The business entity (the “Company”) is a new company, which is involved in coco peat manufacturing and exporting.
The Company was formed in September 2021 with the leadership of an industry expert (the “Founder”), who possesses closely 20 years of experience in Coco Peat industry, having an order book of ~20 containers per month with six different buyers in Egypt and UAE.
The Founder has been exporting coco peat and other agricultural products of Sri Lanka under his former company, since 2002.
The Company has exported 22 containers up to 24th December 2021 since inception, securing a revenue of LKR 49.5 Mn.
- The Company is expected to reach a high topline as LKR 479.7 Mn from the first year, itself with the orders already in hand.
- Availability of sufficient working capital and planning procurements in dry seasons are two prerequisites to maintain healthy margin according to the nature of the industry.
- According to Discounted Cash Flow valuation methodology, the Company’s post money equity value ranges between LKR 290.3 Mn and LKR 339.2 Mn.
- The company is partly funded (LKR 26 Mn)
- Promoters are willing to offer, an equity stake of 30.9% with one board seat to potential investor to fulfill its remaining funding requirement.
- The minimum investment acceptable is LKR 5.0 Mn
- Orders from (6+) buyers are already in hand.
- Factory has been set up with three machines.
- Key staff members have already been recruited.
- The business has been in operations for 4 months
Co-Founder
Finalist in both CIMA and CASL.
Specialist in agricultural exports including coco peat, tea, coconut fibers, fresh coconut, desiccated coconut, coconut bristle fibers, natural rubber and Ceylon spices.
International trade experience with buyers in Egypt, UAE, Saudi Arabia, Pakistan, India and China and Hong Kong.
Industry: Chemical/fertilizer
Stage: Profit
Investment: LKR 60 Mn
Offered stake: 53%
Min. ticket: LKR 5 Mn
Expected ROI: 106%
Implied value: LKR 113 Mn