- Country: South Africa
- Industry: Manufacturing
- Stage: Expansion/Growth
- Investment size: $1,500,000 / min. $1,500,000
Currently, we are manufacturing over 2500 joinery products in Aluminum and solid Meranti and need production capacity expansion.
As South Africa is recovering from the recent depression we need extra machines and working capital to accommodate the growth of existing customer base.
Additional capacity planned for Feb./March 2012
We are currently producing over 2500 Meranti and Aluminum products. We further manufacture made-to-order products (purpose made products). We need extra manufacturing capacity to fulfill our current orders on our well established customer base.
We are requesting a five year term loan repayment with reasonable interest repayment.
The business orders are from existing customers and increased manufacturing capacity will allow both SA Joinery and their customers to grow.
As we are looking to supply current customers the sales are guaranteed and additional capacity will allow us to expand our customer base.
The company started in 2009 and was entirely owner-funded.
The funding will be applied for extra machines and raw materials and some operational costs.
We are still producing solid Meranti products with the mortice and tennon fastening method for joints. Our products are sought after for their quality and our after sales service offered to the customer. We do not laminate, engineer or use pressed boards in any of our products.
Our normal lead times on orders are 7 to 10 working days and we deliver to the merchant or his customer directly. Our products all carry a seven year guarantee and all the hardware used on the products is high quality brass.
We have a personal relationship with every customer and the loyalty, trust and personal interest in our customers we have developed are advantages that some of the trade’s bigger joinery companies cannot afford. We are a small joinery but we manufacture and supply to merchants and the quality we provide puts us in a position that will be difficult to duplicate. Most of the smaller joinery manufacturers supply directly to the end-user and are not set-up to manufacture bulk orders.
Rationale for the deal
We are currently making business in the range between R500 000 and R1 000 000 monthly and building extra manufacturing capacity will affect us positively immediately.
We have orders from existing customers that we are looking at supplying. Our markup on Meranti is raw material cost plus 130% and on Aluminum raw material cost plus 100%
We have several competitors in the market but they supply either Wooden or Aluminum products. Other players will only affect us in the capturing of new market sector but our pricing is on par with Swartland, Focus wood, Solid doors, TDM, Sikiza and Esstee to name a few.
Use of financing
The funds are needed for machinery, raw materials and working capital.
We have funded the company and its growth since 2009 and have reached a point where we have realized that we need additional funding to assist us in the growth of the company.
We are secure in our business and have a solid foundation laid down. We will look at any reasonable instalment schedule.
Looking for similar investment opportunities