We aim to provide the market with quality products that will save the consumer time and money. With the drive to Go Green and save energy, these products will help the consumer achieve their goals.
There is a whole movement in SA to Go Green, driven by the electricity demand outstripping supply.
The products in our portfolio namely HARVER Induction water heaters and HARVER Induction cookers, are new generation innovative and use the latest technology to provide electricity saving, time saving and ultimately a water saving.
There is a potential market of approx. 200,000 units per annum.
Realistically a market share of 25% could be attainable.
The competition comes in various forms.
1) The traditional water heater companies.
2) Solar heating companies.
3) Heat pump technology companies.
4) Instant water heating companies.
This Magnetic induction water heater is very new on the market and We have secured the sole agency for Southern Africa.
We have had a very positive response, especially in the low cost housing market.
We have received orders for 680 units.
We had the units passed by Test Africa to SANS compliance and have a NRCS certificate. We also have had the unit tested by Eskom.
With the induction cooker, although there are many on the market and they have been around a while we believe our units will sell. They are very well priced compared to competitors and can market them as a package to low cost housing developments.
Solar and Heat pumps are very costly and are not ideal to all areas of SA.
Instant water heaters are suited to single use and therefore a unit for each hot water tap outlet is needed.
Our product is competitively priced to the traditional water heater and so is a product that the consumer can see immediate results in savings.
We have a unique opportunity as I have secured the sole distribution rights for Southern Africa and the whole of Africa if I so wish.
As long as our sales grow and keep ahead of the designated MOQ we will keep the sole distribution for these products.
The market for replacement water heaters in South Africa alone is approximately 200,000 per annum.
Our product is very well suited to the low cost housing market which is supported by the government and NGOs.
The financing will be used mainly for the purchase of stock to complete the range of products offered. Listed below is a basic usage breakdown.
The stock on hand is the value of existing stock in bond store that needs to be secured.
SECURE EXSISTING STOCK: R 400,000
TESTING 60,80L & COOKERS: R 60,000
1 x 20ft container 60L units: R 250,000
2 x 20ft container 80L units: R 315,000
3 x 20ft container cooker units: R 315,000
ADVERTISING X 6 MONTHS: R 100,000
OPERATING CAPITAL X 6 Months: R 200,000
Total: R 1,580,000 (USD 220 000)
Stock on hand: R 1,381,050 (USD 185 0000)
Ideally we would like a loan payable over 36-60 months offering a high interest repayment value. Alternatively if equity in the business were sought then we would have to discuss this in depth and would like only one investor.