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General machinery for agricultural applications (e.g. shredder)

Opportunity Description: Agriculture machinery locally built and designed. As an example, a shredding machine, or shredder, will be used. This machine is primarily used in processing agricultural produce and biproducts. Provide lower cost customer-specific machinery.
PRODUCT: General machinery
Sector: Sustainable Agriculture and Food Processing
Market: Medium-scale farms
Initial Investment Required: EGP 539,000
Details Available: Opportunity Study
Market Potential: Local medium-scale farmers. It can then focus on higher quality equipment and trading for advanced machinery.
Supply: Electrical and mechanical components from different suppliers.
Process: Machining and assembling
Human Resources: Technical and Business Development Manager – 1
Operations and Maintenance – 2
Manual Labor for installations – 2
Financial: CAPEX required EGP 20,000
6-month OPEX required EGP 519,000
IRR expected is 66%
Payback period around 1 year
Risk: Risk - High technical knowledge is required.
Mitigation – Capacity building needed before operations
Risk - Difficulty in finalizing sales deals and slow start for the business.
Mitigation - Complement business with trading in machinery, or utilization of used machinery, or machine renting and sharing.
Risk - Cash flow in financing building machines. Mitigation - start by producing a few units per month.
IMPACT: Social - Lower costs for agricultural activities.