Commentaries | Apr 03,2021
Jun 20 , 2020
By HAGOS GEBREAMLAK ( FORTUNE STAFF WRITER )
Adas Trading Plc, a local livestock export company, has started bottling Setit Purified Spring Water in the Western Zone of Tigray Regional State after investing 60 million Br.
Built on 10,000Sqm of land, the plant is located at Rawian town, eight kilometres from Humera. It distributes the water in half-litre, one-litre, two-litre and 20-litre bottles. Setit, which operates with 59 permanent and 11 contract employees, produces 18,000lt of water an hour and plans to increase its production capacity in the coming months.
The company is the 15th water bottler in Tigray Regional State, 10 of which are operational. It also joins the 97 other bottlers operating at the national level. After being certified by the Ethiopian Conformity Assessment Enterprise last April, the bottler started supplying its products to the market.
The company has chosen Rawian due to the existence of natural spring water, an abundance of water resources, and the availability of an important geological resource to the industry, sandstone, according to Kibrom Mulugeta, CEO of the company, which was established in 2015 and exports livestock to the Middle East.
The construction of the factory began in 2014 and was completed late last year. The construction was delayed due to a foreign currency crunch, power supply shortage, and delays in electricity infrastructure development, according to the managers.
The company imported the bottling machinery from China for 33 million Br. It invested 27 million Br in the civil work of the construction. The Development Bank of Ethiopia (DBE) covered 70pc of the investment through lease financing.
The factory operates for nine to 10 hours a day because of the hot weather conditions in the area that make it difficult for employees to work the whole day, according to Kibrom.
The marketing strategy of the bottler is granting franchises to organised youth. It is working with municipal governments to organise unemployed youth to receive loans in exchange for distributing its products, according to Kibrom.
It has already co-organised 57 youth in Meqelle and 20 in Humera to retail its products. It began distributing its products in Western and Northwestern Tigray three months ago and started sales in Meqelle two weeks ago.
“We've so far given the franchises to organised youth in Humera, Shire, Sheraro and Meqelle,” Kibrom said.
Hailemariam Kebede (PhD), an assistant professor of marketing management at Addis Abeba University's School of Commerce, appreciates the marketing strategy of the company.
"It's a viable strategy since the youth are familiar and have close contacts with the public," he said.
The bottler will be benefiting from the local market, according to Hailemariam.
"Most of the bottlers in the country are located around Addis Abeba, and thus Setit can take advantage of the lower transport cost to penetrate the market," Hailemariam said.
Being the pioneer in western Tigray, the bottled water manufacturer is benefiting from the large demand for its products, according to the CEO.
“We found the market very encouraging since there is a demand for our product," Kibrom told Fortune.
The huge demand and high returns are encouraging businesses to join the water bottling business in the Regional State, according to Daniel Mekonen, deputy commissioner of the Tigray Investment & Export Commission. He adds that many bottlers located in Addis Abeba and the surrounding area are still supplying their products to the Regional State, indicating that there is huge market potential for the sector.
"Most of the bottlers in the Regional State are expanding their businesses," said Daniel.
The bottler should compete in terms of quality and packaging by introducing new techniques and modern technologies, Hailemariam recommended.
PUBLISHED ON Jun 20,2020 [ VOL 21 , NO 1051]
Commentaries | Apr 03,2021
Radar | Nov 05,2022
Life Matters | Apr 02,2022
Fortune News | Dec 07,2019
Fortune News | Apr 02,2022
Radar | Sep 18,2021
Radar | Dec 05,2020
Fortune News | Mar 23,2019
Fortune News | Dec 14,2019
Fortune News | Feb 15,2020
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Dec 9 , 2023
Making a paradigm shift seems elusive for those in the driving seat of Ethiopia's mon...
Dec 2 , 2023
The symphony of traffic noise in Addis Abeba is not just a sign of life, but a siren...
Nov 25 , 2023
Ethiopia's quest to develop a functioning capital market is a demanding yet not unach...
Nov 18 , 2023
Prime Minister Abiy Ahmed (PhD) has made a fervent call for landlocked Ethiopia to ga...
I have a love-hate relationship with my phone. It is my go to source for information. I enjoy interacting with text messages and browsing t...
While doing laundry over the weekend, I began video chatting with a friend from overseas. Amid our lively conversation, I told him to give m...
Or see contact page