Techno Econmic Feasibility and Engineering Application Study to Establishment of Corn Processing(Glucose) Plant in Ethiopia
Keywords:
Corn, Processing, Technoengineering, application, economic feasibilityAbstract
Glucose in its different form is used as a constituent of foods, medicine, and other applications in the tanning and dyeing. Hence, the demand for glucose depends mainly on the growth of the manufacturing sector particularly the food and pharmaceuticals. Considering the growth of population and the increasing number of food and pharmaceutical manufacturing enterprises demand is projected by applying a 10% annual growth rate(Source:Ethiopian Revenues and Customs Authority). The key success an drisk factors for amanufacturerin the glucose from corn starch and allied productsindustry are raw material costs, plant location, manufacturing efficiency, secure supply of corn, quality standards, access to suitable human resources, infrastructure facilities, adequate distribution, macroeconomic environment, currency fluctuations, government regulations and policies, etc. The consultant recommends the implementation of this project taking into account the promoters decision related to the associated risk factors. By all measures, the project is found to be economically viable to implement. According to the projected income statement, the project will start generating profit in the first year of operation. Important ratios such as profit to total sales, net profit to equity (Return on equity) and net profit plus interest on total investment (return on total investment) show an increasing trend during the life-time of the project. The income statement and the other indicators of profitability show that the project is viable. The project can create such employment. Inaddition to supply of the domestic needs,the project will generatehundred of million at full capacity operation in terms of tax revenue. The establishment of such factory will have a foreign exchange saving effect to the country by substituting the current imports and future potential of export of the products. Waterfall 1.1 base-case scenario shows profit after tax and sensitivity analysis for the worst conditions of raw material cost increase and/or product price decrease as much as 10% do not change the viability of the project.
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