Photo - Manufacturing and Sales of  LED Lighting
33683

Manufacturing and Sales of LED Lighting

Ukraine, Kyiv city
Market: Light industry, Trade
Stage of the project: Operating business

Date of last change: 04.12.2018
Min investment
$  50.000
Total required
$ 250.000
Rating
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- is seeking a loan

Idea

We are an operating company in Ukraine. We are engaged in the conversion and sale of LED lighting throughout Ukraine for 3 years

Current Status

We are asking for financial assistance to rapidly integrate innovative LED technologies into the Ukrainian market for the purpose of providing Ukrainians, small and large enterprises with high-quality and high efficiency lighting products without harming health and the environment. Due to lack of circulating funds, we
can provide only a small market share with new LED lighting. Nevertheless, today our products are in great demand, and the development prospects of this field are promising. Over the years, we have taken a reliable position in the lighting market of Ukraine, winning consumer confidence and building a good sales network.
To date, we have successfully completed conversion projects of customary lighting to LED-based lighting in more than 350 branches of Raiffeisen Bank Aval, as well as in other office and warehouse premises, including government and children's institutions.

Market

The average annual growth rate of the LED’s market is 14% and the proportion of LED lighting in the world is rising over 60%. LED Lamp Market size was over USD 30 billion $ in 2017. Increasing consumer demand for energy efficiency and enhanced lighting systems, reduced prices, and increased technology penetration in general lighting will drive the LED lamp market.Stringent government policies across the globe favoring these bulbs by banning inefficient lighting systems and energy consumption are expected to augment the industry demand over the forecast period.

In Ukraine LED market is only starting to grow. It is great opportunity to be on the rise of it.

Problem or Opportunity

The mission of our company is to replace outdated sources of light that are harmful to health and the environment, and which have been banned at the legislative level in many European countries.
Despite the fact, that year by year the LED technology market is rapidly developing around the world, in Ukraine this trend is at the nascent stage. The average annual growth rate of the LED’s market is 14% and the proportion of LED lighting in the world is rising over 60%.

Solution (product or service)

Replace outdated sources of light by LED lighting

Competitors

Unlike our main competitors (for example, Philips, Osram, Maxus)

Advantages or differentiators

Our advantage is price affordability, as the cost of LEDs is quite high in the Ukrainian market. So our main goal is to keep the balance between price and quality

Finance

We have a full financial model and we can send it for potential investor.

Plans
Revenue -2.200.000-2.500.000$
Gross profit - 550.000 - 650.000$
Gross Margin - 30-35%
Сosts - 210.000-240.000 $
Profit - 340.000 - 410.000$

Business model

First of all we have partners in China that produces LED lighting for our needs. We have strong cooperation for almost 3,5 year. After importing lighting in Ukraine we have different sales channel and many partners that helps us to deliver our product to Ukrainian people.

- We have almost 12 distributors (total of 87 sales managers) all over Ukraine
- 11 sales managers in our own team
- More than 70 partners in B2B sector
- More than 40 contracts with big factories and industrial complexes
- 3 managers for communicating with government tenders

Money will be spent on

Money will be spent on increasing product range, new technologies and quantity of products. Because of the lack of large capital, we cannot meet the demand for our products

Offer for investor

We can discuss it during the negotiations

Risks

We already work in this sector for more than 3 year and market will grow for next 5 years.

Won the competition and other awards

We have many recommendation across Ukraine for our products.

Also we took third place in "Best Lighting Brand of Ukraine 2017"

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Product Video