The manufacturing plant will supply and sell high quality panels within the current local market prices. We are seeking to raise 150,000 Euro from outside investors.
Main end-user product we will be producing is “Home lightning plus electricity” –system.
Introduction: like most developing countries, energy consumption in the East Africa is very low and highly dominated by the use of biomass, petroleum, and electricity. The growth of demand for electricity is much bigger than the rate of growth of supply of electric power. Studies help to show to that inadequate supply of power is possibly one of the major untapped business opportunities in Kenya and indeed the entire East African region.
Product description: the Kenyan manufacturing plant will supply and sell high quality panels within the current local market prices. Main end-user product we will be producing is “Home lightning plus electricity” –system.
Markets and Competition: many key players in Kenya’s energy sector have shifted their focus to renewable energy technologies such as solar energy, due to its efficiency, dependability and cleanliness. Currently solar energy is being utilized at various levels. The key market segments include urban areas that experience the unreliable on-grid electricity and experience constant black outs, non-electrified rural households, small and medium size businesses, and non-commercial establishments. Although the initial cost of solar systems is substantially high, the payback period is quite attractive and currently the cost of solar systems in Kenya is quite high. Having a local assembly plant will help to reduce on the costs of the units thus making them affordable for the local population. In comparison to the existing systems, our factory will be able to produce higher quality systems within the same price range of our competitors whose products are of lower quality.
The business model and financial needs: the business will consist of the manufacturing plant of solar panels that will be concentrating on production line and technology of assembling solar panel systems. In addition company will have own marketing and sales organization that is in responsible of promoting the system and services related to that. Also company will offer installation service and training for its personnel’s as well as customers.
• The factory will have the target production of 220 solar panel units per month
• The sales is estimated to be 1,228 million Euro (1228 units) in the first year and thereafter 2,112 million Euro (2112 units), and 3,168 million Euro (3168 units). The profit will be 514,108 Euro (42%) in the first year and thereafter 920,832 Euro (44%), and increasing to 1,667 million Euro (53%) for the third year.
Financial needs: We are seeking to raise totally 150,000 Euro from outside investors that will amount to 15% Shareholding Capacity. The investment capital will be used for renting the factory premises, purchasing of production line equipment, start-up stock, office equipment, training, storage facilities, and tools and machines.
Interested investors can contact us on Merar.