Transportation of non-metallic materials

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Project description

The company "24 SAND" Ltd was founded on 08.11.2018, ITN — 7714434648. The main activity is the transportation of non-metallic materials. The actual address of the company: Moscow, Vyatskaya str., house.70, p. 2, office 721. Today the company has 5 employees (Director, accountant, 3 managers). The expenditure part of the company per month is RUB 600,000 (including all taxes except VAT).Our business concept is that we work exclusively with hired transport.

By March 01, 2019. We have an electronic database of carriers, which includes 520 potential active partners, and every day their number is growing.

In less than 4 quarter of 2018. our turnover was RUB 8 200 000, the work was conducted through intermediary companies, which are constantly shifted the terms of payment for the work done. In this regard, many of our partners in January-February of this year stopped cooperation with our organization because of delays in payment.

This situation led us to the conclusion of a direct contract with JSC "DSK" Avtoban", which is the General contractor for the construction of the a-113 route (CKAD), the delivery of which will be in 2021, which required a lot of effort.

According to the situation on March 1, 2019, 4-5 dump trucks are in operation, although the allocated quota from JSC "DSK" Avtoban" is 30 cars. Unfortunately, we cannot attract more transport, due to the inability to pay 2-3 times a week (which is the norm of payment to carriers), as JSC "DSK" Autobahn" pays for our services 1-2 times a month.

Quota limit allows us to carry a day 4500 m3 (150 m3 per car). From each cube, our margin is 20 rubles, respectively, when transporting 4500 m3 per day, our margin will be equal to 90,000 rubles per day. Monthly income is 2700000 RUB

To fulfill this quota (30 cars) we need working capital in the amount of 10.000.000 rubles.

In the near future, we plan to conclude contracts with leading road construction organizations (general contractors.)

At the conclusion of contracts and the receipt of a quota on cars will require more investment (from 30 cars — 10.000.000.)

All invested funds (100%) are returned within a month with a margin, as customers pay once a month.

We offer equity participation or investment funds.

Additional information

Project initiator:

  • graduated from the civil engineering Institute in Vilnius.
  • the last 3 years worked in Russia in a private road construction company for the delivery of non-metallic materials on the M-11 track, had its own trucks
  • extensive experience and knowledge in the field of road construction.

Market analytics

Our competitors are the large automobile companies on which balance there is a personal dump transport from 30 units and above.

Our consumers are all General contractors for the construction of Federal and Regional roads.

Namely:

"Transstroymechanizatsiya" Ltd,  its objects: M11 (Moscow-St. Petersburg), the M4-Don (Moscow-Rostov-on-Don); 

JSC "WAD" is a General contractor of the Tavrida route (Kerch-Simferopol); 

DSC "Autobahn" is the General contractor Moscow 4 bypass ring (CKAD-4). 

All of the General contractor’s objects are all over Russia, as the amount of work large and own equipment they do not perform the full amount of work, they are forced to attract hired transport for the transport of non-metallic materials.

Due to the fact that the general contractor makes payment for the work performed to the involved companies once a month, as well as the gene. the contractor does not enter into a contract with small companies, in this regard, many small companies involved cannot enter into a direct contract, as well as these companies cannot withstand such a long period of payments (1 time per month), as they constantly need working capital for fuel, spare parts, wages and all sorts of unforeseen expenses.

To date, we have combined several small transport companies that cannot wait for payment of 1 month, we Finance them 2-3 times a week. And they themselves receive payment from the General contractor pay 1 time per month. Since our budget is also limited, we can afford to hire several small companies.

Working under this scheme, we can take an unlimited number of machines, combine them all and perform in front of the General contractors as a major carrier in this market.

Monetization sources

Quota limit allows us to carry a day 4500 m3 (150 m3 per car). From each cube, our margin is 20 rubles, Respectively, when transporting 4500 m3 per day, our margin will be equal to 90,000 rubles per day. Monthly income is 2700000 RUB

Sales strategy and marketing

The main concept of the business is to work only with hired transport.

Today we have an electronic database of carriers, which includes 520 potential partners, and every day the number is growing.

Project detailed information is available to investors after authorization.

Project detailed information is available to investors after authorization.

Project No. 47498
Created on: 14.03.2019

Russia


Project price: 12 000 000

Investments volume: 10 000 000


Stage: Development of existing business


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Contact details of entrepreneur

Gedvilas Saulyus Yustovich

Russia
Carriage / transport / logistics