Virgin Coconut Oil Manufacturing in India Looking for Add Investment

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Seed
  • Investment size: $900,000 / min. $300,000
  • ROI: 25% in 3 years
  • Type of investment: Equity

Investment Opportunity

Virgin and edible coconut oil enjoy great demand in the domestic and international market. Additional funds are required for setting up a factory, product channels.

Our Foundation is a Non Profit Organisation which was started to help the Indian farmers through dynamic consulting for free in agriculture business, to yield value added benefits for farmers and to sell their products to us, in highest price possible. So we did see that we need to invent a product that delivers value to the consumer and the producer. We felt coconut being one great natural medicinal item, that can have the world people, to have good health, we chose it to create a branded cooking oil and multipurpose oil through extra virgin coconut oil extraction manufacturing company, that will be monitored by our governance team.

With the world wide acceptance of Ayurveda/ Herbals and the world turning away from chemical products, Virgin coconut oil finds a wide market all over the world and thus we assure that our strategic products will dominate the Global health care & Cooking Retail industry in coming days.

Coconut Products:
Recent studies done on virgin coconut oil, proves it is the healthiest oil that has the ability to keep away from many diseases and heals as well. It has the potential of can be the medicine for Alzheimer’s, Improves to great digestion, Supports healthy thyroid function, Improves insulin secretion, Increases cell regeneration, Lowers cholesterol, Promotes heart health, Psoriasis and several skin problems, Improves to great immune system, Weight loss and for hair care.

This product is focused not only in medicare , but also we are converting this product in to cooking oil and multi purpose oil on medicine for ulcers, skin etc

Medicated organic virgin coconut oil for cooking: Virgin coconut oil is described as having incredible and miraculous health benefits as a nutritional supplement, so we are planning to have it as a cooking oil product.

• 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, EU countries and Middle east.
• Since FDI approved in India will be done near soon, 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

Competitive Advantage

Even though Virgin coconut oil extraction and export companies are there, nearly 99% are run on the benefit of the owners, partners etc but Our focus would be getting huge profits to the investors (equities) & the farmers of the farming communities that will result in good pricing for their products and Will create a brand image in people mindset by stating the welfare associated with our products & also implement technologies that can take our products to international markets, as part of our vision next.

Rationale for the deal

Our Foundation Charitable Trust has 6 different Indian corporates associated, large numbers of farmers registered in it, with its social works front and the governance team has huge potential to bring in raw materials for successfully implement the vision.

Use of financing

Project Plan with Minimum Expectation:
Business Planning & FMCG research setup completion by Jan 2017
Investor baselining by October 2017
Factory Building: Construction start - October 2017
Factory Building: Completion - January 2018
Machinery order: October 2017
Machinery Arrival: January 2018
Machinery Erection and commission: February 2018
Trail run: March end 2018
Product lunching: April 14th 2018
Expected returns:
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.

Opportunity for the investor

• Equity investment.
• Payback period 3 years.
• 15% to 25% return on investment.
• Directorship in the company for major investor.

Looking for similar investment opportunities