Manufacturer of agricultural equipment with long track record ready for next step
Sector: Agriculture and food
Year of establishment: 1995
Turnover 2015: USD 400,000
Investment need: USD 200,000
Product, market solution and potential
This company was founded in 1995 and manufactures machinery and equipment that allow processing of different commodities, e.g. grain millers, seed cleaners, fodder cutter, drying machines and feed mixers. The company sells mainly to NGO’s and development organizations, both inside and outside Uganda, and to a lesser extent to farmer cooperatives and individual farmers. The price of the equipment ranges between $1,000 and $4,000. The company differentiates itself from its mainly Chinese competition by delivering superior quality at affordable prices and by offering good after-sales service. The business wants to grow its business by targeting the poultry industry.
Entrepreneur and Team
The company has four directors. The founder and managing director is responsible for maintaining customer relations; a technical supervisor manages the manufacturing process of equipment and monitors the team’s performance to ensure quality production. The finance manager is in charge of financial management and currently also takes on marketing due to limited resources. The company also has a fore man, welder, electrician and store manager who assist in factory operations. The company feels a need to recruit more specialized staff, especially in marketing/sales and HR. Also, the company needs better qualified production personnel.
Turnover and investment need
The company has shown steady year-on-year turnover and profit growth. The company turnover in 2015 equaled about $400,000 with a net profit of nearly $70,000. The company seeks a total investment of USD 70,000 to buy equipment and to recruit specialized staff.
The company provides quality yet affordable equipment to farmers that help them to create value and reduce post-harvest losses. The company also acts like a training ground for students from technical schools and institutions.