Photo - LLC EnergyKhurs
43104

LLC EnergyKhurs

Steel part and elbow, reducer, tee, fitting elements

Belarus, Minsk city
Market: Mechanical engineering, Petroleum refining, Production, Power Engineering
Stage of the project: Operating business

Date of last change: 09.06.2020
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Idea

Details of pipelines (elbow, reducer, tee) according to GOST. Refinement of products for the needs of customers (oil and gas industry, heat and power). Application of protective coatings. Investing under concluded agreements (Belarus, Russia).

Current Status

The operating enterprise since January 2014. The annual turnover is 300-400 thousand $ per year. The presence of a customer base, existing contracts with customers (wholesalers, end users), a participant in exchange trading on metal products (ongoing transactions). There is a mini-shop for coating steel parts with zinc. Authorization documents have been received (ISO 9001-2015), we are undergoing tests to receive the Declaration of Conformity (regulation 032-2013 format 5d). The experience of employees in this industry is over 10 years.

Market

Products are supplied to the customs union market. Basically, this is its Belarusian market with end-users and wholesalers, as well as the Russian market with wholesale companies. Of the other countries included in the customs union, Kazakhstan is being developed (there are oil and gas fields) and Uzbekistan (has gas fields).

Problem or Opportunity

Contracts have been concluded with customers, according to which it is necessary to ensure uninterrupted supply of products throughout the year. The lead time for customer orders is 1-2 weeks. It takes 90-120 days to purchase and logistics raw materials, semi-finished products, products, including their refinement and coating. The client cannot wait long, therefore investments are needed for the procurement activities. Thus, we will ensure uninterrupted supply of finished products to our customers.

Solution (product or service)

Details and elements of steel pipelines for the oil and gas and heat power industry. The main details are: carbon steel elbows, transitions and tees. Made strictly according to GOST. At the request of the client, we make easy refinement and apply a zinc coating (thermal diffusion) with a thickness of 15-100 microns (an analog of hot-dip galvanizing).

Competitors

There is one manufacturer in Belarus, 80% of its products are supplied to the Russian market, in the price category we win 5-10% (depending on the type and type of products), 70% of the product range. In Russia there is more competition due to manufacturers (4 plants), we win at a price of 20-30%, in logistics (covering the central part, north-west and south of Russia).

Advantages or differentiators

We focus on products out of stock, when the client cannot wait, he needs to quickly and quickly close his problem - this is the main advantage. Our biggest advantage is the availability of goods. The second advantage is the price. The third advantage is the location in the city of Minsk: in Belarus, to the main district cities no more than 300 km; in Russia, to major cities no more than 1000 km (St. Petersburg - 800 km, Moscow - 700 km), which allows the client to get the necessary products within 24 hours.

Finance

Investing from 1 to 3 million. $. We offer to invest $ 1 million over a period of 18 months, we begin to pay interest to the investor every month from 6 months from the moment of investment. Interest rate - 20% per annum. Under a 30% share of the enterprise. Within 18 months, the investor receives the expected result and dividends, we propose to extend the partnership for 3 years (or a longer period as agreed). You can increase investment by $ 2 million on the same conditions, at 20% per annum, according to an additional nomenclature: flange connections (they are used for mounting valves on pipelines, consumers are the same enterprises and companies that purchase bends, transitions and tees); fasteners (used in the same field, customers are the same enterprises and companies).

Money will be spent on

Purpose of investments: Purchase of raw materials, semi-finished products, blanks for the completion of products and uninterrupted supply of finished products to their customers under the concluded agreements. The amount of investment 1 million. $. 66 containers (40 lb, 20t) are needed for the purchase, delivery and customs clearance during the year. The price of 1 container (20 tons of products) is 30 thousand. $. During the year, $ 2 million will be spent on the purchase, since the turnover is 120-150 days, that is, the purchase amount in January will return and be reused in July, and then next January.

Offer for investor

The annual percentage is 20%, monthly interest payments
and begin at 6 months from the date of investment, in the currency of investment. Under a 30% share of the enterprise. The investment period is from 18 months to an unlimited period. I will send the payment schedule and business plan by e-mail. For product information www.piparm.com

Risks

Risks:
- exchange differences for products shipped for which there is a deferred payment (the price of products is always fixed in dollars, in case of currency fluctuations, the goods are calculated according to the exchange rate);
- non-payment for delivered products during deferrals, according to tenders (in this case, we set the debtors for taxes through our tax);
- the effect of competitors in the market, that is, sales and discounts on products below the market by 50% (this very rarely happens and usually the product is illiquid).

Photos

Photo 1 - Steel part and elbow, reducer, tee, fitting elements
Photo 2 - Steel part and elbow, reducer, tee, fitting elements
Photo 3 - Steel part and elbow, reducer, tee, fitting elements
Photo 4 - Steel part and elbow, reducer, tee, fitting elements
Photo 5 - Steel part and elbow, reducer, tee, fitting elements

Product Video

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