The support that I need from the investor would be for: implementation tools, labour mobilization and site survey, salaries, site office rents and expenses.
I intend setting up a business comprising the following verticals:
1. Fibre optic and jelly filled cable networks and related supply items for various government departments, especially the defence sector;
2. Transmission and Distribution lines for the Energy sector in India.
I have been in Telecom and Energy sectors for the last 18 years. My experience being Indian and Global currently I am the Chief Operating Officer for India and South East Asia in a company and I am responsible for the P&L of the organization. I have been in the P&L role for last ten years in India and abroad.
Currently I make about $20 million of business annually for my organization with an EBIDTA of about $6 million.
I had a discussion with most of my customers who would be more than happy to place orders with my new company; so at a very conservative level I am looking at generating $3 million in the first year with an EBIDTA of $600,000. Broadly the fibre part of the business has a margin of 25% and the transmission part of the business has a margin of 30-35%.
I don’t have to do any market research and hit and trial because I have readily available customers and orders. If some investors support me I can start getting orders three months from now and at a very conservative level we will break even in the year and a half.
So the value that I bring on the table is as follows:
1. I have been doing the same business as an employee for the last 18 years
2. I do not have to look or customers; I have readymade customers and orders.
3. I do not have to set up an organization; I have a readymade execution team that has been doing the same job for the last so many years; my customers are very comfortable with my executing team.
4. I have been executing and collecting payments from the same customers for so many years; so I face no collection issues.
The support that I need from the investor would be in the following heads.
1. Advance for implementation tools.
2. Advance for labour mobilization and site survey.
3. Customer Engagement.
4. Salaries for the gestation period.
5. Site office rents and expenses.