EIC Towel

This profile envisages the establishment of a plant for the production of towels with a capacity of 30 tons per annum. Towels are woven pieces of fabric of either cotton or cotton-polyester that are used to absorb moisture on the body after bathing. The existing demand for towels in Ethiopia is met through import and domestic production. The present (2022) unsatisfied demand for towels is estimated at 15.75 tons. The unsatisfied demand for towels is projected to reach 25.37 tons and 40.85 tons by the year 2025 and 2030, respectively. The principal raw materials required are cotton or cotton and polyester, softeners (starch, urea, etc), bleaching agents, and packing material. The raw materials are available locally except bleaching agents which have to be imported. The total investment cost of the project including working capital is estimated at USD 494,574 .The project can create employment for 1000 persons. The establishment of such factory will have a foreign exchange saving effect to the country by substituting the current imports. The project will also create backward linkage with the yarn factories, chemical and packaging sub sectors and also generates other income for the Government.

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