- Country: South Africa
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $500,000 / min. $300,000
- Type of investment: Debt
The project will need an injection of $700 000 (about R6 230 000) for the renovations, buying equipment and machinery, initial stock.
I am aiming to produce steel frames, single and sliding door frames, window frames and steel wires for fencing. There is a much demand in the building industry for such commodities and products.
I am aiming to produce these in order to make a profit as well create employment opportunities for the unemployed youth and women.
Initially the business will trade at aloss for a period of 3 months due to the initial stages of the conduit. The return on investment will start to show positively on the 6th month upwards.
The manufacturing business in the greater part of the Eastern Cape, South Africa is in demand hence houses by the government are being renovated and built,the are over 2500 units of houses to be built by 8 municipalities combined which are under the Chris Hani District Municipality. Through the help of an Integrated Development Plan for 2011 to 2015 of these municipalities these facts are evident.
The investor will be part of a project that will bring an impact to the community of this region with a high rate of unemployment rate. Will have an opportunity to bring change and make money in the process.
Currently in the Chris Hani District the houses are being built to provide shelter for the poor. There has been a massive renovation drive by the public, private sectors,people are renovating their houses and homes.
The project is at the initial start up stage, the negotiations with the local municipality for the renovations and lease of vandalised building in the industrial area are in progress and show positive remarks.
The additional funding will be needed for provisions of unforseen circumstances like a need to build a generator room for in case there would be a demand for electric energy in the plant.
Investors can contact us on Merar.
In the Chris Hani District there is no project of this nature hence competition wise, the project will have an opportunity to generate good revenue and that is good for the investor.
Rationale for the deal
This is an opportunity to the local businesses not to travel 200 kilometres to East London to buy frames,hence its an opportunity for us to provide services to these customers at a reasonable price cutting their travelling and petrol costs.
We will capitalise on the fact that its the first of its kind in the region, networking and deals will be made with the locals, local businesses, municipalities, constructors and the government.
There are no other players in the region who manufacture these commodities except retail wholesalers who buy them from somewhere so now the wheel will turn and they will buy from us.
Use of financing
The investment will be needed to buy:
*Machinery and equipment,
*Stock and tools,
*Renovate the building,
*Pay for water and electricity,
*Pay the rent during the initial months,
*Buy a small furniture,
*Train staff to operate the machines.
The main reason to seek finance is to see this venture a reality.
The investment installment will be based on a 15% of revenue made per month.
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