DAC Draft Business Plan

Content
1. Company Profile
1.1. Establishment
1.2. Management profile
1.3. Business Record
1.4. Past years’ performances
2. Business Environment: Construction Sector
2.1. General background about the sector
2.2. Market Overview
2.3. Opportunity and Challenges of the sector
3. DAC Operation and Project management
3.1. Project at hand and level of accomplishment
3.2. Projects that require working capital finances
3.3. Component of working capital items and their Financial requirement.
3.4. Total banks Finance requirements
4. Financial Project
4.1. Project PL statement (next five years)
4.2. Projected cash-flow (next five years)
4.3. Repayment schedule
Annex
I. Organogram
II. Accomplished contracts – Letters and certificates
III. Audit report – 3 Years
IV. Machineries and truck summary
V. Contract at hand
VI. Current status – Consultant letter
VII. Bank statement
VIII. Good performance – Bank’s letter and certificates
IX. Legal document
2. Company Profile
2.1. Establishment
Desalegn Asrade Construction (DAC) has been providing infrastructure development and civil engineering
construction services to the public, business and industrial sectors for the last close to two decades. We
approach each situation with a team mentality, understanding that the ability to lend our expertise is an
integral part of the success of your project. Since the establishment, DAC has transformed visions and ideas
into Steel, Masonry, Concretes in to realities. Our clients represent a broad spectrum of industries and
business sectors allowing us the opportunity to apply our extensive experience, know-how and passion for
excellence to each specific project in order to successfully handle every challenge and special circumstance.
The synergy that the company accumulates since its modest beginning in 2002 allows itself to gradually win
numerous contracts whose landmark performances herald institutional capability to deliver differentiated
services in a seamless manner transcending national boundaries. Success allows DAC to instantaneously
grow into an efficient and renowned class 1 General Contractor (GC-1) whose every year of operational
history has been remarked by glamorous heydays of growth and expansion. DAC's commitment to total
client satisfaction begins with its vision of maintaining the pace-setter and most preferred engineering and
Construction Company in Ethiopia infrastructure development market. The company is also credited for
providing basis for establishing a base for contract management and that diligently strives to achieve the
dreams and hopes of the ranging stakeholders aspiring at becoming one of the leading GC-1 healthy
performer. DAC has received numerous awards and recognition from federal, regional and clients for
performing a high quality and delivery on time.
With a well-respected track record behind us, and a solid outlook ahead, we have learned that our
collaborative experience with a variety of projects creates exceptional solutions and results for our clients,
no matter what they are building.
Our company philosophy
“Early in our corporate growth, we took time to develop guiding principles to ensure we would fulfill our
vision and mission every single day”
Mission Statement
To provide the best construction experience through

Relationships built on integrity
Success built on performance fueled by a commitment to continual improvement
Both personally and professionally
Vision Statement
To be sought out as the recognized and trusted firm in the industry and community: rating developing and
attracting the best in committed construction leadership and to drive deliberate and intelligent growth of
the company
2.2. Management profile
2.3. Business Records

DAC has been privileged to undertake the construction of dozens of projects across the country. To
mention a few of them:
 The
 The
 The
 The
 The
 The
The ability of the company to establish multiple business construction contacts is reliant on satisfying and
retaining repeated clients such as various Public universities, housing corporation, regional government
and other corporate companies whose understanding of quality and delivery timeliness of the projects
remain vital to heightening the company’s relationships with such Employers.
2.4. Past years’ performances
DAC past year financial performance: Extracted from the Audit statement
N Project Contract Execution to % work Value of
o Value Date executed remaining work
3. Business Environment (Construction Industry overview)

3.1. General background about the sector
The construction industry encompasses all sectors such as industry, agriculture, housing, infrastructure, etc.
It is evident that in every economic activity there is construction works. Constructions of building, road,
dam, airport terminals, etc. are common features of development activities. Economic development plans
and strategies designed and implemented by the government call for extensive support from the
construction industry.
Growth in the construction industry means also among many others, increasing demand for construction
raw materials. So, following the trend of construction growth there is ample chance to venture in the
production of construction materials.
Construction is a major business sector worldwide accounting for sizeable proportion of most countries’
gross domestic product (GDP). As per some studies, the global construction industry makes up
approximately 10% of the world’s GDP. The importance of construction sector is related not only to its size
but also to its role in economic development. Construction industry produces the facilities that
accommodate a wide variety of human activities, and the infrastructure that connects these facilities into
an increasingly complex network. The facilities are needed for the production of all other goods and
services, starting from those needed by other products and ending with those needed by the ultimate
consumers.
In Ethiopia, in recent years, the construction industry starts expanding throughout the country with high
demand for various construction materials. The construction industry grows in all sectors especially in
construction, infrastructure facilities such as roads, renovation and construction of new roads, construction
of numerous high rising buildings by private investors in every part of the city and further building of
schools, clinics, industrial buildings, etc have made the demand for granite promising. Accordingly, the
contribution of the construction sector to the GDP during the period 2006-2016 is as shown here under.
In general, the rapidly growing economy, the booming construction sector of Ethiopia coupled with the
rapid growth of population and urbanization will create a huge market potential for construction materials
such as the product under consideration.
The construction sector expansion program encompassing particularly building construction activities is to
increase the density from its current status by more than 35% in the coming 5 years of GTP II. The second
five-year development plan aims at the provision of improved social services to the urban and rural
population. This focuses on expansion of health services, education and housing. The government’s support
to stimulate the private sector to invest in the production of construction materials is very important to
achieve the program as planned.
3.2. Market overview
TBA
3.3. Opportunity and Challenges of the sector
The Ethiopian government has paved the way for European and Chinese entrepreneurs to get
involved with the innovation of the country’s infrastructural development and industrial
growth. Despite the risks of bringing in foreign companies, the Ethiopians are quite grateful
for the assistance and business potential offered by global players.
Here are a few of the major opportunities in Ethiopia’s construction business:
 Some regions in the country have national regulations that disallow foreign business
involvement in small-scale projects. On the other hand, international companies are
supported by the Ethiopian government when they inaugurate large-scale projects.
This provides unlimited possibilities for consultancy firms as they provide assistance to
the Ethiopian government and other foreign investors.
 When you decide to take on a large-scale project, you have complete responsibility for
the project. The physical presence of your company on Ethiopian soils allows you
focused supervision of your workers. This gives you more opportunity to utilize the
skills of your employees and get the best out of them. This also presents an
opportunity for project managers to improve their skills, acquire knowledge and earn
profitably.
 There is competition upon entering the country’s economy. To prepare for this, you
must be aware of the methods to get into the game of Ethiopian construction sectors;
namely: private assignments, contractor and the competitive bidding and the
negotiated contracts for public projects. Critical knowledge of these areas will serve as
an opportunity for your company to grow and fully earn the trust of Ethiopian workers
and citizens.
 Foreign consultancy firms produce project managers for designing large scale
buildings, implementing quality management and supervising projects.
 There are also huge opportunities for civil industries due to the outcropping of
specialized projects with the use of advanced technology.
 A 10-year master plan to connect major regions in Ethiopia requires the professional
knowledge of civil engineers and project managers. This presents a huge opportunity
such professions.
European and Chinese businesses have been involved in past construction ventures in
Ethiopia. European construction companies are scarce and do not have the same impact as
Chinese companies. Chinese construction businesses are known to mobilize construction in a
speedy but efficient way. China has also strengthened its relationship with the Ethiopian
government to provide more job opportunities for their respective citizens.
4. Project at hand
4.1. Projects at hand and level of accomplishment
4.2. Projects that require, working capital finances
4.3. Component of working capital items and their Financial requirement.
4.4. Total banks Finance requirements
5. Financial Project
5.1. Project PLC statement (next five years)
5.2. Projected cash-flow (next five years)
5.3. Repayment schedule
Annex
X. Organogram
XI. Accomplished contracts – Letters and certificates
XII. Audit report – 3 Years
XIII. Machineries and truck summary
XIV. Contract at hand
XV. Current status – Consultant letter
XVI. Bank statement
XVII. Good performance – Bank’s letter and certificates
XVIII. Legal document

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Content

Our company philosophy

To provide the best construction experience through

2.3. Business Records

3. Business Environment (Construction Industry overview)

3.2. Market overview

Here are a few of the major opportunities in Ethiopia’s construction business:

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