Photo - Production of modern biodegradable bags.
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Production of modern biodegradable bags.

Russia, Primorsky Krai
Market: Light industry, Production, Trade
Stage of the project: Idea or something is already done

Date of last change: 27.11.2019
Min investment
$  117.500
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Total required
$ 235.000
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Idea

We want to open a unique business for the Primorsky Territory and the Far East of Russia as a whole. Production of environmentally friendly bags and bags of the new generation of non-woven material Spanbond. Stronger and more convenient analogues of paper or polyethylene.

Current Status

There is a company with 3 years experience in wholesale.
A business plan is written and calculated.

Market

The consumer audience of our product is people of all ages and various wealth.
Our products are in demand not only in Russia but also throughout the world, which we will certainly take advantage of, selling half of our goods through Internet networks and aggregators to many other countries.
The audience is growing every day.
At the moment, only with the help of giants such as Amazon and Wish, we can reach up to 2 billion potential buyers around the world, with an average cost of our products at $ 1.5.
Against the backdrop of the "trade war", the supply of similar products in Europe and the United States fell sharply, and the price increased significantly.

Problem or Opportunity

Problem: the whole world refuses plastic, and there are very few high-quality and inexpensive analogues.
Opportunity: to take an empty pigment in the Far Eastern District of Russia and enter international markets at the peak of demand for our products.
Currently, this is no secret to anyone: the world community is extremely passionate about eco-movements and ideas. More and more people are interested in environmental issues and the future of the planet.
At present, being an environmentalist is not only extremely fashionable, but also economical, as a result of which more and more people are trying to use environmentally friendly materials. In addition, no advanced fashionista will refuse to buy such a handbag.

Solution (product or service)

We want to open a unique business for the Primorsky Territory and the Far East as a whole. Production of environmentally friendly bags and bags of the new generation. Stronger and more convenient analogues of paper or polyethylene.
We will make Spunbond from nonwoven fabric:
Packages and bags for cash registers in stores;
Packages for shopping;
Casual bags;
Bags for sports items;
Bags for picnics;
Bags-covers for shoes and clothes;
Covers for tablets and laptops;
Covers for storage of car tires;
Tablecloths and sheets for picnics;
Sheets and rugs for medical facilities;

All products can be used as promotional material.
Drawings and logos on the bags will be unique design, developed on the basis of surveys of the consumer audience.

Competitors

The nearest Russian manufacturer of spunbond products is 5,000 km away. From Primorye in Yekaterinburg, it is oriented to the Russian market, it covers the territory from the Urals to Moscow (West of Russia).
The closest main competitor is manufacturers from China, because of the trade war with the United States, high customs duties and poor quality products, they have difficulty selling products.

Achieving a competitive price for products, we will achieve through registration in the Territory of Advanced Development (working for 5 years with a preferential tax regime and the absence of export customs duties) and maximum automation of the production line.

Advantages or differentiators

Work without taxes for 5 years. (competitive prices)
Location near the international seaport (saving on logistics)
Unique design based on customer preferences. (good demand)
New, modern equipment (speed, quality and profitability).
And most importantly!
My partner and I are ready to work days and nights, to nurture and feed our project at all stages of growth and development. In the plans for further development, to transfer production to the full cycle, from the production of raw materials to final products, as well as significantly increase the range of products and make competitors dependent on the raw materials we produce.

Finance

The average cost of one product is 0.13 dollars
The average planned selling price in Russia is $ 0.30 per item
The average planned selling price in Europe is $ 1.50 per item
US $ 5 average planned selling price per item

   The planned sales volume, after launching and reaching the breakeven point, is 105,000 products per month.
   Reaching a sales volume of 105,000 products per month is planned within 12 months after receiving funding.
   Revenues for the next 12 months after reaching the planned sales volume will be approximately a minimum of $ 380,000. Net income for this period will be at least $ 90,000.
   In 3-4 years, we plan to reach a turnover of $ 1,540,000 per year with a net profit of $ 692,000 per year.

Business model

Raw Materials Purchase - Production - Wholesale in Russia - Wholesale and Retail Sales Abroad.

In the future, it is planned to expand and establish the production of raw materials (full cycle enterprise)!

Money will be spent on

Acquisition of equipment.
Workshop rental.
The first 5 months of work, until independence.

Offer for investor

10% profit
30% share of the company

Risks

The increase in authorized pressure on our country may slow down the development of the project in international trade.
The opening of competitors in the region may also slow down growth.

Photos

Photo 1 - Production of modern biodegradable bags.

Product Video

Website address

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Idea
Current Status
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Finance
Invested in previous rounds, $
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Money will be spent on
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Product Video
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