In Egypt, we sell this range of goods to international retail chains such as Walmart, cash & carry — Costco Wholesale Corp, Walgreens Boots Alliance, Kroger Co, Lidl and Kaufland Our company has a weekly requirement for purchasing 30 containers - 40 per week from January 1 to January 31. The cost price of 1 container of fruit will be from $ 20 to $ 30,000 depending on the purchased item. We plan to make this purchase with the Arab Republic of Egypt. Logistics from the port of Alexandria to the port of European ports is 5 days. Customs clearance of cargo is 2 days, and delivery to final unloading is 2 days. Thus, from the moment of loading to the moment of sale of goods and receipt of revenue, the turnover cycle is 14 days. We intend to implement this procurement program in the following volume: Per week from 18-20 containers per week in January. The cost price of 1 invoice will be $ 11-12,000. That is, the need for a reliable equivalent per week will be $ 200-220,000. Consequently, $ 864,000 per month. The expected profit margin from each sale of a container, according to our forecasts, will be 4%. That is, with the help of. Foreign economic activity with Egypt, our company plans to earn $ 898,560 with a pessimistic scenario. With an optimistic attitude, the expected profit margin from each container sale will be 7.5%. Therefore, we plan to earn $924,480 per month. These funds will be used for goods with a long shelf life, despite the fact that this product is perishable. From February 1, in addition to the current volume of orange purchases, we plan to import fresh young potatoes. This item, in our opinion, is not perishable, and the shelf life can reach 45 days. In this regard, the expected profit margin from each container sale, according to our expectations, may exceed 10%. This is due to the following factors: In Europe, the season for local potatoes is ending, and due to this, a potato deficit is forming. Since potatoes are included in the consumer basket of essential goods, our company guarantees 100% sale of this product with a profitability of more than 4%. The planned volume of potato purchases will be 20 containers at a price of $0.5. That is, 1 container will be around 24,000*0.5 = 12,000$. The weekly requirement for a reliable equivalent will be 240,000$. Consequently, 960,000$ per month. The expected profit margin from each container sale, according to our forecasts, will be 6%. That is, with the help of foreign trade activities with Egypt, our company plans to earn 1,017,600$ with a pessimistic scenario. With an optimistic scenario, the expected profit margin from each container sale will be 8%. will be 1,036,000$. Consequently, we plan to earn 924,480$ per month. Thus, the capital increase for 2 months by importing oranges and potatoes will be, under a pessimistic scenario, $34,000 per orange and $57,000 per potato. The total capital increase is $91,000. The capital increase for 2 months by importing oranges and potatoes will be, under an optimistic scenario, $60,000 per orange and $76,000 per potato. The total capital increase is $136,000. We are also a monopoly on Egyptian mangoes, the season is from September to December. 5 containers per week. 1 container is $35,000. The total cost of the goods is $175,000. The minimum profit with a pessimistic mood of 5% will be $ 183,750 With an Optimistic mood of 20% will be $ 210,000. Thus, the profitability of this project for the requested amount for orange $ 860,000 and potatoes $ 960,000 for 2 months: January 2020 and February 2020, according to our forecasts, will be 7% for the Arab Republic of Egypt. And the capital turnover will be 2 weeks. We work with oranges from January to May. We work with potatoes in season from March to June. In Egypt, our partner company Alligator is our exclusive supplier. This partner of ours has its own fields and gardens in Egypt: 45% of all holdings belong to the company "Mark Trade Company". Due to our own production, a rented packing station in Egypt, the cost of imported oranges is 30% lower than that of competitors. And proportionally, a profit is formed due to this, which remains in our company's accounts in the ruble zone.
Since March, we plan to make purchases in South Africa. Logistics from the Port of Cape Town to the port of St. Petersburg is 21 days. Our company has financial resources for customs clearance, which is about 30% of the cost of the goods. We will do it ourselves. The turnover cycle of the requested loan will be 30 days for the first delivery, from the day of loading until the moment of sale of the goods in European countries. For the second, third and subsequent deliveries, the turnover cycle will be 21 days. A week from 18-20 containers per week in March, April and May. The cost of 1 invoice of Abbot pears will be $ 18-20,000. That is, the need per week in monetary terms will be $ 200-360,000. Consequently, per month $ 1,140,000. The expected profit margin from each sale of a container, according to our forecasts, will be 5%. That is, with help. Our company plans to earn $1,512,000 from foreign trade activities with Egypt under a pessimistic scenario. Under an optimistic scenario, the expected profit margin from each container sale will be 15%. Therefore, we plan to earn $1,311,000 per month. Capital growth over 3 months by importing different varieties of pears (depending on the product category) under an optimistic scenario will be $171,000*3 c = $513,000. In total, the total capital growth from imports from Egypt and South Africa under an optimistic scenario will be $649,000 from the bank's requested amount of $2,100,000 (960,000 for Egypt and $1,140,000 for South Africa) will be 30% in 5 months. South Africa has a long shelf life and does not spoil, does not lose quality and marketable appearance. Since the interest rate on the loan is 13%, we are completely confident in the profitability and success of this business project. South Africa from January to December, there is no interruption in supplies for this country We will also make purchases in Iran, China and other countries