Patented Healthy Beverage seeking RM8mil commercialization fund

Patented Healthy Beverage seeking RM8mil commercialization fund

Project Cost: RM 8.2mil

Amount Invested : RM 20k

Amount Required : RM 8.2mil

Knowledge / Experience Required:
general management
strategy
production
internationalisation

Proposed Investor’s Role:
full time
part-time
as mentor
as consultant

Industry:
manufacturing
consumer goods

Project Stage: start-up

EXECUTIVE SUMMARY:

Company History:

Total we have 4 co-founders:

Lee Kar Weng – 28 years old, graduated from Mechatronics Engineering, 3 years experience in tooling & process engineer in a electronic MNC company, 2 years experience in family business company management.

Chee Chii Ching – 33 years old, graduated from Electronics Engineering, 10 years combined experience of senior tooling engineer, lead technical & sales consultant.

Teoh Kok Sheng – 35 years old, graduated from Mechanical Engineering, 12 years experience in tooling and R&D engineer.

Chow Ming Zhong – 29 years old, graduated from Industrial Engineering, 6 years experience in industrial engineer, specialize in production planning and cost optimization.

Product / Service Description:

Our planned business fall into Fast Moving Consumer Goods (FMCG) category. We plan to setup a production plant to manufacture beverage product. Below are the specialty of our beverage product:

1) First in Malaysia (As far as we know, it is also first in the world, as we unable to find similar product while we doing our research)
2) We have applied patent for our product.
3) This beverage contain NO preservative, NO coloring, NO natural/artificial flavoring, NO chemical.
5) Product align with lifestyle trend, healthy.
6) It has high market potential as result of all specialty above.
7) It has high export potential as it has long shelf life.

Business Opportunity:

This is a patented product, nobody can produce a similar product in 20 years of patent protection period. In Year 2013, total off-trade volume of beverage (flavored, non-flavored, carbonated, non-carbonated) by Malaysian is 726 Million Liters. This industry’s growth is directly proportional with Malaysia population growth. It is projected to achieve close to 1 Billion Liters consumption on year 2018.
Information Source: Euromonitor

Revenue Model:

Business Model:
1) Capital: RM 3.5m
2) Contingencies: RM 700k
3) Cash flow for 180 days: RM 4m

Distribution Channel:
1) Hypermarket
2) Retail chain store
3) Petrol station
4) Pharmacy chain store

Projected Revenue:
Year 2015/16 – RM 15.3m
Year 2016/17 – RM 22.3m
Year 2017/18 – RM 29.2m

Projected Profit (Before performance incentive & tax)
Year 2015/16 – RM 3.30m
Year 2016/17 – RM 4.91m
Year 2017/18 – RM 5.75m

Management Team: Lee Kar Weng – Director of Finance, HR & Admin
Chee Chii Ching – Director of Sales & Marketing
Teoh Kok Sheng – Director of Engineering & R&D
Chow Ming Zhong – Director of Operation

Current Status:

We are at start up stage. Projected revenue & profit are as below:

Projected Revenue:
Year 2015/16 – RM 15.3m
Year 2016/17 – RM 22.3m
Year 2017/18 – RM 29.2m

Projected Profit (Before performance incentive & tax)
Year 2015/16 – RM 3.30m
Year 2016/17 – RM 4.91m
Year 2017/18 – RM 5.75m

Funding Milestone:

1) Capital: RM 3.5m
2) Contingencies: RM 700k
3) Cash flow for 180 days: RM 4m

Business Valuation:

We will start with offering 20% of company share. However, reasonable counter offer package will be considered.

Expected Return On Investment:

ROI on capital: 18 months
ROI on capital & cash flow: 28 months

Investor return based on 20% company share (Combined cash & re-invest value)
Year 1: 7.22%
Year 2: 10.83%
Year 3: 15.99%

Investment Risk and Mitigation:

One of the risk is we are pioneer and have no reference product on the market.

Exit Strategies:

Investor/Investors may exit anytime by selling on hand company share.

Contact Person

KW Lee
State : Cheras, Selangor
Post Code : 43200
Country : Malaysia

 

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