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Business start-up

4

The proposed Initiative to create an import substitution factory in South Africa for Poly Carbonate Plastic Sheeting Manufacturing

Miko Manufacturing is a greenfields operation through which it will produce and sell polycarbonate plastic sheeting

Miko Manufacturing is a greenfields operation through which Miko Manufacturing will produce and sell polycarbonate plastic sheeting via Miko No 141 to the construction industry.
It is an import substitution programme that will transfer skills and economic activity to South Africa
A total of 9 salaried and 30 direct staff positions will be created by this venture by year 4.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 0
Year 2 (forecast): 3,600,000
Year 3 (forecast): 4,500,000
Net profit after tax (US$)
Two years ago: 0
Last year: 0
This year (forecast): 0
Year 2 (forecast): 153,000
Year 3 (forecast): 335,000
Total number of Employees
Two years ago:
Last year: 3
This year (forecast): 3
Year 2 (forecast): 15
Year 3 (forecast): 22

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 840,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 365,000
Total finance needed (US$) 1,205,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 10,000
Loans (debt) 355,000
Share capital that you seek from investors (equity) 840,000
Other sources 0
Total finance needed (US$) 1,205,000

The Business

What is your product/service?

Strong, light, bright and attractive Makrolon ® polycarbonate sheeting is ideal for residential, commercial, industrial roofing and cladding applications where natural lighting may be required
Manufactured from high-tech, high quality Bayer Makrolon ® polycarbonate resin, Makrolon ® sheets combine remarkable clarity with incredible strength.

What customer need/problem do your products/services satisfy?

MIKO MANUFACTURING customer will be MIKO NO 141 and their customers are largely from the building sector. Lead time from the current supplier is unacceptable. Also see www.mikosheeting.co.za/index.html

How will you make the product/service?

The product will be made with an extrusion plant to be imported from China via a South African accredited sales and support organisation.
Extrusion will be through 6 different profiled dies specifically produced to suit South African and African requirements.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The company will sell its products via it partner, MIKO NO.141, who has started six years ago and is the sole agent for marketing the sheets imported from the Bayer manufacturing plant in Australia (Lazerlite). This agency covers all of Africa as well as the Indian Ocean islands. Miko no. 141 has been very successful with their vigorous sales drive and currently owns six sales offices in the major cities throughout South Africa.

To whom are you selling, what is your market?

MIKO MANUFACTURING major customer will be MIKO NO 141 and their customers are largely from the building sector but other sectors like the signage, and automotive sectors as well as all hot houses in the farming industry throughout Africa will be actively pursued.

Describe your competitors?

Ampaglass and its subsidiary Modek are the only other competitors in South Africa that manufactures polycarbonate. The have old equipment and also manufacture a vast number of non polycarbonate products harming their operational efficiency.
Miko No 141 has claimed most of its current market share from this company and has an established customer base

What makes your business different/better than your competitors (competitive advantage)?

It will use new technology and plant capable of meeting productive and quality requirements demanded by customers. The brand name from Bayer 'Makralon' will be used under an exclusivity agreement.

What makes your business, your product or service innovative?

The industrial plant will allow for rapid tool changes and allow the company to run profitably with quick reaction and lead times to satisfy customers changing demands. The current team has tool design and manufacturing capability and different product features could be accommodated upon demand. Flexible and small production runs will ensure a competitive advantage in contract or tender based requirements.

How will you ensure the growth of your business?

Growth over and above normal expected growth rates for South Africa will be achieved by exports to the region and Africa in general.
Diversification in to the Automotive industry is possible.
The company is structured for flexibility and has the technology to rapidly adapt to customer preferences and changing demand patterns.

The Entrepreneur & Management

Describe the entrepreneur & management

The team consists of 3 members. Fanie Pretorius, Budjix Kumardew and Francois Cloete. Fanie has extensive management experience and skills as CEO and COO of medium sized industrial businesses. Budjix is highly competent as a programme manager in the same sized business and Francois is a tool maker by trade with operational and technical skills and knowledge of the automotive and industrial sectors.

What specifically makes you and (if relevant) your management team most qualified to build this business?

The team has financial management skills and via its subsidiaries extensive contact with customers in the emerging world.
It has a track record of establishing a similar sized company in South Africa and Jordan to date.
Lastly it has the experience and necessary academic qualifications required for this initiative.

How much time do/will you expect to spend per week in the business?

It is estimated that a minimum of 20 hours per week of my time will be required but this may increase in all probability for the first year of operation. As much as needed will though be made available.

Development

How does your business improve the local living standards (social and environmental)?

Unemployment in South Africa is a major problem. Although a formal EIA has not been done, it will employ 39 staff directly associated with the business and the secondary effect cannot be over emphasised. Raw material consumes 60% of the cost which is imported. From the remaining 40% an estimated of 30% of the input and administration costs will be disbursed to local staff and suppliers.
The plant will also conform to international standards.

4 comments

NEW TECHNOLOGIES WWW.ENERGYIDEABANK.COM

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The EUROPEAN WAY (Kaliningrad – Lithuania) bodies +370-67011281,
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16 Feb 10, 17:10 EUROPEAN WAY Burba, 16 Feb 10, 17:10

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 16:39 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 16:39

funding contact

A need for an investor for funding/investment in your country
Please contact me for further details:
jonmaguire.9090@gmail.com
Jon Maguire

26 July 10, 18:12 Jon Maguire - - DISABLED SPAMMER, 26 July 10, 18:12

I want to invest in your business

I am interested in your business intention send me an email via this email address: joeh.gilber@oakwaldeen-asset.com

10 Aug 11, 14:48 Account blocked, 10 Aug 11, 14:48