The idea of the project is to purchase the gold from the importers and to sell it to the retailers and jewel makers. As the key strategy of the firm is very different as purchasing on discount from the importers and sell on rate to the retailers for this firm needs 60,000,000.
There is no gold traders in Chennai who can give the gold in discount rate to the retailers and jewel makers but c.m groups of companies can give because the company is buying the gold from the whole sellers in the discount rate so that firm can get the valuable customer. The demand for gold in India will never get down so that local trade and importing gold will give a good profit for next 10years.
We had identified a location in the heart part of the city which is surrounded by the gold jewellery retail outlets and jewel maker than can be leased for a company. Due to the current economic downturn, the lease can be acquired well below normal market rates for this area.
The company would need 7 employees to run effectively.it would need 3 market analyst 3-administration people and 1 mediator.
Financial projections shows that $1.5million in equity invested will achieve a 50% return within a year.
We are following a different strategy where we will never find a loss even the market rate gets down.
The firm is purchasing the gold more than 5 kg so the rate will be reduced more over the company can sell around 10 kg per day due to the demand illustrating the idea.
If suppose the market rate is 58$per gram the firm will purchase the gold for 55.77$ and it sell it to the retailers in the rate of 57.77$ so the company will get 2$ per gram as its profit.
The firm will trade minimum 5kgs of gold so the company can make
2X5000=10,000$ per day.
10,000X20=2,00,000 USD even if the market rate goes down or it raise to the top.
The gold market is the one of the booming market in world that to India investment in gold always preferred by the people from the low income group to the high income group and the firm adopted a unique business strategy to avoid market risk as it is discussed above the company’s aiming in just the discount as its profit its very unique and the firm is having the both sellers and buyers it can make the profit out of it.
3 years financial projection
• The first year the company can achieve 12,00,000 u.s$ 50% as its net profit
• The second year firm is planning to import gold from mines from west African countries
• The third year the company is planning to start the gold mine in Ghana west Africa
The company’s aim is to achieve 300% growth in 3-rd year.
• Unique pattern of project
• Low market risk
• Trade mark
• Having a strong business clients
• Good management team
• Our opportunity is the pattern of business is not utilized by many of the gold traders
• And as per our pattern even the market price goes down the firm will make a good profit
• Only few traders in india is using the pattern
• Low market competition will always make a good profit
• Finance break up statement
• Purchase of stock 3,00,00,000
• Leasing the commercial place 50,00,000
• Furniture & fixtures 30,00,000
• Automobiles 51,00,000
• Purchase of computer 2,50,000
• Purchase of weight machine 20,000
• Purchase of licensed accounts software 4,500
• Total 4,33,74500