Duration

6 months

Min. Investment

৳ 10,000

Projected ROI

16.5% (annualized)

Risk Grade

B

Overview

Eminent Agri Industries is a leading producer of  dairy products such as mozzarella cheese, ghee, and butter.  The business has been serving various hotels and restaurants since its inception. The business is seeking investment for purchasing raw materials to increase its inventory.

This is a “buy-and-sell” (Murabahah) contract where investors can enjoy an ROI of 8.25%* over 6 months (annualized expected return of 16.50%).

*subject to investment risk (details below)

Adabor, Dhaka, Bangladesh

Eminent Agri Industries

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Raised:
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Goal: ৳ 500,000
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The Business

Accordion Content

Eminent Agri Industries is a BSTI & ISO certified manufacturer and supplier of high-quality dairy products such as ghee, butter and mozzarella cheese, among all products mozzarella cheese is the blockbuster and has a good reputation in the market of it. The business started its journey back in 1998, established its own manufacturing plant in Thakurgaon on 42.5 Shatak area and has processing capacity of 220 liters of milk on daily basis. The business has served various luxury hotels and restaurants such as Hotel Sarina, Pizzawali and others on a regular basis and planning to expand its business to the international market as well. 

Eminent Agri Industries is conducting business through the B2B and B2C model, the business is selling products direct to several hotels and restaurants and also has set some third party vendors to market its product in different districts.The business is ensuring a good quality of products to meet up the expectations of its diverse clientele.

As the holy month of Ramadan approaches, Eminent Agri Industries anticipates a surge in demand for its premium mozzarella cheese. To meet this heightened demand and ensure ample supply, the company is seeking funds to purchase additional raw materials, particularly milk, to ramp up cheese production and maximize revenue potential during Ramadan.

Corporate address : House- 831/A, Road-5, Baytul Aman Housing Society, Adabor, Dhaka-1207.

Factory address: Eminent Dairy & Food, Salandar, Highway Road, Thakurgaon.

Explore: Facebook | Website

FAQ:

💡 Is the business Shariah-compliant?

The business model (selling  dairy products such as ghee, butter and mozzarella cheese.) is Shariah-compliant

However, according to our Shariah Advisors, biniyog.io and the investors will NOT be liable if the day-to-day operations of the business are not fully Shariah-compliant.

This is because investors will be going into a Murabahah (sale contract), not profit-sharing or partnership. Please find contract details in the “Contract” section below.

💡 Is there any investment risk involved?

Investments have risks by definition, especially if they are halal. Please find possible risk details for this campaign in the “Risk” section below.

Eminent Agri Industries was founded by its Founder Humayun Reza in 1998. Afterward in 2012 the operating responsibilities and ownership took over by her daughter Nagina Najnin Banu, currently she is the owner of  Eminent Agri Industries, with the flow of time the owner has earned  over 11 years of experience in the field of cheese production. Her strong commitment to quality and hard work have helped the business to grow into Bangladesh’s dairy industry.

Nagina Najnin Banu Completed her MBA from Dhaka University. She also participated in the International Visitor Leadership Program on Entrepreneurship as the Engine of Prosperity and Stability: The Role of Women Entrepreneurs Along the New Silk Road, hosted by the United States Department of State, Bureau of Educational and Cultural Affairs, from November 2 to November 20, 2015.

  • BSTI and ISO Certified. 
  • Owner’s 11+ years of expertise ensures industry expertise.
  • The business has its own manufacturing plant which ensures all certification and meets the criterias to be a world class manufacturer of mozzarella cheese.  
  • The business has capacity to process 2200 liters of milk on a daily basis to produce 220 kg mozzarella cheese daily. 
  • Sustainable business growth is achieved through low customer turnover.
  • Operating through B2B and B2C models.
  • Working with several renowned restaurants and bakeries since it started its journey e:g; Well Food, Captains World and many more.

The Contract

Accordion Content

The investment is for a period of 6 months, from March 2024 to September 2024.

Projected Return on Investment (ROI): 8.25%

Projected annual ROI: 16.5%

biniyog.io will charge the investors 8.33% of the profit  for this service. 

Example: if someone invests BDT 100k in the project, he/she can expect to receive a total of BDT 108.250k by the end of September 2024. biniyog.io will be charging investors an 8.33% fee on their profits. Example: If an investor invests BDT 100k and makes a profit of 9k in 6 months, biniyog.io will charge 0.75k as a service fee. This means investors will be keeping 91.67% of the profits generated. The net ROI for the investors will be 8.25% for 6 months (16.5% annualized) after deducting biniyog.io’s fee.

  • Investors will go into a Murabahah agreement (sale contract) with Eminent Agri Industries for purchasing milk from local farmers in Thakurgaon. 
  • It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Eminent Agri Industries will then buy those items from investors on credit and pay the amount over 6 months. 
  • biniyog.io will act as an agent for the investors and appoint Eminent Agri Industries to arrange the purchase of milk. biniyog.io will then take necessary ownership and risk of asset possession on their behalf, and then sell to Eminent Agri Industries
  • biniyog.io has proposed a price to Eminent Agri Industries for the products after considering a minimum 9% profit on actual cost of product procurement. Eminent Agri Industries has agreed to it. Investors will be getting a net of 8.25% profit after deducting biniyog.io’s service charge on investor profit.
  • Investors can expect to get their returns over 6 months.
  •  

Shariah Compliance

Accordion Content

Investors appoint biniyog.io as an agent to deal on their behalf (Wakalah) and invest into the business through buy and sale of assets under a buy-and-sell (Bai Murabaha) agreement.

biniyog.io‘s Shariah advisors have approved the basis and application of this Murabahah contract.

Potential Risks

Accordion Content
  • Credit to Cash Conversion Cycle: B2B deals often involve a prolonged credit to cash conversion cycle, with payment delays extending up to 45 to 60 days. This extended cycle may strain cash flow and operational efficiency.
    • Eminent Agro’s Strategy: To mitigate this risk, Eminent Agro aims to streamline its credit management processes and negotiate favorable payment terms with B2B customers. Additionally, the company will explore options to optimize cash flow through efficient inventory management and strategic financing arrangements. Recently the business signed new deals with corporate clients where the business will get advance payments. This deal will lessen the risk of payment delay. 
  • Market Penetration and Organizational Focus: Eminent Agro’s limited direct-to-consumer presence due to an unorganized Facebook page and management constraints may hinder market penetration and growth opportunities.
    • Eminent Agro’s Strategy: Recognizing the challenges in direct-to-consumer sales, the company focuses its efforts on strengthening B2B partnerships and expanding its reach within the hotel and restaurant sectors. Eminent Agro will invest in enhancing its digital marketing presence and optimizing its Facebook page to attract potential B2B clients and facilitate easier communication and transactions.
  • Export Market Expansion: While seeking to expand into international markets such as Korea, Eminent Agro faces challenges in securing its own letter of credit, which may limit its ability to engage in export transactions.
    • Eminent Agro’s Strategy: To overcome this obstacle, Eminent Agro plans to leverage the letter of credit of any third party exporter to divert the logistical hustle and enable smoother international trade operations by ensuring quality goods. The company will also explore alternative financing options and establish strategic partnerships to facilitate overseas expansion and capitalize on growing demand for mozzarella cheese.
  • Seasonal Demand Fluctuations: Eminent Agro aims to capitalize on the lucrative market demand for mozzarella cheese during the month of Ramadan. However, seasonal fluctuations in demand may pose operational challenges in efficiently mobilizing resources and meeting production targets.
    • Eminent Agro’s Strategy: To address this risk, Eminent Agro will implement proactive production planning and inventory management strategies to maximize factory utilization during peak demand periods. The company will collaborate closely with milk suppliers to ensure sufficient raw material availability and optimize production schedules to meet heightened market demand during Ramadan.

The installment structure has been arranged such that the business can roll the inventory and cover the peak seasons of Ramadan to cater the rising demand of cheese. biniyog.io projects that this will help the business run smoothly as well as meet payment deadlines.

biniyog.io will buy the products on behalf of investors first and secure ownership. Eminent Agri Industries would have the right to reject the products due to quality etc. The risk is expected to be minimal since Eminent Agri Industries will choose the items before biniyog.io buys them.

Eminent Agro will share a security cheque. Moreover, a guarantor will be introduced in the contract to add an extra layer of security for the investors. 

Disclaimer

This investment opportunity is based on a first come first serve basis. Your investment is secured only after your transfer-proof has been received. If the investment quota is already filled, your transferred amount shall be returned.

Return of your capital is NOT guaranteed. Investment, by default, requires a risk appetite. Past performance is not a guaranteed indicator of future outcomes.

biniyog.io only acts as a consultant to the investor and the business, and does NOT manage funds for any party.

biniyog.io does risk assessment to a certain extent, but will NOT be liable if the business does not perform as per expectation.

For any questions, please use the chat icon on the right or leave a message.

  • 25-02-2024

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 5 lac.