An array of accessories and equipment such as dishes, frying pans, non-stick pans, knifes and other cutting devices, cutlery, pressure cookers, mixer grinders, flasks, gas cookers, storage dishes, toasters and kettles are required in every kitchen in Sri Lanka. Further, every home requires cloth racks, iron boards, balcony drying solutions, waste disposal solutions and trolleys.
Use of modern technology has shifted customers towards seeking branded long lasting products in the captioned range of home and kitchen accessories and equipment.
The showcased investment opportunity paves way to gain an equity stake of an established company in this business with agencies of global brands.
LKR 104,000,000 for 40% equity stake at Post money valuation of LKR 181,000,000
|Expansion of sales and business development activities
|Launching a showroom at Shangri La
|Retire a portion of existing debt
|Total Funding Requirement
The company has rapidly grown its top line during past few years and expected to reach approximately 200mn during current financial year. However, the local market for the captioned range of products is estimated around LKR 5bn hence the need for greater working capital to boost quantity sales. The company also plans break its traditional mode of sales via third part distribution network and open few showrooms, diversify the business into Tenders, Group Sales and HORECA segments. The company also wishes to invest in the online sales segment.
Current level of pricing (MRP) of company’s products are extremely reasonable and affordable, despite being global brands.
Therefore, the company is inviting an investor / JV partner to infuse approximately LKR 105mn equity capital withprovision to hold around 40% with agreed number of Board seats.