We have a mineral water manufacturing factory called Victoria Beverages Limited that produces and sells a minral water brand called Ripples. We have been running since April 2007 and our estimated value of land, buildings and machinery is US$1,100,000.
VBL is searching for investor support worth US$600,000 to re-finance high cost funds worth US$ 400,000 and have some working capital woth US$ 200,000.
VBL is owner managed by Andrew Lugalambi as Managing Director and Robert Nsibirwa as Executive Director.
2.0 The Company
Victoria Beverages Limited (VBL) is a Ugandan private limited company incorporated in 2001 to construct and operate a US$900,000 mineral water factory. The project is strategically located in the unpolluted gentle hills of Buwate which is about 13 kms from Kampala City. The Company successfully started operations in April, 2007 and is currently operating at 53% capacity. The current value of the investment is US$ 1,107,213.
2.1 Company Ownership
Victoria Beverages Ltd is a limited liability company registered under the companies Act in 2001. The company is 100% owned by Ugandans the major share holder is Mr. Andrew Lugalambi with 70% of the shares. The rest share the 30% in specific numbers.
2.2 Company Locations and Facilities
The factory is located in Buwate, Najera - Wakiso District, about 13 kilometres from Kampala city. The 900 square foot water factory is sitting on 2 acres of land and includes parking facilities, landscaping, warehousing and boreholes.
2.3 Company Operations
Factory:
The factory is a modern mineral water processing plant with equipment and machinery from India and Malaysia. The factory building is composed of 900 sq ft with 600 sq ft used for production area and the other 300 sq feet shared among, storage, ablutions and office space.
Close to the factory is another 300 sq ft. enclosed space is where the storage water tanks for raw water are located and further on there is a 160 KV generator plus accessories to the production line; i.e. compressors and a cooling tower. The factory is set on a 2 acres piece of land fully owned by the sponsors on the gentle hills of Buwate Najera, with a very clean environment, unpolluted in anyway as there are no homes. Water is pumped from over 60 metres deep borehole which had a re-chargeable rate of 98%.
Production Process
Apart from the pressurized sand filters and activated carbon filters, we have also adopted the latest technology for Water treatment; the Reverse Osmosis Water Treatment System (RO). RO reduces the amount of organic, inorganic, bacteria and others, particles that are found in water. RO is based on the process of Osmosis which involves the selective movement of water from one side of Membrane to the other.
Water is further disinfected by both high intensity ultra-violet (U.V) radiation and ozone treatment. Unlike chlorine, ozone being high strength oxygen, it quickly dissolves in water and reverts to normal oxygen and does not add taste, therefore, our water is reach in oxygen (Oxy-Rich Water).
The Product
Victoria Beverages initially launched one brand of 600ml bottled mineral water called Ripples in April, 2007. Ripples was selling at an average of 300 cartons a day between April and August, 2007 and production averaged 450 cartons a day. This represented Ugx. 1.950,000. Since September, 2007 production increased to 800 cartons a day with sales averaging 600 cartons a day which translated into Ugx.3,900,000 a day. Currently, we are producing over 1,000 cartons a day and selling close to over 800 cartons a day which translate into Ugx. 5,200,000. In the new year of 2008, we target to produce between 1,200 -1,500 cartons a day and sale 1,000 cartons a day and this will generate total sales of Ugx. 6.500,000 a day. We have a strict credit policy of a maximum of 20% of sales and as the product picks further we intend to reduce it to between 10%-15% of the total sales.
2.4 Company Board and Management
Sponsors
The major sponsor of this project is Andrew Lugalambi a seasoned business man with experience in furniture trading, procurements and logistics services spanning 10 years in private sector. He successfully traded furniture and fittings over 8 years in Uganda and Rwanda with an average annual turn over of Ugx. 500,000,000. He is a Board Member of Rotary and has an MBA.
The second sponsor is Robert Waggwa Nsibirwa a seasoned Executive Manager and Financial Economist with vast experience in resource management and financial planning and analysis. He is a Board member of Eastern African Fine Coffees Association (a regional coffee organisation), Uganda Youth Business Trust, Buganda Land Board, Africa Coffee Academy, Rotary and GWEST. He has an MA in Economics.
Management
VBL is owner operated through experienced and competent personnel. The company has put in place internal control systems and a computerised accounting system of tally. The quality assurance and production control system were approved by the National Bureau of Standards as they conform to the internationally accepted production procedures.
Mr. Andrew Lugalambi, the chief sponsor manages the business as the Managing Director assisted by an experienced Executive Director, a qualified Accountant, qualified and experienced Sales and Marketing Officer, a qualified and experienced Quality Assurance/Production Head and an Engineer. The total work force to date is 50 with 25 permanent staff and 25 casual/semi skilled workers.
Andrew Lugalambi established a private commercial firm called Highland Furniture and Trading Limited which deals in the supply of office furniture and interior accessories. He has been the Managing Director of this company until recently when he decided to devote 100% of his time on VBL. Mr. Andrew Lugalambi has considerable experience of more than ten years in marketing and business management, which is an attribute as far as the proposed project is concerned. In addition to his experience, he is a graduate of Business Administration and holds a Master’s degree in Business Administration of Maastricht, Netherlands /ESAMI. Mr. Lugalambi is in charge of the general operations as they relate to marketing, procurement, human resource and daily factory running.
Mr. Robert Waggwa Nsibirwa a shareholder - serves as the Executive Director with specific responsibility for financial oversight and corporate governance. Mr. Nsibirwa is a graduate of Statistics and holds a Masters in Economics. He has spent over 10 years in the coffee promotion and marketing in both Uganda and in the eastern and southern Africa. He worked for a regional program involved in the promotion and marketing of fine coffees from the Eastern and Southern Africa and is supported by USAID. He is also consulting for the World Bank in Commodity Price Risk Management in the region. Mr. Nsibirwa is responsible for the finance issues, budgeting; business needs assessment and long range planning plus corporate governance issues.
Engineer Stephen Kaddu serves as the Production and Quality Assurance Manager responsible for production of quality water and supervision of the production team. He has masters in Industrial Production from China. He has extensive experience in production both abroad and in Uganda.
