The purpose and essence of the project
The purpose of this business project is to create a competitive and highly profitable business through the organization of a company for the production of solar panels for solar power plants.
This project involves the production in the Chernivtsi region and the sale of solar panels in Ukraine on the wholesale and retail markets and abroad for the construction of solar power plants.
The initiators of the project are confident in its successful implementation, because with a significant increase in electricity prices, the demand for alternative energy will grow both among individual consumers and in the world as a whole. The initiators of the project will ensure the construction of the plant, commissioning and sale of solar panels.
Implementation stage:
- a business plan (project) for the production of solar panels in Ukraine is developed;
- team of managers is selected;
- the solar panel sales market is studied;
- made a working trip to a factory for the production of solar panels in Turkey;
- the location of the plant is determined;
- established close cooperation with local self-government bodies;
- experience in construction and commissioning of industrial facilities;
On the basis of the developed investment project, the following financial results of the enterprise are expected:
The company generates net profit in the amount of 4,080,438 USD for 5 years.
Performance indicators of the investment project at a discount rate of 10%:
Net Presented Income (NPV) = 2,119,766 USD;
Internal rate of return (IRR) = 38.5%;
Simple payback period (RR) = 2.9 years;
Discounted payback period (DPP) = 3.2 years.
The initiators of this project built and successfully operated since 2019 a solar power plant with a capacity of 2.2 MW - KLONDIKE-2 LLC
The initiator of the project -Mykhailo Dmytrovych Shevaga, 63 years old, manager, higher education, organization, creation and support in the work of production and service enterprises. Management experience - 45 years, entrepreneur officially - 14 years.
An offer for an investor
The investor finances the project in the amount of 1 466 400 USD and receives an 94% share in the authorized capital.
|
USD |
|
|
The net need for project financing, including: |
1,509,873 |
|
financing the purchase of fixed assets |
1,140,500 |
|
working capital financing |
369 373 |
|
The insurance fund for the loaned sustainability of the project in the investment phase |
50 127 |
|
Total need for financing: |
1,560,000 |
|
Planning period |
5 years |
|
Ownership |
Limited liability company |
|
Form of investment |
Direct investment in equity capital |
|
Legal consolidation of investors' rights |
Amendments to share participation in the Charter of the LLC |
|
Post-investment ownership structure |
Investor - 94%, initiator -6%. |
|
Dividend policy |
Dividends are paid in proportion to equity participation |
|
Exit from the project |
It is not expected |
|
Investment insurance |
It is not expected |
Operational plan indicators
|
Indicator name, USD |
1 year |
2 year |
3 year |
4 year |
5 year |
Sum |
|
Sales revenue (excluding VAT) |
650,000 |
5,664,500 |
10,241,667 |
12,465,000 |
14,640,000 |
43,661,167 |
|
Current expenses (without depreciation and interest) |
1,032,166 |
5,434,930 |
8,885,348 |
10,527,520 |
12,312,687 |
38,192,651 |
|
EBITDA (approx. before taxes, interest, depreciation) |
-382 166 |
229,570 |
1,356,318 |
1,937,480 |
2,327,313 |
5,468,516 |
|
Amortization |
28,997 |
115,844 |
115,844 |
115,844 |
115,844 |
492 372 |
|
EBIT (approx. before taxes, interest) |
-411 163 |
113,727 |
1,240,475 |
1,821,636 |
2,211,470 |
4,976,144 |
|
Loan interest payments |
0 |
0 |
0 |
0 |
0 |
0 |
|
Lease payments |
0 |
0 |
0 |
0 |
0 |
0 |
|
EBT (Earnings Before Taxes) |
-411 163 |
113,727 |
1,240,475 |
1,821,636 |
2,211,470 |
4,976,144 |
|
Income tax |
0 |
0 |
169,747 |
327,895 |
398,065 |
895 706 |
|
Net Profit |
-411 163 |
113,727 |
1,070,728 |
1,493,742 |
1,813,405 |
4,080,438 |
|
Net cash flow |
96,547 |
304,897 |
1,313,403 |
1,690,377 |
1,930,495 |
5,335,719 |
|
Free cash at the end of the period |
96,547 |
401 444 |
1,714,846 |
3,405,224 |
5,335,719 |
|
|
Direct investment in equity capital |
1,560,000 |
0 |
0 |
0 |
0 |
1,560,000 |
As a result of the marketing and financial and economic analysis of the project, the conclusion emerges that the project has all the necessary conditions for successful implementation.
In the target market, there is a favorable situation for conducting a competitive struggle. Competitive analysis showed that the initiator company will have a higher integrated indicator of competitive strength in relation to its main competitors, which will allow it to compete successfully.
The risk analysis showed that the risk level is at an acceptable level and the initiating company has the ability to eliminate most of the possible risks.
All additional information on the implementation of this project is provided upon request.
Contacts for communication:
Mykhailo Shevaga
+380993557975 (available Viber, WhatsApp)
