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Newly Established Construction Machinery Company Investment Opportunity in Sharjah, United Arab Emirates

Business specializing in export of construction machinery to diverse African clients seeks investment for expansion.
This Business is on a Premium Plan
Established 0-1 year(s)
Employees < 2
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 480 thousand
Run Rate Sales USD 480 thousand
EBITDA Margin 40 %
Industries Construction Machinery + 1 more
Locations  Sharjah
Local Time 12:44 PM Asia / Dubai
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 1 million for 20.0% stake (Native Currency: USD 1,000,000)
Reason: Seeking an investment of $1 million to acquire additional inventory, specifically construction equip... View More
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Business Overview

Company stands out in the construction equipment sector with notable achievements and strategic advantages:

1. Diverse Clientele: The company has established a robust client base across various African countries, serving both small-scale projects and large infrastructure developments. There are ~ 20 to 50 clients.

2. Revenue Model: Revenue is generated through direct sales, long-term leases, and after-sales services, ensuring multiple income streams and financial stability.

Procurement is based on orders received and does not store inventory. Fulfill ~ 1 to 2 orders per month. Sourced from manufacturers in India.

3. Promoter Experience: The promoter has 25+ years in senior management roles have been instrumental in guiding the company's strategic direction and growth.

4. Strong Business Relationships: Has forged solid partnerships with leading equipment manufacturers and logistics providers, ensuring quality products and efficient delivery.

5. Recognition and Awards: The company has earned accolades for its commitment to quality, customer service, and sustainability practices within the industry.

These highlights underscore the company's strong market position, growth potential, and the strategic vision driving its success.

Currently, there is only one permanent employee, the workforce for logistics is outsourced.

Products & Services Overview

Our top-selling products and services might include:

1. Excavators: These are essential in construction for digging, demolition, and heavy lifting. They are widely used by construction companies engaged in building commercial, and residential properties, and infrastructure projects like roads and bridges.

2. Wheel Loaders: These machines are popular for their versatility in loading materials onto trucks, moving materials around job sites, and excavation. They are used by construction firms, mining companies, and in material handling within large industrial facilities.

3. Backhoe Loaders: Combining the functions of an excavator and a loader, these are useful for a wide range of tasks like digging, backfilling, and loading. They are particularly popular with small and medium construction projects due to their versatility and compact size.

4. Bulldozers: Known for their powerful capabilities in moving soil and rocks, bulldozers are a top choice for large construction sites, mining, and road building projects.

5. Tower Cranes: Essential for high-rise building construction, tower cranes are used to lift steel, concrete, large tools like acetylene torches and generators, and a wide variety of other building materials.

6. Concrete Mixers: These are crucial for making concrete on-site for the construction of buildings and infrastructure. They are used by construction companies of all sizes.

7. Road Rollers: Used to compact soil, gravel, concrete, or asphalt in the construction of roads and foundations, road rollers are vital for infrastructure projects.

8. Services: In addition to physical equipment, services such as equipment leasing, maintenance and repairs, and training for equipment operators are crucial. These services are in high demand from construction firms that prefer to lease equipment rather than purchase it outright due to capital constraints or the temporary nature of some projects.

The users of these products and services include:

- Construction Companies: These are the primary users, engaged in the construction of buildings, infrastructure, and other projects.

- Mining Companies: Utilize heavy machinery for excavation, earthmoving, and material handling.

- Government and Municipalities: For infrastructure projects, road maintenance, and urban development projects.

- Agricultural Sector: For land preparation, irrigation projects, and infrastructure development in rural areas.

- Industrial and Manufacturing Plants: For setting up facilities, maintenance, and handling materials.

How these products and services are used:

- Excavators and Loaders: Deployed at construction and mining sites for excavation, material handling, and site preparation.

- Bulldozers and Road Rollers: Used in the initial phases of construction and infrastructure projects for land clearing, leveling, and compacting surfaces.

- Tower Cranes: Integral to the construction of high-rise buildings, used to lift materials to great heights.

- Concrete Mixers: Used on-site to prepare concrete for foundations, slabs, and other structures.

- Services: Equipment leasing allows for flexibility and cost management, maintenance services ensure equipment longevity and safety, and training services ensure that operators can use the machinery efficiently and safely.

Understanding the specific needs and conditions in Africa, such as varying infrastructure development levels, the demand for cost-effective solutions, and the need for durable and adaptable machinery, is key to tailoring our offerings to the market.

Assets Overview

Assets encompass both tangible and intangible resources that contribute to its operational efficiency and market value:

Tangible Assets:

Office Equipment: This includes computers, printers, and other office machinery essential for daily operations. The value of these is negligible hence do not prefer to list.

Intangible Assets:

1. Brand Value: Reputation and brand recognition in the market, especially within the African construction sector.

2. Client Relationships: Established connections with a diverse client base and strong relationships with suppliers and manufacturers.

3. Industry Expertise: The extensive knowledge and experience of Sarfaraz Karmali in the construction and automotive sectors.

4. Operational Processes: Proprietary systems and procedures for sales, procurement, and logistics that enhance efficiency and service quality.

5. Licenses and Permits: Necessary legal authorizations for trading and exporting construction equipment, enabling operation within regulatory frameworks.

These assets collectively underpin operational capabilities and strategic positioning in the market.

Facilities Overview

Operating from a shared rented office space in Sharjah Media City (SHAMS) Business Centre.

Capitalization Overview

Sole proprietorship business.

Currently fully funded by the owner.

The business operates without any external liabilities, debt, or outstanding loans, reflecting a strong and stable financial foundation.

Recent Activity
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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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