Seeking Investment for Modular Kitchen Manufacturing Facility in UAE

Opportunity Snapshot

Investment Opportunity

We would like to introduce ourselves as a wholesale trader and supplier of kitchen cabinets, kitchen accessories and modular kitchen components in UAE.

We are looking for an investment to start modular kitchen cabinet manufacturing industry to supply kitchen cabinets all over UAE and GCC in affordable price.

Modular kitchen business is growing all over the Gulf region and it has a profit margin of 30% to 50%.

We are also planning to supply our kitchen products through franchise network and E-commerce platform all over GCC.

We have already registered a general trading company in Ajman free zone, UAE and looking for an investment to proceed further. The manufacturing facility will be started within two months on receipt of investment funds.

We can offer assured returns of 20% per annum for our investors.

Competitive Advantage

The imported / branded quality producers of Italian ( Scovolini ) and German
(Hacker) made modular kitchens also available in UAE. But, only upper class
people can afford the cost of these kinds of imported kitchens. These kitchens are available from AED 10,000 to AED 100,000.

We are planning to target middle income segment and the products available from AED 5,000. The products can be purchased in easy installments also.

Rationale for the deal

The UAE's import of kitchen and bathroom products will surge to over $30
billion by the end of the year amid growing demand for such items from a
booming population enjoying a quality lifestyle. The imports of these products across the GCC is poised for a double-digit growth of over 15 per cent.

There has been a steady demand for kitchen and bathroom products in the UAE,with the market growing from $5.13 billion to $8.6 billion in 2010. Within two years, the total import volume of the kitchen and bathroom products has reached $14.62 billion in the emirates.

The kitchen sector has emerged as a key growth industry in the GCC, driven
mainly by rising lifestyle standards, population growth, trend in buying
innovative kitchen products and a burgeoning tourism industry. The sector is expected to experience even more growth as consumers in general continue to rapidly adopt innovative and exciting range of kitchen appliances, equipment, fittings and fixtures for their kitchen.

The value of the interiors market in the region will increase by eight per cent in 2016 with the expected import of products worth $200 billion, said the latest GCC interior market intelligence report.

The double-digit annual growth for kitchen and bath market is mainly due to the rising demand for new convergence products and household appliances.

"Smart kitchen concepts are gaining momentum in the region, where gadgets are replacing the conventional cooking techniques focusing on saving space.

We are planning to manufacture almost 75% of the components that go into making a modular kitchen, the major strengths includes raw material sourcing to finishing. Our concept is based on offering a wide range of well designed and functional modular kitchens at affordable prices, thus helping more people live a better life at home.

Use of financing

The funds will be used to

*To Lease / Rent Factory space in Ajman Freezone.
*Purchase of advanced wood working Machinery.
*Advertisement & General Corporate Purpose.

Opportunity for the investor

The investor will get 20% assured ROI per annum for their investment and we will pay back the funds after completion of five years.

Trade sale to other manufacturer is the best option in case of exit.

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