Fashion Accessories Exporter Raising Funds In Chennai

About Business

The business manufactures and sells products such as fashion accessories—bags, belts, purses, padfolios, shopping bags, backpacks, travel bags, sling bags, lunch bags—as well as gift items, leather wallets, ladies' clutch and hand bags, and promotional items, all made from certified recycled fabrics and leather.

Clientele type

They export to Western and European countries and have recently started to sell their products in the domestic market as well.

Premises

OWNED

Premise Size: 9500 sqft

Market Value (in INR): 10.00 Cr

6500 sqft of RCC building with imported machines with 100 workers.

Factory Infrastructure:
Location: Prime commercial area, Near Chennai
Total Land Area: 9,500 sq.ft approved commercial area
Built-up Area: 6,500 sq.ft (RCC Building) with approved permit
Machinery Origin: Italy, Japan, and China
Current Asset Value: ₹10 crore (approx. US$ 1.25 million) – without Goodwill value.

Compliance & Certifications:
Factory Licence: Valid till 2027 (renewable without restriction)
Pollution Control Clearance: Valid till 2030 (renewable)
Social Compliance: Certified socially compliant; approved by global brands — meets international ethical manufacturing standards.
Taxes: Property and local taxes fully paid up to date.

Asking Price Includes

The owner is open to give 45% equity in the business.

Asking Price

INR 4.50 Cr

Minimum ticket size

INR 2.50 Cr

Reason

They are raising funds to increase margin.

More Details

Promoter Profile:
Science Graduate with 30+ years of experience in both technical and commercial roles.
Worked with reputed MNCs including:
Tata International Ltd.
Ponds India Ltd. (Chesebrough Ponds, USA subsidiary)
Hindustan Unilever Ltd.
Tata South-East Asia, Hong Kong

Expertise:
Deep understanding of leather tanning, fashion accessories designing & manufacturing, and export trade operations in producing thousands of styles for reputed global brands.

OEM Capabilities:
Skilled in Original Equipment Manufacturing (OEM) and private label production.
End-to-end service including designing , manufacturing, final packing, labelling, and price tagging, enabling direct retail distribution for buyers.

Growth & Investment Opportunity:
Current Focus: Export to Europe, UK and USA; expanding to domestic brand manufacturing.

Capability:
Experience: 24 years of designing & export manufacturing for USA, Europe etc.,
Product Range: Wallets, Belts, Bags, Travel Accessories, and Promotional Items
Current Workforce: about 100 skilled employees
Export Markets: Europe, UK & USA

Period - Annual Sales – Remarks:
Lowest in the First starting Year - @₹25 lakhs (approx. US$ 31K)
Peaked to ₹9 crores/year (approx. US$ 1.125 million) in between - Steady growth through export markets
Temporarily dipped during 2021 (COVID pandemic Period) – to below ₹1 crore (approx. US$125K)
Current – ₹3.5 crores (approx. US$ 435.5K) - Recovery phase with increasing demand
Potential (with funding) - ₹10 Crores (approx. US$ 1.25 million) - Immediate scalability
Next Stage (2nd year)- ₹20 Crores (approx. US$ 2.5 million) - With stable finance & market expansion
Profitability: Achievable immediately upon financial infusion and production scale-up.

Scalability:
Short-term: Scale turnover to ₹10 crore (approx . US$ 1.25 million) annually with working capital infusion.
Medium-term: Expand to ₹20 crore (approx. US$ 2.5 million) annually in 24 months using existing infrastructure.
Profit Margin: Strong, supported by low-cost, multi-skilled manufacturing base and an experienced workforce.

Investment Requirement:
Working capital or partnership investment to fund production scale-up and market expansion in both domestic and international segments. Initial requirement of ₹250 lakhs (approx. US$3.125 million)/₹500 lakhs (approx. 6.25 million). Or even in blocks of ₹ 50 lakhs (approx. US$62.5K) In the form of appropriate Convertible debentures/shares apportionment or any other agreeable suggestions.