Panel Doors Manufacturing Business Seeks Investors for Expansion

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Expansion/Growth
  • Years in operations: 10, Employees: 20
  • Investment size: $2,000,000 / min. $2,000,000
  • ROI: 30% in 6 years
  • Type of investment: Equity
Picture of a Front Door

Investment Opportunity

The unit intends to manufacture panel doors for Metro Rail coaches. The funding is needed to pay off bank loans, purchase of new machinery and working capital needs.

In 2009, a new company, was formed for undertaking specialized in PU painting job. These panels are being currently imported from Korea. This company aims to manufacture the interior panels and automatic doors with collaboration from Korea. The company has assets worth Rs. 35.00 crores in the form of land and buildings. The management now seeks investors who could bring in funds to the extent of 2,000,000 for:

• Paying of the banks and financial institutions.
• For purchase of new machinery for the manufacture of panel doors for Metro rails
• Working capital needs to fulfil a very healthy order book.

The investors would have excellent returns, adequate security in the form of assets and good growth prospects.

Competitive Advantage

• We would be the sole manufacturer and supplier of this unique product.
• Technology and expertise is available.
• It is a running project and so just investment in new machinery and working capital are needed.
• Existing customers and a healthy order book are available.

Rationale for the deal

• Investment would be totally secured for the investor since the company has adequate assets in the form of land and buildings.

• Profit realisation would be soon since the unit is up and running and just investments need to be made in new machinery and working capital.

• Technology and expertise is present in the company management itself and so there is no dependence on the outsiders.

• The unit is located in Hosur where the infrastructure is excellent.

Use of financing

• Pay off debts of banks and financial institutions.
• Purchase of new machinery.
• Working capital needs.

Opportunity for the investor

• The overall amount pending to be paid to the bankers is 500. 00 lakhs of Indian rupees.
• The payback period for the investors should be around 5 to 6 yrs.
• The interest rate that would accrue to the investors would be around 18%.
• The ROI would be minimum 18% PA if it is an equity investment.
• Silent investors or investors with technology are both welcome.
• The desired investment schedule could be discussed between the investors and the management.

(cc) Image courtesy by Cristiano Betta

Looking for similar investment opportunities