According to statistical information available from public sector concerning annual consumption of cements boards, it is assumed that applicable coefficient for estimation of potential market size is 1.02 m2 per inhabitant of the country - local market.
Our objective is to try to penetrate different markets through granting the exclusive distribution rights and technology transfers to local producers and distributors, whom should have the opportunity to participate in the success of global promoting the advantages of this material, and achieve at least 5% share of existing market size related to cement boards!
Our objective is to try to penetrate different markets through granting the exclusive distribution rights and technology transfers to local producers and distributors, whom should have the opportunity to participate in the success of global promoting the advantages of this material, and achieve at least 5% share of existing market size related to cement boards!
Prospective producers and distributors are offered with:
- Fully automated manufacturing unit with production capacity 10,000 m3 of PLC mixture per annum, suitable for annual production at the range between 1 - 1.3 M m2 of POLYENERGO boards (depending on thickness and shape): technology transfer includes design, delivery, installation, and regular servicing of equipment (all components are with EU origin), training and education and professional assistance in certification of manufacturing process in accordance with ISO standards;
- Exclusive distribution rights under POLYENERGO trademark granted for operational market(s) of prospective producer/distributor!
What are the ECOPOWER and E3 LIFESTYLE HOMES LTD offering as the collateral and the comfort to the prospective partner?
- A unique Industrial Design and “Know How” – proven through the existing production and implementations of POLYENERGO products in projects built in Cyprus;
- Professional support through Financial Engineering: - optimised financing solutions concerning payments of commitment fee in accordance with business potential of prospective partner;
- Technological Flexibility – in the worst case scenario and non-successful launching of POLYENERGO products among targeted markets, designed manufacturing unit could be easily converted in producers of cement boards that will be offered at competitive prices;
- Global Promotion and Business Introduction through designated ECOPOWER campaign;
Illustration of Business Potential
Starting Revenue (assumptions for discussion purposes - manufacturing unit works with 20% of installed capacity during the first year of operations, and increase the production as follows: 50% during the second year of operations, 75% during the third year of operations, and full employment of installed capacities be reached in fourth year of operations) - starting revenue is assumed as follow:
POLYENERGO Product |
Quantity [m2] |
Number of Boards |
PLC Mixture Volume [m3] |
EXW price [EUR/m2] |
Monthly Revenue [EUR] |
Internal Board 2 cm |
2,000 |
694 |
40 |
4.40 |
8,800 |
External Board 3 cm |
1,333 |
463 |
40 |
6.60 |
8,800 |
Internal Board 1.2 cm |
13,333 |
4,630 |
160 |
3.30 |
44,000 |
Deck 6 cm |
667 |
231 |
40 |
17.60 |
11,733 |
TOTAL per month |
17,333 |
6,019 |
280 |
NA |
73,333 |
TOTAL per annum |
208,000 |
72,222 |
3,360 |
NA |
880,000 |
Operational Expenditures are assumed considering basic market prices and conditions in South East Europe, as follow:
- Fixed Cost (expenditures of premises, insurances, municipality taxes, marketing) are assumed at the range of 82,800 EUR per annum;
- Variable Cost (raw material, labour, energy and water consumptions) are assumed at the range of 108 EUR per cubic meter of produced PLC mixture;
Illustrative Profit & Loss Account for the first five years of POLYENERGO manufacturing unit operations:
Description |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Quantity [m2] |
208,000 |
500,000 |
750,000 |
1,000,000 |
1,000,000 |
Quantity [m3] |
3,360 |
8,077 |
12,115 |
16,154 |
16,154 |
Revenue [EUR] |
880,000 |
2,115,385 |
3,173,077 |
4,230,769 |
4,230,769 |
Fixed Cost [EUR] |
82,800 |
82,800 |
82,800 |
82,800 |
82,800 |
Variable Cost [EUR] |
363,087 |
872,804 |
1,309,206 |
1,745,608 |
1,745,608 |
Profit/Loss [EUR] |
434,113 |
1,159,780 |
1,781,071 |
2,402,361 |
2,402,361 |
Conclusions:
- Assuming that POLYENERGO manufacturing unit covers market size with population of 20 M, as well as that Capital Expenditures related to establishment are paid as equity consideration, the investment is paid pack during the second year of operations!
- If Capital Expenditures are partially covered through Financial Engineering offered by the Association, POLYENERGO manufacturing unit could be profitable as from the first day of operations!
- In the case that you want to work with POLYENERGO as the distributor, without establishment of manufacturing unit, exclusive distribution rights for targeted market could be granted, provided that commitment fee of 160,000 EUR will be charged.