[quote=ngapat]About Cembe
Cembe Millers Ltd is a new venture specialising in milling grains like maize. It was incorporated under the Companies Act (Cap 486) of the laws of Kenya. The company will produce maize flour in Kenya for human consumption across East and Central Africa. The by-products will be processed and sold as animal feeds.
Inviting Investors
Cembe Millers is calling on interested pioneer investors to own shares in the new company. This special joint venture is not to be missed by anyone who shares in our vision “To Feed the Community!”, while generating appreciable benefits.
Our company targets a daily production output of 1,000 bags of maize meal each weighing 90kgs. One kilogram(1kg) of of maize flour currently retails at approximately Ksh. 50/-. This translates to a total gross production of Ksh. 50 x 90 kgs x 1,000 bags which is Ksh. 4,500,000/-.
The purchase cost of 90 kgs of maize flour is Ksh. 2,600/- and we aim at buying 1,000 bags of maize per day. Initial Expected Returns Daily Purchase Cost: Ksh. 2,600 x 1,000 bags which is Ksh. 2,600,000/- Daily Gross Margin: Ksh. 4,500,000 minus Ksh. 2,600,000 which is Ksh. 1,900,000/- Annual Gross Margin: Ksh. 1,900,000 x 25 days x 12 months which is Ksh. 570,000,000/-
http://cembemillers.co.ke/[/quote]
Funny business case:
1. Assuming 100% efficiency - you buy 1000 bags of maize, and you expect them to produce the same 1000 bags of flour.
2. What about operational costs - power, rent, staff, marketing budget,other inputs, wastage, transport, finance costs? The returns will be very minimal.
3. Maize prices flactuate seriously in Kenya.
4. Have you started production? or are selling "shares" in something that hasnt even started?
5. Business valuation. Justify.
6. How many shares does your company have?
Run people, run..