Andrew Tully

Parys (ZAF)
Role(s):
Founder/Owner/Principal

SynthCo

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Location: Parys
Industry: Manufacturing
Year Founded: 2007
Number Employees: 10-50 people
Description: “The newco’s aspiration is to be a diversified, specialist synthetic wood product manufacturer, marketer and distributor, both locally and internationally with balanced interests in resin, fibreglass and other composite material technologies through the company, its subsidiary and associated business partners.” A very short Exec Summary version Synthetic wood manufacturer of products used in the construction, leisure and funeral market verticals Products include : Garage Doors, Entry Doors, Caskets, Furniture pieces, Home décor / ornaments and even low cost housing modules The Market Initial target markets are for the supply of Garage Doors, Entry Doors and Caskets for the UE, US and African markets. In the UK, in 2006, B&Q were interested in hundreds of pre-hung entry doors. A supply contract was concluded. At the same time in South Africa, an agreement to supply 38 000 garage doors over a 3 years period was concluded, however, in both cases the 1st generation technology failed and the supply contracts lost. TODAY, after 2 years additional R&D at an investment of R6.2m, the 4th Generation technology is PERFECTED AND PROVEN as product has been made and sold locally. The Casket market is significant as in the US, 10% of this multi billion $ market are for fibreglass caskets which are sold annually. Average online sale price per casket is $2000, whereas we manufacture at 1/8 of that cost and can ship to the US and supply to the market at just over $1000, making over 100% margin per unit. Our casket product is innovative and superior to existing caskets in the US, UK and African environments. The Segment 1. Funeral Parlours and Life assurance companies (key channel partner) so as to add the caskets as part of their policy benefit. 2. The high end DIY market for Entry Doors and too supply the likes of B&Q in the UK and Builders Warehouse in SA. 3. Garage Doors to Installers. 4. Furniture accessories to the likes of Steinhoff International The Industry The construction and funeral industries are always busy. In the case of Garage & Entry Doors, the product benefits are; Key advantages of the product technology are; 1. Strength, 2. Durability, 3. Dimensional stability, 4. Thermal insulation, 5. Rot resistance, 6. Lightness, 7. Waterproof characteristics, 8. Resistance to impact, 9. Weather / UV resistant and 10. Maintenance free Bio friendly and bio degradability properties are available with the caskets. In the case of caskets, the industry has historically not been able to afford exclusive hand crafted units as was the case with Italian Caskets in the 1800's. Today, our wood replacement technology replicated on mass these classic units and provide them at economic process to the public in general The Advantage The technology has the ability to reproduce numerous wood products of outstanding craftsmanship and quality from materials based upon resin reinforced with fibre glass, foam and other related materials. These properties are well known, however this specific adaptation of a traditional technology has pioneered changes in wood grain manufactured goods. The use of this synthetic material is ideally suited in the manufacture of wood grain products such as garage doors, decorative wood carved entry doors, coffins and caskets, head boards, kitchen cupboards, art sculptures, and associated accessories as the technology allows for the realistic reproduction of wood grain and even animal skin with almost perfect replication. The purpose of this technology is not to compete at the bottom end of the market but rather at the top end of markets that expects quality and excellence which our products, based on this innovative system of manufacture, offer. Design registrations are underway. Some aspect of the technology are patentable. Its taken 3 years and ZAR 6.2m to develop… only a few people in the world know the technique, materials and formula to manufacture and ALL these persons are part of the TEAM ready to deploy. We have the team, the technology, the expertise, the market appreciation & competitive advantage with the capability to successfully establish as a market leader in Master Composite product manufacture. With the right business partner our objectives and aspirations will be achieved. The Team Chief Executive Officer – Andrew Tully Chief Production Officer – Jaco Vermaak Production Supervisor & 5 Team Leaders ready to start. This team has pioneered, R&D’d, built & previously deployed the infrastructure proposed, plus manufactured the doors, caskets and décor depicted† in this presentation. The expertise, know-how and capability of this team make them unquestionably, the global leaders in this 4th Generation Technology! Products include : Garage Doors, Entry Doors, Caskets, Furniture pieces, Home décor / ornaments and even low cost housing modules The Investment Our master composite, obtained under license from shareholders, is not excessively labour intensive and requires a conservative capital investment (over 70% as capital asset) as the training and development of the skilled labour force has already been done in laboratory conditions and in “real world” production line environments over the past years. Investment requirement breakdown is; Fixed Assets: Building improvements R 280 000.00 Equipment for Factory & production R 1 313 950.00 Furniture and Equipment R 178 969.42 Factory tools R 281 792.83 IT infrastructure R 230 601.91 Motor vehicles R 439 619.88 Moulds R 344 192.20 Masters R 130 900.00 Other assets: Raw material R 249 590.36 Working capital: Start up costs R 1 314 151.67 Angel investment required: R 4 763 768.28 Total Percentage Capex / Opex split: 72.41% excl IP value vs. 27.59% as Opex IP & knowhow (intangible) R 850 000.00 = 13% of value 100% ROI by Y3 A comprehensive business plan with supporting market research & financials is available for review from (URL removed)