- Country: India
- Industry: Food, Beverages, Tabacco
- Stage: Initial growth (first revenues)
- Years in operations: 4, Employees: 50
- Investment size: $1,000,000 / min. $800,000
- ROI: 12% in 10 years
- Type of investment: Debt, Equity
160 MT per day fully automatic plant located in Odisha India seeks financial assistance in shape of Debt / Equity for meeting its raw materials sourcing requirements
Unit started its commercial production in December 2014,
Not able to utilise its optimum capacity of production due to lack of working capital, sufficient raw materials available but not able to run plant, need working capital in shape of either debt or equity as per convenience.
Good profitability after all direct & indirect expenses.
Production line is fully automated with PLC controls, major milling equipment sourced from leaders like Buhler, Thermex & other market leaders.
Capable to process paddy to different varieties of Rice RAW / STEAM / PAR BOILED with segregation based on length, ISO 22000:2005,
Branding Shree Jagannath Bhog & Mayur,
well established brand in Odisha
Quality widely accepted by exporter to Bangaldesh, Mid east & African Countries.
The unit is ready to start delivering products once sufficient raw materials are fed.
Need 160 MT of paddy ( USD 38,000) per day for smooth running of the unit. Quantity is available in local market itself.
Required 20-30 days funds for sourcing raw materials which include, Raw Materials for 15 days, 2 Days WIP, 7 days Finished goods, & 7 days Sundry Creditors.
For selling products & by products, all products can be sold locally to Whole sellers, exporters. By products 1. Bran can be supplied to local solvent plants as raw materials to them, 2. Broken, Pin Broken & rejected rice after optical sorting can be supplied to near by ENA ( Extra Neutral Alcohol ) manufacturing plants.
In case of Equity support, we are ready to dilute upto 49% shares depending upon quantum of investment.
In case of Debt support, a fixed RoI will be payable quarterly & a share of profit calculated quarterly.
Fully automated modern plant
Ease of raw materials availability
Good water quality required for par booking process
Promoters know business
For export ports are located near by
Well connected with Rail & Road network
Good market presence
Quality of finished product is better than nearby plants ( as other plants are not that technically advanced)
Less no of Unit in the near by area, almost no competition.
Rationale for the deal
Sufficient paddy is available which is being transported to almost 200 km by paying freight & still those distant units are earning good profit, in our case that freight part will be save.
Rice is a staple food for Indian states especially Odisha, Jharkhand & West Bengal. Good quality boiled rice is consumed in all three meals by the local residents. Huge demand of Rice as staple food.
Production facility is A One designed & installed, all infrastructure are in place, only lacking in working capital, once this working capital support is received, by utilizing the production capacity, the unit is sure of generating even better profits.
Another unit near by had made them completely debt free in a span of 5 years & had stock of available paddy to run for more than 6 months without even buying a single consignment of paddy.
The promoter is a Engineer passed in 1993, had worked for various organisations of national repute at various capacities, is engaged in this activity since 2014. Had worked as conversion agent for Government of Odisha for 4 years. The Govt. use to supply paddy & take back Rice to their godowns & leave by products to unit as their margin & also provide some charges for milling including Gunny depreciation, Joint Custody Charges with handling & transportation. In this operation no need of working capital. Since this depends upon the government policy decision that what quantity of paddy they will be getting converted. At time they give sufficient paddy to run unit for entire year & at time for just enough for 4-5 months. Just to get out of this uncertainty unit wish to enter into Open Market Operation.
Good peoples to deal with
Established in Market for selling of products & by products
Ready setup to start earning immediately
Use of financing
For sourcing of raw materials used in the process I.e., Paddy
Unit Need 160 MT paddy per day for its optimum operations. All the funds will be utilised for buying paddy.
Other revenue expenses are
1. Electricity Bill
2. Staff Salary ( Administartive & Security)
3. Operators Salary
4. Labour Payments
5. Packing Materials
6. Other indirect expenses ( Very Less)
Initially USD 4,00,000 will be required to achieve 50% capacity of production & in a duration of another 25-30 days, will require the rest funding.
Opportunity for the investor
Need Debt to the Tune of 8,00,000 - 10,00,000 USD
Pay back period 10 years
Rate of Interest 12% PA payable quarterly / half yearly
For equity participation can spare upto 49% shares of the company, with dividend payable annually 12% minimum,
A hands on investor or a silent investor can be worked out , we don't have any issue in this regards.
Entire amount of investment will be required in 2 -3 phase equal installments.
Can depute their representation for getting involved in day to day activity with promoters
Details modalities can be discussed
Looking for similar investment opportunities