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Business established

5

The Iceman Ltd

Manufacturers of pure filtered ice for the fishing industry, retail and trade customers

As an established profitable company in Nairobi we are seeking capital to both expand the Nairobi market, and to open a new branch in Mombassa.

Facts

Year of establishment

2004

Sales (US$)
Two years ago:
Last year:
This year (forecast): 850,000
Year 2 (forecast): 950,000
Year 3 (forecast): 1,100,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 44,000
Year 2 (forecast): 94,000
Year 3 (forecast): 134,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 21
Year 2 (forecast): 26
Year 3 (forecast): 29

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 95,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 2,000
Total finance needed (US$) 97,000

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 5,000
Loans (debt) 80,000
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 85,000

The Business

What is your product/service?

The Iceman Nairobi branch operates an ice manufacturing plant that produces 1.5 tonnes per day of Ice. We retail this ice in major supermarkets and are presently rolling out as a trial 20 branded freezers to high profile convenience stores and petrol stations. These freezers stock our branded ice which is approved for consumption by KBS. In addition to our retail sales we supply Ice to trade outlets. Customers include many of the major hotels and restaurants in Nairobi.

We also operate an alcohol business in Nairobi which supplies a wide range of drinks to retail customers directly and to bars and restaurants at discounted prices.

Finally we have a large event catering division which manages bars at public events. We are appointed by Kenya Breweries as their Bar company of choice for major events like the Tusker Safari Sevens. We can and have handled events for 20,000 people plus.

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

We manufacture our products entirely ourselves, packaging suppliers are already sourced.

Having already established a strong brand, with a reputation for quality and importantly reliability we are well positioned to deal with competition. For our trade partners we can not afford to be unreliable and it is by offering a good service that we have squeezed our competitors away from our markets. With the retail business we have a good reputation and combine our ice sales with delivery of drinks and other bar services. Our contracts with many of the petrol stations award us and exclusivity agreement on payment of an annual fee. we have two year exclusivity with three of the five major petrol stations in Kenya. Additional marketing tools come in the form of our branded POS freezers which are eye catching and which are boosting sales. We intend upon completion of our trial in Nairobi to continue to purchase freezer assets to drive sales.

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

While there are several other small local manufacturers of Ice, non of them have a well recognised branded product that is known for its quality and purity.

The Entrepreneur & Management

Describe the entrepreneur & management

I served in the British Army for eight years learning amongst many things:- man management and team building, logistical management and personal motivation. I have a degree in engineering from Oxford. I have been the Managing Director of the Iceman since conception and have various project management and financial qualifications. As the concept was new to Kenya, it was my responsibility to start the company, fund it, and get it to its present strong financial position.

Development

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

At the coast with the increase in temperatures Fishermen sometimes have problems transporting thier catch to thier customers before the fish becomes heat damaged. With our widescale distribution of ice products up and down the coast we will give them the opportunity to get thier product to market in first class condition, earning them more revenue and supporting more small scale fisherman.

5 comments

Reply to screener 2 feed back comments

In our financial statements, i have reported a 3 million Kenya shillings loss for last year, and that we would achieve a 1.5 million Ksh profit this year. It is my mistake to have not converted those figures into USD, hence the confusion. We have achieved this turnaround by expanding our ice sales in Nairobi by increasing our sales force and purchasing point of sale freezers which we have installed into twenty outlets This imediately increased our ice sales, and is allowing us to invest in further freezers expanding the Nairobi market. With regards to industry trend figures, there was no other major supplier of wet ice to the retail market in Kenya untill we started the business. So trend figures for the local market are basically based on our existing sales figures. The best judgement we can make is to look at other more developed markets such as the US, SA and Europe.

3 July 07, 10:56 Rob Phayre, 3 July 07, 10:56

Reply to Screener 1 comments

Sir, thank you for your comments, you are quite corect. Not enough emphasis was placed on the provision of ice to the local fish market at the coast which is on of the core aims of the coastal business. A low cost ice solution to them allows better storage of thier catch in order to get it to market in best condition and attain the best prices. This directly improves the incomes to some of the poorest tradesmen and women in the country.

3 July 07, 11:02 Rob Phayre, 3 July 07, 11:02

Reply to Screener 3 comments

Sir, Thanky ou for your comments. With regards to confirmation of our year end figures for our third financial year, and how i know that we will be in profit this year. I have the last two years as audited accounts and have exact figures for them. I am now approaching the end of my third financial year, and have the six monthly figures, though of course they are not audited. From these figures i can approximate with some accuracy i believe, the figures that i have quoted in the above text. Please also see my note above about figures being in Kenya Shillings, not Dollars.

3 July 07, 11:15 Rob Phayre, 3 July 07, 11:15

I take interest...

I take interest in your business.

ghaliinvestment@gmail.com

23 Nov 10, 11:54 Ghali Marnwan, 23 Nov 10, 11:54

hi

hello dear friend,
I hope that every things is ok with you as is my pleasure to contact you after viewing your contact at (www.bidnetwork.org) which really interest me in having communication with you if you will have the desire with me so that we can get to know each other better,
my email is (btessy5@hotmail.com)
yours friend,
Tessy.

23 Aug 11, 00:01 tessy ndadaye, 23 Aug 11, 00:01