- Country: India
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $1,000,000 / min. $750,000
- ROI: 20% in 3 years
- Type of investment: Equity
Virgin and edible coconut oil enjoy great demand in the domestic and international market. Fund is required for setting up a factory.
Herbal Nutraceutical products:
• AGADA is equipped with a heritage of more than 60 years in the field of manufacturing Herbal Nutraceutical products and the company has accrued GNP certification for its product quality.
• With the world wide acceptance of Ayurveda and the world turning away from chemical products , Ayurvedic and herbal Nutraceutical products find a wide market all over the world
• And thus we assure that these products will dominate the Global health care industry in short future.
• Recent studies done on coconut oil prove it is the healthiest oil that has the ability to heal many diseases. It has the potential of can be the medicine for Alzheimer’s, Psoriasis and several skin problems and for hair care.
• AGADA with its strong heritage in Ayurvedic health care now tries to enrich the potential of coconut by introducing new health care products from coconut.
• Medicated virgin coconut oil: Virgin coconut oil is described as having incredible and miraculous health benefits as a nutritional supplement.
• No fat No Sugar dietary fibre: is beneficial in improving the overall health of a person by regulating blood sugars. It is also an active preventer of diabetes. It does not increase blood cholesterol or promote blood clot formation.
Market for our products:
• Our main market will be in India as domestic consumption of coconut oil is increasing day by day as customer aware about nutritional value of it. 50% or above will be sold in domestic market.
• 50% of the oil, mainly virgin coconut oil will be sold to USA, E U countries and Middle east.
• Since FDI approved in India, super market chains wants oil in own their brand. We can do OEM business with these giants to meet volume turnover.
• Online retailer giant METRO cash & Carry, Germany is ready to associate for OEM production for Virgin coconut for long term basis
Factory Building: Construction start - September 2013
Factory Building: Completion - January 2014
Machinery order: September 2013
Machinery Arrival: January 2014
Machinery Erection and commission: March 2014
Trail run: March end 2013
Product lunching: April 14th 2014
Total turnover: 2 ton Virgin coconut oil & 3 ton Kg of cooking coconut oil.
Total gross income: INR 5lakhs/day x 25days = 125Lakhs x 12 = INR 15Crore/year
Net Profit will be 20 to 25% - approx. 3 crore
The company will breakeven after 2nd year.
Rationale for the deal
With a heritage of over 60 years in Ayurvedic health care we are now widening our domain towards production of coconut extracts. The agenda is to produce diversified products from coconut that portray overall health benefits.
Use of financing
Funding Needs: $750k to 1 million required to set up factory and secure the machinery.
• Land for Factory – 1.5acres – INR 40 lakhs (90 years lease from Govt. of Kerala) Already agreement signed and full payment made.
• Machinery Cost – INR 250Lakhs ( Govt. Subsidy 50lakhs can be availed, as cost will be 200 Lakhs)
• Cost of the Factory Building – 10,000 sqft building cost will be INR 100Lakhs
• Running cost for first two year – 100 lakhs
• Total Investment – INR 500 lakhs
Opportunity for the investor
• Equity investment.
• Payback period 3 years.
• 15% to 20% return on investment.
• Directorship in the company for major investor.
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