Opportunity Snapshot
- Country: India
- Industry: Manufacturing
- Stage: Expansion/Growth
- Years in operations: 3, Employees: 120
- Investment size: $6,000,000 / min. $4,000,000
- Type of investment: Debt, Equity
Investment Opportunity
A modern state of the art Tissue / Hygiene Paper manufacturing unit, ultimate capacity: 25000 TPA needs funding as debt or equity.
The Paper Mill has located just 70 km from a Sea Port, on an 80-hectare area with all permissions from authorities, modern effluent treatment plant for wastewater and making today only 8000 TPA of paper both virgin grades ( from bought out the wood pulp) and recycled grades.
Machine designed and conceptualised for producing 25000 TPA of paper. Capital investment to the tune of USD 4 to 6 million is required to scale up the capacity. Mill have a full order book for 25000 TPA of paper and Product sold against cash (no credit). Raw materials are Pulp (imported) and waste paper also mainly imported. The expected EBITDA on 25000 TPA production is 25%.
The Mill is designed by Italian experts and key equipment delivered by well known Italian machine builders. Great opportunity for an investor. Per capita, Tisue consumption in India is 20 grammes whereas it is 6 kg in China, 15 /22 kg in Europe and 25 kg in the USA.
Competitive Advantage
Growing market, good export market, no credit given for supplies. An untapped market as per Tissue world Magazin.
Rationale for the deal
India tissue paper manufacturing is in a nascent state. Only 2 major players today. India manufactures around 150 000 tonnes of tissue paper whereas China produces 6 million tonnes. We expect huge growth and CAGR of 15 to 20%
Use of financing
Capex for the addition of a forming unit and some ancillary equipment and installing a pipeline for water (Permission from state available) from the river to the mill (partly completed). A solar Power plant is also envisaged.
Opportunity for the investor
Good Asset with good returns after 2 years.
Enterprise value after CAPEX investment estimated as EUR 40 million in 4 years.
All financial statements, ROI etc can be shared if interested.
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