- Country: Paraguay
- Industry: Manufacturing
- Stage: Seed
- Investment size: $45,000 / min. $10,000
- ROI: 655% in 5 years
- Type of investment: Equity
Produce in Paraguay textile products for the Brazilian Pet Market, the third largest market in the world, with a production cost about 35% to 40% lower.
The proposal is to produce in Paraguay textile products for the Brazilian Pet Market, the third largest market in the world, with a production cost about 35% to 40% lower than Brazilian companies, being one of the strategies to provide labor to disadvantaged communities in Paraguay.
In Paraguay the production network, especially textiles, is growing because of the Maquila Law that creates a number of benefits for companies like tax exemption.
Because Paraguay and Brazil are part of Mercosul, the export / import tax is zero, which is not the case with other countries in the world such as China.
The Pet Market in Brazil has been in strong growth for some consecutive years, even Brazil experiencing a troubled period in its economy. Today Brazil is the third largest Pet Market in the World.
The production objective in the project is to develop textile products specifically anti-allergic. Despite the focus on animals with allergies, the products will be presented to the market as products for all animals, as they aim at the good quality of life of the animals.
The project has three distinct stages, being, succinctly, the first focused on market opening with the closing of commercial partnerships and start of the production (and sales), the second focused on the creation of Production Centers in underprivileged communities in Paraguay and the third focused on increasing production.
The production will be outsourced (Private Label), with the closing of partnerships with Dressmakers Associations in underprivileged communities of Paraguay (if necessary, communities will be encouraged to organize itself and create the Association of Dressmakers in the Region), aiming to create a mechanism of inject the resources destined to the production of a pulverized way in the communities. That is, if we needed the labor of 20 employees to produce the quantity of products designed for a given month, the Associations can reach 40 to 60 people, because they work cooperatively, creating conditions to dilute better in the community the money spent on production.
With the creation of the Production Centers (second stage of the project) will improve working conditions and productivity itself.
The products to be produced initially are models of great turnover in the market, reducing the investment risk.
The advantages of the products will be the price and anti-allergic feature. I also mention the integration of the "Polo Pet" in Brazil, the first region of Pet companies in Brazil, creating ideal commercial conditions for the sale of products.
Despite modest investments, this project has the potential for high profits in a way that creates jobs in underprivileged communities in Paraguay.
One difference will be in price, because our cost of production will be cheaper than production in Brazil.
Another differentiation is the Segmented Brand itself, with a focus on the use of materials to combat the retention and proliferation of allergenic agents. It can be used as a factor to add value to the product (and thus increase the expected income).
One manufacturer that produces Antiallergic products was detected, the company Carinhos e Focinhos (http://www.carinhasefocinhos.com/loja), but it does not develop a more aggressive Marketing in the sense that it is projected in the Market as a health product that aims the welfare of the animal.
The sales strategy is focused on high turnover products with low prices, in addition to Segmented Brand itself.
The absorption capacity by the Brazilian market for PET products is increasing; having quality products and low prices, which is the production proposal in Paraguay, the feasibility of sale is tangible.
I would like to mention that the Segmented Brand strategy will provide a differentiated perception of the products by the owners of animals.
Opportunity for the investor
I look for investor partners to implement the first stage of the project, being made available all the monitoring of the use of resources in predetermined actions.
It is open to investors to participate in the company's corporate structure and operational functions.
In the first stage the investments will be aimed at the creation of the company, production, commercial and operational and not for the purchase of machinery.
The initial idea is two investors, being:
1. The first investment will be made by the Brazilian investor, aiming at the creation of the company in Paraguay already linked to the Maquila Law.
2. The investing group's investment will be made directly into the official account of the company in Paraguay.
Percentage for Investors:
Investor Capital Invested Percentage
Brazilian US$ 5.000,00 5%
Investment Group US$ 40.000,00 45%
(Note: here we present a study for the investment of US$ 45,000.00, which is the minimum necessary to have a sustainable business - being able to analyze larger investments)
With the implementation of the first stage, the company will be able to grow and strengthen in the Brazilian market, even without the need for new investments to implement the next steps.
For the next stages of the project, with the structuring of the Production Centers and expansion of more complex products to be made, there will be a search for additional investments, one of the possibilities being the investments of the National Development Bank of Paraguay, which has specific investment programs for Textile Production Companies and Maquila’s Companies.
• Line of Credit for Export Companies - BNF Own Funds (https://www.bnf.gov.py/prestamos/linea-de-credito-para-empresas-exportadoras-fondos-propios-bnf-)
• Line of Credit for Clothing - Own Funds (https://www.bnf.gov.py/prestamos/linea-de-credito-para-confecciones-fondos-propios-)
Potential Return for the Investors:
Estimate of return for investors for investment of US $ 45,000.00:
(Note: in this amount is included the withdrawal plus taxes and fees to send funds to the foreign investor).
Investor's Compensation per Year:
Year Compensation Percentage Received
1 $ 17.840,98 39,65 %
2 $ 28.451,00 63,22 %
3 $ 45.370,79 100,82 %
4 $ 89.012,60 197,81 %
5 $ 114.075,81 253,50 %
TOTAL $ 294.751,18 655,00 %
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