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MAAMBA CLAY BRICKS LTD-ESTABLISHMENT OF CUSTOMIZED CLAY BRICKS PRODUCTION PLANT


Project No: #19654
Capital needed
USD 12,200,000
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Minimum investment per investor: 250000
Country: Zambia
Reason for needing Capital: Research & Development
Stage: Pre-Startup
Ideal Investor Role: Indifferent
Highlights: Revenue of US$ 3,562,341 in the second year after set up. This is against
the yearly fixed costs of US$ 2,525,407 and consisting of sale of 1,000,000 bricks per month
at 30 cents per brick. Business will have generated sufficient revenues to be able to pay back the US$ 12,150,000 by the 10th Year.
What you offer to investors?: 1. Interest on Capital
2. Shares Options

1.0 INTRODUCTION/OBJECTIVES
The main objective of this business concept is to reach out to investments
opportunities as well as to actualise the Public Private Partnership initiatives
promoted by the government in meeting deliverables to the Zambian public. A
business opportunity has been identified that will stimulate economic growth in
the designated operation area as well as maximise shareholder investments
through high returns from the said business activity. It requires a capital
injection to kick start the economic activities and people’s lives.

2.0 BACKGROUND
A market opportunity was realised during a return trip to Zambia via Palapye,
Botswana that the clay brick became a possibility as a
viable business in Zambia. The
The interest was driven by the fact
that, the very cement we were importing was a major factor in cost
ineffectiveness of building and maintaining a home. Maamba Bricks Ltd targets
to exploit a market opportunity that has arisen in the region markets in
Botswana, Namibia, Zimbabwe and Zambia. It is estimated that about
12,000,000 bricks will be sold annually to the above targeted countries broken
down into a minimum of about 3,000,000 bricks in each country.

3.0 JUSTIFICATION
As earlier stated, the idea to reintroduce the clay brick as a major component in
the construction of a home, instead of just a decorative addition. trading in clay
bricks commenced and we have been consistently doing that for 5 years. Why
import bricks? Why reduce market share of locally produced bricks? A living had
to be made and the decision to change from cement to clay bricks, was not only
a stroke of genius but also brought a realization of the past becoming the future.
A developing country such as Zambia requires to utilize all the necessary
resources adequately and prudently. This clay product is an adequate and
prudent investment.
Zambia’s infrastructure revolution, coupled with Zambians exposure to regional
infrastructure designs, has increased the appetite for a diverse variety of
attractive building materials.
We tapped into the Zambian renewed desire for quality building products by
being a mirror for the clients desire for their preferred product.
The standard we aspire to start manufacturing is not just because their
attractiveness but they possess qualities that make their carbon credit rating as
being extremely favourable. Therefore, these products are vital in reducing the
carbon foot print on the environment.

The advantages of the bricks are as follows:
- Thermal properties of the bricks reduce the electricity consumption
- The bricks have life cycle of 500 years, therefore putting less strain on
Natural Resources
- The bricks will add value to a building. The quality of the bricks used is visible
and not hidden behind plaster and paint.
- The cost comparison of these bricks and other products is incomparable.
There is no cost of plastering and repetitive painting or maintenance [re-
plastering and painting]. This reduces the cost of maintaining the building
over time.
- Clay bricks do not expand, shrink or crack like other products. This further
will reduce the cost of maintenance. Our desire to venture into establishing a
brick factory in Zambia, has been necessitated by the instability of fuel prices,
sudden changes in exchange rates and erratic changes in transport rates.
Government has agreed in principle to purchase a bulk of our future products,
due to the emergence of newly gazetted districts, that are to be constructed.

4.0 ACTIVITIES
The detail activities of the business will include:
- Market Research and segmentation
- Production quantities according to the researched markets
- Installation of plant and equipment to meet the targeted quantities
- Recruitment of production labour force to meet the demands of the market
share
- Marketing to various stakeholders including the government of the Republic of
Zambia as a major stakeholder in national infrastructure development
agenda.

5.0 BUSINESS LOCATION
The physical location of the business will be in Maamba in the Southern part of
Zambia which is conducive to this type of business owing to the abundant clay
soils and other natural resources required to effective conduct the business.

6.0 STAKEHOLDER ANALYSIS
As stated above, the government of the Republic of Zambia will be the major
stakeholder in terms of market share and also guidance to the kind of
infrastructure development agenda. This will lead to other government
departments and its labour force requiring the clay bricks.

7.0 FUNDING REQUIREMENT
To achieve the desired production quantities according to the market research,
the company will require a total investment of US$ 12,150,000 specifically for
the following:
Initial project reports US$ 200,000
Leasehold Land and clay US$ 800,000
Factory Buildings US$ 1,700,000
Machinery & Equipment US$ 8,250,000
Working Capital US$ 1,200,000
TOTAL CAPITALIZATION US$ 12,150,000




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