|Current Status||Break-Even, Profitable|
|Funding Required||RM5,000,000 or more|
|Description||We are snack food (kacang puteh) manufacturing company located in Ipoh. We produce about 20 different types and trade about another 40 (specific & seasonal) products. We are only snack food manufacturer who grinds their own flour and supply to other competitors. We do a complete range of the manufacturing process.|
|Business Opportunity||Being a manufacturing company, started small and grew with bank loans and SME’s graduate fund. But the funds we get have always able to grow only 1 out of 4 legs of our business. Finance, Operation, Human Resource, and Marketing. We save up to buy a factory and get a loan. Then save up to purchase a machine to place in the factory, next we will need the manpower to work the machines. Marketing or getting orders is the easy part. Delivering and sustaining the payment terms is the hard part. Then when we want to grow again, that’s the issue. We have done this cycle 3 times with 3 factories. So we need an investment and an investor who understands this. A factory which can support 10 times our current rate and we can add on the machines as the business grows. An investor who can support us with the cash flow as the orders is coming in.|
|Revenue / Business Model||We are doing RM4million yearly for the past 3 years. We stopped all marketing work 3 years ago and we manage to sustain the sale from people finding us. We have a net margin around 10% but that can be improved via economies of scale and economies of scope. We can pledge our properties as well to get the investors know that we are all in. We can have an agreement that, we focus on paying back and buying back capital from for the investor as we make more profit.|
|Management Team||The whole team consists of 28 people. General staff at 20 (local 8, foreign 12) and management/supervisor at 8.
1)CEO, 2)Factory manager, 3)Marketing&Sales, 4)Account, 5)Human Resource&Office, 6)Purchase&Stock 7)Production Supervisor 8)Packing Supervisor
Currently, we have downsized and just maintain about half of the staff. But if investment comes in, we can build back a fully operational team for that scale.
|Company Background||We started as a grinding mill 30 years ago by my father. I have been working in the family business since I was 5 years old. Turned around the company when I took over and went from a small shop lot to 3 factories and from 500k sales to RM4million in sales. From one product to support kacang puteh industry to more than 20 in-house products and nearly 40 trading items.|
|Funding Milestone||We have invested our own money and bank loans into the business. We would need a bigger factory (RM 3 to 5 million), machines (RM 2 million)(can support up to 15 million in revenue), cash flow to support us with growing orders (RM 2 to 5 million)
The new factory would be an asset, the cash flow will be payable by big companies, thus these two have no risk to low risk.
|% Equity Allocation||Majority to Minority (We are open to suggestions)|
|Expected ROI||10% – 15%|
|Risks and Mitigation||The only risk is that we might not grow as much as we planned or we grow too fast that we would need more funding. Kacang Puteh as an industry is about 80 years old, we have been in business for 30 years and we are the supplier and market leader for the industry so these are only two risks we are getting into.|
|Exit Strategies||We will buy back the share from the investor with profit we make.
We will go for M&A with a larger corporation.
*We are interested in the public list the company ourself currently. It’s not our core competency so we do not focus there. But if the investor wants to do it, we welcome them but they have to give us time to learn and prepare ourself. We can answer the audit questions but if possible I would want t focus on manufacturing which is what we are best at. We will grow the company.
|Company Name||Snack Boss Sdn Bhd / Menglembu Foods Industrys|
|Business Address||14 & 16, Laluan Perusahaan Kledang 3, Taman Perindustrian Chandan Raya, Mengelmbu, 31450, Ipoh, Perak.|
|Contact Person||Surentran Somasundram|