business offer - ukrpostachukrmp.com/wp-content/uploads/2020/03/50-business... · 14. customers:...
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Date: 15.01.2020 +380683017384, [email protected], Mr. Vasiliy Kharko ( project manager)
Business offer
About investing into the modernization, start-up and operation of the meat processing complex
1.Bidder of the offer: “Barsky Meat Factory” which appears to be an investment attraction company, the project implementor of “Partner Group TM” LLC and the operating
company for the production of meat and sausage products Halal, hereinafter referred to as the Bidder.
2. The Offer: The bidder proposes a project to invest into an existing meat processing company. The bidder invests its fixed assets, partly cash, and the Investor invests and
receives a share in the authorized capital of the enterprise. The form of organization of cooperation is the creation of a new legal entity (limited liability company on the
general tax system (18%), VAT payer) with a share capital distribution. Non-negotiable proposal for the distribution of shares of the share capital of the future enterprise:
“Barsky Meat Factory” LLC - 50%, Investor - 50%.
3. Purpose of search of investments: attraction of funds into the modernization of the enterprise in order to obtain the possibility of export and production potential, and to
attract working capital to produce the required amount of products.
4.General information about the operating company and the fixed assets contributed by the Bidder:
Location: Bar, Vinnytsia region.
Real Estate: total amount of all buildings for more than 20,000 m2.
Land: 6.5 ha are privately owned, 217 ha are in use.
Water: 10 artesian wells (180 m depth)
Electricity: 650 kW, 2 substations.
Sewerage: own treatment facilities
Waste management: own burial ground
Production: beef carcass meat, boneless meat, finished and semi-finished products: sausages, packaged fresh meat, dog and cat food, etc.
5. Total investments required from the Investor: 2.5 million USD on schedule.
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6. Investments into the following areas:
Area Amount, $
Renovation of premises 500.000
Equipment 1.000.000
Sanitation 100.000
Canning shop 100.000
Working capital 800.000
TOTAL: 2.500.000
7. The payback period of the investment: after the start of production - a pessimistic option of 15 months, an optimistic - 8 months.
8. Investment development period: 3-4 months.
9. Getting Started: 4th-5th month after receiving the investment.
10. Production capacities of the enterprise after development of investments:
- Sausages: 20 tons per day
- Slaughtering of cattle: 100-120 heads per day (20 tonnes of meat)
- Pet food: 1-2 tonnes per day
11. Certificates and permits obtained by the company: ISO 22000 HACCP, HALAL, export right to countries: China, UAE, Iraq, Azerbaijan, Turkey, Egypt, Saudi Arabia,
Kuwait, Pakistan, Turkmenistan.
Main products planned:
- Sausages (smoked sausage), Halal
- Boneless beef, beef in carcasses, Halal
- Pet food
- Canned meat
13. Main Markets of distribution:
- Export: China, UAE, Iraq, Azerbaijan, Turkey, Egypt, Saudi Arabia, Kuwait, Pakistan, Turkmenistan and other Muslim and non-Muslim countries.
- Domestic market: supermarket chains, own distribution network.
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14. Customers: There are existing customers for all future finished products. Customers from Azerbaijan, Iraq, China, Kazakhstan are ready to conclude contracts and buy
our products today. In the domestic market there is an opportunity to work with the networks of grocery stores: “ATB”, “Silpo”, “Novus”, “Eco-Market”. The positive effect
of obtaining a permit to export to certain countries is that customers themselves are looking for manufacturers (certified exporting companies) in the electronic registers of
their countries and contact us.
15. Payment for products from the customers: for export - mostly partial prepayment and the rest after the load, in the domestic market - mainly deferred payment for 7-25
days.
16. Additional activity of the enterprise:
- Providing cattle slaughtering services to enterprises (individuals) that plan to export these products to the country where our plant will be certified. Price guidance:
cattle slaughter $ 70-100 \ head, slaughter for delivery to China - 5.000-7.000 (container)
- providing wastewater treatment services to the settlement (the cost of the service today is 900,000 UAH / year ($ 37,000))
17. Economic advantages of the existing enterprise:
- cheap cost of sewage disposal as it has its own system of cleaning, settling, draining (in fact only electricity is paid). For other companies the cost is 200 UAH / m3.
The standard of wastewater discharge per head of cattle is approximately 2m3.
- cheap water supply, as the company uses its own wells.
- cheap cost of disposal of the enterprise waste, as there are own burial pits that are certified. As an example, the cost of recycling one ton of waste is UAH 2,000. The
waste output standard is approximately 5 tonnes per 20 tonnes of finished product.
- cheap labor, as the enterprise is located in a region remote from large settlements.
- availability of a good raw material base, as the Vinnytsia region is one of the leaders in growing cattle heads.
- professional management with extensive experience in production and sales of products.
18. Potential development of the enterprise: a potentialy additional area is growing cattle for the needs of the enterprise, growing dairy breeds of cows and creating a dairy
complex. This direction is real because: at a distance of 15 km. there is a dormant farm with a capacity of 16,000 heads with a 200-acre land supply, as livestock feeds are
cheap in Ukraine. The described farm can be sold for $ 200,000 today.
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19. Time table for funds development and getting started.
# Stage 1 mon. 2 mon. 3 mon. 4 mon. 5 mon.
1 Attraction of investments, registration
2 Renovation of premises
3 Purchase and installation of equipment
4 Manning production
5 Territory preparation
6 Staffing
7 Obtaining permits and certificates
8 Purchase of raw materials
9 Getting Started
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20. Economic calculations planned for 15/01/2020
Input data for calculations:
# Indicator Quantity, unit
1 Slaughter cattle per day 120 heads
2 Sausages per day 10 tons
3 Number of working days per month 24 days
4 Changes per the day 1
5 The average live weight of cattle 450 kg
6 Weight of the meat on the bone 48%
7 Product costs during cooling 1,6 %
8 Cost of kg (live weight) 38 UAH with VAT
9 Distance of cattle farms from the meat processing plant for the supply of raw materials 100 km
10 Cost of boneless meat, kg (pessimistic) 91 UAH (3,8 $)
11 Cost of sausages, kg (pessimistic) 96 UAH (4 $)
12 Currancy rate (USD to UAH) 24 UAH
Domestic sales prices are calculated based on the analysis of wholesale selling prices of products by Ukrainian enterprises. For export - from the analysis of competitors'
prices and the general manufacturers price offer from different countries. The volume of cattle slaughtering services, sewage disposal services, the income from the sale of
feed in this project is not taken into account, which is its "safety stock".
The net cost of production is calculated and justified in the business plan. The table of financial results shows pessimistic calculations. The calculations take into account the
maximum productivity of sausages of 250 tons per month, but this figure may increase on the 7th-8th month. The column "P" shows the real possible indicators. The
calculations show the investor’s profit (42.5%) per year and the investment return line after the start of the enterprise.
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Planned output and revenue of the enterprise.
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21. The general plan of the meat complex
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22. Map of the location of the meat complex and enterprises (meat plants, dairy farms and cattle farms):
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23. Advertising attributes:
Today the company owns the registered trademarks "Halfood" and "Kosherfood". Availability of Halal certificate.
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24. Products release at this time:
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25. Some types of sausage products, planned:
Basturma is a dried pressed
tenderloin of salted meat.
Chicken salami - raw meat
products made from chicken fillet.
Sudzhuk is a dry, spicy sausage
eaten from the Balkans to the
Middle East and Central Asia
Summer sausage - any sausage
that can not be stored in the
refrigerator. Can be produced by
smoking or drying.
Jerks - pieces of meat, marinated,
dried.
Beef chorizo is a sausage,
originally from Spain, which is
made with paprika, which gives a
rich red color to the product.
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26. The structure of the finished business plan for the investor. Provided with a personal meeting at the workplace
RESUME
1. Project idea
1.1. Project goals
1.2. Description of the project
2. MARKET MARKET ASSESSMENT
2.1. CONSUMER DESCRIPTION
2.2. SWOT ANALYSIS
3. MANUFACTURING PLAN
3.1. PRODUCT ASSORTMENT
3.2. TECHNOLOGICAL PROCESS. RAW MATERIALS AND TECHNOLOGICAL COST
3.3. PROJECT IMPLEMENTATION PLAN
4. ORGANIZATION PLAN
4.1. ORGANIZATIONAL - LEGAL FORM OF PROJECT OBJECT OWNERSHIP
4.2. PROJECT ORGANIZATIONAL STRUCTURE
4.3. WORKFORCE
5. FINANCIAL PLAN
5.1. PROJECT INVESTMENT SOURCES
5.2. INCOME AND EXPENSES PLAN
5.3. CONSOLIDATED ACTIVITY FORECAST
5.4. COST MOVEMENT PLAN (CASH FLOOR)
5.5. PROJECT EFFICIENCY INDICATORS
5.6. RISK ASSESSMENT AND INSURANCE
6. ANNESES