Debt Investment Needed for a Fruit & Vegetables Processing Project

Opportunity Snapshot

  • Country: India India
  • Industry: Food, Beverages, Tabacco
  • Stage: Initial growth (first revenues)
  • Years in operations: 2, Employees: 15
  • Investment size: $77,500,000 / min. $15,500,000
  • ROI: 30% in 4 years
  • Type of investment: Debt
Fruits and Vegetables Processing Expansion funding is sought by a successful Fruits and Vegetables Processing Business in India. Image courtesy: winter rose, 2015, Flickr CC.

Investment Opportunity

We are having a state of the art technology for manufacturing of Frozen Fruits and Vegetables, and are looking for investment to increase our production capacity.

We are having state of art technology for manufacturing of Frozen Fruits and Vegetables.

The Products we offer are Frozen Green Peas, Frozen Cut Beans, Frozen diced Carrot, Frozen Cut Cauliflower, Frozen Strawberry, Frozen Diced Papaya etc.

The present market is in India but we'd like to start exporting to other parts of world.

Revenue Generation: Direct from farm to Processing, Low Cost and Best Quality, Processing and Storage, Distribution hub infrastructure and retail market direct to consumer, Transportation and Distribution for procurement and distribution.
The Company is already working on the same model and having all these facilities.

Business Goal: To provide direct income to farmers and link them to production houses, at the sane time, providing the value to customers for their money.

Outcomes: Brand Building and growth opportunity for our company's product.

Progress: The Company is set up in 2015 and is expanding its market every year.

Project timeline: 1 year

Funding needs: We are planning to expand our production house in other locations of India and grow the market of finished products to entire India and other parts of the world. The expansion concerns our Production House, Storage & Distribution Hub.

Offering to the investor: We will provide best 15% ROI to the investor. The investment period is small and ROI will be best suited to Investor.

Competitive Advantage

2nd Largest Production House In India with own Storage and Transportation and Distribution Hub Facility.

Located in Main Raw material Production Area and Distribution hub and storage in Main consumption/ Metro cities of the Country.

There is only 1 competitor in the Indian Market. The other competitors are limited to their limited boundaries and their production houses have only 30% capacity compared to our production house.

This is the best advantage for our expansion and future growth.

Rationale for the deal

Opportunity: Company owned Transportation and Distribution hub will fill the gap in the market demand and supply. Demands for daily consumption products are increasing day by day.

We will take another small manufacturing unit for contract manufacturing and this will result in an increase of our product manufacturing capacity and reduction of small competitors in the market. A monopoly of the product will sustain in the market.

Their is no other big market player in the Indian Market. The industry depends on seasons, therefore no big company gets involved in production.

My experience to this industry is 14 years. Earlier we have been trading products produced by other manufacturers under our brand. 3 years ago I set up the production house and I have been expanding its capacity ever since. As the raw material is seasonal I set the production house of larger capacity, so that I can get more production in limited time.

Use of financing

Funding will be used for: Procurement of raw material and payment of processing expanses.

We need 1 round of financing in a year.
Period from production for which funding is needed: January to April.
Period of Sales: January to December
Repayment in 2 rounds half yearly with ROI.

Opportunity for the investor

Overall Loan Amount Required: Rs 5000000000.00 = $77166450.
Pay Back in 1 year at Interest Rate of 15%
Installment schedule: Half yearly.
Loan Period: from December 2017 to November 2018.

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