The expansion of the existing foundry

Project description

The project for the development of the existing production of Souvenirs in the city of Volgograd with a total capacity of up to 2000 units of products per month method of casting and up to 3000 units of products by centrifugal casting. In the process of implementation, the project will create an additional 7 jobs.

By type of investment

1. Purchase of equipment 4822, 99 thousand.

2. The purchase of materials 1645, 18 thousand.

3. Software acquisition (SOFTWARE) 256, 91 thousand RUB

4. A license and safety 82, 36 thousand.

5. Transportation of equipment and materials 94, 89 thousand.

6. Mounting and installation hardware 72, 10 thousand.

7. Testing equipment and the production of trial products 25, 00 thousand.

TOTAL project 6999, 43 thousand RUB.

Payback period: 28 months. Yield: 33%.

The NPV of the project: 9768, 18 Tr IRR: 19%.

The costs of providing the activities of the enterprise during the project implementation we plan to pay out of current assets.

The calculations of the volume of sales, profitability, forecasts of cash flow (in Excel format) and project presentation (in PPT format) are available.

Offer for investors: the agreement on project investment at 28 months with a return of monthly differentiated payments starting from the 6th month from the beginning of investment, at 20% per annum (may be other options, all discussed).

Brief description:

In may 2015 it was organized and is now developing enterprise for the production of various products from ferrous metals (brass, bronze and other alloys except steel) using the technology of investment casting.

On 01 April 2016 the total amount of investments in the business amounted to 6110, 75 thousand rubles (tangible and intangible assets).

The company is located in rented premises of 100 sq. m. the Amount of monthly rent with utilities is 29 000 rubles. the Cost of electricity an average of 10 000 rubles/month.

The enterprise currently employs 7 people: a Director, Manager, artist, master of caster, vaskovich and polyresine. For individual art and design works, we also engage freelancers. PAYROLL is 148 thousand RUB Accounting and tax accounting is carried out by the outsourcer, OOO "Balance".

The range of manufactured in current production is a product of figurines with a diameter up to 80 mm up to 150 mm in height, medals, coins from non-ferrous metals (brass, bronze, Nickel silver, etc.); magnets based on acrylic blanks; plaster painted figures; articles of synthetic resin. The volume of production currently amounts to 1000 units/month for a total amount of 160 thousand rubles./month. The entire volume of production is sold.

Director and Manager of the store work with customers finished product and customers to manufacture new products. At the moment, the reached agreements and received orders for the production to 3,000 units per month in the amount of more than 1000 thousand RUB/month, work has begun with Museum complexes (first contracts) replication of Museum values, including non-ferrous and precious metals in the short term, the start-up of small-scale production of replicated products and jewelry of precious and semi-precious metals with inserts of artificial and natural stones.

In accordance with the foregoing, the company is facing the need to increase production capacity of today's production for five months at least 3 times. We see five main areas of development:

1) the Expansion of existing production at the foundry site, the adoption of technology of centrifugal casting for the production of low-melting metals.

2) Introduction and active use of 3d technologies (scanning, prototyping, milling, 3d modeling, etc.)

3) making copies of Museum pieces from ferrous and precious metals (galvanizirovali)

4) product Promotion (production and distribution of promotional and pos-materials, creation of an online store, etc.);

5) Development and improvement of technologies of production of new types and trends of souvenir production with the aim of expanding the range and increase sales with the subsequent registration of patents for inventions and introducing them into intangible assets of enterprises and the creation of a research laboratory (pilot production).