Cosmetics Products Making Plant

1. Product Description: The word cosmetics refers to articles intended to be rubbed, poured, sprinkled or
sprayed or introduced into or otherwise applied to the human body or any part of it for cleansing, beautifying,
promoting attractiveness or altering the appearance. Generally, cosmetics can be divided into four groups:
skin, nail, hair and teeth cosmetics. Skin cosmetics include face powder, talcum powder, vanishing cream,
color cream, lipstick, cold cream, Vaseline. Nail cosmetics include nail polishes. Hair cosmetics covers hair
dye, hair shampoo, coconut oil shampoo, shaving cream, hair fixer, after shave. Cosmetics for teeth include
tooth powder and tooth paste. Different cosmetics require different ingredients and different preparation
formulas.

2. Market Potential: The Amhara Region is home to 19.2 million people. In countries where the standard of
living is high, 19.2 million people could have supported a multi-million dodder cosmetics industry. However,
since the standard of living of the people in the Amhara Region is very low the market for cosmetics is limited to
few brands like Vaseline, vanishing cream, cold cream, hair oils. These cosmetics products are widely used in
the urban areas and to some extent in rural areas. Other cosmetics products such as tooth paste, nail polish, after
shave, shaving cream, etc. are used by people of higher income in the urban areas of the Region. Women are the
main consumers of many types of cosmetics products. Potential customers of cosmetics products in the Amhara
Region are female between the age of 5 and above. The number of female in this age group in the Region is about
8 million of whom 11.5 percent or 921,000 live in urban areas. If we assume that at least 70 percent of the urban
potential customers and 40 percent of the rural customers, total customers will be about 3.5 million. If on the
average one consumer consumes about 400gm of cosmetics per year, annual aggregate consumption of cosmetics
in the Region could be 1,400 tons. Up to now, all these cosmetics have been imported partly from Addis Ababa
and partly from abroad. The purpose of this project is to substitute imports by regional production, and the
regional demand is sufficient to absorb the production of a number of small scale cosmetics producing plants.

3. Source of Raw Materials: Different cosmetics use different types of inputs with varying
proportions. Basically there are about 6 types of inputs which constitute the components of many types of
cosmetics. These are waxes, fatty acids, vitamin zed oil, lecithin bentonite and petroleum jelly or vase
lines. Depending on the type of cosmetics to be made, other inputs are also added to the basic ingredients. Some
of the main inputs such as wax, fatty acids can be obtained from domestic sources; others have to be imported.

4. Process & Technology: The formulation and production processes of different groups of cosmetics are
different. Hence, since there is no one common process for all cosmetics, no process description is given in this
section. Machinery and equipment for cosmetics also differ based on the type of cosmetics to be produced. The
following are the basic types of machines used for different categories of cosmetics. Heating equipment: electric
heaters; boilers, steam stills, water baths and distilled water heat stills. Equipment for creams:- meters for waxes,
greases and fats, mixers for waxes, greases, fats for milling and mixing operations. Equipment for
liquids:- mixers, filters and filter presses, liquid filling machines of vacuum type, bottle capping machine. There
are also different types of machines for powder cosmetics.
 5. Estimated Investment: For a plant which will produce 300,000 bottles of vanishing cream, 5000kg of
face powder, 12000kgs of scented coconut air, 300,000 bottles of shampoo, 120 ton of soap and 5000 tubes of
toothpaste per year, total investment will be:

 Building 1200 m2 at Birr 2500/m2 = Birr 3,000,000

 Machinery = Birr 1,500,000

 Working Capital = Birr 1,000,000

5,500,000

6. Benefits: Saves foreign exchange and regional financial resources, contributes to better health conditions
of individuals, and introduces new skills and technology to the Region.

7. Location:

Training Center for hotel and Restaurant Services

1. Product or Service Description:- Preparation of foods (cookery) drinks, provision of different types of
services in hotels and restaurants are essential for the success of such enterprises. The foods must be clean;
tasty, fresh and must be presented in pleasant manner and style in which every thing is clean and net. To do
this, hotels, restaurants, coffee shops, cafeterias and other catering businesses must have well trained workers
in all sections of operation starting from the house cleaner to the manager.

2. Market Potential:- Here ‘market potential refers to the need of giving training to almost all workers of
hotels and restaurants in the whole Region. This need arises from the fact that practically all people working
in hotels and restaurants do not have any rudimentary training in the works they are engaged. It is not unusual
where a cleaner becomes a cook after a certain period of cleaning in the kitchen of a certain hotel or restaurant
in the region. Probably this is not unique for the Region. It happens also in other regions. But the level of hotel
and restaurants services in the Region is, admittedly, much below the standard of some other Regions. This is
especially true in the western parts of the Region. There could be many reasons and causes for the poor food
and service provided by hotels and restaurants of the Region. There is no need to mention all these reasons
and causes, The end result is that there is a strong need to give training in food preparation, hotel and restaurant
services for practically and workers of hotels and restaurants operating in the Amhara Region. The need for
this training is not limited to the major urban centers, it includes all towns (small and large) of the Region. To
put it bluntly, the Amhara Region is behind many other Regions in the provision of high standard services in
hotels and restaurants. To catch-up with the rest of the country in these areas, a massive training should be
given to hotels and restaurant workers throughout the Region.
3. Process:- The process of providing these trainings starts with the acquisition of a training facility. Once
this is acquired, recruiting of trainers and securing training furniture and fixtures will follow. Recruiting trains
and conducting the training will be the final stages of the process. To get enough number of trainees per
training cycle, and effective marketing strategy should be in place, since during the first phase owners of hotels
and restaurants will not see the advantage of sending their workers to the trained.

4. Estimated investment: For an outfit that will train about 1000 hotel and restaurant workers per year, the
Estimated investment will be:-

 Building 700 m2 at Birr 2000/m2 = Birr 1,400,000

 Furniture and fixtures. = Birr 500,000

 Working capital = Birr 300,000

Total = Birr 2,200,000

5. Benefits: Stimulates the growth of catering business in the Region, increases customers
satisfaction.