Request For Proposal – Saponification Feasibility Study – Ethio-Asian Industries S.C
Consultancy and Training, Engineering, Manufacturing
Ethio-Asian Industries S.C
1. PROJECT BACKGROUND AND OBJECTIVES
Established in 1994, Ethio-Asian Industries S.C. (EAI) stands as the first private soap and detergent manufacturing enterprise in Ethiopia. With its factory strategically located in Addis Ababa, EAI has diligently served the nation with high-quality soap products, catering to both personal care and home care needs.
The company’s core offerings encompass a range of soaps brands, catering to the diverse needs of Ethiopian households.
Among EAI’s most renowned products is the iconic « Diana » bath soap, a testament to the company’s dedication to providing superior personal care solutions. « Diana » has become a household name, synonymous with quality and affordability.
Ethio-Asian Industries S.C. (EAI) is embarking on a transformative journey guided by a meticulously crafted strategic plan. As part of our strategic undertakings, we are planning to implement backward integration by revitalizing an existing Saponification plant to produce soap noodles internally, aiming to reduce operating costs associated with procurement of soap noodles from high-priced suppliers.
To ensure the success of this ambitious project, we are seeking the expertise of a seasoned technical consultant or consulting firm with a proven track record in similar projects within the soap and detergent industry. The ideal consultant should possess deep technical, financial, and environmental as well as social impact assessment knowledge of the industry and the ability to identify quality and cost-effective local as well as international suppliers of Refined Bleached and Deodorized (RBD) and other raw materials which will be used as input to produce soap noodles.
This call for proposals invites competent consultants/firms specialized in soap and detergent manufacturing to assess the technical and financial feasibility of EAI’s planned backward integration project. The consultant or consulting firm is required to substantiate the ability of access to recent data and a thorough understanding of industry dynamics.
2. SCOPE OF WORK
The consultant or consulting firm will be responsible for the following tasks:
I. Objective Identification: Define the objectives of the project, including operational efficiency, cost reduction, and production enhancement.
II. Process Engineering System Compilation: Compile a clear and complete process engineering system outlining the project’s workflow and operational processes.
III. Plant Section Segregation: Segregate different sections of the plant for efficient database management and analysis purposes.
IV. Machinery Component Identification: Identify the list of machinery components required for each section, encompassing reservoirs, production machines, utility generating units, and piping and instrumentation.
V. Technical Item Procurement: Identify technical items required for purchase, distinguishing between local and foreign sources.
VI. Capital Investment Assessment: Determine the total capital investment required for the completion of the project, considering machinery, infrastructure, and other essential components.
VII. Preoperative Expense Identification: Isolate all preoperative expenses, including local and foreign manpower Define the objectives of the project, including operational efficiency, cost reduction, and production enhancement costs, necessary to finalize the project.
VIII. Assessing and Identifying Raw Material Sources: Assess and identify local and international sources of raw material (in terms of quantity, quality, and favorable pricing) required for the project’s operation.
IX. Technical Items Procurement Plan: assess opportunity to maximize energy efficiency and use of renewable energy to reduce future fuel and electricity costs.
X. Assessing and Identifying Raw Material Sources: assess the opportunity to source environmentally friendly raw materials, including:
a) Natural alternatives to chemical ingredients
b) Ingredients that minimize the use of water at production stage but also at the use of the soap by final customers
c) Ingredients that do not contribute to deforestation and habitat destruction.
d) Environmentally friendly packaging (biodegradable packaging)
XI. Working Capital and Total Investment Cost Evaluation: Identify the working capital and total investment cost necessary for project execution and sustainability.
XII. Market Data Collection: Collect necessary market data to assess demand levels relative to plant capacity and willingness to pay from environmentally friendly alternatives.
XIII. Data Analysis and Projection: Conduct detailed data analysis based on product recipes, plant capacity, and market demand to project revenue and EBITDA for the next ten years.
XIV. Feasibility Integration: Integrate all investment dimension parameters to demonstrate the feasibility of the project, facilitating informed decision-making Integrate all investment dimension parameters to demonstrate the feasibility of the project, facilitating informed decision-making.
XV. Undertaking Newly Emerging Tasks: The consultant is also expected to hold serious consultation meetings with the executive board, senior management, key employees from operation, finance and commercial functional departments throughout the project and should undertake very important newly emerging tasks.
The consultancy assignment shall be completed within Four to Six (4-6) Weeks following the signing of the consultancy agreement.
3. DELIVERABLES/SPECIFIC OUTPUTS EXPECTED FROM CONSULTANT
The consultant is anticipated to deliver:
I. Project Objectives Document: Clearly defined objectives of the project, including operational efficiency, cost reduction, and production enhancement.
II. Process Engineering System Documentation: Comprehensive compilation of a process engineering system outlining the project’s workflow and operational processes.
III. Plant Section Segregation Report: Report segregating different sections of the plant for efficient database management and analysis.
IV. Machinery Component Identification List: Detailed list of machinery components required for each plant section, including reservoirs, production machines, utility generating units, and piping and instrumentation.
V. Technical Item Procurement Plan: Plan identifying technical items required for purchase, with a distinction between local and foreign sources.
VI. Capital Investment Assessment Report: Report determining the total capital investment required for project completion, considering machinery, infrastructure, and other essential components.
VII. Preoperative Expense Identification Summary: Summary identifying all preoperative expenses, including local and foreign manpower costs, necessary to finalize the project.
VIII. Raw Material Sources Assessment Report: Assessment report identifying local and international sources of raw materials in terms of quantity, quality, and pricing.
IX. Working Capital and Total Investment Cost Evaluation Report: Report identifying the working capital and total investment cost necessary for project execution and sustainability
X. Market Data Collection Analysis Report: Report analyzing necessary market data to assess demand levels relative to plant capacity.
XI. Data Analysis and Projection Report: Report conducting detailed data analysis based on product recipes, plant capacity, and market demand to project revenue and EBITDA for the next ten years.
XII. Comprehensive Feasibility Report: Report integrating all investment dimension parameters to demonstrate project feasibility, facilitating informed decision-making.
SPECIAL TERMS & CONDITIONS / SPECIFIC CRITERIA.
1. The consultant/consulting firm is required to assign relevant expertise or a team of experts with outstanding track records, preferably in the soap and detergent industry.
2. The experts or team of experts should demonstrate industry knowledge as well as ease access to recent industry and market data.
3. The consultant/consulting firm is expected to strictly meet the deadline.
4. All necessary supporting legal documents such as Business and Professional Licenses, TIN certificates, recommendation letters, etc. should be submitted.
5. Budget: Kindly present a financial proposal as an appendix to the technical proposal.
6. The consultant/consulting firm shall submit detailed technical and financial proposals within ten calendar days following announcing the call for consultancy and/or receipt of this ToR.
