Afghanistan Small and Medium Enterprise

Development (ASMED)

Market Information - Phase 2

Metalworking
Final Report – November, 2007

Prepared by: Altai Consulting

House #1057, Street 4, Qala-e-Fatullah, Kabul, Afghanistan
info@altaiconsulting.com
1
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

2
 Project Overview
Afghan Economy & ASMED
„ Context:
• Afghanistan is a fast-growing economy (double digit average growth p.a. over the
past five years).
• SMEs constitute the bulk of Afghanistan’s companies:
- “Micro-enterprises: up to 10 employees and total assets or total annual revenues
of up to $100,000; small enterprises: up to 50 employees and total assets or
total revenues of up to $3 million, and medium enterprises: up to 300 employees
and total assets or total annual revenues of up to $15 million.” – IFC, Small and
Medium Business Development Department.
- The above definition contains a notion of scale appropriate to developing nations.
This project uses the IFC definition as a basic parameter, which should be
considered as a guideline and not an absolute measure.
• Potential for SME development in a variety of sectors.

„ 5 components of ASMED:

PUBLIC -
BUSINESS BUSINESS
MARKET PRIVATE CAPACITY
DVPT. & MGT. ASSOCIATIONS
INFORMATION SECTOR BUILDING
SERVICES DVPT.
ALLIANCES

3
 Project Overview
Objectives & Approach
„ Component 1 - Market Information:
MARKET COLLECTION
STUDIES AND AND DISSEM. BUILDING
IDENTIFICATION DEVELOPMENT
VALUE CHAIN OF MARKET MARKET
OF SECTORS STRATEGY
MAPPING INFORMATION LINKAGES

Altai Consulting’s involvement under DAI’s supervision

„ Objectives of the project:
• Understand the dynamics, opportunities and challenges of 10-12 sectors of activity, in
two phases of research assignments: Phase 1 (Feb. to May 2007)1 and Phase 2
(May to Nov. 2007)2.
• Assess the potential for SME development in these sectors.
• Provide recommendations for a development strategy in sectors with identified
potential.

„ Approach:
• Detailed Sector Analysis: market study of demand, value chain mapping, key player
identification, sector dynamics, business environment, etc.
• Growth Potential and Strategy Formulation: SWOT analysis to assess growth potential
and formulation of a development strategy to promote SMEs in such sectors.
1: Milk and Yoghurt, Cashmere, Gemstones, Flour, Industrial Bread, Cakes and Candies.
2: Food Retail Distribution, Metalworking, Renewable Energy and4Energy Efficiency, Edible Vegetable Oil.
 Project Overview
Sector Selection - Phase 2
■ Criteria for sector selection included among others: existence of initial production capacity,
potential for future growth, presence of a comparative advantage, value-adding
activities, potential for SME development and job creation, pro-poor/“bottom of the
pyramid” dimension.

„ Food Retail Distribution: Potential to build upon existing retail distribution and local
production in a view to provide better access to low-cost, reliable quality consumer
products in main cities as well as in remote areas of the country.

„ Metalworking: Opportunity to upgrade local metalworking industry to promote an

import substitution strategy and supply booming sectors such as construction.
Metalworking is a SME-based industry whose growth can provide many job
opportunities to Afghan workers.

„ Renewable Energy and Energy Efficiency: Access to reliable and affordable

electricity and other sources of energy is key for the economic and social
development of the country. There are numerous solutions, still largely untapped,
which can be developed to improve access to energy infrastructures while offering
energy business development opportunities to Afghan entrepreneurs.

„ Edible Vegetable Oil: Coupling a high demand for vegetable edible oil products and
an existing oil production industry, this sector offers import substitution
opportunities based upon locally-cultivated, and locally-produced vegetable oils.

5
 Project Overview
Research Approach
„ 320 qualitative interviews have been conducted along with 8 in-depth sector analyses.
„ Literature research of ~400 secondary sources of information (E.g.: reports, websites)
was also led.
Renewable Energy
Food Retail
Metalworking and Energy Edible Vegetable Oil
Distribution
Efficiency
Core Tools Used:
SME Interviews 55 61 29 35
Key Informant
25 27 50 38
Interviews
Kabul, Parwan,
Kabul, Balkh, Kabul, Balkh, Kabul, Balkh,
Provinces Nangarhar, Bamyan,
Nangarhar, Herat, Nangarhar, Herat, Nangarhar, Herat,
Covered Badakhshan,
Kandahar Kandahar Kandahar, Kunduz
Kandahar
Specific Tools Used:
Quantitative
x - x x
Demand Survey
Oil Consumer
Solar Lantern and
Retail Shop Mapping Preferences Testing
Solar Cooker
(7 provinces) Country case study (Kabul, Mazar)
Other Product Testing
Country case study (Pakistan) Oil Press Product
(Kabul), BSH Plant
(India) Testing
Oil Stove study
(Balkh rural areas)
6
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

7
 Sector Overview
A Key for Economic Development

GDP growth: Import

substitution:
Increased domestic industrial
production keeps more Afghan As most
and donor resources in the metalworking
country, and stimulates added products are
value in Afghanistan imported due to
lack of skills and
capital, the
Development of
development of
the metalworking this sector is an
sector is key to the interesting import
growth of substitution
Knowledge transfer: Afghanistan’s opportunity
The development of one industrial capacity
sub-sector of
metalworking
stimulates the
development of other Employment generation:
sub-sectors, as Metalworking is a labor-
technologies and skills intensive industry which
carry over from one can stimulate job creation
area to another of low-skilled workers,
abundant in Afghanistan
8
 Sector Overview
Definition & Size of the Sector
„ Definition: Metalworking in Afghanistan consists primarily of iron fabrication, which uses
iron and steel, and tin smithing, which relies more on steel coil than on tin. Casting relies
primarily on recycled materials.

„ The revenue from value added to Imports of Metals to Afghanistan ($ Mn/year)1

metals during manufacturing in
Note: Does not include imports of construction materials (E.g.: rebar).
Afghanistan is between $300 Mn
and $450 Mn annually. The sector 140
employs between 40,000 and 65,000
individuals. 120

„ There are between 10,000 and 100

16,000 businesses with
metalworking as their primary Low Projection
80
activity in Afghanistan. An estimated High Projection
90% or more consist of small 60 IMF Data
tinsmith shops or iron fabrication
shops, with 5 employees or less, 40
building simple items such as
wheelbarrows or stoves for a local 20
market. However, there are several
large companies that are involved in 0
large-scale or fairly complex 2001/02 2002/03 2003/04 2004/05 2005/06
manufacturing, such as infrastructure
1: Chart based on data up to 2004/2005 as stated in IMF Country
and farm machinery.
Report 06/114, March 2006.
9
 Sector Overview
Internal Organization of Work
„ The vast majority of Afghan metal workshops are based on the job shop model.
„ There is a trade-off between efficiency in the production of one product and flexibility
to produce a variety. A workshop lies on a sliding scale of specialization, with a job shop at one
end (flexibility) and a flow shop at the other (efficiency)1.

Job Shop Flow Shop

„ Flexible in production „ Inflexible, usually requires
capabilities, can easily retool to much time to adapt to very
produce different items. different products.

„ Inefficient in producing any one „ Can produce a narrow range of

particular item, but is effective products with efficient use of
for products that require great time and labor.
variation. „ Requires workers specialized in
„ Requires a relatively highly particular areas of production
skilled and versatile workforce. (E.g.: assembly of engines).

Motorcycle
production line,
Workers building Herat. A production
roof trusses, Herat. line is a particular
The job shop model, type of flow shop
employed here, is
ideal for building
specialized parts

10 1: Theory of Constraints, elucidated by Eliyahu Goldratt.

 Sector Overview
Promising Sub-sectors
„ Metalworking is a broad sector made of a large diversity of product categories with
varying growth potentials.
„ Four particularly promising sub-sectors benefiting from a mix of rising demand, presence of a
comparative advantage, import substitution opportunities and “bottom of the pyramid (BOP)”
potential have been analyzed in detail.
„ Farm machinery: In particular, threshers and cultivators. Afghanistan’s agricultural sector is
mechanizing rapidly and Afghan products are recognized as having a high quality/price ratio.
„ Rickshaws: A booming means of transportation due to their low cost and small size. Local markets
are relatively protected from foreign competition given the high transportation costs of finished
items.
„ Water turbines: Important development opportunities of water turbines due to micro-hydro
power potential. High skilled Afghan manufacturers exist and can be leveraged to develop a quality-
based sector.
„ Reinforcement bars: Essential for concrete structures. The boom in construction drives rebar
usage and Afghanistan is located close to the Commonwealth of Independent States (CIS1) which
provides high-quality steel, a significant comparative advantage.
9 tine cultivator,
Jalalabad

Micro-hydro installation
1:
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, in Bamyan
Moldova, Russia, Tajikistan, Ukraine, Uzbekistan and Turkmenistan. 11
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

12
 Farm Machinery
Sub-sector Overview
„ Farm machinery is defined as “tractor-powered agricultural tools”.
„ Starting from a low total of 840 tractors in Afghanistan in 20001, official imports from
Pakistan, Iran and Belarus now alone account for between 800 and 1,200 additional
units per year. Unofficial, third party imports are thought to be much higher.
„ The farm machinery sector is dependent on Afghanistan’s growing and mechanizing
agricultural sector. Cereal production and other non-fruit crops, the easiest sectors to mechanize,
account for 30% of Afghanistan’s legal GDP2 and are increasing (10% growth between 2004 and
2005), which indicates that demand for farm machinery is bound to follow the same trend.
„ An FAO study estimates that only 32% of farms had access to tractor power in 20033 which
confirms the growth potential of this sub-sector.

Tractor moving a Batala

thresher, Kabul FAO estimate of farm power in
Afghanistan, Spring 20033

26%

42% Manual Labor

Tractor
Animals

1: www.fao.org.
32%
2: CSO, GDP Data, 1384 (2005-2006).
3: FAO Survey of the Horticulture Sector, 2003.
13
 Farm Machinery
Product Categories
„ The nascent Afghan farm machinery sector accounts for $2 Mn of an increasing market
that is worth up to $20+ Mn overall (if imports are included). Retail prices vary significantly
according to location as transportation costs of finished goods are very high.

Total Market Low High Wholesale Price of plow or cultivator In Mazar, both Afghan
Value/Year Estimate Estimate Price/Unit in Mazar, Taluqan and and Pakistani wheat
of: Kunduz is variable, but threshers cost $3,000.
Wheat $2 Mn $6 Mn $2,500
averages $500 if imported In Taluqan and
Threshers
and $400 if Afghan. Kunduz, where only
Others1 $5 Mn $14 Mn Variable imported threshers are
Iranian wheat thresher sold, the price is
Total $7 Mn $20 Mn N/A in Herat costs $1,400. $3,200.
Iranian plows and
cultivators cost from
Note: Wholesale prices are used due to the variability of North-
$360 to $520.
retail prices. North
North
North-East
East

East
East
Units per Year Afghan Imports Total Center
West-Central Kabul

West
West
Wheat 130 700 – 830 – South
South

Threshers 1,370 1,500 South-West

Others 2,000 7,500 – 9,500 – South-West

Price of imported wheat

15,200 17,200 thresher in Jalalabad
Total 2,130 8,200 – 10,300 – A cultivator or plow in averages $2,650 with a
16,570 18,700 Kandahar costs $275 if it is range between $2,250 and
imported and $250 if it is $3,000. Afghan thresher
1:Examples include corn and rice threshers, plows and Afghan. costs $2,400.
cultivators, farm trailers, harvesters.
14
 Farm Machinery
Marketing Chain
„ Farm machinery manufacturers sell standardized products, predominantly through
retailers. Afghan machinery and imported machinery are often, though not always, sold together.
Retailers generally do their own importing, but may also use middlemen.
Producing Overview
Country
Pakistan Producers, especially Batala, sell throughout Afghanistan. Machinery is valued for quality and price.
Iran Wheat threshers are just over half the price of Pakistani and Afghan threshers, but the hourly
processing capacity is less than half. Plows and cultivators are more expensive than their Afghan
and Pakistani counterparts. Products are mostly found in Herat.
CIS Quality is considered high, but products are not price competitive. Products common in the north.

„ There are between 50 and 125 retailers in

Afghanistan, most selling less than 50 of any
Afghan Manufacturers Manufacturers Abroad machine annually, except for plows and
cultivators, which may reach 200 to 400 units
~95% ~5% per year. These are small companies,
~20% ~80%
sometimes selling other products such as cars.
Importers
„ The distinction between importers and
~5% ~95% retailers is that importers also sell to
other retailers. One importer sells Iranian
Retailers machinery stamped with his own brand.
„ Farmers have average plot sizes of 1.5 Ha
Farmers for irrigated plots and 0.4 Ha for dry land
plots1. Often, a farmer owns machinery and
works his neighbors’ fields for pay.
1: NRVA, 2005.
15
 Farm Machinery
Afghan Manufacturers
„ There are 4 main Afghan manufacturers of farm machinery. Only a small percentage of the
machines manufactured by the Afghan farm machinery industry, centered in Jalalabad, are high
added-value products such as farm trailers and wheat threshers.
„ Jawed Afghan – With its foundry and Farm machinery units produced annually in Afghanistan
precision machining tools, it is the most
1,200
capable farm machinery company in
1,000 Tractor Shovel
Afghanistan. It produces threshers for Plows and Cultivators
800
wheat and rice, farm trailers, plows and Farm Trailer
600
cultivators. Corn Thresher
400 Rice Thresher
„ Jan Agha – It has the smallest 200 Wheat Thresher
production level of the sector. It 0
produces corn and rice threshers as well Jawed Afghan Jan Agha Akhtar Hussein
Mohammad
as plows and cultivators.
„ Akhtar Mohammed Smith and Annual revenue, by product, of Afghan farm machinery
Agricultural Tools – Its main products
are tractor-mounted blades for pushing $1,000,000 Tractor Shovel
soil, farm trailers as well as plows and $800,000
Plows and Cultivators
cultivators. $600,000 Farm Trailer

„ Hussein Implement Manufacturer – $400,000 Corn Thresher

Rice Thresher
It specializes in plows and cultivators, $200,000
Wheat Thresher
and is slowly expanding into corn $0
threshers. Jaw ed Afghan Jan Agha Akhtar Hussein
Mohammad
Note: Revenue in the graph is less than $2 Mn because
only usual, non-custom production is presented. 16
 Farm Machinery
Value Chains, Comparison
■ More complex farm implements (E.g.: wheat threshers) involve a significantly higher
degree of value addition (25% more), but are still a small percentage of Afghan agricultural
machinery production. Production of these complex, high added-value products develops the skills to
manufacture other products.
19%
Value Chain of a 9-Tine Cultivator, Produced in
48%
Jalalabad (Afs/Thresher) Iron
16,000 Welding Rods
1,762 3%
1,067
Bolts
12,000 2% Springs
8,000 14,760 Tines
11,931
4,000 12% Plow Ends
Paint
0
Value Addition
Raw Material Manufacturing Producer Final Price
14%
Costs Margin 1% 1%

Value Chain of a Wheat Thresher, Produced in

Jalalabad (Afs/Thresher) 10% Cast Iron
150,000 Rolled Iron
Metal Sheet
36%
100,000 29,230 Angle iron
12,131
22%
Welding Rods
50,000 114,341
Paint
72,980
Tire
0 Wheel
7%
Raw Material Manufacturing Producer Final Price Ball bearings
9% 6%
Costs Margin 2% 4% 3%1% Value Addition
Note: Final price of thresher is weighted average of consumer price
with 2% discount and wholesale price. 17
 Farm Machinery
Pakistani Manufacturers (Licensing)
„ Contracting with larger companies is a promising strategy for small producers.

Batala manufactures its C

Direct Manufacture:
machinery directly under its own u
Batala has 39 products on its price list, brand name, selling directly to the s
customer or through retailers. t
including 90% of wheat threshers.
o
Batala’s products are found throughout m
Afghanistan. e
r The Batala thresher, found
s throughout Afghanistan

Contract:
Millat and Al Ghazi contract
Millat builds most Massey-Ferguson with other companies to
tractors sold in Pakistan. It builds ~30,000 manufacture items that are not C
tractors a year. The company is not directly part of tractors, such as u
active in the Afghan market, though its cultivators. These smaller s
companies also have the right t
products enter Afghanistan through
to market their own products. o
middlemen.
m Massey Ferguson tractors
Al Ghazi manufactures Fiat – New Holland e built by Millat, in front of
tractors in Pakistan under license. It r Millat’s Lahore factory
produces more than 26,000 tractors a year. Manufacturers s
Al Ghazi has offices in Afghanistan, in part on Contract
due to its cooperation with an agricultural
mechanization program run by UNIDO and
DACAAR.
18
 Farm Machinery
Description of Retailers
„ Afghan farm machinery is only distributed in the eastern and northern economic
centers of the country.
„ Pakistani companies, primarily Batala, are the only companies to have completely
overcome the obstacles of geography in the highly atomized Afghan market. Farm
implements of Iranian and CIS are only strong with retailers near those borders, though they can
sometimes be found with retailers in other parts of the country.
„ Wheat threshers, plows and
cultivators are the most
North-East common products offered by
North
farm implement retailers. Other
East
items include rice and harvesters
West-Central and farm trailers. Corn threshers are
primarily sold in the south.
West
South
„ Dealer imports have helped
Pakistani products dominate
the Afghan market with the
South-West Manufacturers of farm machinery exception of Herat, where Iranian
goods dominate.
Afghan farm machinery sold
Afghan farm machinery not sold „ Nearly all implement retailers in
Pakistani farm machinery sold
Afghanistan sell imported farm
machinery, whereas only retailers
Iranian farm machinery sold
in the eastern half of the country
CIS farm machinery sold carry Afghan farm machinery.
19
 Farm Machinery
Marketing Opportunities
„ There is an opportunity for Afghan machinery to expand its market share as the
reputation between Afghan machinery and imported machinery in general is comparable, and its
equal or lower price compared with imported machinery gives it a comparative advantage.

Opinion of Farm Machinery Retailers

Afghan vs. Imported Farm
on General Quality of Afghan vs.
Machinery Imported Farm Machinery1
Positive Machinery dealers who know 28%
Opinion about Afghan farm implements 38% B etter
(62%), usually Jawed Afghan, Wo rse
have a positive impression of Equal
these products, mentioning that they Do n't Kno w
are generally of better quality than 17%
imported ones. 17% 1: Altai consulting survey, 2007.

Lack of Nearly all the respondents who did Factory-to-Retailer Price of Batala
Awareness not know about the quality of and Jawed Afghan Threshers ($)
Afghan farm machinery did not 3,000

even know it existed. One 2,500

$2,700
respondent in the northeast of the 2,000 $2,300
country, when asked why he didn’t 1,500

carry any Afghan machinery stated, 1,000

500
“I don’t know. I don’t have any
0
information about farm machinery that
Jawed Afghan Batala
is made in Afghanistan.”
Note: Does not include transportation costs of
20 finished good.
 Farm Machinery
Position of the Sector
„ The Afghan farm machinery sector is already moving in a more technically-capable
direction and is one of the more efficient metalworking sub-sectors in Afghanistan,
incorporating as it does so many characteristics of the flow shop model. However, it is not
scaling up its production or increasing its capacity enough to become the major competitor in its
own country.

Standardized

Plows, Rebar Threshers Other

Ductwork, Cultivators Light
Rain Industry
Gutters

Truck
Trailers
Small
Windows

Simple Complex
Man painting machine parts in Truck
Lahore’s farm machinery cluster Boxes

Large Water
Windows Turbines
Infra-
structure
Projects
Specialized
21
 Farm Machinery
SWOT Analysis
Strengths Weaknesses
„ Afghanistan’s agricultural sector is mechanizing. „ The average size of farms in Afghanistan is very
small, making it uneconomical for many farmers to
„ Afghan products have a comparative advantage over
possess their own machines.
imports in both price and quality.
„ Farm machinery producers do not receive payment
„ There is a nascent but assertive group of farm
for their products until the retailer sells them,
machinery producers on which to build a more
causing financial difficulties.
advanced and capable cluster.
„ Afghanistan lacks the assertive governmental
„ Afghan producers primarily use steel from CIS
support for the agricultural industry that is found in
countries, considered to be of higher quality than
countries such as Pakistan.
Pakistani steel.

Opportunities
„ Potential customers can be assisted with the
financing of their machines via either leasing or more
standard small business loans.
„ The western half of Afghanistan is a potentially new
market for Afghan machinery, if a means to
overcome production capacity issues and high
transportation costs is found.
„ Contracting and licensing agreements would allow to
increase the output of Afghan producers, while
potentially transferring skills and technologies to
Afghanistan.
22
Threats
„ Heavy dependence on imported materials,
especially the CIS steel prized by buyers, leaves the
Afghan industry dependent on raw material
fluctuations.
„ Anything agricultural is heavily dependent on the
success or failure of crop production. Afghanistan’s
frequent climate difficulties can have a concrete
effect on farm machinery producers.
 Farm Machinery
Strategic Objectives

„ The development of the farm machinery sub-sector is based on 4 main objectives:

1. Facilitate for producers the overcoming of obstacles to growth.

2. Promote development of contractual relationships between companies

for production of particular items.

3. Facilitate synergies within the Jalalabad farm machinery sector.

4. Improve the availability of farm machinery to farmers who cannot

afford to purchase it.

Jawed Afghan thresher

at AgFair 2007, Kabul

Pakistani tractor and

disk at AgFair 2007,
Kabul

23
 Farm Machinery
Strategic Objectives (1/2)
„ Strategic Objective 1: Facilitate for producers the overcoming of obstacles to
growth.
• Provide Global Development Alliances (GDAs) to producers seeking to upscale their
productive machinery, both in terms of quantity and quality.
• Provide technical and financial assistance to companies willing to contract the
assembly of machinery parts in other parts of Afghanistan such as Herat, (E.g.: Mohamed
Daoud & Sons Co.), so full machines could be assembled there avoiding transport issues.
• Facilitate through funding mechanisms the movement of farm machinery producers to
larger, more appropriate facilities in the Jalalabad industrial park, for instance.
• Support Afghan farm machinery producers in better communicating on their products in
the various key economic centers of Afghanistan.
• Organize trip to Pakistan for machinery producers to visit farms, manufacturers and
research institutes, with the goal of providing awareness of new developments in machinery.

„ Strategic Objective 2: Promote development of contractual relationships between

companies for production of particular items.
• Arrange negotiations between Pakistani companies such as Millat, Al Ghazi and Batala
and Afghan farm machinery producers to establish contractual relationships that would
allow Afghan companies to produce and sell under Pakistani brand names for specific contracts
(E.g.: UNIDO-Al Ghazi relationship). This involves a role for ASMED in addressing concerns of
Pakistani companies and facilitating limited guarantees for risks incurred.
• Ease exploration of potential intra-sector contracting on the part of Jalalabad
companies, freeing each company to concentrate on its strengths.
24
 Farm Machinery
Strategic Objectives (2/2)
„ Strategic Objective 3: Facilitate synergies within the Jalalabad farm machinery
sector.
• Establish the Afghan Farm Machinery Institute (AFMI) to:
- Establish a small-scale laboratory to test metals and welds.
- Create common marketing tools promoting the sub-sector.
- Make joint purchases of quality raw materials to be delivered
directly to producers. SMEDA (Small and Medium
Enterprise Development
- Leverage knowledge from external institutions (E.g.: universities or Authority) is a Pakistani
the Department of Mechanization). governmental agency which
• Initiate contact with SMEDA of Pakistan to provide provides a variety of services
assistance in the training of Afghan cluster agents. to Pakistani SMEs, including:
„ Support in writing business
„ Strategic Objective 4: Improve the availability of farm plans,
machinery to farmers who cannot afford to purchase it. „ Direct participation in
negotiations between SMEs
• Increase the capacity of the Ministry of Agriculture’s and banks,
Department of Mechanization to enable it to rent larger „ Financial consulting and
numbers of machines at competitive prices. training,
• Explore solutions with micro-finance institutions for „ Access to sector
small-scale loans (less than $5,000) or leasing opportunities information,
to purchase farm machinery. „ Promotion of clustering,
„ Patent assistance
„ Shaping of favorable policy
for the growth of SMEs.
25
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

26
 Rickshaws
Sub-sector Overview
„ Motorized rickshaws are an affordable and common means of transportation. Most are
second-hand imported rickshaws or are assembled from imported parts, but Afghanistan has
demonstrated the potential to manufacture them.
„ There may be as many as 12,500 rickshaws now in Afghanistan, worth up to $12 Mn
brand new. The number of motorized rickshaws in Afghanistan has been increasing in the past
several years1. This resulted in more than 6,000 direct employments created in the past two years.

Rickshaws in Afghanistan2

Projection Documented

14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2002/03 2003/04 2004/05 2005/06 2006/07

1: IMF Country Report No. 06/114, March 2006.

2: IMF Country Report No. 06/114, March 2006 for documented
Rickshaw built by Ahmadzai Motor Rickshaw
Co. under the name of Ahoo, Jalalabad 27 data, Altai Consulting analysis for projections.
 Rickshaws
Market Segmentation
„ The Afghan rickshaw market is segmented by cost and type of rickshaw, but this
segmentation does not carry across all geographic locations. Different segments dominate different
geographic locations, due in large part to transportation difficulties between the East and West.

Example: Ahoo by Ahmadzai Motor Rickshaw Company, $2,000.

Found only near its base of production in Jalalabad.
High End The interior is relatively comfortable and there is a steering wheel
instead of handlebars and a molded fiberglass dashboard. Current
production capacity is small at 48 rickshaws per year.

Example: Vespa, 800cc. $800 to $1,200, only sold used in Afghanistan.

Italian brand, found in Jalalabad and Kandahar.
Middle
The body is enclosed with a windshield for the driver. Passenger
Range
compartment is cramped and enclosed in canvas or plastic. Driver
steers using handlebars.

Example: Zarang or Al Akhtar, 150 cc. $1,000.

Most common in Herat, where it is assembled from parts imported from
Basic Iran and China. Also found in Mazar-e-Sharif and Kabul.
The body is based on a motorcycle. Passenger seating is tight and
covered in plastic or canvas. Driver is not enclosed.

28
 Rickshaws
Marketing Chain
„ The Afghan rickshaw market is mainly composed of Pakistani rickshaws near the
Pakistani border and Afghan rickshaws elsewhere in the country. Herati rickshaw producers
have an Afghan-wide distribution network, whereas Jalalabad’s producer, Ahmadzai, sells only
directly to local customers.
„ Imports of rickshaws are dropping
due to 16% import duties1. Used
Afghan Producers Pakistani Producers
imports are repaired and resold. Still,
almost all rickshaws in Afghanistan are
either imports or assembled from
imported parts.
Retailers/ Importers/ „ Imports of Pakistani rickshaws into
Wholesalers Retailers Jalalabad have been banned due to
the noise and pollution of their 2-
~5% ~95%
stroke engines. Jalalabad dealers are
currently refurbishing old models, but this
Retailers Retailers situation creates important marketing
opportunities for Afghan rickshaws.
„ Zarang is making inroads into the
Kandahar market, having built between
Rickshaw Buyers 15% and 25% of the rickshaws in use
within the city.
„ Many retailers function as
„ Retailers of imported and Afghan rickshaws either
wholesalers, selling a small percentage
have small operations or are also automobile
of their inventory to other retailers in
retailers. Sales are between 2 and 4 rickshaws per month.
other provinces.
29 1: Ministry of Finance.
 Rickshaws
Producers, Diversification & Size
„ There are only 4 major producers of rickshaws in Afghanistan. Three producers from Herat
account for the majority of production, but one producer in Jalalabad is responsible for the most
innovative product (Ahmadzai’s Ahoo).

Zarang, Herat Ahmadzai Motor „ Two other companies produce large

Rickshaw, Jalalabad numbers of rickshaws in
Product Rickshaws and Rickshaws Afghanistan: Al Akhtar and Afghan
Line Motorcycles Ariana, both of Herat, which
Annual 270 Rickshaws 48 Rickshaws manufacture products nearly identical to
Rickshaw those of Zarang.
Production
„ Companies own integrated retail
Employees ~30 ~35 at peak outlets, sometimes in several
Description Zarang imports Ahmadzai produces a provinces, selling motorcycles and
rickshaw and rickshaw of its own rickshaws. Other retailers may
motorcycle parts design, the Ahoo. purchase these items as well.
from Iran and China.
Ahmadzai uses CIS
It is probably the steel and Pakistani „ Integrated retail outlets can sell
largest Afghan rickshaw mechanical systems. rickshaws partially on credit if there
producer. is a guarantee provided (usually personal
The company is
The company has currently facing ties).
expressed interest in financial difficulties, but „ Competition between Herati
manufacturing its own is continuing to look for
parts in the future. It is a means to scale up.
rickshaw producers is relatively
selling its products in 9 intense.
provinces.
30
 Rickshaws
Value Chains
„ The rickshaw industry in Afghanistan is characterized by a lack of efficiency in
production. Sub-optimal use of machinery raises the final price and lowers profit margins.

Ahmadzai Motor Rickshaw Company Zarang Company

Labor Tripling the rickshaws produced with the same Inefficient mechanization and ~30 employees
labor force (which should be possible) would result producing a low number of rickshaws is keeping
in production savings of nearly $113/unit. labor costs high.
Raw High costs since the rickshaw uses the drive train Low costs since the rickshaw is based on a
Materials of a Suzuki car. motorcycle.
Machinery Low costs since there is a low investment in High costs due to poor utilization. The production
machinery, not because of high production. line is turning out less than 2.5 units (rickshaws and
motorcycles) daily.
Value Chain of a Rickshaw, Manufacturer's Value Chain of Rickshaw, Manufacturer's Wholesale
Price, Produced by Ahmadzai ($/Rickshaw) Price, Produced by Zarang ($/Rickshaw)
2,500
800
2,000 96 40
192 34
600 59
1,500 360 52
7
400
1,000 2,000 700

1,345 515
500 200

0 0
Raw Cost of Labor Others Producer Final Raw Cost of Labor Others Producer Final Price
Material Machines Margin Price Material Machines Margin
31
 Rickshaws
Demand in Urban Centers
„ Rickshaws are especially common in Jalalabad, Kandahar and Herat, but are also found
in limited numbers in Mazar-e-Sharif and Kabul.

Rickshaws are popular in Afghanistan’s warmer cities

because they are affordable for passengers who need
transport on demand. A taxi ride that costs 75 Afs will cost 30-40
Afs by rickshaw, or 5-10 Afs by public bus.

Mazar-e-Sharif

North-East
North

Kabul
East
Herat West-Central
Jalalabad
West The Zarang and similar offerings by Al Akhtar
South and Afghan Ariana are ubiquitous in Herat

Kandahar
Urban area with high use of rickshaws
South-West Urban area with low use of rickshaws

Pakistani rickshaws predominate

Afghan rickshaws predominate
Note: In Mazar-e-Sharif, rickshaws are used
primarily for the transport of goods, not people. 32
 Rickshaws
Rickshaw Buyers
„ Drivers prefer to own their rickshaws because a rickshaw is a small investment with
narrow margins, making them easier to purchase than to lease.

„ The value chain at the right is for a driver leasing a Value Chain of Rented Rickshaw
rickshaw at a daily rate of 120 PKR ($2). The driver is ($/Month)
responsible for all expenses. 400

„ Rickshaw rental pays $720 annually to the owner, 300

with a full return on investment within a year and a half for $107
200
an average rickshaw (less for an inexpensive one). $131 $298
100
„ Between 80% and 95% of rickshaw drivers $60
purchase their own rickshaws (through debt, gradual 0
Rent Fuel & Driver's Total
payments or personal investment), and between 5% and
Maintenance Margin Revenue
20% lease them from owners who have several rickshaws.

$165 Net profit, Month 7

„ The period necessary for a $165 Net profit, Month 6
return on investment for an Initial
Investment $165 Net profit, Month 5
average rickshaw bought by an
owner-driver is ~6.5 months. $1,125 $165 Net profit, Month 4
Rickshaws transport an average of $165 Net profit, Month 3
30 to 70 passengers per day, usually $165 Net profit, Month 2
for short rides that cost between 10-
20 Afs ($0.2-0.4) each. $300 Revenues, Month 1

Month 0 $135 Expenses, Month 1

33
 Rickshaws
Production Organization
„ Afghan rickshaw manufacturers are producing a standardized product, but are failing to
gain the advantages of flow shop production. To create a competitive Afghan rickshaw sub-
sector, not only must the sub-sector be mechanized, but it must produce to a scale that realizes the
potential of mechanization to drive down fixed costs.

Standardized

Plows, Rebar Threshers Other

Ductwork, Cultivators Light
Rain Industry
Gutters

Truck
Trailers
Small
Windows
Simple Complex Rickshaws
Truck
Boxes

Production line for Zarang motorcycles and rickshaws, Herat

Large
Windows Water
Turbines Infra-
structure
Projects
Specialized

34
 Rickshaws
SWOT Analysis
Strengths
„ Rickshaws are becoming a common form of
transportation in some of the main cities of
Afghanistan, where their low cost and small size
make them easy to purchase and use as taxis.
„ Rickshaw production does not require a large factory
but still allows the development of vehicle production
„ Poor road conditions in most parts of the country
within Afghanistan.
„ Local markets are protected given the high
transportation costs of finished goods.
Opportunities
„ Employment generation opportunities as a reviving
Afghan economy means demand for transportation
of goods and individuals is increasing.
„ By ramping up production, thereby reducing labor
and machinery costs on a per-unit basis, Afghan
companies can manufacture more competitive
products.
„ The purchase and maintenance costs, as well as the
low fuel consumption, mean that rickshaws can be
marketed beyond taxi drivers to small businesses as
a means of delivery and transport.
35
Weaknesses
„ Colder cities, such as Kabul, are difficult markets for
rickshaws.
„ The cost of transport in an east-west direction
makes it challenging to sell rickshaws in other parts
of the country, far away from production sites.
(including urban centers) limit market growth of
rickshaw transportation.
Threats
„ Noise and pollution from rickshaws is under scrutiny
from Afghan authorities (E.g.: Jalalabad). Broadly
written regulations could lessen demand for Afghan
rickshaws.
„ Market entry by more inexpensive Pakistani or
Chinese models such as the Qing Qi could
undermine the basic offerings by Herati producers.
„ The entry of small cars, as are currently being
developed and sold in India, could pull away
demand for higher-end rickshaws, such as the
Ahoo.
 Rickshaws
Strategic Objectives

„ The development of the rickshaw sub-sector is based on 3 main objectives:

1. Assist Herati companies (Zarang, Al Akhtar and Afghan Ariana) in

scaling up their production and increasing their use of Afghan parts.

2. Support Ahmadzai Motor Rickshaw Company in moving into the

Jalalabad Industrial Park and mechanizing.

3. Provide help to Afghan rickshaw companies in expanding retail

presence in untapped markets (E.g.: Jalalabad, Kandahar, etc.).

Rickshaw art, Jalalabad

36
 Rickshaws
Strategic Objectives (1/2)
„ Strategic Objective 1: Assist Herati companies (Zarang, Al Akhtar and Afghan
Ariana) in scaling up their production and increasing their use of Afghan parts.
• Arrange specific technical assistance for the process of producing the constituent
parts of rickshaws, such as frames, handlebars, gas tanks and steering mechanisms, as well
as the process of configuring such production.
• Facilitate grants/loans to each rickshaw manufacturer for the purchase of machinery
necessary for the manufacture of the constituent parts of a rickshaw.

„ Strategic Objective 2: Support Ahmadzai Motor Rickshaw Company in moving into

the Jalalabad Industrial Park and mechanizing.
• Provide a GDA for the purchase of productive machinery, including newer technologies
for welding and cutting.
• Provide business development services during a one or two year period of transition
to a new production model (increased capacity), such as direct help in general
management, accounting and strategy.

37
 Rickshaws
Strategic Objectives (2/2)
„ Strategic Objective 3: Provide help to Afghan rickshaw companies in expanding
retail presence into untapped markets (E.g.: Jalalabad, Kandahar, etc.).
• Support penetration of new markets by assisting in negotiations with local retailers
for the latter to distribute Afghan products locally.
• Arrange negotiations between retailers and Afghan rickshaw manufacturers to allay
doubts regarding the sales of Afghan products (E.g.: arranging a limited buyback guarantee for
unsold inventory).
• Assist in the elaboration of marketing campaigns and set up product demonstrations
in areas where rickshaw drivers usually congregate.
• Arrange small-scale loans with partner micro-finance institutions for the purchase of
inventory for retailers selling Afghan rickshaws for the first time.
• Establish dealer financing programs in conjunction with financial institutions whereby they
can utilize ASMED resources to provide loans through rickshaw dealers to drivers who wish to
finance the purchase of their own vehicle.

Rickshaw driver,
Jalalabad

38
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

39
 Water Turbines
Processing Chain
„ Turbine manufacturing is one of the key elements for the development of the micro-
hydro power (MHP) industry, one of the most promising sources of energy to provide access
to electricity to communities living in rural areas with no access to the public grid1.
„ Turbine manufacturing is a skills-based industry which requires very specific expertise to
assess output potential of a stream (kW) and produce customized equipment adapted to the micro-
hydro power site environment.

• Raw materials such as

blades, bearings, steel
covers, etc. are selected
according to size, shape,
quality and price.
• Assembling of main parts
(E.g.: rotor, turbine cover,
turbine frame, etc.) which will
then compose the turbine.

Selection of Preparation Assembling

raw materials of raw of main
and spare materials parts
parts

• Raw materials are measured,

cut, smoothened, drilled and
welded. This process requires the
use of a variety of hand-powered
and diesel-powered machines. 1: See ‘Renewable Energy and Energy
40 Efficiency’ section of the study.
 Water Turbines
Turbine in Micro-hydro Power Plant
„ The water turbine is a key element of a micro-hydro power plant. Hydro power uses the
energy of fast-moving water to rotate the blades of the turbine at high speed. It converts
the energy of a mass of water, flowing in a stream with a certain fall (called the “head”), into
electric energy at the lower end of the scheme, where the powerhouse is located. The power of
the scheme is proportional to the flow and to the head.
„ The run-of-river scheme, as shown in the following sketch, is commonly used in Afghanistan: the
turbine generates electricity as and when the water is available. There is no energy
storage system (E.g.: battery).

Micro-hydro power generation:

Run-of-river scheme1

turbine

1:Layman’s guidebook on how to develop a small hydro site, European

Small Hydropower Association, 1998. 41
 Water Turbines
Market Segmentation
„ Turbines run most efficiently at a particular combination of speed, head and
flow conditions. In order to suit a variety of stream conditions, turbines are
broadly divided into four groups (high, medium, low, ultra-low head) and two
categories:
• Reaction turbines which are turned by hydrodynamic lift forces acting
on the runner blades.
• Impulse turbines which are turned by the momentum of a high speed Reaction turbine
water jet.
„ Turbines manufactured and in operation in Afghanistan are mainly cross-flow
(impulse) turbine types. Some of the models found include Traditional Mill
Turbine (TMT), Hindu Kush Turbine (HKT), Pamir Turbine (PT) developed by
the NGO IAM (International Assistance Mission), T-15, Pelton, Skat T-7, etc.
They cover a full range of capacity: 12 kW, 60 kW, 100 kW and 200 kW but
most small turbine producers can manufacture good quality turbines up to 25
kW only. Impulse turbine
„ Cross-flow turbines have a High head
Turbine Medium head Low head Ultra-low head
standardized simple design, runner
(more than
(20 to 100 m) (5 to 20 m) (less than 5 m)
100 m)
with an adaptable size to the design
flow. Pelton
Cross-flow
Cross-flow
Impulse Turgo Water wheel
Turgo Multi-jet Pelton
„ Manufacturing is feasible without Multi-jet Pelton
need for sophisticated Francis Propellor Propellor
Reaction -
manufacturing facilities Pump-as-turbine Kaplan Kaplan
and production costs are low
compared with other turbine designs. 42
 Water Turbines
Marketing Chain
„ The turbine manufacturing industry is well developed in
Afghanistan:
• Small parts suppliers import several key elements (blades, Small parts Imported
bearings) from Russia, Pakistan and other countries, and suppliers turbines
produce metallic parts (E.g.: bolts). There is a very large
number of such suppliers in Afghanistan, found essentially in
main economic centers.
• Small turbine manufacturers produce some parts and
assemble the main parts of the turbine (rotor, cover, frame, Afghan turbine
etc.). There are an estimated 20 to 30 specialized turbine manufacturers
manufacturers in the country (mostly trained by
International Assistance Mission (IAM)), located essentially in
Kabul and Charikar. Specialized workshops face competition Installation
from generalist metal workshops which produce lower quality and repair
equipment at a cheaper price. services
• Turbines with a capacity bigger than 25 kW have mainly
been imported from Pakistan, China, Russia, Nepal, etc.
General Development
• Main customers for water turbines are private
public programs
entrepreneurs, communities or MHP program developers
such as the National Solidarity Program (NSP),
Provincial Reconstruction Teams (PRTs), GTZ, Asian
Development Bank (ADB), etc. E.g.: NSP has completed 152
MHP projects and 831 are on-going as of September 2007.
43
 Water Turbines
Local Turbine Manufacturers (1/3)
„ Domestic companies, set up by international entrepreneurs who have worked for several years in
Afghanistan on hydroelectric project development, are developing their activities.
„ Such international entrepreneurs support the development of the micro-hydro sector by
building capacity at the local turbine production level and setting quality up to international
standards.
Remote Hydro Light (RHL) Frontier Power International Engineering Associates
(FPI)
„ RHL was created in 2006 by „ This Afghan company, created
Owen Schumacher, a former „ The company was created a few three years ago, provides
engineer of IAM. months ago by Brad Friesen, who consulting (feasibility),
used to work for the Aga Khan engineering (design) and
„ RHL produces turbines as
Foundation (AKF) on micro- manufacturing services.
well as control panels and
hydro project development.
pipes for micro-hydro projects. „ Engineering Associates
„ FPI’s business strategy is to manufactures cross-flow
„ The company has taken over
provide procurement services turbines, pipes, control
part of the training provided
(supplies) as well as panels, steel poles, etc. to
by IAM to local turbine
construction, operation and European standards.
manufacturers in Kabul,
maintenance services.
Parwan and Kunar on best „ The company has sold
practices and production „ FPI also aims at providing turbines for 30 to 40 micro-
techniques. training sessions for local hydro power plants in
communities to enable them Afghanistan.
to operate the generation
units on their own.
44
 Water Turbines
Local Turbine Manufacturers (2/3)
Behsazan-e-Behsood Turbine Producer, Kabul

„ This producer mainly sells turbines for micro-hydro projects developed by AKF for the NSP in
Bamyan (70% of his activity).
„ Sales: 6 turbines/month (HKT, T-7 and M-10 models). Yearly sales: $98,400. Number of employees: 7.
„ Raw materials represent 65% of the turbine’s final price. Net profit margin is 5%.

E.g.: Value chain of a 12 kW Hindu Kush turbine ($)

1,200 64
33 10
109
1,000
200
800

600 1,200

400 784

200

0
Raw Labor Energy Shop rent Machinery Net profit Sales price
materials
(incl.
transport.) 45
 Water Turbines
Local Turbine Manufacturers (3/3)
Pervaiz Amidi Workshop, Kabul

„ This producer mainly sells turbines for micro-hydro projects developed by the National
Solidarity Program in the northern provinces (70% of his activity).
„ Sales: 20 turbines/month (5 TMT, 15 HKT). Yearly sales: $216,000. Number of employees: 18
„ Raw materials represent 70% of the turbine’s final price. Net profit margin is 11%.
„ Due to a large production, this manufacturer manages to have economies of scale and
increase his net profit margin.

E.g.: Value chain of a 3 kW TMT turbine ($)

600 65
10 7
500 18
84
400
300 600

200 416

100
0
Raw Labor Energy Shop rent Machinery Net profit Sales price
materials
(incl.
transport.) 46
 Water Turbines
Demand
„ It is estimated that there are around 1,000 micro
and mini-hydro power plants around the Hydro power potential: Main locations
country1, collectively generating around 15 MW2.
„ 75% to 80% of the units are below 10 kW, Mazar
17-18% are between 10 kW and 50 kW and 2-3%
are over 50 kW1.
„ The potential for micro-hydro power units in
Afghanistan is estimated to be 5,000 additional Jalalabad
units (~75 MW)1. This would represent a $15 Mn
to $30 Mn market for turbine
manufacturers2.
„ Hydro power potential is mainly located in Kandahar
the northern regions of the country: Amu
Darya watershed (Parwan, Kapisa, Panjshir),
Kokcha watershed (Badakhshan) and Kabul
watershed (Kabul, Nangarhar)3.
„ The plants currently operating are mainly
providing electricity for lighting Afghan
households since most of them have a very low
capacity.
1: Remote Hydro Light Company, Kabul, 2007.
2: For project development costs between $1,000 and $2,000 per kW and a
turbine cost equivalent to 20% of the project costs. Micro-hydro power plant in Jabulsaraj
3: Asian Development Bank, 2005. (Parwan)
47
 Water Turbines
SWOT Analysis
Strengths
■ Existing local turbine manufacturing industry which ■ Turbine manufacturing activities are concentrated in
is able to provide equipment for the development
of micro-hydro power projects adapted to the
country’s needs.
■ Most turbines locally produced are below 25 kW
which corresponds to the majority of market
needs.
■ Technical support provided by international micro-
hydro power experts working on the improvement
of local production standards.
Opportunities
■ High need for improved access to electricity in
rural areas.
■ Afghanistan hosts an important micro-hydro power
development potential.
■ Numerous international agencies, along with the
Government, support the development of the
micro-hydro power sector (NSP, NABDP, PRT,
GTZ) and are keen on increasing the domestic
content of projects.
Weaknesses
and around Kabul (Parwan). Due to high transportation
costs, imported turbines are sometimes better options
in some areas (E.g.: Pakistani and Chinese turbines in
Badakhshan).
■ Limited capacity to produce turbines >25 kW.
■ No possibility to test the locally-produced turbines and
thus to offer customers guaranteed performance
levels.
■ Dependence on imported raw materials with
fluctuating prices.
Threats
■ Competition from neighboring countries which are also
developing their micro-hydro power sector at a large
scale and have built up a competitive turbine
manufacturing industry (India, Nepal, Pakistan).
■ Competition from local generalist metal workshops
with no expertise in the turbine sector which can
discredit the whole local turbine manufacturing
industry, selling bad quality equipment to project
developers.
48
 Water Turbines
Strategic Objectives

„ The strategy proposed to develop the water turbine manufacturing sector is based
on 3 main objectives:

1. Support the efforts made to upgrade the standards of domestically-

produced turbines.

2. Promote the creation of manufacturing units in provinces with high

micro-hydro potential but no current local turbine production.

3. Craft a communication strategy to promote local turbine

manufacturers.
Micro-hydro
power project,
Bamyan

Domestically-
produced
water turbine,
Bamyan

49
 Water Turbines
Strategic Objective 1
„ Strategic Objective 1: Support the efforts made to upgrade the standards of
domestically-produced turbines.
• Contribute to the definition of quality standards, adapted to the Afghan context.
– A certification, based on regular quality checks, would be granted
to companies complying with standards defined by the Afghan
Electrical Engineer Association (AEEA), in cooperation with
the Ministries of Water and Energy (MEW) and Rural Rehabilitation
and Development (MRRD) and other actors of the sector like
Remote Hydro Light, Engineering Associates, etc.
The AEEA has recently been set up and has submitted a grant Afghan Quality
request to ASMED in order to structure and expand the association. Turbine
They should become one of the main actors working on the standardization Certification
of the sector.
– A testing facility should also be set up to be able to guarantee turbine performance
levels.
• Build capacity of domestic manufacturers to help them improve the quality of their
production and reach standards set up for this industry in Afghanistan.
– The AEEA should accompany turbine producers in complying with these standards
(E.g.: organize trainings on quality processes, share information on spare parts suppliers, etc.).
– The improvement of production standards should also focus on the capacity of local
manufacturers to produce larger turbines (>25 kW).

50
 Water Turbines
Strategic Objective 2
„ Strategic Objective 2: Promote the creation of manufacturing units in provinces
with high micro-hydro potential but no current local turbine production.
• Expand training programs on high quality standard turbine manufacturing to other
provinces (Nangarhar, Badakhshan, etc.).
– A GDA could be set up with IAM as well as AKF who are willing to train local metal
workers to be able to procure the equipment needed for the manufacturing of their own
turbines locally (E.g.: in Badakhshan) and manufacture high-quality units in their respective
provinces.
– The development of local turbine manufacturing industries would support the development
of the micro-hydro power sector in provinces with hydro power potential.

AKF micro-hydro power

project in Badakhshan

51
 Water Turbines
Strategic Objective 3
„ Strategic Objective 3: Craft a communication strategy to promote local turbine
manufacturers.
• Support the development by the Afghanistan Energy Information Center (AEIC)1 of
a website similar to the Procurement Directory2. A description of product range
offered by each company would be useful to international agencies seeking to procure
engineering expertise to design micro-hydro projects.
• Make this information available at the offices of the Department of MEW and
MRRD in the provincial centers, for local customers willing to set up their own micro-
hydro power plant.
• Invite local turbine manufacturers to energy fairs (E.g.: WEPEX, Water, Energy and
Power Exhibition) as a way to advertise their products and promote the micro-hydro
power sector.

Home Page - Afghanistan

Procurement Directory

1: The AEIC, supported by USAID, provides a large range of

information on renewable energy opportunities and projects
conducted in Afghanistan.
2:www.procurementdirectory.af, supported by USAID, DFID
and the Canadian International Development Agency.
52
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

53
 Reinforcement Bars
Sub-sector Overview
„ Construction will account for between $4 Bn and $4.5 Bn in 20071. The high usage of
concrete in Afghanistan’s construction boom is fuelling the importation of large quantities of
reinforcement bars (rebar).

„ Construction’s added value accounted for Use of Rebar

more than $600 Mn, or 9%, of
Afghanistan’s GDP in 2005–20062. The
sector grew 32% last year.
„ The annual demand for rebar in
Afghanistan is between 400,000 MT and
450,000 MT1. Assuming an average retail
price of $740 per MT, this represents between
$300 Mn and $350 Mn of rebar sales p.a.
„ Between 340,000 MT and 440,000 MT of
other rolled products, manufactured
using the same machinery and raw
material, (E.g.: beams and profile steel) are
imported annually with a retail price of $850
per MT, accounting for a market of $280
Mn to $380 Mn.
„ Rebar usage in Afghanistan is nearly 18
Kg annually per capita, more than the 12 Kg
of the CIS and 11.3 Kg of Pakistan, but less
than the world average of 32 Kg3. 54
By lending its tensile strength to concrete, rebar makes
it possible to build much thinner walls and columns
than would otherwise be the case, and allows concrete
floor slabs between different stories of a building
that would otherwise be impossible.
Blue arrows indicate compressive forces, yellow
arrows indicate tensile forces.
Rebar Concrete
Beam
1: Altai Consulting estimate, 2007.
2: CSO, estimated figures for 1384 (2005/06).
3:Market/Macroeconomic Situation, 57th Irepas Meeting 9 – 11
September, 2007; Calculation based on Steel Industry in Pakistan,
Lahore Chamber of Commerce and Industry, n.d.
 Reinforcement Bars
Processing Chain
„ Rebars can be produced from scrap (E.g.: Abdurahman Baba Re-Rolling Mill in Kandahar) or
from semi-processed steel, such as billets (E.g.: Toulid-e-Shoeb Sobhan Re-Rolling Mill under
construction in Kabul).

Scrap is melted in The scrap is molded When a billet is used The billet is passed Large shears cut the
furnaces to a into a billet that as a raw material, it through a series of rebar to the desired
temperature of at feeds directly into should be heated to machines with length. The rebar is
least 1,538º C the rolling stands 900º C (1,620º F) in grooved rollers bundled with other
(2,800º F)1. High while still hot. a furnace2. The fuel known as “stands” rebar to be
carbon scrap, such source is oil (old that progressively transported to the
as cast iron or some motor oil in shape the billet into buyer.
armored vehicles is Afghanistan). a cylindrical, ridged
not suitable for bar, or rebar.
rebar. Billet

Rebar is
Scrap Metal is Billet is Billet is Billet is
Cut and
Baking
Melted Produced Heated Rolled
Bundled

These steps are These steps of the processing

necessary if rebar is chain stand alone if rebar is being
Scrap metal made from scrap. produced from pre-made billet. Rebar, Kabul

1: Encyclopædia Britannica website. 2:Singh and Kaushik, Influence of Steel-Making

55 Processes on the Quality of Reinforcement, 2002.
 Reinforcement Bars
Product Description
„ The quality of rebar is vital to its proper function, with fixed standards used to measure
the properties of the metal and the strength of the bars. Carbon steel, the raw material
used in most rebar in Afghanistan, should meet international standards (E.g.: ASTM A615).
Overview
Standards There are 3 common standard grades of rebar. Grade 75
(Grade 520 in the metric system) has a 75,000 psi yield
strength, and Grade 60 (Grade 420 in the metric system)
has a yield strength of 60,000 psi. The lowest is Grade 40
(Grade 280 in the metric system).
ASTM (American Society for Testing and Materials)
materials standards are used by major donors, who fund
87% of construction in Afghanistan.
Currently, Afghan rebar is manufactured without an
awareness of standards.
Quality in Much of the rebar shipped to Afghanistan probably meets
Afghanistan international standards, though the degree to which this is so
cannot be determined. Many employees of small sales outlets
are not familiar with international standards so cannot
comment on the degree to which their products comply.
Price Prices vary by location. The world price for traded rebar was
Top: Rebar near a construction site,
$591 per MT in July of 20071. Kabul
Current Afghan prices for imported rebar are around $740
Bottom: High quality steel billet, the
in Kabul (Pakistani rebar: $650-700, CIS rebar: $740-780).
raw material for rebar, on top of a low
Afghan-made rebar sells for between $825 and $925 in quality, misshapen billet with an air
Kandahar. pocket inside. Kabul
1: http://www.meps.co.uk. 56
 Reinforcement Bars
Marketing Chain
„ Rebar is almost entirely imported into Afghanistan. There is one rebar factory in
Kandahar that is currently operating and at least one more in the city shut down due to security
concerns. A new factory is currently under construction in Kabul.

„ The Abdurahman Baba Re-

Rolling Mills, Usually in Abdurahman Baba Re- Rolling Mill of Kandahar relies on
Pakistan or CIS Rolling Mill scrap metal to produce 75 MT
~60% ~40% ~60% ~40% of rebar per month. This is not
necessarily an impediment to
Import-Export/ quality, but means that the
Wholesaler company must find 94 MT of
~5% ~5% ~90% scrap monthly. The scrap is
purchased from throughout
Retailers Afghanistan.
„ A new re-rolling mill is
currently being constructed in
Kabul by the Toulid-e-Shoeb
General Public Building Contractors Sobhan Company.
„ In Pakistan, 347 re-rolling
companies annually produce
2.2 Mn MT of bars1.
Donors

1:Steel Industry in Pakistan. Lahore Chamber of Commerce

and Industry, n.d. 57
 Reinforcement Bars
Value Chain, Pakistan & Kandahar
„ Rebar production in Kandahar cannot compete with Pakistani production, especially on
the small-scale production of the current mill. Given their proportionally low operating costs,
Pakistani mills can produce rebars at a lower price, while still making higher profit margins.

Overview
Description The value chain on the left is for a theoretical Pakistani plant of the same size as
the Toulid-e-Shoeb Sobhan mill under construction in Kabul, producing the type
of rebar currently being sold in Afghanistan. The chain on the right is for the Abdurahman
Baba mill currently operating in Kandahar.
High Energy Costs The process of rolling reinforcement bars involves heating steel billets, then running them
through “stands” that roll them into rebar. The heating and rolling are both energy
intensive processes. The Kandahar plant produces its own billets.

Value Chain of a Rebar, Produced in Lahore, Value Chain of Rebar, Produced in

1
Pakistan ($/MT) Kandahar, Afghanistan ($/MT)
1,000
700
600 9 25 800 40
87 112
500 43 600 173
400
646 400 132 826
300
200
482
200 369
100
0 0
Raw Labor Energy Others Producer Final Price Raw Labor Energy Others Producer Final
Material Margin Material Margin Price

1: Rebar would have a factory wholesale price of $688 in Kabul. 58 Note: Transport costs are included in raw material costs.
 Reinforcement Bars
Projected Value Chain, Kabul Mill
„ Reinforcement bar manufacturing is a relatively capital-intensive industry (~$500,000
initial investment), but the high volumes produced reduce the proportion of fixed costs to
minimal levels. Energy and transport costs are the major expenses after raw materials.
„ The value chain below is based on a capacity of 25 MT of daily output. The price per MT
will be $670, to be the lowest-priced high-quality product on the market.
„ This new mill should be more efficient than the theoretical Pakistani one, and will not
produce its own billets. Its production costs are projected to be $49 more per MT, but its transport
costs will be $84 less per MT (price of Kabul-Lahore round trip of 1 MT of Kazakh steel), therefore
the Kabul mill will be able to sell rebar in Kabul at a lower price than Pakistani rebar.

Projected Value Chain of 1 MT of Rebar,

Produced in Plant Under Construction in Kabul ($/MT)
800

7 25
600 55
123
3
400 117
670

200 340

0
Raw Material Transport & Machines & Energy Labor Others Producer Final Price
Customs Factory Margin

59
 Reinforcement Bars
Importers and Retailers
„ Steel importation for the Afghan wholesale and retail market is based on a few
companies, of which Rahim Gardezy Co. is the largest by far. Importers focus more on rebar
of a CIS origin, as can be seen by the number of importers in Mazar-e-Sharif.

„ Importers:
• The largest steel importer in Afghanistan is Rahim Gardezy (Kabul), with around
200,000 MT of steel being imported annually. He is the only major importer to specialize
exclusively in metals.
• Other large importers include the Barakat and Brotheran Safi companies. All are
national companies that are importing metal primarily through their Mazar-e-Sharif offices. The
second tier of metal importing companies combined account for up to 50,000 MT of metal
imports to Afghanistan.
• There is a recently enacted 25% regulatory duty on steel products leaving Pakistan1,
but its unclear enforcement causes confusion amongst traders. This, and the better quality of CIS
products, encourages importers to import fewer Pakistani steel products.

„ Retailers:
• There are numerous retailers selling small quantities of rebar along with other steel.
Many import small quantities directly from neighboring countries.
• Retailers cluster together with other retailers selling the same products, often selling
out of small shop fronts or cargo containers. They usually sell a variety of rebar, beams and
profile steel.
1: SRO. 482 (I)/2007. Revision to Customs Act, 1969, Pakistan.
60
 Reinforcement Bars
Contractors and Donors
„ Most construction projects are funded by international donor agencies which request
that their contractors respect international standards.

„ Contractors:
• Large donor-funded projects rely on international construction companies which
bypass Afghan businesses in their procurement altogether (E.g.: Contrack
International).
• Afghan contractors use the material specifications of their clients, for both public and
private sector clients, and those implementing projects for international donors comply with
standards.
• Private projects involving Afghan planning and implementation often use informal
contractors or none at all (E.g.: using engineers for the design, then informally hiring
workers).
„ Donors:
• Construction in Afghanistan is donor-driven, with only an estimated 13% of the
sector based on private investment. The market for rebar not meeting international
standards is at best between $40 Mn and $55 Mn annually.
• The US Army Corps of Engineers (53% of the construction in Afghanistan by value) and
USAID (13% of construction in Afghanistan) are the two largest donors for construction
projects.
• Standards (E.g.: ASTM) are not used or understood by all local contractors, but are
important for international donors.
61
 Reinforcement Bars
SWOT Analysis
Strengths
„ Rebar is an integral part of modern concrete
construction which represents a significant market in
today’s Afghanistan.
„ Afghanistan borders the CIS, providing a source of
high-quality raw materials.
„ Given the high costs of transportation of finished
products, Afghan production has a comparative
advantage over its foreign competitors.
„ With technical assistance, rebar sub-sector is ready
for knowledge transfer to other sub-sectors.
Opportunities
„ Afghan rebar production has room to grow from its
low base in the booming construction market.
„ The development of an Afghan rebar manufacturing
capacity is by its nature also a development of other
rolling capacities (E.g.: angle iron, profile steel, etc.).
„ The growth of Afghan steel rolling may be the
impetus needed to revive the Afghan mining sector.
„ The increased use of CIS steel will enhance the
reputation of Afghan rebar.
62
Weaknesses
„ The rolling industry is dependent on imported
billets due to the lack of Afghan steel processing.
„ There is little Afghan experience in steel rolling.
Foreign knowledge is the source of industry growth,
and probably for another several years.
„ The market for rebar not meeting standards is
limited due to the prevalence of donor-funded
projects.
„ Capital-intensive industry which is a significant
barrier to entry for potential Afghan producers.
Threats
„ Supply shortage from CIS countries would require
the use of steel from Pakistan or other countries,
damaging the reputation of a product whose
reputation is in part based on the source of its raw
materials.
„ When the military and security infrastructure of
Afghanistan, such as bases and police stations, will
be completed, the market will lose its largest
source of funding.
 Reinforcement Bars
Strategic Objectives

„ The strategy proposed to develop the rebar sub-sector is based on 3 main objectives:

1. Increase the amount and quality of rebar produced in Afghanistan.

2. Increase the use of Afghan rebar in donor-funded projects as Afghan

rebar production increases.

3. Establish national standards for construction materials and ready

Afghan access to laboratories to test for adherence to them.

A rebar
structure
ready for
the pouring
of concrete

Rebar structures in place,

ready for the pouring of
the concrete. Construction
site, Kabul

63
 Reinforcement Bars
Strategic Objectives (1/2)
„ Strategic Objective 1: Increase the amount and quality of rebar produced in
Afghanistan.
• Arrange partnerships with financial institutions to provide loans or offer grants to
assist:
- Toulid-e-Shoeb Sobhan upgrade or add to its machinery to increase its production capacity
and range of products quickly.
- Abdurahman Baba Mill expand its activity by modernizing its productive machinery.
• Arrange financial support, including for at least 2 years of risk insurance (E.g.: with
MIGA) for foreign companies willing to open re-rolling mills in Afghanistan.
Companies producing rebar meeting international standards should be priorities once Afghan
producers gain a foothold in the market.
„ Strategic Objective 2: Increase the use of Afghan rebar in private and donor-
funded projects as Afghan rebar production increases.
• Assist Afghan rebar companies in effectively marketing their products to contractors
and their clients in the private sector. Specify “Afghan rebar encouraged” where possible in
USAID projects.
• Organize negotiations between rebar manufacturers in Afghanistan and
international donors to increase the use of Afghan rebar in other donor-funded projects.

64
 Reinforcement Bars
Strategic Objectives (2/2)
„ Strategic Objective 3: Lobby for the establishment of internationally-recognized
standards for construction materials and ready Afghan access to laboratories to
test for adherence to them.
• Encourage the prioritization of standards such as the ones developed by ISO
(International Organization for Standardization) or ASTM as a focal point of Afghan
regulations developed in cooperation with the Afghanistan National Standard Authority.
• Organize awareness workshops and trainings about materials standards through
ASMED’s Business Development Centers (make participation in this program a requisite part of
receiving ASMED support).
- For construction material buyers: provide information on why standards exist, how they are
established and how to understand the markings on materials by communicating to which
standards they adhere.
- For construction material manufacturers: provide information on why standards exist and
how to implement them in the manufacturing process. A GDA with the Afghan Builders’
Association (ABA) should be considered as the ABA could play a leading role in accompanying
companies towards compliance with these standards.
• Initiate the creation of a laboratory in Afghanistan to test samples of Afghan products
for compliance with established standards.

65
 Metalworking
Summary of Key Recommendations
Upgrade technology: Stimulate growth:
Support efforts to improve the Create linkages between
technical capacity of the Afghan companies both within
metalworking sector, via better Afghanistan and
access to productive technology between Afghan and
and quality facilities. foreign companies to
increase production
volumes and
Stimulate national knowledge transfers.
expansion: Main
recommendations
Assist key leaders in the for development
industry in expanding of Metalworking
their production and sector
distribution outreach to Improve access to
other untapped finance:
provinces of the
country. Encourage the growth of
the metalworking
sector through the use
Promote standardization: of financial
Support the creation of instruments, targeting
standards and accompany both producers and
Afghan companies customers.
towards compliance with
such standards.

66
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

67
 Bibliography
Reports and Websites (1/3)
„ Abbas, A., A Case Study on SMEDA Pakistan, n.d.
„ Albu, M., Technological Learning and Innovation in Industrial Clusters in the South, Masters Thesis, University of
Sussex, September 1997.
„ American Iron and Steel Institute, Auto Steel Partnership, Automotive Steel Design Manual, Chapter 2.4, August 2002.
„ Cleaner Production Program, Cleaner Production Opportunities: Steel Melting Sector in Pakistan, www.cpp.org.pk,
2001.
„ Commodity Price Bulleting Update, United Nations Conference on Trade and Development, July 2007.
„ Customs Act, 1969 and Rules, Significant Amendments, KPMG, 2007.
„ Davies, T., Enhancing Competitiveness in the Manufacturing Sector: Key Opportunities Provided by Inter Firm
Clustering, Competitiveness Review, June 2001.
„ Engineering Development Board, Government of Pakistan, Road Freight Strategy Paper, April 2006.
„ Engineers Without Borders, Concrete Mixes Guideline, Draft, 2005.
„ FAO, Afghanistan: Survey of the Horticulture Sector, 2003.
„ Humphrey, J., Opportunities for SMEs in Developing Countries to Upgrade in a Global Economy, ILO’s In Focus
Programme on Small Enterprise Development. December 2001.
„ International Monetary Fund, Islamic Republic of Afghanistan: Selected Issues and Statistical Appendix. IMF Country
Report No. 06/114, March 2006.
„ Khawaja, S., Unleashing the Potential of the SME Sector with a Focus on Productivity Improvements, Pakistan
Development Forum, 2006.
„ Lahore Chamber of Commerce & Industry, Steel Industry in Pakistan, n.d.

68
 Bibliography
Reports and Websites (2/3)
„ Lister, S., Karaev, Z., Understanding Markets in Afghanistan: A Case Study of the Market in Construction Materials,
AREU, June 2004.
„ Mead, D.C., Linkages within the Private Sector: A Review of Current Thinking, FIT Program of the International Labor
Organization, March 1994.
„ Nadvi, K., Facing the New Competition: Business Associations in Developing Country Industrial Clusters, International
Institute of Labor Studies, 1999.
„ Rey, J.A., Global Market / Macroeconomic Situation, presented at the 57th Irepas Meeting, Warsaw, Poland,
September 9th to 11th, 2007.
„ Romijn, H., Technology Support for Small Industries in Developing Countries: From ‘Supply Push’ to ‘Eightfold-C,’
Development Studies Working Papers, Centro Studi Luca D’Agliano, June 1999.
„ Schmitz, H., Collective Efficiency: Growth Path for Small-Scale Industry, Journal of Development Studies, April 1995.
„ Schmitz, H., Collective Efficiency and Increasing Returns, IDS Working Paper 50, March 1997.
„ Schmitz, H., Lessons from the JICA Project ‘Strengthening the Capacity of SME Clusters in Indonesia’ , Report
Prepared for KRI International Corp, June 2003.
„ Singh, B., Kaushik, S.K., Influence of Steel-Making Processes on the Quality of Reinforcement, The Indian Concrete
Journal, July 2002.
„ SMEDA, Cluster Diagnostic Study: Auto Parts Cluster, n.d.
„ Steelworker, Volume 02, Chapter 7, Nonresident Training Course, US Navy, 1996.
„ Tanburn, J. et al., Strengthening Informal Sector Networks in Kenya Through Exchange Visits, FIT Synthesis Paper,
March 1995.

69
 Bibliography
Reports and Websites (3/3)
„ Tambunan, T., Development of Small-and Medium-Scale Industry Clusters in Indonesia, Kadin Indonesia, Indonesian
Chamber of Commerce and Industry, n.d.
„ Tambunan, T., Promoting Small and Medium Enterprises with a Clustering Approach: A Policy Experience from
Indonesia, Journal of Small Business Management, April 2005.
„ Tewari, M., Intersectoral Linkages and the Role of the State in Shaping the Conditions of Industrial Accumulation: A
Study of Ludhiana’s Manufacturing Industry, World Development, 1998.
„ Tewari, M., Successful Adjustment in Indian Industry: The Case of Ludhiana’s Woolen Knitware Cluster, World
Development, 1999.
„ Tewari, M., Pillai, P., Global Standards and the Dynamics of Environmental Compliance in India’s Leather Industry,
Oxford Development Studies, June 2005.
„ UNIDO, Integrated Programme to Support Capacity Building for Sustainable Industrial Development in Pakistan, April
2000.
„ The World Bank, The Investment Climate in Afghanistan: Exploiting Opportunities in an Uncertain Environment,
December 2005.

Web Sites:
„ www.meps.co.uk
„ www.lme.co.uk

All Photos: Altai Consulting

70
METALWORKING
Project Overview
Sector Overview
Farm Machinery
Rickshaws
Water Turbines
Reinforcement Bars
Bibliography
Units and Acronyms

71
 Units & Acronyms (1/2)
ƒ ABA – Afghan Builders’ Association
ƒ ADB – Asian Development Bank
ƒ AEEA – Afghanistan Electrical Engineer Association
ƒ AEIC – Afghanistan Energy Information Center
ƒ AEP – Ansary Engineering Products and Services
ƒ AFMI – Afghan Farm Machinery Institute
ƒ AKF – Aga Khan Foundation
ƒ ASMED – Afghanistan Small and Medium Enterprise Development
ƒ ASTM – American Society for Testing and Materials
ƒ BOP – Bottom Of the Pyramid
ƒ CIS – Commonwealth of Independent States (Armenia,
Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova,
Russia, Tajikistan, Ukraine, Uzbekistan and Turkmenistan)
ƒ CSO – Central Statistical Office, Government of Afghanistan
ƒ DACCAR - Danish Committee for Aid to Afghan Refugees
ƒ DAI – Development Alternatives, Inc.
ƒ DFID – Department for International Development
ƒ FAO – Food and Agriculture Organization
ƒ FPI – Frontier Power International
ƒ GDA – Global Development Alliance
ƒ GDP – Gross Domestic Product
ƒ GTZ - Gesellschaft für technische Zusammenarbeit
ƒ HKT – Hindu Kush Turbine
ƒ IAM – International Assistance Mission
72
ƒ IFC – International Financial Corporation
ƒ IMF – International Monetary Fund
ƒ ISO – International Organization for Standardization
ƒ KII – Key Informant Interview
ƒ MEW – Ministry of Energy and Water
ƒ MHP – Micro-hydro Power
ƒ MIGA – Multilateral Investment Guarantee Agency (World
Bank)
ƒ MRRD – Ministry of Rural Rehabilitation and Development
ƒ NABDP – National Area Based Development Program
ƒ NGO – Non-Governmental Organization
ƒ NSP – National Solidarity Program
ƒ PRT – Provincial Reconstruction Team
ƒ PT – Pamir Turbine
ƒ RHL – Remote Hydro Light
ƒ SME – Small and Medium Enterprise
ƒ SMEDA – Small and Medium Enterprise Development Authority
ƒ SWOT – Strengths, Weaknesses, Opportunities and Threats
(Analysis)
ƒ TMT – Traditional Mill Turbine
ƒ UNIDO – United Nations Industrial Development Organization
ƒ USAID – United States Agency for International Development
ƒ WEPEX – Water, Energy and Power Exhibition
 Units & Acronyms (2/2)
• $ - US Dollar (1 Dollar = 50 • K – Thousands
Afghanis) • Kg – Kilograms
• Af/Afs – Afghani/Afghanis (1 • kW – Kilowatt
Afghani = 0.02 US Dollars)
• m – Meter
• PKR – Pakistani Rupee (1 PKR
• m2 – Square meter
= 0.016 US Dollar
• Mn – Million
• Bn – Billion
• MT – Metric Ton
• ºC – Degree Celsius
• MW – Megawatt
• Cc – cm cube
• Psi – Pounds per square inch
• ºF – Degree Fahrenheit
• Ha - Hectare

73
 Main Authors
Rodolphe Baudeau
Partner
Nicolas Fasquelle
Project Director
Géraldine Baudienville
Project Manager
Robert Dunnigan
Project Manager
Bertine Kamphuis
Project Manager
74
Haroon Akramyar
National Consultant
Shingul Kaliwal
National Consultant
Abdul W. Mohmand
National Consultant
Abdul Saboor Qaderi
National Consultant
 Contact Information

Rodolphe Baudeau - Partner

and
Robert Dunnigan - Project Manager

Contact
Mobile + 93 (0) 799 888 111
rbaudeau@altaiconsulting.com

Altai Consulting
Qala-e-Fatullah, Street 4,
Kabul, Afghanistan
www.altaiconsulting.com

75