Need help?

Rice Mill Investment Opportunity in Ponnur, India

Rice mill revived and generating revenue of INR 1 crore in the last 4 months.

Established 1-5 year(s)
Employees 10 - 50
Legal Entity Limited Liability Partnership (LLP)
Reported Sales Nil
Run Rate Sales USD 350 thousand
EBITDA Margin Nil
Industries Rice Mills
Locations  Ponnur
Local Time 7:45 AM Europe / Berlin
Listed By Management Member
Status Active
Overall Rating
Partial Stake Sale
USD 59 thousand for 10.0% stake (Native Currency: INR 5,000,000)
Reason: Require investment as working capital for the mill when peak season arrives in 3-4 months.
Includes physical assets worth USD 117 thousand
Interested to connect with advisors
Name, Phone, Email
Available after connect
Business Name
Available after connect
User Verification
Documents
GST Certificate
Business Overview
- The business is involved in processing of paddy to make finished products like rice, rice bran, and husk.
- The mill was earlier defunct but it was revived by us this year after we acquired it last year.
- Small scale operations have started and the business has made a revenue of about INR 1 crore in the past 4 months.
- Brand established for selling rice and byproducts.
- The business has established two legal entities, one for handling the operations and owning the brand; while the second one owns the land and equipment used by the first company.
- The investor will get a 10% stake only in the company that handles the operations and owns the brand.
- The business has the necessary certifications like GST, Certificate of Incorporation.
- The individual associated with this company who is handling this transaction is based in Germany and can be reached on their German mobile number.
Products & Services Overview
Steam rice, broken rice, rice bran, husk.
Assets Overview
Tangible assets owned by this entity include INR 1 crore worth of raw material paddy. The other assets like the land, plant and machinery are held under the name of another legal entity. The investor will not get a 10% share of those physical assets.
The plant setup includes:
- 2 ton steam boiler.
- 32 ton dryer.
- Full sortex machine.
Facilities Overview
The rice mill is located on an owned property of 2 acres and the mill takes up an area of 1 acres of this. The remaining space of 1 acres has a storage capacity for up to 60,000 bags of paddy each bag 75kgs.
Important note: The property and plant equipment are owned by a sister company and this business does not pay any rent to occupy the land.
The mill is located in Ponnur, Andhra Pradesh while the LLP is registered in Bapatla (20 km from Ponnur).
Capitalization Overview
- This legal entity has three shareholders in a 35:35:30 shareholding split.
- This entity has no outstanding loans, however, another legal entity has taken a loan for this business but the investor will not be exposed to these loans or debt.
Recent Activity
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. Note that SMERGERS is not liable for any loss, damage, costs, claims and expenses whatsoever arising from transacting with any other user from the website. The final responsibility of conducting a thorough due diligence and taking the transaction forward lies with the users. Please read best practices on SMERGERS.
Contact Business
1 Investor already contacted this Business. Register below to connect now!
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.
You might also be interested in these businesses
    Frequently
    Asked
    Questions
    • Why can’t I see the business’ name or contact number? How do I contact the business?
    • What level of due diligence does SMERGERS conduct on the businesses/member?
    • How active are the business profiles listed on SMERGERS?
    • How does SMERGERS rate business profiles?
    • Do I need to pay to connect with a business?
    • Show more