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| FNT-BIZ-D/01 |
Joint
Venture / Private Equity Partner required for Industrial
Solders & Aluminium Alloy Ingots Company in Chennai,
Tamil Nadu |
- Brief Profile of the Company
- It is a 23year old ISO 9001:2000
company engaged in the manufacture of Aluminium
Alloy Ingots, Aluminium Castings, Zinc Castings,
Aluminium Extrusions, Aluminium Profiles, Industrial
Solders, Fluxes, etc., in the SME segment.
- The present turnover is Rs.15crore, with a projection of Rs.30crore for the year 2008-09 with the existing facility.
- They are now looking for a prospective Joint Venture
Partner / Private Equity Partner to augment the
existing facilities and working capital requirements,
since their core business activity revolves around
automobile components / construction industry, which
is extremely doing well.
- In this connection they require an amount
of Rs.12crore towards Joint Venture from genuinely
interested parties. They are also open to private/public
equity.
- The company was incorporated in 1995 with the main aim of starting a manufacturing unit of Industrial Solders and Aluminum alloys. Mr. T.R.Viswanathan and S.Swaminathan and others promoted this company.
- Promoters started the business of Industrial solders
as a proprietary concern in the year 1985 later
they converted it in to a Private limited company
and has own manufacturing facilities at 3 locations.
- The company is producing the following major products
i.e. Aluminium Alloys Ingots, Aluminium Profiles,
Aluminium Castings and Aluminium Machined Components.
- The products are used in the auto component industry,
construction industry and bus body building units
of mostly state government transport corporations.
PRODUCTION
DETAILS |
| |
Production
for Last Three Years |
Production
Proposed for next three years |
Products |
2003-04 |
2004-05 |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
| Alloys |
417 MT |
835 MT |
1035 MT |
1500 MT |
2400 MT |
3600 MT |
| Profiles |
13.5 MT |
82 MT |
178 MT |
250 MT |
1200 MT |
2400 MT |
| Solders |
40 MT |
15 MT |
5.4 MT |
10 MT |
20 MT |
30 MT |
| Castings |
- |
- |
- |
100 MT |
600 MT |
1200 MT |
- PLANT & MACHINERY
The existing units have the following machinery like
375 ton extrusion press, 4 & 2 ton capacity rotary
furnace for making alloys, 2 crucible type furnaces
to manufacture billet/ casting. Company has a well
established laboratory set up equipped with state
of the art CCD Technology based optical emission spectrometer.
Company has got 5HP air Compressor, 20 KVA & 62.5
KVA Generators.
The company has added additional machinery like 700MT
Press + Installation, Billet Cutting Machine, Billet
Heater, Ageing Oven, Finish Cutting, Nitriding Furnace,
Air Compressor, Bale Out Furnace.
- POWER
At all the premises, already an existing connected load of 300 HP under LT supply is available, which is sufficient for the existing machinery and its operations.
To take care of the power cut, already an existing Diesel Generator of 20 KVA and 62.5 KVA capacity is installed at the premises. Company is planning install 2 diesel generator of 125 KVA each.
- WATER - Apart from the normal supply
of water from the Board, bore well available in all
units.
- FUEL - The units are presently
running on LPG.
- Applications of Aluminium and its Alloys
in the Automobile, Defense and Aviation Sectors -
Aluminium alloy is used extensively in the auto industry
and as more aluminum is used per vehicle, the pool
of scrap aluminium is bound to increase to as the
metal in these vehicles eventually enters the supply
chain after they have been scrapped. Many alloys are
produced from scrap or recycled material, which makes
it an extremely environmentally friendly metal, which
is likely to grow in size. Similarly aluminum and
steel forging products are widely used in aviation
and defense sectors.
- Applications of Aluminium Extrusions in
the Construction and Transport Sectors -
Aluminium extruded, rolled, and cast products are
commonly used for window frames and other glazed structures
ranging from shop fronts to large roof superstructures
for shopping centers and stadiums; for roofing, siding,
and curtain walling, as well as for cast door handles,
catches for windows, staircases, heating and air-conditioning
systems. Most recently, aluminium has played a significant
role in the renovation of historic buildings. The
characteristics and properties of aluminium as a material
have lead to revolutionary and innovative changes
in building techniques and architectural and engineering
projects. Aluminium is leading the way into the future
of the construction industry. Aluminium extrusion
is used extensively in the transport sector to frame
the bus bodies.
- The Current Market Trend
Aluminum Alloys and Extrusions play a major role in industrial and commercial sectors. The success ratio will definitely be large as aluminum alloys and extrusions cater to almost all industrial and commercial sectors.
Many Automobile giants like Hyundai, Ford, Hindustan Motors, Ashok Leyland, TVS and BMW are situated in Chennai.The requirement for Aluminium alloys are around 7000 MT per month. The current market trend for aluminum extrusions is around 700MT per month.
- SWOT -
1) Strength: 25 years of alloying
experience + skilled Work force + reputed Customers
+ boom in Auto Component sector + Company located
in the Detroit City of India (i.e. Chennai).
2. Weakness: Lack of Financial Support.
3. Opportunity: Almost all World
Auto Majors are focusing on India and China + Ideal
climatic conditions for foundry operations + Very
good Infrastructural facilities.
4. Threat: No major threat envisaged
than heavy rains.
- Kindly study the same and let us know your interest
at the earliest.
- Click
here to read the complete Investment Proposal.
- If you wish to go for a plant visit, kindly forward
the MANDATE LETTER on your Company Letterhead accepting
the Terms & Conditions of the Consultancy. Click
here to download the MANDATE LETTER format.
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| FNT-BIZ-D/02 |
A
running profitable Aluminium Casting unit in Ambala,
Haryana for Sale or Acquisition |
- The unit is into manufacturing of Aluminium casting parts supplies are to leading Automobile Companies of India.
- The unit has also been exporting to European and American Companies for the last many years.
- The unit was established in 1992, and is ISO: 9001: 2000 Certified.
- The factory is located near Ambala, Haryana.
- The total land area is 4840 sq.yards, and the covered area is 15000 sq.ft. (approx).
- The techniques used in Aluminium casting are Low pressure Die-Casting, Gravity Die-Casting, and Sand Casting.
- The installed capacity of the unit is 2000 Kg/ Shift, and a load of 49 KW is sanctioned.
- The unit specializes in manufacturing all kinds of critical and non-critical cast Aluminium parts.
- The foundry is backed by an in-house tool room with CNC Machining, which are duly supported by the best available software, enabling 3-D (CAD) parametric modeling, mould/ die designing and mould/ die manufacturing (CAM).
- The unit offers the facilities of complete machining as well as desired assembly of components (as per customer's requirement).
- This unit is best suited for buyers willing to invest in a business involving regular orders and low marketing efforts.
- Reasons for Selling the Business - Seller intends to immigration to Canada and plans to move next year. He intends to set up his International
Marketing Business, to be operated from Canada. This can help the current unit in getting enormous export
orders.
- Why you should buy this business?
1) Repeat orders are the biggest advantage of this business. The intake of even one single buyer is so huge, that if one keeps on supplying quality goods and provides timely delivery to the buyer, there is no need for a wide-scale marketing. This unit is already supplying to leading buyers, and orders are ongoing. The potential is so huge that the turnover can be increased to more than Rs.20crore (by using the same infrastructure).
2) The unit is a regular supplier to a few foreign firms. These buyers are from European countries, Canada, and USA.
3) The owner intends to establish his International Marketing Consultancy once he moves to Canada. This can definitely help to boost the export market of this unit. Export orders usually get decent profits.
4) Since buyers are leading names in the Industry, payment terms are fixed (45-60 Days), and the payment is secure.
5) The Business is order-based, and there is never a problem of over or dead Inventory.
6) If one were to establish a new unit today, the investment would be much more than the asking price.
7) The unit has a decent goodwill in the market, and orders will never be a problem. The seller assures full cooperation to the buyers in further strengthening the domestic market.
8) The production involves a particular level of skill. Seller assures full support to the buyer in providing complete technical know-how as well as training. Owner is involved in this business for more than 15 years, and he is willing to share all the fine points of business with the buyer.
- The asking price for the complete unit is Rs.4.40crore.
1) Land (4840 sq yards, near Ambala) : Rs 1.50 crore
2) Building (15,000 sq ft) : Rs 0.96 crore
3) Machinery list can be provided at a later stage : Rs 1.11 crore
4) Dies, Moulds, Tooling, Jigs and Fixtures : Rs 0.35 crore
5) Goodwill : Rs 0.48 crores
- Current Financial health of Business
1) The Sales in 2007-08 were Rs.2.32 crore, and the net profit was Rs.23.5 lacs.
2) The Sales in 2006-2007 were Rs.3.02crore, and the net profit was Rs.18.14 lacs.
3) In the current financial year, the unit has already achieved sales of around Rs.1.5crore (Till 31st
August 2008).
If some more working capital is pumped in this business, the present installed capacity can
give sales upto Rs.20crore, and net annual profits of around Rs.2.5crores can easily be generated.
- Justification of Goodwill - Owner
has put in more than 15 years of hard work to establish
the business. It takes years to build a reputation,
and to win the trust of leading buyers. The unit on
date is supplying to leading names in the Industry.
Also, the unit is earning a net profit of around Rs.23.5
lacs. It may take years for a new manufactures to
reach this stage. Thus a business goodwill of Rs.48
lacs (which is around two years of net profit) is
justified. Complete technical know-how, existing clients,
marketing support for next few months is included
in this figure. The buyer will enjoy the luxury of
having orders in hand from the very first day of starting
his business.
- Domestic Buyers - The firm supplies
to leading Tractor manufacturers of India. If some
more Working Capital is pumped in to this business,
getting twice or thrice the amount of orders from
buyers will not be a problem.
- Exports - The unit has direct exports
to the following countries:
· The Netherlands, · USA, · Canada
- If you wish to go for a plant visit, kindly forward
the MANDATE LETTER on your Company Letterhead accepting
the Terms & Conditions of the Consultancy. Click
here to download the MANDATE LETTER format.
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