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Highway Operator Investment Opportunity in Vadodara, India

Company providing surveillance during transportation of hazardous goods seeks funds to start a new project.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 100 - 500
Legal Entity Private Limited Company
Reported Sales Nil
Run Rate Sales Nil
EBITDA Margin Nil
Industries Highway Operators + 1 more
Locations  Vadodara
Local Time 2:07 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Seeking Investment
USD 2.5 million for 49.0% stake (Native Currency: INR 200,000,000)
Reason: The proceeds from the investment will be entirely used for executing a new project under the company... View More
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Business Overview

- Our company is essentially a specialized highway operator which provides 24*7 intelligent surveillance and tracking of vehicles carrying hazardous goods on highways through our control room.

- Currently, we are tracking about 18,000 vehicles carrying goods for our clients. Our surveillance includes over-speeding, theft of goods being transported, route violations, and handling of potential accidents. These actions are recorded using the GPS systems fit in each vehicle which transmits live data to our control room.

- Our clients include Adani, Nayara, Reliance, British Petroleum, UPL, GFL, etc. We have an in-house team of retired police personnel, retired CBI officers who work as our on-site emergency response teams.

- We are currently operating on multiple highways connecting Maharashtra, Madhya Pradesh, Uttar Pradesh, and Gujarat. We have our rescue teams located every 90 kilometres on the highways.

- This investment opportunity is for starting a new project of opening specialized parking lots on the highways with the aim to improve the quality of life of the drivers, safety of the vehicles, and goods being transported.

- The proceeds from the investment will be entirely used to start this new project. This new project will be carried out under our registered company itself, as a different line of operations alongside our surveillance services. We will not be incorporating a separate company for these services.

- However, the 49 percent stake is not being offered in the entire company but in the new project only. The potential investor will receive 49 percent ownership of the new project and a proportionate share of profits generated from the project. There will be no profit sharing from the surveillance arm of services.

- Currently, the new project is in the idea phase where we are signing LOIs and MOUs with our existing client base which will ensure that their drivers will have mandatory rest stops at our parking lots. This will ensure guaranteed revenue from the project.

- This project will include the construction of 24 such facilities across our existing highway surveillance routes. We will be starting by constructing a few on Jamnagar-Panvel highway. We are already in talks with Reliance to lease the land behind their petrol pumps in order to construct our facilities.

- Each facility will include a dedicated parking space, bathrooms, shower, laundry zones, restaurants, paan shops, recreational activities, mechanics, doctor-on-call, etc for the drivers.

- The drivers will pay INR 100 as an entry which will be directly earned by our company. They will be allowed to take 5 rest stops each day but the payment of INR 100 will be collected for only the first two. Each facility will have digital hoarding mentioning the space availability at the facility and we will also allow the drivers to pre-book a spot in the upcoming facilities on the highway through the mobile app.

- The total investment in the entire project will vary between INR 30 to 35 crores. We will be designing a comprehensive IT infrastructure that will digitalize the payments, and booking systems for seamless integration.

- We will be constructing the facilities and operating them ourselves where the entry fee along with the fee collected from any of the services availed by the driver inside the facility, will be earned by our company. We will also distribute franchisees where we will earn the entry fee along with royalty. We are still deciding on more details about the project.

- Due to our existing network of 18,000 drivers, the risk of not generating revenue decreases substantially. This makes the investment extremely worthwhile for the potential investor.

- Our company had generated INR 7.5 Cr as reported sales and run rate sales should reach INR 9 Cr as per the current monthly revenue being generated of INR 75 lakhs.

Products & Services Overview

- Our company provides intelligent tracking, and surveillance of the vehicles carrying dangerous, and hazardous goods on the highway.

- We provide emergency responses services across 4,000 kilometres through our on-site teams on the highways.

- We are looking to start a specialised parking lot for truck or lorry drivers on highways which provide them with multiple features such as safe parking area for their vehicles and its goods, clean accommodation, showers, and bathrooms for drivers, dedicated laundry zones, restaurants, canteens, etc.

Assets Overview

Physical assets include:

- Company-owned control room of approx. 7500 sq. ft.

- Company-owned five-floor corporate office along with 5 guest houses also owned by the business.

- Computers, navigation equipment, laptops, computers, and other advanced tech hardware in the control room.

- Furniture, and interior fittings in the of company-operated cavities.

- Company-owned vehicles.

Facilities Overview

- The business runs operations from a company-owed facility spread across 5 independent floors. The facility is used as the company's corporate office.

- The business has another company-owned facility spread across 7,500 sq. ft. which is used as a control room for monitoring the vehicles on the highway.

- The company also owns 5 guest-houses near the highways for their on-site teams to use.

- The business has a rented facility spread across 30,000 sq. ft. which is used for providing ground training to the staff.

- All these facilities are located in Vadodara, Gujarat.

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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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