Investor Needed for Expanding an Existing Mineral Water Business

Opportunity Snapshot

  • Country: India India
  • Industry: Food, Beverages, Tabacco
  • Stage: Expansion/Growth
  • Years in operations: 14, Employees: 20
  • Investment size: $400,000 / min. $350,000
  • ROI: 100% in 5 years
  • Type of investment: Debt, Equity
Mineral Water Plant in India Seeks Expansion Funding The mineral water plant has been in operation since 2001 and has already built up a good brand value in the states of Kerala and Tamil Nadu. Image courtesy of Sarah, Flickr CC.

Investment Opportunity

Investor/Investors needed for equity funding of a running mineral water unit based out of Trichur, Kerala. The funding would be utilized for capacity expansion.

We are interested in stake sales to the extent of 30 to 40 percent. The incoming partner may/may not get physically involved in the project. The mineral water plant has been in operation since 2001 and has already built up a good brand value in the states of Kerala and Tamil Nadu.

The investment is primarily required to retire bank and other debts and to increase the working capacity. On a very conservative estimate, we hope to service the investment at a minimum return of 23 percent per annum. The investment would have a lock-in period of 5 years. The modality of sharing profits can be mutually discussed and arrived at. The promoters are currently stationed at Mumbai and any further meetings/discussions can be held there.

Competitive Advantage

We have already handled two major national brands with a very high brand equity.

Rationale for the deal

The investment would be utilized for capacity expansion which would treble the revenue and profits. Additional advantage of a large land parcel which could be monetized to bring in fresh capital.

Use of financing

For retiring debts and personal liabilities of $225000.

Balance to be utilized for upgrading technology and assets.

Opportunity for the investor

For debt investment, a yearly interest payment of 20% with an incremental ratio of 5% to be repaid in 5 to 10 years.

For equity investment, 40% equity and average dividend between 20 to 25%.

Preferable silent investor.

At the time of signing of the agreement, 30%. Balance payable at the time of transfer of shares.

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