Investment Opportunity for Marble Mines and Marble Gangsaw unit

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Seed
  • Years in operations: 7, Employees: 50
  • Investment size: $300,000 / min. $50,000
  • ROI: 12% in 2 years
  • Type of investment: Debt, Equity

Investment Opportunity

Funding is needed to expand the requisite machinery to start production. We have working capital. Looking for a debt or equity based investment with exit option in 2 yr

This 1 Hectare mine contains huge deposit of Green Mable stone. All the requisite permission and mining licences are valid till 2030, further extendable by 20 years.

We will be extracting Raw Blocks from the quarry and selling them. The production is on a very long term basis. The extraction of marble will continue for at least two decades as we plan to expand the mining area by taking up adjacent 1 Hectare land on lease. Further we plan to start a processing unit for finished product for overseas market.

Returns: 
Equity: 20% -30% from the net income (1% minimum monthly guaranteed amount) with option of exit (get your full principal amount) in two years. We would like you to be with us forever. 
Debt: The Capital will be repaid in 2 yrs at 18% per annum.

Need for the Project and Its Importance
With the growing use of Marble as decorative stone, the mining of Marble has received a boom in last few years. There is good market for Marble in India as well as abroad also. In overseas market Marble is also exported in the form of blocks which are used as pillars in large buildings beside decorative slabs. 
Green Marble has been extensively used as a dimension stone and as flooring tiles in public and commercial buildings and monuments.

Green Marble has begun to supplant other marbles as a material in Temples and Mosque, since it is much more soothing and cool to eyes.

Polished Marble is also a popular choice for kitchen counter tops due to its high durability and aesthetic qualities. Currently 60% of the kitchen counter tops being made are of Marble. Its hard nature made it a very suitable and durable material for most Civil Engineering and Construction works. It is used in various ways as in
• Road Construction and Dimensional stones
• Building of Houses, Bridges and Drainage
• Manufacturing of Flooring Tiles
• Production of Marble blocks
• Interior Decorations
• Art works (Antiquities) etc.

Demands-Supply Gap

As mentioned above, the use of Green Marble as decorative stone is growing constantly. Hence, despite of constantly increasing production of Green Marble the whole production is consumed in the market and at present supply of Green Marble is not sufficient to fulfil the domestic and export market demands. The demand and supply gap for the Green Marble is growing which makes a lot of scope of Marble mining for greater revenue generation (more than 50% profit margin) compare to other conventional businesses.

Competitive Advantage

Every mine is unique and use of marble and granite is increasing worldwide as it is durable product ,free from wear and tear over the longer period of time compared to other concrete and wooden surface which require replacement after few years. Demand is increasing and likely to grow at 15 to 20% rate per annum.

Rationale for the deal

Export Markets Potential

Although Marble is a minor mineral, it is a major contributor in foreign exchange earnings. India is the second largest exporter of raw Marble after China and ahead of Brazil and South Africa. The major importers of Indian stones are USA, China, UK, Italy, Belgium, Germany, UAE, Hong Kong, Spain, Taiwan, Netherlands, Canada, Turkey, France, Russia and CIS countries. The growth is continuing and the demand for marble, granite, sandstone and other dimensional stones and stone products is anticipated to grow at around 15%.

Use of financing

Investment: 
Capital of USD 300,000 is required for requisite machinery for extraction i.e. Derrick Crane, Pack lane, DG Set, Dumpers, Compressors, Jack Hammer Drills, Wire Saws, Tractor, De-watering Pumps and other tools/equipment.
We have few facilities at site and working capital of USD 50,000.
We are flexible in terms of the type of the investment. The investor can choose either Debt or Equity route with option of exit in 2 years.

Opportunity for the investor

The opportunity for the investor is huge as it is a very long term project. The average mine life is 20 to 35 years and by extending it to another 1 hectare land lease it is going to be more than 50 years.

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