Veg Halal & Kosher Reduced Fat Cheese

Veg Halal & Kosher Reduced Fat Cheese

Project Cost: RM5 Million

Amount Invested : RM1.6 Million

Amount Required : RM3.4 Million

Knowledge / Experience Required: other (Funding)

Proposed Investor’s Role: part-time

Industry: manufacturing

Company Current Status: Pre-Revenue

EXECUTIVE SUMMARY:

Company History:

I am the researcher & inventor of microbial renent, enzyme & culture from plant and palm oil. I has so far successfully invented 9 types of highest demand cheese and ready for commercialization. My team consist of 7 super skilled manpower including cheese mongers, experienced marketing & operation team members.

Product / Service Description:

Our completd R&D and on sale products are mozzarella, cream cheese, prime spread, edam, cammembert, brie, blue cheese our very own green cheese, nachos spread, blue dip etc all are veg based & reduced fat using our own microbial rennet,enzyme & culture.

Our Technology :

Our technology had successfully cuts down the tenure of cheese maturing process, aging & briening. For instance a conventional blue cheese processing requires 9 – 12 months aging period to generate the oenicilium into blue mould but with our technology the total aging process takes only 6 months. For mild cheddar normal aging is 3 months – D’Qisra cheddar is ready in 3 weeks. We intend to commercialize the project in Enfield, North East London since the source of material such as milk, milk protein are from France.

Business Opportunity:

Halal certification in Europe esp. in UK and Russia has opened a tremendous growth of halal market and niche untapped market for halal cheese worth multi million of Euros. Russia, UK, Saudi & Emirates cheese market alone worth at least Euro 1Billion annually. being Muslim manufacturer, we strongly confident that we could highly compete in the market where there is only 1 or 2 companies in UK who are offering halal cheese to the global market. Hence we plan to grasp 5% only of the halal global market in these regions for the 1st year for an annual sale of Euro50 Million only. Full market analysis is available and will be tabled during full presentation or pitching.

Revenue Model:

With a capital of RM3 Million or approx. UK Pound 500K will enable us to rent a small factory in Enfiled (UKP 60K), purchase of 1 packaging line (UKP 125K), printing of new packaging (UKP 12K) and purchase of material (UKP30K) and overhead for 5 months (UKP 73K). I have purchased 1 300Kg cheese processing machine from Italy, 1 50kg soft cheese processing machine from Scotland and 2 units 6L material processing machine from France. These 3 machines capacity is approx. 51 – 54 tons of cheese monthly @ 3 containers. Cost per container is UKP 45,300 (RM272K) and our minimum net profit is approx UKP 17,000 (RM 102K) thus our total minimum net profit is UKP 51K (RM306K) @ UKP 612K (RM3.67 Million) annually.

Management Team:

Our team members consist of 2 skilled cheese mongers, 1 engineer, 2 skilled production assistants, 2 international marketing execs, 1 certified accountant and 1 sales exec.

Current Status:

I am packing and moving back my machines to London by January 2016 and plan to commence the operation in London on the 3rd week of January. The machines are currently in Shah Alam, Section 7. Though we have start operation and test market in Malaysia since November 2014, but the transportaion cost of the material by air + custom charge, airport tax + GST has made of material cost unbearly expensive. Hence our margin is only a mere RM0.20 – RM0.50 per kg which is far below the actual profit of RM5.0 – RM30/kg (average UKP 2.0/kg @ UKP2000/ton if the material is brought to UK from France.

Funding Milestone: Packaging machines, factory premium, overhead & material to achieve monthly sales of UKP 135K per month @ 3 container @ 51tons

Business Valuation: RM3.0 million for 49%

Expected Return On Investment:

ROI Ration 1.2 or approximately RM1.4Mill for 1st year.
1st year 49% RoI : RM686,000.00
2nd year RoI : RM 2.45Million
3rd Year RoI : RM 4.4 Mill
Total 3 years project RoI : RM7.53 Million

Investment Risk and Mitigation:

Mitigating factors :

1. We shall label few of our newly invented cheese as Nottinghill Cheese and Natwich cheese ie theorigin of the milk. This is also to caprture the attention of tourists in UK. Some cheeses will be packed in Red Double DeckBus Tin Can and Red Phone Booth Tin Can to refelct the images of London. The Factory will also be named London cheese House the 1st of its kind in London.

2. I have patented the IP of the formula & the brands & logo

Investment Risk :

1. Copy cat

Exit Strategies: We will :

A. start commercializing and selling our microbial renent & enzyme to open market or
B. license off our technology Or
C. sell our brand.

This are quite common practice in the cheese industry globally. For instance Irish Dairy Board had purchased 70% equity of AlWazeer Trading (Saudi manufacturer of cheese spread) for Euro 27Million in 2013

CAPITAL.MY

1 comment so far

Capital Team Posted on2:08 pm - 17/01/2016

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