Remote Control Toys Store (E-Commerce Website) Seeking for Investor

The idea of this project is to import remote control toys from China and sell it through an e-commerce website with a strong delivery network through all over India.

Product: Remote control toys imported from china
Target market: Online buyers of remote control toys from India.
Initial investment required (one time investment) is $289,907. Annualized ROI of the project is 210.48%. Profit sharing: 58% of the profit should be distributed between investors on the basis of contribution in initial investment.

There are several reasons for selecting remote control toys to sell in India market:
• Toy industry growth rate in India till 2015 (CAGR) :20%
• "As per Toy Association of India, the market size of industry is about Rs 7,500 crore where, 30% constitutes of organized sectors and 70% constitutes of unorganized sector, which is expected to reach Rs 13,000 crore by the year 2015 as against Rs 7,500 crore currently due to the climbing consumerism and growing population"
• E-commerce sales growth rate in India till 2016 (CAGR): 57%
• "According to the latest research by Forrester, a leading global research and advisory firm, the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012 and 2016."

Conclusion: No. of online supplier is expected to grow with CAGR of 20% and demand of RC toys is expected to grow with CAGR of 88.4%

We have made execution plan and divided in to three phases as mentioned below:

Phase-I:
• Duration: 6 months.
• Office in Delhi/NCR (One of the metro cities of India).
• E-commerce website development.
• Selling through e-commerce website.
• Delivery outsourced to other firm.
• Cash out flows as fixed cost & COGS:-$289,907
• Cash inflows as sales revenue: $68,519

Phase-II:
• Duration: 12 months
• Offices in 4 metro cities of India
• Selling through e-commerce website.
• Delivery in 8 metros within 48 hrs. By ourselves and in the rest outsourced to other firm.
• Cash out flows as fixed cost & COGS:-$675,395
• Cash inflows as sales revenue: $862,103

Phase-III:
• Duration : 18 months
• Selling through e-commerce website.
• Delivery in 8 metros and major cities of India within 48 hours and in the rest cities of India within 72 hours by ourselves.
• Cash out flows as fixed cost & COGS: -$7,402,909
• Cash inflows as sales revenue: $16,404,676

Currently, project is at the seed stage and need total initial investment of $289,907 which is required to support 6 months of operation. We have already done market research for demand and supply of remote control toys in India and on the basis of which we have made financial forecasting for revenue generation and Profit/Loss associated with the project.

Expected Outcome of the project:
• Cumulative sales revenue at the end of 36th month: $17,335,298
• Total Profit/Loss at the end of 36th month: $8,967,086
• ROI at the end of 36th month: 2993.09%
• ROI (Annualized): 210.48%
• Break Even Month: 26th
• NPV @ 30% p.a.: $3,756,386
• IRR:12.38%

Total Investment is $289,907:
• Investment in importing goods from China :$199,980
• Fixed cost (To support 6 months of operations): $89,927

Offer to the investor: 58% of total profit distributed on the basis of contribution in initial investment.
• Total Profit/Loss at the end of 36th month: $8,967,086
• ROI (Annualized): 161%
• Break Even Month: 26th
• NPV @ 30% p.a.: $3,756,386
• IRR:12.38% p.m.