20TPD Automated High-Quality Tissue Paper Production Line & other paper products production line. Investment Capital Required: BWP62M. Revenue per annum: BWP189M. Gross Profit Margin: 43% (BWP81M). Net Profit Margin: 33% (BWP62M). Payback: 1 Year. Market Size: 2.3M+.
Highlights
- 5M in the first 12 months of operations.
- Sold 2.4M units, and we are selling in top high street chains in Botswana.
- Profitable in the second year.
- In contact with large wholesale and retail chains in Botswana.
- Products are branded and patented.
- Our Tissue Paper Products sales are growing at 7.5% per month.
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The Business details for the Tissue Paper Production Line project
We are manufacturing tissue paper and paper products. The current capacity is 38,000 toilet paper rolls and 150 Packs of Serviettes per 8-hour day shift. The company has 10 employees. The company sells its toilet tissue paper rolls, serviettes, kitchen paper towel rolls, and industrial garage wipes to established wholesalers, retailers, cleaning services companies, hospitals & clinics, and hotels and lodges.
Tissue Paper Product prices have been increasing every year by about 7% in Botswana. The side benefit is the reduction of tissue paper products import bill by 12.5% (BWP27M), employment creation, and economic diversification from mining.
The Market
The population of Botswana is 2.35M. The population growth rate is 1.4% per annum. The tissue paper product consumption is growing at 5.5% per annum as Botswana has become a middle-income country. The demand for our tissue paper products is across all demographic ranges and geographical regions in Botswana.
Our indirect competition is from exports from large multi-international companies from the USA (Kimberly Clark – Baby Soft), China, and South Africa (TwinSaver, UPM, R&F Mills, etc.) and accounts for 60% of the market share. Our direct competition in the country is RBV t/a TMB, Jewel Paper, and Plentymake and account for a 20% share of the market.
There is an opportunity to fulfill the 20% market that the big multi-national companies have not yet filled up in the market. The population growth of 1.4% per annum presents another opportunity. Our unique selling point is high-quality and affordable prices pegged below the major competition.
This is a great business investment.
Progress/Proof of the Tissue Paper Production Line project
Our company started its operations on 1 August 2020 despite the COVID 19 lockdown restrictions. In the first year of operations, the company made a revenue of BWP4.5M and a loss of BWP0.34M. The company focused on supplying the wholesale and retail shops segment of the market in its first year of operation.
The company has supply contracts with eight (8) top-tier wholesale and retail shops in Botswana. In the second year of operations, the company revenue is projected to close at BWP7.5M at the end of June 2022. The profit is projected to be BWP0.45M at the end of the second year of operation.
We have a website where our products are advertised and listed. Our products are branded and advertised on Facebook and WhatsApp platforms and our company logo and brand are patented by the Companies Intellectual Property Authority (CIPA) in Botswana. During the third year of operations, the company has planned to expand its operations to create a one-stop-shop factory.
A business plan with a detailed presentation is available upon request.
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Objectives/Future
Our strategic objective is to grow the business and become the leading tissue paper and paper products manufacturing business in Sothern African region. We see ourselves exporting branded and patented products in Zambia, Zimbabwe, South Africa, and Malawi in the next 3 -5 years. In the next 3 – 5 years we have planned our revenue to grow to about BWP257M with a gross profit margin of up to 54% (BWP138M) and net profit margin of 43% (BWP110M) per annum.
The tissue raw material manufacturing plant will lower the raw materials costs by 10.5% and our customers will benefit greatly. The profits are expected to jump to BWP62M per annum with this investment in the following financial year. We have the capacity, expertise, and market to deliver BWP189M revenue per annum from the 20TPD Tissue Paper Plant.
Our company will solve the problem of the high price to customers by manufacturing our own raw materials.
The Deal details for the Tissue Paper Production Line project
- The target for the Tissue Paper Production Line project is $5 000 000 ≈ (BWP 62 000 000) – With a $1 000 000 ≈ (BWP 12 250 000) minimum per Investor
- No Previously investment was raised for this deal
- We are accepting Loan
Loan Terms: 120 months duration payment period. 120 monthly installments (principal plus interest). 3.75% interest on the loan borrowed. Loan payment holiday of 12 months from date of loan agreement sign off. Loan Funds will be used to procure a 20TPD High-Quality Tissue Paper Production Line. Matched Tissue Paper, Serviettes, Kitchen Towel Rolls, and Jumbo Rolls Rewinding Machines. Automated Packaging Machines, Automated Logging Machines, Logistics Truck 30 Ton Super Link, and Forklift.
The funds will be used for providing 6 months of working capital cover to ensure a healthy business cash flow. The details of the capital investment and working capital will be provided in the process.
- You can benefit from the SEIS scheme
- Current stage of the project is Breaking Even
- A monthly Involvement role is preferable for this project (Silent investor, Daily involvement investor, and Weekly involvement investor are acceptable for this investment opportunity)
- Any investor type is suitable for this project (Angel Investors, Peer-to-Peer Lender, Personal Investors, Venture Capitalists)
- The main industry for this investment opportunity is Manufacturing & Engineering with the subcategory Manufacturing
- We are located in Botswana
Contact us for more information and details about the Tissue Paper Production Line project
Disclaimer: The content of this investment opportunity has not been approved by an authorised person as defined by the Financial Services and Markets Act 2000. Relying on this investment opportunity to involve in any investment activity exposes an individual to a significant risk of losing all of the property or other investment funds. Investors should conduct their own thorough research and seek professional advice.
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