Opportunity Snapshot
- Country:
Pakistan - Industry: Textile, Apparel, Accessories
- Stage: Start-up
- Investment size: $10,000,000 / min. $4,250,000
- ROI: 106% in 3 years
- Type of investment: Debt, Equity
Investment Opportunity
The Cotton Yarns market is a global market. Cotton Yarns are used in all kinds of textile products all over the world and throughout the year. We are planning to start a production setup of 20 Tons of cotton yarns per day. The minimum funds needed for this project are about $4,250,000/- USD. The setup will be situated in Karachi, Pakistan, one of the main industrial cities in the country.
The target Cotton Yarns production is 500 cartons per day, each weighting around 45.36 Kg.
The average price of one carton is $140 USD, resulting in total revenue of $70,000 USD per day.
The average profit per carton is 6%, so the profit per day will be $4,200/- USD.
Our target markets are China, Europe and the Far East.
Cotton Yarns are used all over the world to fill the needs of clothing all across the globe. Therefore, the market is characterized by constant and stable demand.
Pakistan is the 4th largest cotton producer in the world and is therefore the best feasible country to have a Cotton Yarns setup.
The investment payback will be in 3 years’ time from the start of the project.
The initial funding will be a key to ensure later support from the Government and the commercial Banks.
The project itself can grow and expand further through its own incomes and profits generated and/or potential future investor participation.
Competitive Advantage
Our direct competitors are major textile setups in Pakistan, India and China.
We will be the most modern setup providing the best quality in Pakistan.
As mentioned, Pakistan is a most feasible country for a textile setup.
Until competitors meet us directly we will have made our pay back to investors and will be undergoing expansion and gaining other competitive advantages.
Rationale for the deal
The product enjoys high market demand and brings 100% secure cash flows.
It is a money making business with good returns on investment and secure cash deals.
Due to my 10 years’ experience in the Textile Industry, I’m well familiar with the profitability of the textile setups in Pakistan. I am also proficient in the fields of Marketing & Finance since I have served on Top Management positions in the business.
Use of financing
Funding is needed for purchasing Machinery from Europe and Construction works needed to setup the Textile Plant.
3 Rounds of Financing will make this project get at a mature stage.
Opportunity for the investor
Total loan amount: US $10,000,000/-
Initial loan amount: US $4,250,000/-
Expected payback period: 3 years
Interest rate: 12%.
Hands on or silent investor, both are welcome.
T
he desired investment schedule is as follows:
First instalment: $4,250,000/-
2nd instalment (for the 2nd phase of the project): $5,750,000/-
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