Company Overview
The company engages in trading and distribution of alcohol, solvents, chemicals, and food commodities.
- It exports to India and Africa and has branches in Dubai and India with a turnover of USD 10.7 million and USD 5.1 million respectively.
- The promoters plan to establish a distillery in Jharkhand or eastern Uttar Pradesh with a project cost of USD 15-16 million and a capacity of 100 kL/day. 70-75% will be financed by a bank, while the remaining 25% will be contributed by the promoters and potential investors. The exit period for the investor is expected to be 6-7 years.
- Despite facing competition from existing products, the project benefits from government incentives, PLI benefits, and projected demand that will exceed supply.
- Over the past three years, the company has been growing at an average CAGR of 10%.
Product or Technology Overview
The company’s products and services include:
- ENA (Grain): Ethanol produced from grains, used as a fuel additive and in the production of alcoholic beverages and sanitisers.
- ENA (Molasses): Ethanol produced from molasses, a by-product of sugarcane, also used in the production of alcoholic beverages and sanitisers.
- Ethyl Acetate (Etac): A chemical used in the manufacture of perfumes, pharmaceuticals, and flavours.
- Methanol: A colourless, flammable liquid used as a solvent, fuel, and antifreeze agent.
- Liquid Glucose: A syrup made from corn starch, used as a sweetener and in the manufacture of confectionery and baked goods.
- Corn Starch: A fine powder made from corn, used as a thickener and in the production of various food products.
- Rice Gluten: A by-product of rice milling, used as a source of protein in animal feed.
- Denatured Spirit: Ethanol made unfit for human consumption by the addition of chemicals, used as a solvent and fuel.
- IMFL: Indian Made Foreign Liquor, a term used to describe locally produced alcoholic beverages that mimic foreign brands.
- Concentrate of Alcoholic Beverages: A concentrated form of alcoholic beverages, used in the manufacture of various products such as wine, beer, and spirits.
- Contract Bottling: A service in which a company bottles beverages on behalf of another company or brand.
What the Company is looking for?
Target Country:
Opportunity:
The company has expressed a preference for a foreign investor, but is also willing to consider domestic investors, and is looking to dilute 15-20% of the equity. The company is open to exploring debt financing options, and the proposed project will be a greenfield investment.
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