Bahru Jemal, deputy manager of Feleke Trading Plc which is a manufacturer of Hamad foam relates the edible bread with the inedible foam when he tries to explain the manufacturing of foam. Just like a small amount of yeast riseses the dough when bread is baked, so do a small amount of mixed chemicals, such as polyethylene, give rise to almost a one metre thick foam, says Bahru.
Hamad joined the market in 2007 on a 2,000sqm manufacturing land located at Nifas Silk-Lafto District. Unfortunately, a fire accident destroyed the factory in 2013 and it had to discontinue its production until 2014. In September 2014, the factory had joined the market again, establishing its manufacturing in Alemgena town, 26Km from Addis Abeba, with a 20,000sqm land with 20 million Br initial capital, stated Bahru.
The chemicals which are inputs for the production of foam, are mostly imported from China. The amount of chemicals and their combination will determine the density of the foam, which in return determines the quality of the foam. Foam, with a high density also known as HD foam products represents a high quality, having longer durability and comfort while medium density results an average quality and the lower density (LD/star) is known for being a lesser quality product.
Different factories use different standards of density level in accordance with the market demand however, there is no description or any other way a customer can differentiate between them. Most of the customers who come to purchase foam have a habit of pressing down the foams with their hands in order to find out the foam’s quality, stated Hana Nega, salesperson of Ethio-Foam. Samuel Tadese is one of the customers Fortune met with at Ethiopian Household & Office Furniture Enterprise (ETHOF) Stadium Branch while he was trying to find out the quality of the foam subconsciously extending his hands to press down on the product.
“I honestly do not know what I was trying to find out by pressing down up on the foams” he stated with a grin.
If the foam gets back up quickly to its place after you press down on it, that means it has high quality. However, low quality products stay down or take a longer time to get back to their original shape, explained Bahru. The production of foam has a set standard by the Ethiopian Standard Agency, stated Shimelis Arega, public relations at the Ministry of Trade. However, the standards are not forced by law as they are not a mandatory standard, which has an immediate effect to health or environment, he added.
The production of foam will not end once it is baked. Next, the baked foam will be left for eight hours to cool down and maintain its shape. After that it will be slashed down to different thickness ranging from 12cm to 24cm. And the standard width will be 75cm, 90cm, one metre, 1.5 metre having 1.9 metre height. Factories also accept a customized order from an individual customer, stated Mulat Foge, general manager of Amaga Plc.
The final process of manufacturing foam involves wrapping and sewing the produced foam with locally produced sheet printed with the company’s brand. The sewing machine will require two people, one to hold down the foam in place while the other sews and operates the machine.
After it is wrapped, the foam will be ready for the market. Mostly, universities and hospitals buy the bulk of the products directly from the factory whereas wholesalers and retailers will take care of the individual market demand by providing various brands of foam from different factories. The market consists of older brands such as Kangaroo, Addis Abeba, Rainbow foam and newcomers like Tiger, New Flower and Metiket foam. Currently, there are 69 factories that are engaged in the foam manufacturing business, according to Ethiopian Investment Agency, including three from China and one from Yemen. However, in 1992 there was a sing company, Kangaroo Plastic PLC until it was joined by Rainbow Plastic and Foam Industries PLC a year later.
The price for foam in the market roughly ranges from 500 Br to 1200 Br depending on its thickness and size. However, the LD foams which make it to the market without a wrap can be sold for 200 Br to 300 Br. Factories produce LD foams with a low production cost in order to make the products available at lesser price possible, stated Mulat. Wholesalers spend a total of 70 Br to 100 Br for wrapping LD foams with sheet.
The other type of product that is in high demand currently as a result of its medical benefits is bonded foam. Bonded foam is hard as rock mattress, which is produced from grind and pressed, misshaped or chopped foams and people use it to get relief from back pain, explained Bahru. Bonded mattress is expensive compared to the other products ranging from 4,000 Br to 6, 000 Br depending on its thickness. And extra foam has a compromise quality between bonded foam, also having an average price between the two.
There are also used foam products if you go down to Merkato behind Raguel Church with a price of 250Br to 300 Br, which are bought for around 150 Br, according to Dawit Begas, used foam retailer. There, you will also encounter a kind of middlemen tirelessly asking if you are looking for foam. Eshetu Haile, 59 and a father of four, is one of these middlemen who will take you to foam shops if you are looking for one, getting paid by the shops for his services.
Even though the legal frameworks in Ethiopia do not forbid the manufacturer from participating in retail the market as long as it has a license for both wholesale and retail trade, there are upset retailers in the foam market over the manufacturer competing with them in the retail business. It is unfair for them to snatch an individual trader who comes looking for foam, stated a foam retailer in Merkato.
It is not only price but also older brands that lure customers to a certain product, according to Hana. But Bahru assures Fortune there is still untapped market for the product. Most of the market demand for foam comes from rural wholesalers, the urban market is shifting to spring products, she added, attributing the reason of an improved economic condition. Locally produced spring foams have a competition from exported products, mostly from Italy and Dubai, stated Senayit Gebrehiwot, salesperson of ETHOF.
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