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Vietnam Joint-Venture Rice-mill Project

Exported Rice Processing Plant at north of Xang River Industrial Zone, Lap Vo district, Dong Thap Province, Vietnam. Revenue: 180 billions VND in 2007; 200 billions VND in 2008. Main activities: supply and authorized exporter: US$3million in 2007; US$3.2mil in 2008. Products including: Southern long rice and foreign matters with high quality for export to international markets: the Philippines, Cuba, Malaysia, Russia, Middle East etc.

Project Advantage for Investment

Located in Mekong Delta, Dong Thap province is the socio-economic and culture center of southern part. With advantage of climate, land, favorable investment environment for developing rice processing plant, Dong Thap is considered as greatest rice-producing region in Vietnam to provide rice for Mekong River Delta and the whole nation.

Investment in Vietnam

Being the rice processor and authorized exporter, the company has many advantages including possessing stable input source, various materials purchasing network, standard production line for processing rice with current capacity of 60,000 tons of rice per year. In recent years, the company has being voted as one of the guaranteed quality and quantity enterprise in supplying and being an authorized exporter for Northern Food Corporation and Vietnam Food Association to the Philippines, Malaysia, Middle East, Russia and Cuba, etc, ensuring food security for Viet Bac area.

Currently the company has one rice mill and process plant in Lap Vo district, Dong Thap province. Because of low capacity and old-fashioned equipments, it is required to build a new modern and high capacity production plant constructed in northern Xang River Industrial Zone. The Industrial Zone was invested by Lap Vo People’s Committee which issued the Land use right for the company for long term. The land has advantage of marine transportation (not affected by road transportation), sanitary environment warranty, standard infrastructure.

Project Information

Location: At lot 1 + 2 in North Xang River Industrial Zone with area of 8,400 m2 ( 100m x 84m )
The project is built in plain area, near the river that it is convenient for commodity transportation. Project construction includes factories, warehouses, offices, subsidiary construction, electricity station, flower and plant garden, internal traffic as follows:
Warehouse: preserving materials

Factory with 2 production lines for milling and polishing rice. Each line has capacity of 8-12 tons/hour. (Total capacity is 16-24 tons/hour)

Investment Cost

Basic total investment: 98,690 million VND consist of:
Land use fee: 17,850 VND
Main Categories (Factories, by-product warehouse, electrical – water equipment, fire prevention) : 35,700 million VND
The 2 production lines of milling and polishing rice: 25,140 million VND
Other expenses: 4,500 million VND
Provisions Expenses: 3,500 million VND
Construction of Office and staff housing: 1,500 million VND
Purchasing Equipments for manufacturing (equipments of measurement, testifying, checking products’ quality): 6,000 million VND
Environment settlement: 4,500 million VND

Capital

Capital Development: 98,690 million VND
Movable Capital: 105,000 million VND
Total Capital: 203,000 million VND

Estimated Average Revenue: 15% per year

Brunei Eco-friendly Biodegradable Baby Diapers

For the first 12 months of production through contract manufacturing, the average annual sales income is about BND$200,000.00 whereas for in-house production in our manufactory, we expected average sales income for 10 fiscal years to be BND$5,492,026.00 Net present value at 10% will be around BND$16 million and at 6% will be BND$21 million. We estimate the company will comfortably exceed the break-even sales volume at BND$4 million after five years of in-house production.
Date Founded: 2009

No. of Employees: 4-6

Annual Sales: 4,000,000.00

Total Funding Required: 10,000,000.00

Investor’s Knowledge & Experience Required: production; sale & marketing; internationalisation

Proposed Investor’s Involvement: part-time; as mentor; non-executive director

My Business Development Stage: seed; start-up

My Industry: manufacturing; others (Environmental Friendly)

EXECUTIVE SUMMARY

In view of the disposable product market in Brunei, (the sanitary napkin, baby diaper, adult diaper, one-off mattress and other disposable product), most of the market is occupied by imported brands and there is no true meaning of manufacturing enterprise. So when we established xxxx Sdn Bhd, we have been targeting to be the first manufacturer of disposable hygienic product in Brunei Darussalam.

Our company has secured an industrial lot of 1 hectare from the government for building manufactory. Ministry of Industry and Primary Resources has also approved our application for pioneer status and has set a deadline for us to launch our product before this coming December 2010. One of our objectives is to be a responsible corporate citizen fully contributing positively towards the environment in which we shall operate. We intend to produce eco-friendly and biodegradable disposable baby diapers which is of high quality and affordable to low and middle income groups.

During the first year of our operation, production of disposable baby diapers will be managed through our contract manufacturer of related biodegradable baby diapers. The construction of the manufactory will also start concurrently.

For the first 12 months of production through contract manufacturing, the average annual sales income is about BND$200,000.00 whereas for in-house production in our manufactory, we expected average sales income for 10 fiscal years to be BND$5,492,026.00 Net present value at 10% will be around BND$16 million and at 6% will be BND$21 million. We estimate the company will comfortably exceed the break-even sales volume at BND$4 million after five years of in-house production.

[ BND stands for Brunei Dollars ]

enquiry@capital.com.my

Indonesia Coal Trading Company Seeking Bridging Finance

INTRODUCTION

The company is an investment holding company established for the purpose of trading coal and various minerals. At this juncture, it’s associated company in Indonesia; P.T.xxxx Indonesia is principally involved in coal trading activities.

xxxx wishes to increase the volume of its coal trading activities through partnerships with parties that are able to bridge finance the pre-shipment costs associated under a new coal sale and purchase contract. In return, xxxx is willing to give a return and payback to the investor equating to 2 times the money put in by the latter after 1 year.

PROPOSED PROJECT

xxxx is in the midst of finalizing a Coal Sale and Purchase Contract with a buyer from China for the supply of Gross Calorific Value 5800/5600 (“GCV 58-56”) coal on a monthly basis for tenure of one (1) year. The monthly shipment volume to the buyer shall be 60,000 Metric Tons (“MT”) with a tolerance level of surplus/ shortfall of ten percent (± 10%).

Terms of delivery shall be on Cost and Freight as Received (“CFR”) basis at a selling price of USD73.00 per MT and payment terms shall be via 60 Days 100% At Sight Documentary Letter of Credits. It must be noted too that FIRC shall be allowed to make partial shipment of the monthly shipment volume, allowing better cash flow management and control over supply, logistics and shipment arrangements. (Hereby collectively referred to as the “Proposed Project”).

As the Proposed Project does not entail ownership of any heavy machinery, funding requirement could be kept to a minimal. All that is required is the working capital requirements to finance the pre-shipment cost for each and every coal shipment. As the coal shipment shall be on a recurring basis, the amount required to fund the pre-shipment cost is more or less fixed, save for currency exchange fluctuations and cost inflation adjustments.
The estimated cost required to kick start the Proposed Project is USD2,040,000. This represents the cost to ship 30,000 MT of GCV 58-56 coal as partial shipment would be allowed under the Proposed Project. As xxxx does not have any track record with a bank to request for pre-shipment financing, the possibility of securing funding against the assignment of the DLC is remote.

This explains why a minimum funding requirement of USD2,040,000 is required to kick start the Proposed Project. However, once the shipment documents for the first 30,000 MT has been obtained and submitted for negotiation for the release of payment, the bank’s assessment for forfaiting the receivables due from the Purchaser would be different. As such funding for the next shipment of 30,000 MT of GCV 58-56 coal to the Purchaser would be easily addressed.

PROPOSITION TO BUYER

xxxx is prepared to part 20% of its shares for a consideration price of USD2,040,000. As explained above, the funds raised from the sale of those shares shall be utilized to mobilize the Proposed Project.
Return to the Buyer shall be as follows:

Payment of USD60,000 upon completion of every shipment X 24 shipments . USD1,440,000 .
Share buy back at the end of the Proposed Project X 1.3 times . USD2,652,000
Total Gross Return to Buyer USD4,092,000


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