Specialized Plastic and Metal Security Seals and Locking Devices Manufacturing Business for Sale

Product / Service

The Company has carried out business with various industries such as Utility providers, Postal services, Transport & Logistics companies and Airlines. The Company is looking to structure a transaction with a potential Buyer and proposes to carve out certain specific assets relating to the Business Segment. The business is available for sale with; assets (which are movable if needed) relating to the Business segment such as: (i) Moulds in relation to Product A and B (ii) Thermo engraving laser machines and (iii) Patent in relation to Product A, A potential new Client (E-Commerce logistics segment) with Revenue potential in excess of INR 2.5 Crores from 2nd Year (1st Year is circa 50%) for which business development is on-going and trial order is under process, Transfer of current repeat customers, which have been buyers for over many years from April 2017 with Revenue potential up to INR 50 lacs, Supply Chain and Marketing support for a certain period of time, Business development support to tap into the highly lucrative e-commerce logistics segment with companies like ECom Express, Go Javas, Ekart, etc. Based on an enquiry from a leading E-Commerce logistics player, a Product C is being, developed, for which the Company has already invested in R&D and is currently building the pilot/trial mode. The cost to build production Mould will be: INR 20 lacs and patent to be filed under NewCo, This will be the first client for the NewCo, and the expected annual run rate order from this client would be around INR 1.5 Crores for the 12 months beginning September/October 2016 (representing 50% of their annual demand). The expected turnover for the next year is INR 2.5 Crores. During FY 2016-17, the Company will transfer new businesses from existing clients, giving NewCo additional Revenue streams – estimated at INR 25 to 50 lacs. Future opportunities also include developing new seals for other industries and segments like Shipping, Airlines, etc. including tapping into the export market, which is huge. Production of Product C using current supply chain set up to buy a fully finished product. Therefore, NewCo would have guaranteed revenue without any start-up/capital cost with key assets like IP, client relationships, etc. and a ready and growing profitable revenue base from inception. The Company is also willing to transfer resources to support Marketing and Production, at the end of the financial year (post existing orders being complete) which will be at a cost of INR 1.2 lacs per month (if required) besides the Sales Agents who work on pure commission. The Company expects a consideration of INR 3.5 Crores.

Reason

Personal