Eco Friendly stationery

Eco Friendly stationery

Project Cost: RM 10 M apprx

Amount Invested : RM 3 M apprx

Amount Required : RM 7M apprx

Knowledge / Experience Required:
finance
sale & marketing
internationalisation

Proposed Investor’s Role:
part-time
others (passive?)

Industry:
biotechnology / healthcare
industry products

Project Stage:
early expansion
second stage expansion

EXECUTIVE SUMMARY:

Company History:

products originally owned and manufactured in China. Taken over by majority Malaysian ownership. Products to be manufactured in malaysia due to ethical and customer satisfaction reasons.

Product / Service Description:

Products in the global market for 10 years. restructuring in 2013. Ready to go back to market and re establish sales worldwide. Quick revenues potential for amount of money invested. marketing and sales biggest challenge.

Business Opportunity:

margins are great and can be better. cash flow is a problem.
Investor with cash and ability to secure loans /funding will speed up growth of the company. market acceptance of product is great since its the most popular eco friendly alternative to “dirty” products.

Revenue Model:

Products despite being eco friendly can be sold at equal or slightly higher then non eco friendly products especially in Europe and USA and all first world countries.

Management Team:

Team consists of original inventors, PHD Chemists, manufacturing expertise with “secret” production techniques and equipment. Senior management with global management experience.

Current Status:

Investments made to re structure company, set up some sales channels in Malaysia, Europe and establishing USA (re establishing). Company is not profitable yet. Gross margins and nett can easily be achieved as key issue is getting volumes. This is related to marketing and sales or the lack of.

Funding Milestone:

Initial use of funds for working capital as demands are strong but unable to take orders due to cash flow issues. Capital investment in setting up decent factory is required. Marketing via a unique but effective marketing approach requires funding.

Business Valuation:

Open to discussion. depends on what investor can bring to the company.

Expected Return On Investment:

ROI of > 10% is easily attainable however, with sound management realising anything from 15-20% is not impossible.

Investment Risk and Mitigation:

Risks are low since products are already in the market. we own the technology with certifications from USA, Beijing and Europe as biodegradable products. Investments to continue in R&D will mitigate any risks from competition. Govt agencies in certain country working with company to develop more formulaes.

Exit Strategies:

Company can exit by selling or M&A with established global MNC in similar product. 1 such company is already seeking to discuss, but is too early and returns will be low at this time.

 

CAPITAL.MY