We will launch production and distribution of products made of valuable tropical timber. We will develop our own brand and will sell via retail chains.
Our own raw materials base in one of Africa countries can significantly reduce production costs and increase the range of products.
Products will include wall paneling and shelves for saunas (Abashev analog), decks, flooring, wood siding, etc.
1. Minimum investment amount:
We plan to import valuable wood from Africa and process it and sell in Russia. For the purchase of one or two containers of timber and the processing of the wood, we need an investment of about 50,000 EUR.
Cost structure breakdown:
About 22,000 EUR is the cost of one 20 foot container (30 m3 of timber) with delivery at the port of St. Petersburg and customs clearance.
2,000 to 4,000 EUR for processing of the wood at existing facilities.
The value of the finished goods is around 35,000 EUR at the lowest selling prices.
2. Medium investment amount:
Funding is required for the regular supply of timber and processing, lease of storage facilities, development of SPA salon projects and promotional materials. Investment amount required: 200,000 EUR.
What is included: Maintaining an inventory of finished goods of about 4 containers (88,000-110,000 EUR), renting a warehouse (200 sq.m.) in the regional CFA center and salaries for 5 employees (55,000-60,000 EUR per quarter). Design and printing of brochures, layout, and site promotion: 10,000 EUR.
3. Maximum investment amount:
Own production in Russia or Ghana will be added to the medium-investment scenario.
This scenario should be considered after a year of sustainable development of our own brand.
Needed investment amount: 500 000 EUR.
The return on sales operations is 35-40% and the payback period is in range from 6 months to a year.
Contact us on Merar if you are interested investor.