A start up company in Kenya is looking for an investor (debt or equity) for a machine cut stones quarry project. The investment will be used to acquire machinery.
This investment opportunity in Kenya will involve excavation and selling of high quality machine cut stones. The project will be located around Thika town where we have already found 4 acres of land with black stone. The country has experienced tremendous growth in real estate industry in the recent past especially in and around Nairobi. Nairobi is the biggest city in east and central Africa and the proximity of Thika town gives a big advantage in terms of fast delivery of products to the city.
I have over 6 years experience in the industry and understand the business extremely well. I also have professional qualifications in administration and have been an administrator for over six years in a similar field. I intend to use technology in marketing of the products and also have several existing clients.
I am looking for either equity or debt financier. Currently a block of stone is retailing at Ksh 20 to 25 depending on the quality of the stone. The costing of the stone is as follows:
Per Unit Cost of sale in Ksh:
Commission to land owner (lease): 3
Total Fixed: 5
Other costs: 4
Total Variable: 7.8
Total cost per unit: 12.8
Assuming a selling price of Ksh 20 per piece, the margin will be around Ksh 7. An average machine produces 8,000 pieces of stones a day (Some machines produces up to 15,000 pieces). Thus one can make at least a net of Ksh 40,000 a day though this will also depend on other factors like demand, weather, quality of stone and also the 'fitness' of the machine.
The financing will be used to acquire the stone cutting machine and a shovel for removing debris from the field.
I'm looking for either debt of equity. If debt, the repayment period to be 3 years and if equity we can negotiate the terms with the investor.