- Country: South Africa
- Industry: Manufacturing
- Stage: Start-up
- Investment size: $300,000 / min. $200,000
- ROI: 3% in 4 years
- Type of investment: Equity
We intends to manufacture and sell toilet rolls, disposable nappies, geriatric/adult diapers and sanitary pads that shall be of high quality standards and affordable.
Our company will manufacture toilet rolls and diapers and we are on the verge of entering a lucrative market in a growing country. The current population fertility rate and increased admissions in hospitals and clinics presents an opportunity for us to enter and penetrate the toilet rolls, baby nappies and sanitary pads market. We realize the fact that for us to prosper in this relatively untapped market, there is need to be flexible and responsive, to delight our customers by providing them with what they want, when they want it and in the exact quantity.
Our primary goal will be to establish and strengthen our existence in the market, which will be bestowed by the business environment in which we function. Our marketing strategy will be based mainly on ensuring that customers know about our existence and the products we produce. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the market.
We will ensure that our products’ prices are favorable to our South African counterparts’ prices, and that our potential customers appreciate the quality of our products. However, the prices we charge will also take into consideration the cost of production and distribution so as to ensure that we remain viable and operational. To counteract this there will be need for us to not only aggressively market the high quality of our products, but also go out of our way in serving our customers and clients so as to establish a good long-term relationship. There will be need to network with various decision/order-makers to ensure we receive orders for our products.
Ultimately the attractiveness of our venture lies with the fact that customers will choose our products above those of competitors because of the relatively lower prices as well as their high quality. Our ongoing initiatives will be to drive sales, market share and productivity so as to provide additional impetus towards attainment of the corporate goals and objectives. We are looking for working capital finances for machinery and general infrastructure. Reasonable returns will be experienced within the first twelve months.
There is very little competition from local companies manufacturing products similar to our main products. However, considering the pace of change and current growth rate of the economy luring companies into the market, this may be short-lived. Hence there will be need to not only firmly establish ourselves in the market, but also strongly differentiate ourselves from these other businesses.
The few manufactures in the region have a monopoly of controlling the regional market due to the advantage of being first-comers. We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term.
Rationale for the deal
We intend to build image and awareness through consistency and distinctiveness in our order fulfillment. Our strategy is to grow the business by nurturing clients and establishing good one to one relationships with them. All criteria from customer satisfaction, order fulfillment, price competitiveness to staff attitudes are to be looked at thoroughly in the initial stages so as to identify areas of improvement. To attain low lead times we need to ensure that all functions are communicating properly and formally, using valid and accurate data to derive achievable plans and schedules for all stages of procurement, manufacturing and delivery. We will develop new channels of distribution as the company grows. Its plan to become a nationally known brand may be pushed forward by entering into contracts with the numerous clinics and hospitals throughout the country, such that it gives us exclusive access to the relatively remote areas in the country.
Use of financing
Funding is needed for initial working capital/inputs, machinery and general infrastructure.
The directors realize the companies vast potential market and opportunity for growth given implementation of the appropriate strategies, aided by the necessary finances.
Opportunity for the investor
The company seek an investment of about USD 300,000/min. USD 200,000 payable in four years.
There are plenty of aspects that need to be discussed about this profitable avenue, but they would be addressed at the given time in a private conversation. We would like to receive at least half of the amount within the first six months for the start-up of the business. However, our aim will be to pay back the initial cost of the machinery. We should stress in doing so we will strive to ensure that the business is compatible with the existing products.
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