Introduction

The primary goal of this report is to provide all the necessary information regarding a
business proposal on the territory of Tanzania. The country has been developing at rapid
rates and the demand for quality products is incredibly high. Moreover, companies have
access to enormous amounts of resources that are not fully utilized. The Confectionery
industry is especially fascinating because the number of firms that operate in this sector is
relatively small. It suggests that the problem is that most of the Sugar is imported and the
Cocoa beans produced here are transported overseas, and the industry is dominated by
Westerners. Many think that it should be viewed as an outstanding opportunity to open up a
business in Tanzania, and it would be beneficial to a company that has enormous
experience in this area.

It seems that the Company has access to all the necessary tools and instruments that can
be used to ensure that the project is successful, and business is profitable. Furthermore, it is
important to analyze the situation in the country to get a better understanding of its unique
aspects and how they may be utilized to improve the efficiency of operations. One of the
most significant advantages that the Company has is its production capabilities, and that the
company is likely to adapt to the techniques.

We believe that many enterprises are too worried about such aspects as the climate, and
they think that it may complicate the process of production. Furthermore, this indicates that it
would be necessary to build a set of facilities with this aspect taken into consideration. It
would be beneficial to establish long-term relationships with supermarkets and shops in this
region and provide them with a broad range of benefits.
It has been seen that an enormous percentage of the population prefers products that were
produced by natives. Moreover, it would be wise to conduct a marketing program that would
be focused on benefits of this product and explain why this brand can be trusted. It is
paramount to understand that consideration of cultural aspects is vital in this case. The
problem is that an enormous percentage of the population does not have access to
information and are primarily focused on agriculture. Also, many individuals do not like
innovations and prefer traditional approaches. However, there have been many businesses
that were successful over the years. The role of social responsibility also has been
increasing, and it should be viewed as an excellent opportunity to provide people in this area
with work and support. Another issue that needs to be discussed is economic freedom. The
situation has been improving, but it is entirely possible that it will have an impact on the
ability of individuals to make purchases. Overall, GDP growth that has been shown is
enormous, and it is expected that the situation is going to improve in the future. Also, the
inflation is not as a significant problem as it used to be and it has stabilized recently.

Market Audit and Competitive Market Analysis

Product Evaluation

The product will be perceived as innovative by target market because of unique packaging,
and a variety of tastes is also a significant advantage. However, it may not be viewed as
compatible with the current behavior of consumers because they prefer products that are not
that flashy most of the time. There would be no difficulties with a use of this product in most
cases. We suggest that trialability should be considered in this case, and it is entirely
possible that some types of products will have to be excluded. Products like Soft toffees,
Chocalates, Eclairs, Jellies etc should be made temperature & humidity tolerant. It is
possible that some sellers will not consider such factors as the need to monitor the
temperature, and it may lead to unpleasant situations. The Company should devote
significant attention to this aspect to ensure that the number of such cases is limited. We
think that It is not possible that there would be any risks related to bad experience because
the product will be tested. The biggest problem that may occur is that the product will be met
with negative reaction, and it would be reasonable to present the company as socially
responsible. Another aspect that is worth mentioning is that the company can be quite
flexible and is willing to make changes if it is necessary.
The Market

Geographic Regions

It is assumed that the product will be sold in the territory of Tanzania, because it is a region
that has captured the interest of many tourists. It should be possible to establish long-term
relationships with Kenya because it is interested in Tanzanian products and is willing to
invest enormous amounts of funds into the transportation. Moreover, it is entirely possible
that the business will be able to expand, and the products will be delivered to nearby
countries.

Transportation and Communication

It is necessary to mention that all of the standard tools of transportation can be used in the
country. The sector is well-developed, and it is not likely that any significant issues will occur.
African Development Bank suggests that resources may be transported with a use of
vehicles or shipping. Moreover, use of railways may also be considered. Such
communication tools as the Internet and cell phones are available in the region.

Buying Habits

Globally, sugar confectionery accounts for about 39% of candy consumption and chocolate
confectionery about 61%. This ratio can vary widely among countries. Confectionery
consumption is increasing in countries with a growing middle class, such as Brazil and India,
and in countries with traditionally low sugar consumption, such as China and Japan. As
populations become more prosperous, chocolate consumption tends to increase. In more
developed countries, confectionery consumption shows little growth from year to year and
has declined in some nations.

It is imperative to mention that the consumption of such products has been increasing, and
customers prefer to stay loyal to one brand. The expatriates and people with high income
prefer supermarkets most of the time. The population likes products that are simple and only
make purchases from trusted sources.
Distribution

Numerous outlets are operating on the territory of the country, and it would be beneficial to
consider and exclusive contract with selected few. We think that Supermarket Chains should
be viewed as an outstanding choice because its connections and a relationship with this
company would help to promote the product.

Competitors

Some of the primary competitors are

CANDYMAN LTD
FURAHA NYANZA CO. LTD
IRINGA FOODS AND BEVERAGES LIMITED
JAMBO FOOD PRODUCTS COMPANY LIMITED
ALFA CONFECTIONERIES (T) LTD

"Chocolate Mamas" describes itself as an organic chocolate that is positioned as hundred

percent African. Packaging is relatively simple and cheap, but it is well-designed and attracts
customers.

Competitor’s Prices

The products that are offered by the competitors are sold at low price shops, Grocery
Markets and Convenience Stores. High end products are sold in Super Markets & Malls at
premium prices in shops and hotels that are aimed at people with high earnings. Also many
of the traders are selling imported goods that attract duty and hence are sold at high costs. It
should be viewed as a significant advantage by the Company. Hence, the company should
provide products that are much cheaper.
Market Size

 Revenue in the Confectionery market amounts to US$4.40bn in 2023-24. The market

is expected to grow annually by 7.15% (CAGR 2024-2028).
 In global comparison, most revenue is generated in the United States (US$199bn in
2023-24).
 In relation to total population figures, per person revenues of US$65.61 are
generated in 2023-24.
 In the Confectionery market, volume is expected to amount to 1.04bn kg by 2028.
The Confectionery market is expected to show a volume growth of 4.1% in 2025.
 The average volume per person in the Confectionery market is expected to amount
to 13.6kg in 2023-24.

Most Exports from Tanzania to:

1. Democratic Republic of the Congo

2. Rwanda

3. Uganda

Most Imports into Tanzania from:

1. Kenya

2. India

3. China

It is necessary to note that the market is not yet well-developed, and it is entirely possible
that the company will have to take some risks. Traders state that there have been about 20
million fair trade Hard Boiled Candies, Lollypops, Toffees, Gums etc. and 3 million Chocolate
bars sold during the last year according to the statistics.

The retail price range for Tanzania Hard Boiled Candies, Lollypops, Toffees, Gums etc is
between US$ 0.37 and US$ 0.46 per kilogram and retail price of Chocolate is between US$
11.67 and US$ 19.46 per kilogram. The Tanzanian market for candies, sweets, and
nonchocolate confectionery had dropped to less than US$ 2.5bn in 2022 due to a trade war
between Kenya & Tanzania. Overall local consumption remained steady. In value terms, the
confectionery production rose in 2022 estimated in export price.
Over the period from 2012 to 2022, it increased at an average annual rate of 9.8%. As a
result, import price reached the peak level and is likely to continue growth in the immediate
term. There were significant differences in the average prices amongst the major supplying
countries. In 2022, amid the top importers, the country with the highest price was China
($2200 per ton), while the price for India ($1650 per ton) was amongst the lowest.

Pricing Strategy

Expenses on shipment and transportation will be minimized because the product will be
produced on the territory of Tanzania, and there is access to enormous amounts of
resources. Shipping and transportation are relatively cheap in the country, and it will not
have a significant impact on the cost of the product, and price. The demand for such
products is incredibly high, but it is entirely possible that the pricing strategy may have to be
altered if new competitors appear or market situation changes. We think that the number of
competitors is rather limited so it will be beneficial to set a low starting price. Moreover, it can
be increased in the future if the firm will be able to establish a following and develop
relationships with consumers.

The government of Tanzania has several limitations that could affect the pricing strategy
because it is focused on the support of the national economy. U.S. Department of State
(2013) suggests that Tanzania is determined to ensure that firms have equal opportunities,
and it is entirely possible that the company would not be able to take advantage of all the
resources that are available. It is imperative to mention that the exchange rate has been
unstable lately. However, it can be viewed as a benefit, and it will be capable of getting
significant profits in the territory of the country. Also, there are no limitations on cash
transfers, and it should be viewed as an enormous advantage in this case. The product
SKUs will be positioned as an affordable confectionery that is primarily aimed from low &
middle income locals to expatriates, tourists, and upper class.

Government Regulations

The company will have to go through a range of procedures. For instance, it is necessary to
get a license, and immigration may also be quite problematic in some cases. Embassy of
Tanzania (n.d.) suggests that rights of employees are also actively protected, and minority
investors are also protected.
Conclusion

In conclusion, it is evident that this proposal has a range of benefits that should not be
overlooked. One of the most significant advantages is that the company is quite experienced
in this country, and numerous marketing strategies have already been developed and
promotion techniques have proven to be effective. However, numerous barriers are still
present. Many companies that are focused on the production of confectionery have been
hesitant about business in this area because of the economic situation and prefer other
approaches.
PROJECT AT A GLANCE:

Product lines

The manufacturing facility requires a substantial amount of capital investment and superior
technology for the manufacturing process. We propose that it should be capable of
manufacturing the entire range of confectionery products, in each one of the following
categories:

1) Toffees: Centre fill, Non centre fill

2) Candies:Centre fill, Hard Boiled

3) Gums: Bricks, Balls, Sticks

4) Lolly Pops: Oval, Square - Centre filled, Non centre filled

Manufacturing Processes:

Sugar Confectionery
Sugar confectionery, as the name suggests, is rich in sugar; any sugar or type of sugar.
There are two types of sugar confections: boiled sweets and fondant. Boiled sweets are
“Sugar and water boiled at such a high temperature (150–166 °C) that practically no water
remains and a vitreous mass is formed on cooling” whereas fondant has been defined as
“Minute sugar crystals in a saturated sugar syrup; used as the creamy filling in chocolates
and biscuits and for decorating cakes. This is prepared by boiling sugar solution with the
addition of glucose syrup or an inverting agent and cooling rapidly while stirring”

The principal ingredients of sugar confectionery comprise sucrose, invert sugars, and
glucose syrups. Invert sugar is “The mixture of glucose and fructose produced by hydrolysis
of sucrose, 1.3 times as sweet as sucrose. So called because the, optical activity is reversed
in the process. It is important in the manufacture of sugar confectionery, and especially
boiled sweets, since the presence of 10–15% invert sugar prevents the crystallization of
sucrose”

A typical boiled sweets formulation will contain 48% w/w sucrose, 32% w/w glucose syrup,
and 20% w/w water. Three methods are used to melt the sugar which is followed by molding
or forming and rapid quiescent cooling: (1) boiling to ≈150 °C in an open pan bearing the risk
of discoloration due to the long process; (2) boiling under vacuum; (3) extrusion. A typical
fondant formulation contains more sucrose, for example, 62% w/w sucrose, 16% w/w
glucose syrup, and 22% w/w water. The mixture is boiled to 88% w/w solids at 117 °C and
then cooled to 37 °C. Beating will induce crystallization of small sucrose crystals (≈10–
15 μm)

Major Equipment List:

CONTINUOUS VACUUM BATCH COOKER

ROTARY KNEADING MACHINE HORIZONTAL PULLER

THREE TIER HORIZONTAL COOLING CONVEYOR

LOLLIPOP COOLING TUNNEL

Cooling Drums

CONTINUOUS FONDANT SYSTEM

BATCH FORMING AND SIZING MACHINE

BALL LOLLIPOP FORMING MACHINE

SWEET FORMING MACHINE Suitable for forming Eclairs, Hard boiled, Liquid filled
candies, toffees and gums. The machine can form seamless sweets with high depth or
thickness.

CONTINUOUS DIE POP FORMING AND PACKING MACHINE The continuous die
pop forming & packing machine is a continuous rotary operation machine. It feeds, sizes,
cuts, forms, inserts sticks, and crimp-wraps lollipops

CONTINUOUS SHEETING SLITTING LINE

CHOCOLATE DECORATOR MACHINE

AUTOMATIC PILLOW PACK MACHINE

SINGLE TWIST BALL LOLLIPOP WRAPPING MACHINE

AUTOMATIC CUT WRAP MACHINE suitable for Toffee, Bubble gum and Fudge .
AUTOMATIC CANDY WRAPPING MACHINE enables you to wrap a variety of different
types of pre-formed sweets by wrapping in Double Twist Wrapping Or Single Twist Wrapping
style.

AUTOMATIC CUT FLOW WRAP MACHINE Suitable for automatic cutting and flow
wrapping of toffee, candy, bubble gum, nougat or fudge. Continuous operation with easy
size change capability.

COATING , POLISHING AND REVOLVING PANS

AUTO COATER The autocoater is suitable for coating chocolate, yoghurt, peanuts,
almond, raisin and dates

HARD CANDY SCRAP BREAKER Suitable for breaking candies or bigger scrap lumps
into required particles for proper mixing on the cooling table / kneading machine.

The equipment has to be sourced from multiple vendors in Europe & Asia, including

Togum, France;

AMP Rose,

Baker Perkins UK, US.

Dhiman Engineers India,

Miranda Automation Private Limited, India

Nuova Euromec, Italy

Loynds, UK

The use of these highly efficient machines allows the highest possible standards of quality
even when producing large quantities.

The capital investment in the facility and machinery and relentless quality consciousness
ensures that the Company meets the most stringent food manufacturing standards prevalent
anywhere in the world.

We suggest that the Company should enter into a technical collaboration with CURT
GEORGI, a leading flavour company of Europe and EURO BASE, one of the largest
manufacturer of gum base in the world. These collaborations can help the Company add the
qualitative edge to its products, thereby making them at par with international brands.
ASSUMPTIONS & PRESUMPTIONS:

COST ESTIMATION

Plant Capacity 40 Tons/Day

L a n d ( 1 2 0 0 0 0 s q . mt . ) a p p r o x. USD 237,000

P l a nt B u i l d i n g USD 240,000

Plant & Machinery USD 535,000

Working Capital for 3 Months USD 220,000

Total Capital Investment USD 1,232,000

Rate of Return 25%

Break Even Point 60%

The Company should get a Feasibility Report done with detailed information related to
the hard sugar candy manufacturing process flow and various unit operations involved in
a manufacturing plant. Furthermore, information related to mass balance and raw material
requirements should also be provided in the report with a list of necessary quality assurance
criteria and technical tests.

 Project Details, Requirements and Costs Involved:

o Land, Location and Site Development
o Plant Layout
o Machinery Requirements and Costs
o Raw Material Requirements and Costs
o Packaging Requirements and Costs
o Transportation Requirements and Costs
o Utility Requirements and Costs
o Human Resource Requirements and Costs

The report should provide a detailed location analysis covering insights into the land
location, selection criteria, location significance, environmental impact, expenditure, and
other hard sugar candy manufacturing plant costs. Additionally, the report should provide
information related to plant layout and factors influencing the same. Furthermore, other
requirements and expenditures related to machinery, raw materials, packaging,
transportation, utilities, and human resources should also be covered in the report.
  Project Economics:
o Capital Investments
o Operating Costs
o Expenditure Projections
o Revenue Projections
o Taxation and Depreciation
o Profit Projections
o Financial Analysis

The report should cover a detailed analysis of the project economics for setting up a hard
sugar candy manufacturing plant. This includes the analysis and detailed understanding of
capital expenditure (CapEx), operating expenditure (OpEx), income projections, taxation,
depreciation, liquidity analysis, profitability analysis, payback period, NPV, uncertainty
analysis, and sensitivity analysis. Furthermore, the report also provides a detailed analysis of
the regulatory procedures and approvals, information related to financial assistance, along
with a comprehensive list of certifications required for setting up a hard sugar candy
manufacturing plant.