,675,000 42,279 11,610,000 48,212 12,255,000 51,850 2 Yarn Kg

s 115,281 1,971 190,431 3,150 859,749 -- 5,000,000 7,390 4,000,000 5,912 2,000,000 3,000

Total 20,852 30,382 49,669 54,124 54,850

3.2 - Expected local sales for next three years and actual for the past three years 1999 2000 2003 2004 2005 2006

1991 EC 1992EC 1995 EC 1996 EC 1997 EC 1998 EC

No

Type of Product

Uni

t

Qty Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr Qty

Value in Birr

1 Grey fabrics Mt 3,391,069 19,288 3,458,497 19,582 3,860,083 16,968 6,091.100 32,283 7,622,300 40,296 8,126,600 63,651 2

Dyed & Printed Fabric

Mt.

--

--

--

--

--

--

--

--

--

--

--

--

3 Yarn Kg 132,272 2,387 162,292 2,853 -- -- 470,000 0,870 558,190 11,722 670,190 14,066 Total 21,675 22,435 16,968 42,153 52,018 77,717

N.B year 2001 and 2003 excluded from the actual sales due to lack of actual data created by the lease period. 3.3 The price for our products are almost at constant pase at average

4- Financial Analysis

4.1 Arbaminch Textile Factory Balance Sheet As of June 30,1989 - June 30,1992 E.C (in'000 Birr) Description 1989 1990 1991 1992 Asset Current

Cash (9878) (8678) (6020) (1586 Accounts Receivable 29580 33483 40444 1932 Inventory 45422 37932 24673 17932 Goods in transit 3370 5007 7752 1823

Total current asset 68494 67744 66849 20101 Fixed asset 159216 159391 159391 154402 Less Acc. Depreciation 51506 61493 71,364 80378

Net Fixed asset 107710 97898 88027 74024 Total asset 176204 165642 154876 94125 Liability & capital current

Accounts payable 12907 15243 14630 18882 Accured Liabilities 50673 57513 63365 110

Total current Liabilities 63580 72756 77995 18992 Longe tern loan

Government loan 35038 35038 35038 -- Foreign Loan 93898 93898 93898 --

Total Liability 128936 128936 128936 -- Capital

State (share) capital 66699 66699 66699 108991 Share holder (Government) contribution -- -- -- -- General Deficit (83011) (102749) (118754) (33858)

Net capital Deficit (16312) (36050) (52055) (75133) Total Liability & Capital 176204 165643 154876 94125

N.B. We took only the last four years balance sheet because 1993, & 1994 lease period financial statement is not complete.

14

Arbaminch Textile Share Company Profit & Loss Statement For the period 1989 - 1992 EC

4.2 Proft and loss account for the last five years.

In'000 Birr Particulars 1989 1990 1991 1992

Operating Income Gross Sales 33839 39227 23158 24051 Less sales tax 3625 3087 2185 2577

Net Sales 30214 36140 20973 21474 Cost of goods sold 46926 48952 30795 38680 Gross Profit (Loss) (16713) (12812) (9822) (17206) Selling Adm. & Gen. Exp.

Selling & distribution Exp. 263 192 174 207 Adm. Salary & wages 1270 1374 1354 1505 Adm. & other Gen. Expense 6337 5333 5589 3424 Total Selling & General Exp. 7870 6899 7117 5136

Net Operating income (Loss) (24583) (19711) (16939) (20342) Other income 56 22 181 819 Income (Loss) before tax (24527) (19689) (16758) (21523)

N.B We took only the last four years profit and loss account because 1993 & 1994 lease period financial statement is not complete.

4.3 Financial Ratio

1992

DRCE = NPBT = -- CAPITAL EMPLOYED

RDCI = NPBT

= --

CAPITAL INVESTED PROFITABILITY = NPBT

--

NET SALES RATION OF COST & EXPENSE OF SALES = COST OF SALES

NET SALES

= 107%

ADMINISTRATION & GENERAL EXP. NET SALES

= 15%

SELLING AND ADM. EXPENSE NET SALES

= 14%

FIXED ASSET EFFICIENCY NET FIXED ASSET

= 62%

CURRENT RATION = CURRENT ASSET CURREN LIABILITY

= 54%

QUICK RATIO STOCK CURRENT LIABILITY

= 28%

DEBT RATIO TOTA DEBT TOTAL ASSET

= 157%

5 outstanding problems and their anticipated solution. a. Problems - Working capital shortage - The fire damage which has led to the utilization of 30% of the capacity is being rehabilitated and under completion. - Shortage of spare parts - Skilled manpower in marketing area

- recruiting the marketing personnel by establishing better pay scheme b. Solution Entering in Management Contract or Joint venture for export market access and marketing expertise.

15

16

DIRE DAWA TEXTILE FACTORY PROFILE

1.1 Name of the organization- Dire Dawa Textile Factory (D.D.T.F)

Date of establishment – 1939 in European Clander Location - the factory located in the eastern Ethiopia in the regional Administrative council

of Dire Dawa 530 km from Addis Ababa 1.2 Address

Region Dire Dawa Council Tel No 251 -05 -11-34-88/89 Zone Dire Dawa Fax 251-05-11-05-82 Woreda 04 E-mail ddtf @ telecom.net.et House No P.O.Box 29

1.3 Historical Background The factory was established as an ETHIOPIAN COTTON SHARE COMPANY S.A with initial capital of 1.5 million East African sharing which was about 0.5 million Ethiopian Birr. The shareholder was British and Egyptian businessmen and the Royal family in Ethiopia. At the start labor force was 400 and production began with 9240 spindles and 390 looms. The annual production was 3.6 million yards fabric and 3000kg yarn. 1951 German businessmen improved the management system and also introduced new technology. The factory's capital was also raised to 5 million. In 1964 Fuji International Corporation took over the management. At this time Japanese Company and the International Finance corporation (World Bank) made new investment in the factory and raised the capital to Birr 12 million. In 1974 D.D.T.F. was nationalized and was put under the National Textile corporation (NTC) In 1999 DDTF was transferred to a private investor with lease sales and the factory was named Addis Izmir Dire Dawa Textile Factory. In 2002 the factory again transferred to a public Enterprise and obtained its previous name i.e. Dire Dawa Textile Factory At present DDTF's authorized capital is Birr 21,741,285. Birr

1.4 Objective of the enterprise The purpose for which the enterprise is established are

To manufacture yarn and fabrics from cotton. Synthetic fibers and filaments To produce finished fabrics for personal or house hold use. To prepare goods for household use from cotton, yarn thread and woven or knitted fabrics. To sell the factory products locally and abroad. To engage generally in any other trade or business related to its line of purpose.

1.5 Main type of product The factory is an integrated mill producing three main products. Marketable yarn DDTF uses splice-auto coners for knitting yarn for local knit wear manufacturers and

Exporters. It is also one of the major local suppliers of weaving yarn with a count range of Ne 6.5 to Ne 60.

Acrylic yarn DDTF is the only factory in the country, which produce dyed acrylic yarn in Counts Nm2/32, Nm2/36, Nm2/28, Nm1/36 etc.

Fabrics The factory produces 100% cotton, polyester-cotton mix and 100% polyester Woven fabrics in Gray, bleached, dyed and printed form. In different weave i.e. - Sheeting - Sateen - Flannel - Twill - French twill - New mull - Poplin - Bed sheet and others

1.6 Production Capacity

Type of product Unit Designed Attainable Attained Remark for Designed & Attainable

Yarn on hand Kg 3,456,000 3,024,000 1,829,077 Av. count 21.1 Ne Yarn on cone " 432,000 374,400 28,129 Count 18.5 Ne Acrylic Yarn " 691,200 590,400 206,825 Count 36/2 Nm Fabrics Yard 8,968,000 7,879,500 3,475,986 Av. Py 40.8 /inch

17

Note:

Designed and attainable capacity is calculated in 3 shift and working day 288 days Attained capacity in 2 shift Acrylic yarn

In designed & Attainable capacity the raw material assumed is mixed. Top and Fibers Attained capacity (currently) the raw material in use is fiber only.

1.7 Facilities - Electric power is supplies from the national grid of the Ethiopian electric light

and power corporation (EEPLC) through 13 transformers with a total capacity of 12150 KWA.

- Water is pumped from deep-wells (260m3.day) and from near by river (500m3/day)

- Oil-fired boilers generate steam. - Auto mechanical, wood work and electric workshops for maintenance. - A foundry shop for melting and molding aluminum, cast iron, bronze, brass, copper,

tin and lead with a total capacity of 600kg/day. - Enough storage places for raw materials spare parts and finished goods. - Two Forklift trucks for loading and unloading purpose, 4 heavy trucks for

transportation of Raw material and products are available - The company has its own fuel station with enough capacity for Naphtha and

Benzene. - Telephones, E-Mail, Fax, Postal service are available in the factory. Air and train

Connection to Addis Ababa and Djibouti. - A 2098-meter square of building for staff residence, a clinic a canteen. - A branch office in Addis Ababa.

1.8 Major Inputs

At full capacity operation the factory’s consumptions will be Raw cotton -------------- 18 Ton/day Acrylic fiber -------------- 1.5 Ton/day Electric power -------------- 30,000 kwh/day Furnace Oil (for steam preparation) -------- 4.5 Ton/day Water---------------------------- 950 m3/day

Dyestuffs & chemicals ------- 1595 kg/day

1.9 Organizational Set -Up Existing Man Power By sex ,Age, Qualification & Salary Range

By Sex Female Male Total 1067 1560 2626

By Age

From 18-30 From 31-40 From 41-54 Total 400 1321 905 2626

By Qualification

Level of education. Man Power - Read & Write 947 - Elementary School 518

- Secondary School 906 - Commerce Certificate 116 - Technical School Diploma 89 - University - Diploma 39 - Degree 11 Total 2626

18

By Salary Range

Ser No

Monthly Salary Range

NO of Workers

1 150-200 10 2 201-250 71 3 251-300 129 4 301-400 593 5 401-500 1116 6 501-700 277 7 701-1000 299 8 1001-1500 103 9 1501-2000 18 10 2001 And Above 10 Total 2626

1.10 ORGANZATION STRUCTURE

BOARD OF DIRECTORS

AUDIT

GENERAL MANAGER

PLAN & INFORMATION SERVICE

DEPUTY GENERAL MANAGER

QUALITY

PROD.& TECHNIC DEPT

ADMINSTRATION DEPT

FINANCE DEPT

PROPERTY STORAGE & HANDLING DEPT.

COMMECE DEPT

EXECUTIVE

SECRETARY ADDIS ABABA BRANCH OFFICE

19

2. MARKET.

2.1 Domestic /Local/ • Potential size of Market and expected growth rate.

The demand and Supply of the textile Products in the Country are largely far apart .The Population of the Country is more than 60 Million Where as the textile industry sectors are few. Thus not satisfy the need of the People. If Products are supplied according to the need of the People in quality there is a wide Market size with the respective growth of the People.

• Anticipated advantage of the enterprise in Comparison to the Competition. Our Factory is producing three typically different Products. That is

(1) Different kinds of grey & Bleached Yarn from 6.5 – 60 Ne, 100 % Cotton, Polyester Cotton Mix, Knitting Yarns

(2) Dyed Acrylic Yarn (3) Different Kinds of grey, Dyed and Printed fabrics. This Varity Product enables us to Shift the

Products as Market demand. The Factory has a good Will in producing a quality Product for 65 Years.

• Expected Market Share achieved and to be achieved. Our Products cause around 20% of the Yarn Market in the Country. We hope this Market Share Will Continue in the Market

2.2 Export • Expected Export target in % of the total sales

2003/04 2004/05 Expected Export target 6.7% 6.77%

• Expected export sales for the next two years 2003/04 2004/05

Expected export sales Birr 4,275,800 Birr 6,413,700

• Potential Export Markets The Factory doesn't export Products till now due to the limitation the test equipments and the Weaving Machines un efficient to Produce for export Market, Since the export Market this day needs Wide Width fabrics. and to export yarn it is necessary rehabilitate the factory that is mill not 1 compared to the other mills is new and with minimum cost the machinery can be maintained and its products can be availed for export market.

2.2.1 Distribution and Market Facilities. Our Products are distributed to all regions and most of the Products are distributed to the northern part of Ethiopia. The Products are distributed by distributor (Whole Sellers)

2.2.2 Major Customers.

Our Customers can be divided in to two. Regarding the Yarn Product Local Weaver are our Customers. This day more than 8000 kg Yarn Produced per day for local weavers. The Other Acrylic Yarn and fabrics are sold for rural & Urban People.

3 PRODUCTION AND SALES

2.1 ACTUAL PRODUCTION FOR THE PAST YEAR PRODUCTION IN QUANTITY AND VALUE

Item Unit In Quantity In value Marketable yarn Kg 1,857,206 25,546,080 Acrylic yarn " 206,825 5,333,432 Fabrics Yard 3,475,986 11,033,802 Other - - 492,757 Total - 42,406,071

20

SALES IN QUANTITY AND VALUE

Item Unit In Quantity In value Marketable yarn Kg 1,800,705 30,165,839 Acrylic yarn " 204,725 6,387,414 Fabrics Yard 3,372,979 9,676,548 Other - - 1,261662 Total 47,491,463

2.2 EXPECTED PRODUCTION AND SALES FOR THE COMING TWO YEARS

PRODUCTION IN QUANTITY AND VALUE UNIT 2003/04 2004/05

ITEM In Qty In value In Qty In value Marketable yarn Kg 2,437,920 37,848,000 3,606,800 54,289,000 Acrylic yarn " 358,260 9,081,000 616,848 15,302,000 Fabrics yard 5,012,640 16,089,000 7,976,584 22,851,000 Other - - - - - Total 63,018,000 92,442,000

SALES IN QUANTITY AND VALUE

UNIT 2003/04 2004/05 ITEM In Qty In value In Qty In value Marketable yarn Kg 2,437,920 40,068,000 3,606,800 59,279,000 Acrylic yarn " 358,260 9,720,000 616,848 16,735,000 Fabrics Yard 5,012,640 13,091,000 7,976,584 18,337,000 Other - - 900,000 - 400,000 Total - 63,779,000 94,751,000

NB :- Sales is including tax

4. FAINANCIAL ANALYSIS PROVSIONAL BALANCE SHEET

AS AT JUNE 2003 ANNUAL Asset Employed

Fixed Asset 3,780,731.66 Current Asset

Stock 32,461,403.71 Debtors 3,716,036.49 Cash and Bank Balance 1,063,073.91 Total Current Asset 37,240,514.11 Current Liabilities

Creditors 1,084,064.07 Accruals 210,402.34 Tax payables 2,164,559.54 Total Current Liabilities 3,459,025.95 Net current Asset 33,781,488.16 Total Asset 37,562,219.82 Long term Loan 16,000,000.00 Total 21,562,219.82

Financed by

Capital Authorized & Paid 26,256,765.42 Prof it & (Loss) Account (4,694,545.60)

21

21,562,219.82

PROVSIONAL PROFIT & LOSS STATEMENT AS AT JUNE 2003

ANNUAL Sales 41,186,978.72 Cost of goods sold 41,067,360.72 Gross profit (Loss) 119,618.00 Other Income 189,235.98 308,853.98

Expense Distribution 80,829.52 Administration 4,416,672.04 Bored of mgt fee 35,488.39 Bank Charge 38,902.54 Audit fee 20,700.00

Total Expense 4,592,592.49 Net profit(loss) before tax (4,283,738.51) Profit & Loss Adjustment (410,807.09) Transfer to Deficit (4,694,545.60)

5. EXISTING PROBLEMS AND RECOMMENDED SOLOUTIONS.

The strengths, weaknesses, opportunities and threats of the company are based on the assessment of the internal environment and the external environment.

INTERNAL PROBLEMS

- Due to low productivity and efficiency machines the cost of production led the factory to losses. - Poor quality image of fabric products limit the factory to penetrate into the export market - Due to narrow width of fabrics and deterioration of the m/c the product have low market demand. Therefore, the

factory is manufacturing yarn in hand form for local hand loom weavers in order to utilize spinning m/c capacity. - It is difficult to know the accurate yarn quality result & to control the production process because of the lack of

adequate production quality testing equipment.

EXTERNAL PROBLEMS - Most of the spare parts of the old weaving m/cs are not available for purchasing - With the introduction of the market economy, the Dire Dawa Textile factory is confronted with tough

computation both in the local and international market.

STRENGTH Good discipline of workers Good Infrastructure & Production aid services such as work shops & own water source

OPPORTUNITIES

Near ness of the port that is 380 kms far from Djibouti port. Availability of labor

RECOMMENDED SOLOUTIONS

Management contract and Joint Investment for Machinery needs rehabilitation.

22

Profilo della Società Nazareth Garment Share Company Enterprise

1. Informazioni

1.1 Nome e sede

La Nazareth Garment SIC prende il nome dalla città nella quale ha sede. Nazareth è una zona della Regione Oromia o

Regione 4. Com’è noto la città è situata nel cuore del Paese, dove le strade collegano 4 regioni amministrative. E’ una

città in rapida espansione agricola. Si calcola che 700 persone vadano e vengano ogni giorno lavorativo per una breve

sosta o per affari. Situata ai piedi ai piedi dell’altipiano centrale all’interno delle pianure della Rift Valley, Nazareth

gode di un clima temperato. Ne consegue che la Nazareth Garment S.Co è situata in una zona commercialmente

strategica.

1.2 Cenni storici

La Nazareth Garment S.Co. fu formalmente fondata nel 1992, mentre nel Paese aveva luogo una grande

trasformazione sociale, politica ed economica. Era un periodo di transizione da una gestione economica fortemente

centralizzata ad un’economia di mercato più libera.

Prima di essere formalmente fondata è stata per molti anni un progetto pilota sotto il precedente governo. Il progetto

che fondava l’azienda era realizzato attraverso un accordo contrattuale tra l’Ethiopian Textiles Corporation e la Sud

Coreana Daewoo che completarono la costruzione e l’istallazione nel 1989, molto prima che l’azienda diventasse

operativa. A seguito della produzione di filati l’Ethiopian Privatization Agency rivaluto’ il patrimonio dell’azienda e la

trasformò in Società per Azioni il 1° ottobre 2000. A seguito della trasformazione il gruppo “Allied Hill” di Hong King

propose un contratto d’affitto e l’azienda fu ceduta in affitto il 10 ottobre 2001. A causa delle scarse performance del

locatore è tornata di proprietà del governo.

1.3 Obiettivi

Principali obiettivi dell’azienda:

- Produrre diversi tipi di capi d’abbigliamento di differenti materiali per uso personale e domestico

- Vendere i propri prodotti localmente e all’estero

- Offrire a chi fosse interessato il servizio di design, taglio e cucitura

- In generale, impegnarsi in qualsiasi tipo di affare utile al perseguimento dei suoi obiettivi

1.4 Prodotti principali

L’azienda produce principalmente camicie. Occasionalmente vengono prodotti altri capi d’abbigliamento come camici,

uniformi scolastiche, pantaloni, ecc.

1.5 Capacità

Quanto agli impianti, l’azienda ha una capacità produttiva teorica di 2.400.000 camicie all’anno ad una media di 8.000

pezzi al giorno. Fisicamente la capacità produttiva raggiungibile è di 3.000 pezzi al giorno.

1.6 Infrastrutture

23

1.6.1 Indirizzo e sede

La Nazareth Garment S.Co. ha sede nella città che porta lo stesso nome a sud-est di Addis Abeba. Il suo

indirizzo in città è Higher 2, Kebele 03.

La Nazareth Garment S.Co. solo per il fatto di essere nella città di Nazareth è non solo collegata a molte

regioni del Paese da strade asfaltate ma gode anche del vantaggio di trovarsi sulla linea ferroviaria che collega

Djibouti ad Addis Abeba.

La Nazareth Garment S.Co. dispone di diverse linee telefoniche nazionali e internazionali, di telex, fax,e-mail

e servizio postale. Di seguito l’indirizzo completo dell’azienda:

Nazareth Garment Share Company

Higher 2, Kebele 03

Telephone: 251-2-11-33-61

Fax.. 251-2-111733

E-mail Nazarethgarmen@telecom.netet

P.O.Box: 418

Nazareth

L’azienda è collegata alla rete elettrica ed idrica. L’energia elettrica è fornita dalla rete nazionale

dell’Ethiopian Electric Corporation. L’acqua arriva tramite le condotte idriche cittadine ed anche da un pozzo

di proprietà dell’azienda.

1.6.2 Sbocchi sul mercato

Uno dei problemi principali per l’azienda è l’assenza di un mercato sufficiente ad assorbire i prodotti. Al

momento l’impianto distribuisce i suoi prodotti attraverso negozi di proprietà.

1.7 Proprietà del terreno

La Nazareth Garment Share Co. occupa 52.100 metri quadri, che comprendono gli uffici, lo stabilimento

dell’azienda e terreno recintato. Out of this Production Hall is 7812.7, Office block, Canteen & Clinic 1340.8

Offices made of containers 264.0.

1.8 Principali consumi annuali

· Tessuti

Gli unici consumi sono rappresentati da diversi tipi di tessuto. Quando l’impianto funziona a pieno

regime consuma annualmente circa 2,400, 000 m2 (due milioni e quattrocento metri quadri) per 300

giorni lavorativi al tasso di 2 m.q. per camicia.

· Elettricità

Il fabbisogno di elettricità è stimato in 380. 000 kWh all’anno. Le tariffe variano secondo i consumi e

il tipo di voltaggio. La Nazareth Garment Share Company paga una media di Birr 0.4736 per kWh e il

costo mensile del servizio è di Birr 43.91.

· Acqua

24

Il consumo d’acqua è stimato in circa 1.500 metri cubi all’anno. Le tariffe dipendono dal volume

dei consumi.

2. Produzione e vendite

2.1 Produzione

La produzione dell’azienda dal 1997-2000 è stata molto bassa. La produzione è diminuita costantemente ma

grazie all’impegno profuso dalla gestione nel 2001l l’zienda ha prodotto e venduto più del 100% della sua

produzione.

Tabella della produzione in quantità e valore 1997-2001

Produzione in quantità/pezzi 149 280 274 297 513

Produzione in valore/birr 5192 7636 4555 6204 9753

2.2 Vendite

Negli ultimi 5 anni le vendite sono costantemente aumentate. Il quadro è decisamente cambiato nel 2001. Il

picco è stato raggiunto nel 2001 con 508.920 articoli venduti per un’entrata totale di 15.4189.170 Birr. La

seguente tabella illustra il venduto espresso in quantità e valore rispettivamente nel 1997 e nel 2001.

Tabeella del venduto in quantità e valore nel 1997 e nel 2001

Sales in Qty PCS 130 306 280 340.98 508.92

Sales in Value Birr 4193 8998 5029 7393 15419

3. Organizzazione

3.1 Struttura Organizzativa

La struttura organizzativa vede al top il Consiglio d’Amministrazione, poi i General Manager ognuno dei quali

segue una linea ed un comparto diverso. L’azienda ha 4 comparti: finanza, amministrazione, produzione e

commerciale. Ogni comparto è a sua volta suddiviso in 4 unità più piccole.

3.2 Forza lavoro

Secondo uno studio fatto nel 1996, la Nazareth Garment Share Company ha personale più qualificato rispetto

a quello di altre aziende simili del Paese. Sebbene ci sia una certa turnazione a livello manageriale il personale

non manca. Ci sono circa 840 impiegati di cui il 50.5% fissi e i restanti a termine. I numeri sono indicati di

seguito

Number of Employees at the Factory

Regolari A Contratto

Produzioni 301 392

25

Serzizio di supporto 123 24

Total 424 416

Come già specificato, l’azienda dispone di personale qualificato a confronto con altre aziende simili del Paese.

Alcuni hanno titoli riconosciuti. La maggior parte, comunque, ha imparato il mestiere attraverso corsi

nazionali oppure all’estero.Gli impiegati fissi laureati o diplomati sono 9, in possesso di un diploma tecnico o

formazione specifica 14, scuola superiore 325, altro 79. Quanto al livello scolastico del personale temporaneo

201 hanno frequentato la scuola superiore e 215 quella elementare/media.

4. Situazione finanziaria

- La situazione finanziaria dell’azienda è illustrata nei documenti in allegato e si riferisce agli ultimi 5 anni

(1997-2001).

4.1 Past Performance (1997-2001)

L’azienda non rientra tra quelle che hanno generato profitto nel periodo 1997-2000 (vedi Appendice III).

Guardando il conto profitti e perdite il bilancio è in negativo. Sebbene siano registrate crescenti perdite nel

2001 c’è stata la ripresa.

Per i dettagli vedere appendici II e III.

6. Problemi e soluzioni consigliate

A. Problemi

• Scarsa capacità manageriale e dei sistemi di gestione • Scarsa capacità di sfruttamento • Mancanza di tencici e professionisti del marketing • Basso profitto

B. Soluzioni Cessione della gestione che porti anche all’esportazione.

26

Nazareth Garment Share Company

Bilancio 199 7-2001

Past Performance Account 1997 1998 1999 2000 2001

Mobilio 261523 58 218564 47 175581 72 152451 135512 Attrezzature 179185 72 103663 61 76184 42 - - - Veicoli a motore 77396 12 222724 35 142145 11 317900 261584 95 Edifici 7791218 901 7315353 231 6830019 56 4569066 71 4331712 60 Pozzi d’acqua 173752 701 161279 731 120990 11 106758 29 157328 52 Costruzioni in divenire 1278824 88 1307558 5 1274869 33 - - - - Stock - - 78234 85 62976 49 84875 55 39634 75 Spese varie 1018617 84 (2555684 67) - - - - - - Patrimonio fisso 15092125 46 11760808 65 13113151 89 8031341 35 7383194 62 Totale 23305968 59 21946430 59 20948272 3 11803163 31 12478356 42 Passivo: Market Creditors 2907768 451 4391912 4 3547118 85 83867 17 60521 42 Altri creditori 608431 36 1134034 17 514789 91 54549 761 748454 95 Deduzione sulle imposte 14508 92 96673 71 94362 67 55306 871 25690 50 Tasse pagabili 212241 85 961974 88, 1380116 45 614150 37 84610 18 Fondo di deposito 378774 56 - - - - - - (29799 73) Scoperto bancario 5873924 381 6795574 29 6901425 66 6139856 96 4903205 24 Anticipo Clienti 25379 19 386225 34 499695 50 254824 10. 73953 1 Accumulo 150599 5 136845 72 73252 52 63731 901 80810 80 Salari non reclamati 7750 33 - - - 1535 141 Tassa sul reddito - - 801628 371 State Dividend Payable - 1042116 89 Debiti vari - - 38883 1 38883 1 - 38883 1 Debiti totali 10179378 9 13942123 16 13049644 57 72662871 13 7831609 78 Beni netti 13126590 50 8004307[ 43 7898627. 46! 45368761 181 46467461 64-

27

28

Appendix III Nazareth Garment Share Company

Balance Sheet From 1997-2001

P*St, Account Actual 1997 Actual 1998 Actual 1999 Actual 2000 Actual2001 Current Assets: Fondo cassa 1232 6633 10 27971 26 5892 65 816 92 Contanti in banca 330643 8 93439 58 215077 30 158912 79 109597 49 Accounti - - 1 - - - - - - 1 - - Debitoro Staff 77333 76 486437 99 233546 98 360884 831 321866 9 Debitori Commercio 772430 34 3354928 93 1986428 54 1090706 591 1565257 52 Debitori vari 338213 79 577034 61. 587069 76 1683 651 599210. 75 Deposito servizi 51035 50. 56035 501 39035 50 154909 281 217253 88 Prepagamenti 34464 371 189585 67 86530 29 185463 871 55799 91 Fondo debitori - - (186651 10)1 (350682 11) Alti 391 40 - - Stock: Materiale finito 3709682 34 3681397 76 2542015 52 1751941 83 1764537 84 In lavorazione 114456 8 144505 75 503791 86 120891 64 132950 56 Materie prime 1216426 541 1032686 82 1036149 55 753473 37 1283353 17 Pezzi di ricambio 299599 35 277611 76 320264 77 352825 65 337158 91 Arnesi 1466 8 - - - - - - - Materiale fisso 31042 76 176677 2 190458 86 179998 25 172519 84 Varie 216807 90 108647 45 66779 95 54808 19 34794 13 Fondo Stock (1213919 53)1 1149273 15) Patrimonio totale 8213843 13 10185621 94 7835120 14 3771821 961 5095161 80 Beni fissi: Piccoli attrezzi - - 27546 4 22528 69. Mobilio 1618 56 12366 63 35424 31 18756 16802 Macchinari e attrezzature 5302142 73 4825880 21 4360116 95 2676710 80 2323194 80 Mobili da ufficio e attrezzature 26462 27 43322, 15, 12315 20 104823 117425

29

Appendix IV

Nazareth Garment Share Company

Income Statement/Conto profitti e perdite

1997-2001

Account Actual 1997 Actual.1998 Actual 1999) Actual 2000 Actual 2001 Salari lordi 4193642 69 8998124 96 5028515 72 4944318 58 15419176 23 Less Sales Tax 425648 9 954948 1 511345 72 498409 55 1623133 431 Net Sales 3767994 601 8043176 951 4517170 - 4445909 3 13796042 801 Less Co Gs 4858492 691 6994038 561 5609562 15 4605108 95 10064408 471 Profitto lordo (1090498 09)1 1049138 391 (1092392 15) (159199 92), 3731634 331 Altri introiti (29023 88)1 10902 70 54885 26098 82 66345 181 Totale introiti (1119521 97)1 1060041 9 1037507 15) (133101 10) 3797979 511 Spese: 1- - 1 Spese di distribuzione 270183 -751 391721 5 428028 95 314920 40 375304 70 Spese amministrative 637190 831 2250093 72 1256240 89 568882 79 822760 94 Spese d’ammortamento 1085537 241 - - Spese per interessi 598577 381 619315 37 614062 78 483557 41 297047 8 Audit Fee 15750 - 12500 - 12500 - 16000 - 12500 - Spese totali 2607239 20 3273630 14 2310832 62 1383360 60, 1507612 72 Adeguamento anno precedente (213298 42) (159378 09) 149695 95 462482 521 Entate nette prima delle tasse(Perdita) (3940059 59) (2213589 05) (3348339 77) l516461 70) 2290366 79 Tassa sulle entrate (Profitto) - - - - - - - - 801628 37 Entrate nette (perdita) dopo le tasse (3940059 59) (2372967 14) (31986431 82), (1053979, 18) 1488738 42

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Appendix IV

Nazareth Garment Share Company

Costo dei beni 1997-2001

Past Performance

Account Actual 1997 Actual 1998 Actual 1999 Actual 2000 Actual2001 Work in Process Begn. 641123 841 77235 89 144505 75 134630 - 120891 64 Direct Raw Material 2215323 961 4683362 83 2053232 2 2478834 56 7379921 3 Indirect Raw Material 5651 331 124584 54 126046 59 31710 31 90854 58 Direct Labour 930034 181 1052766 72 1146988 53 612165 801 1277128 50 Indirect Labour 2049,90 701 245432 71 309982 78 186076 61 254139 73 Depreciation 1066502 641 1064910 37 1048161 27 410828 421 578180 88, Repair & Maintenance 49859 551 6036 25 28063 57 150 7415 81 Electricity & Water 50781 951 60578 48 83079 39 37433 18 71202 581 Staff Benefit 119343 36 - - - - - - 103397 42 Others 22944 75 50466 81 33911 87 20430 13, 37124 69 Sub Total 5306556 26 7365374 60 4973971 77 3912258 46 9920256 13 Less: Working Process Ending 114456 32, 144505 75 -503791 86 120891 64 132950 56. Finished Goods Trans 5192099 941 7220868 851 4470179 91 3791366 82 9787305 571 Add.. Fins. Prod. Beg 3302029 4 3454567 47 3681397 76 2565683 961 1751941 83 Purchase 88516 - - - - - - - 555874 50 Consignment 30500 - - - - - - - - - Transfer to U. Account (21154 19) - - - - - - (14790 02) Adj. On F. Goods Degn (55449 07) - - - - - - (69225 85) Inventory Overage, Shortage 36327 46 - - - - - - - (176320 27) Total 8572869 18 10675436 32 8151577 67 6357050 78 11539247 40 Less: Finished Prod. Ending 3709682 34 3681397 761 2542015 52 1751941 83 1764537 841 Sales Sample (4694 15) - - - - (5839 Cost of Goods Sold 48584921 69 6994038 56 56095621 151 46051081 95, 10

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