Industry: metallurgy
Company profile: production of home and garden accessories made of metal
Project stage: growth/expansion
Investment need: USD 150 000
Type of investment: debt financing
Purpose of attracting of the investments:
- Restoration of production facilities after a fire disaster
- Increasing supplies for the local market in retail chains and specialized stores (garden centers, florist and decor shops, furniture stores etc.)
- Entering the Baltic-Nordic market through the trading SENUKAI network (160 stores in Lithuania, Latvia, Estonia, Finland, and Belarus) www.senukai.lt
As of present, active negotiations are underway for the singing of contract for deliveries of home and garden accessories in 2017. The prelimary estimated cost of the first order stands at EUR 50-60K.
The investments will be channelled into:
1) Recovery works for the bending equipment of Italian supplier OMOS (the purchasing cost was EUR 152 000)
2) Purchase of the associated equipment and tools
- Compressor + wiring compressed air supply lines
- Welding equipment 2-3 units + compressed air supply and cooling system
- Pressing equipment 1 unit
- Packaging machinery for heat-resistant film
- Bending equipment for 2-D profile strip and forming profiles
- Second hand handling equipment 1 unit
- Table drilling machine 1 unit
and equipment for work tables with table exhaust hoods, heaters and electric hand tool
3. Current assets
- Metal package (wire and profile)
- Cardboard packing; labels; polyethylene film
- Payments for powder coating services
Crediting rate of up to 25% in local currency, and 15% in a foreign currency with a collateral of
- A warehouse of 1 000 sq. m space (estimated cost is USD 450 000)
- Or equity collateral when participating as a founding member for equity stake equaling USD 150 000 during the loan period, with an option to increasing a share stake when deciding to extend the credit line. At this, the company may purchase the equipment and place it as a contributed capital to serving as a collateral
Credit period is a minimum of 2-3 years
Brief description of the business
The company buys raw materials of wire and metal profile. Then we cut it into shapes or bend right for the finished products. Next we make welding for the purposed structures like balcony baskets, fences, or trellis. Then we deliver the goods to a number of specialized companies for painting. After the painting, the products are labeled, packaged and transferred to the warehouse of finished products. Upon the orders, the products are shipped to customers.
The people aged at 20 years are fond of decor as a hobby. These are mainly women who decorate homes, offices, or yards with flowers and plants. They also grow fruits and vegetables at their gardens or even in industrial manner. The company offers functional products for use and care for plants, as well as for the convenience of the decoration and creation of original compositions of plants and flowers. Our slogan is "create your original"
The company produces accessories for home and garden made of wire. The products have been sold and promoted for 7 years already in the Ukrainian market under private TM. The major product groups are for the support of the plants; stands for flowerpots and balcony baskets; brackets and shelves for pots; garden furniture; hangers and hooks for clothes; souvenirs, as well as various technical elements of the wire (coil wire, hooks and brackets for commercial equipment, parts for medical equipment and furniture)
Competitive advantages of the product
The production is unique due to the fact that the bending is carried out by the equipment of a 3-D standard bringing attractive products for the consumers.
The products are branded and have a unique label in the form of a flowerpot. The label can be easily removed with no traces of glue. The products are multi-functional and can be folded into the designer forms in home and garden, at the expense of special hardware used in production. The goods have no expire date and do not require special storage conditions; they normally do not become old-fashion; the products are not subjects of special certification and during sale offers they can be entirely sold.
Business Success Factors
The company offers products in the market, which after 7 years of business activity are recognized by ithe unique design, contributing to the collection for general concept purposes. The differentiating aspects are quality metal, paint, packaging and labeling compared to Chinese consumer goods and local handicraftsmen.
Additional information is available upon request.
