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While the market for such a plant can easily accommodate a 350 tonne per day operation the business plan is based on processing 150 tonnes per day only with the ability to later expand to multiple plants of 350 tonnes per day each. The plan calls for raising the $2.9 million from public equity financings.
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The corn grinding project would require a loan of UGX 7.8 million. This business is projected to have a Return on Investment (ROI) of over 60% the first year. If UGX 4 million were not set aside for other capital expenditure for the first year ROI would be considerably higher. Similar rates continue into the future.
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This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company's production location. • Financing for the first six months of operation. • Capital to purchase the Company's inventory. Mr. Doe will contribute $50,000 to the venture.
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