Newly Established Coconut Coir and Peat Manufacturing and Distribution Business Looking to Raise Funds/full Sale
Product / Service
Coconut Fibre, Cocopeat
Clientele type
Many exporters of Coconut coir and Fibre and Coco peat block exporter
Premises
Distribution of end product through dedicated brokers and direct business owners
Asking Price Includes
a) They are looking to raise INR 50 lakhs or
b) Full sale of the business with machinery at INR 2 Cr. Monthly rent of land will be INR 50,000 and security INR 2 lakhs or
c) Full sale of the business with machinery, land at INR 2.5 Cr.
Reason
Looking for a partner to invest in the newly established business of Coconut Coir fiber and Peat Mill to generate maximum profit.
Other Details
It is a new business with around INR 1.5 Cr invested in Machinery and building on about 4-acre land. The raw material is coconut husk, which is then converted into fiber and peat.
Will need some working capital to invest in workers building, buy new tractors and store up raw materials. For this, an investment of INR 50 lakhs will be required on top of the already invested money.
Business commercials are as follows - It consumes raw material of INR 2 lakhs per shift and runs 2 shift a day. So a total of INR 4 lakhs per day. This will produce Fibre of INR 3 lakhs and peat waste of INR 1.5 lakhs. That's INR 50,000 of Net revenue per day. If we subtract the operating cost of INR 15,000 for Labour, diesel, and electricity, it leaves INR 35,000 per day as profit. Consider working on 5 days a week. Avg there is potential for INR 6-7 lakhs profit per month.
However, to realize that much profit, will need a continuous stock of 1 week of raw materials (INR 20 lakhs), have to improve the tractor with new fittings (INR 15 lakhs) and improve workers living condition to motivate and attract good people (INR 5 lakhs). and invest in shed and storage of finished item to prevent from rain (INR 10 lakhs ).
So looking an investor or partner depending on how much time they can spare on the business and help in generating the profit. And depending on the investment the % share on profit can be shared.
a) They are looking to raise INR 50 lakhs or
b) Full sale of the business with machinery at INR 2 Cr. Monthly rent of land will be INR 50,000 and security INR 2 lakhs or
c) Full sale of the business with machinery, land at INR 2.5 Cr.
Keywords
Business Tags
₹10 to ₹200 Cr
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