Medhin Commercial Plc

Medhin Commercial Plc

Medhin Trading PLC is established in 1986 (Ethiopian Calendar) and it operates in three different sectors. These are manufacturing (i.e. producing PVC ceiling and vertical blinder), merchandizing and service (i.e. renting chairs, tent, dough mixer, kitchen ware, wedding hall and garden renting and decoration materials). The company has 4 sales branches, a production hall and wedding hall in Kality and a main office. It is led by 6 shareholders: the owner, his wife and their three sons and one daughter. The company aims to become number one choice for our customers in plastic ceiling and vertical blind manufacturing, catering of complete event services, sales and rent of plastic chair and tables, household items and equipment in Ethiopia and East Africa. The unique selling point of the company is that the products that they produce have a high quality that is often higher than imported products. There are currently 61 permanent employees which is 32 of them are female. In 2007 E.C, its annual turnover was 43,849,018.54 birr and annual sales was 49, 316,749.39 birr. The sales rates of the company at the end of 2008 E.C are merchandizing (28,078,042.00 birr), manufacturing PVC (6,039,760.00 birr) and vertical blind (6,065,335.00 birr), service- renting & decoration (5,965,280.00 birr) and wedding hall & garden renting (3,275,433.00 birr). Since the company is 40 years of age, the Commercial Manager, HR Manager, and Finance Manager said that the management system of the owners has a big challenge on the system of the company. The owners want to manage the company in a traditional, family-led way, while the managers want to run the company professionally. ‘The company should be led by knowledge, not by family.’ Moreover, there are more and more competitors entering the market, who provide the same service and (mainly in merchandise and renting). The managers are afraid that this will decrease the market share of Medhin. It is therefore also important that Medhin is strengthened. Some of the products that Medhin rents out are old, this has to be changed will the company be competitive to the new companies. The company wants to increase the gross sales margin by 25% in the coming three years. Besides, it also aims to have substituted all imported inputs by local production in 2025/26 G.C. Medhin trading has a business plan, but needs to be revised.

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