| Duration | 6 months |
|---|---|
| Min. Investment | ৳ 10,000 |
| Projected ROI | 13% per annum |
| Risk Grade | B+ |
| Repayment | 3 instalments (monthly from 4th month) |
Overview
Golden Touch makes quality bag products like school-college bags, laptop bags, office bags, ladies bags made of leather, polyester fabric and rexine along with jute products. The fund will be utilized to buy raw materials in bulk to avail special discounts and enhancing the supplying capacity.
This is a “buy-and sell” (Murabahah) contract where investors can enjoy an ROI of 6.5%* over 6 months (annualized expected return 13%).
*subject to investment risk (details below)
Golden Touch
The Business
Written by Golden Touch – verified by biniyog.io ✅
Golden Touch is a manufacturing business that makes different types of bags. Starting in the year 2018, it has been producing quality bag products like school-college bags, laptop bags, office bags, ladies bags made of leather, polyester fabric and rexine along with jute products. As a result, bags have been supplied to many well-established companies in the country. Golden Touch has been able to retain a fixed number of repeat customers.
There is a huge demand for these bags every year in the domestic market. Various studies and statistics show that there is a market of about 12 crore bags in Bangladesh every year. There is ample room of opportunities for Golden Touch to expand their business by serving new customers. Therefore, Taking on investments through biniyog.io will enable the business to enhance the production and customer acquisition capacity.
Office/Factory Address: New Town Residential Area, Signboard, Demra, Dhaka.
Explore: Facebook page
Part of Golden Touch factory
Md. Fazlur Rahman is the owner of Golden Touch.
Mr. Fazlur Rahman holds Bachelors and Masters degrees from Jagannath University. While studying in the university, he faced financial problems while working with social organizations. Having worked with various organizations, he felt confident about starting his own business. He has been involved in this line of business from the final year of his university. Moreover, as the son of a small rice trader, there was a distinct inclination towards business in the family.
Mr. Fazlur Rahman has received training from Jute Diversification & Promotion centre soon after starting Golden Touch.
Mr Fazlur Rahman working in his desk
- Well-educated founder with direct knowledge of and involvement in the manufacturing process.
- Well-managed workforce and supply-chain.
- Consistent revenue stream with a satisfied client base.
The Contract
The investment is for a period of 6 months, from January 2023 to July 2023.
Projected ROI (for the duration of project): 6.5%
Projected ROI (annualized): 13%
biniyog.io will NOT charge the investors any fees for this service.
Example:
If someone invests BDT 100k in the project, he/she can expect to receive a total of BDT 106.5k by the end of July 2023.
- Investors will go into a Murabahah agreement (sale contract) with Golden Touch for purchasing raw materials needed for making different types of bags.
- It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Golden Touch will then buy those items from investors on credit and pay the amount over 6 months in 3 instalments.
- biniyog.io will act as an agent for the investors and buy the products, take necessary ownership and risk of asset possession on their behalf, and then sell to Golden Touch.
- biniyog.io has proposed a price to Golden Touch for the products after considering a minimum 6.5% profit on actual cost of product procurement. Golden Touch has agreed to it.
- Investors can expect to get their returns over 6 months in 3 instalments:
- 20% at the end of May’23
- 20% at the end of June’23
- final 60% at the end of July’23
Shariah Compliance
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 an advanced buy-and-sell (Bai’ Murabaha) agreement.
biniyog.io‘s Shariah advisors have approved the basis and application of this Bai’ Murabaha contract.
Potential Risks
- Delay in payments: As a manufacturer and wholesaler, Golden Touch supplies products to many different parties such as retailers, second-party wholesalers, corporate houses (customized orders), etc. Dealing with such parties often results in credit sales. The collection of receivables can take more time than expected. This results in cash being stuck in a cycle that ultimately hurts the profit margin. If the payment from such parties is delayed by a significant time, the profitability of the business can be hurt badly.
- Golden Touch’s strategy: The business deals with parties in such a manner so that the payment collection schedules do not go off-track. For example, the business often takes some advance payment from certain parties to mitigate the “cash being stuck in a cycle for too long” issue.
- Golden Touch’s strategy: The business deals with parties in such a manner so that the payment collection schedules do not go off-track. For example, the business often takes some advance payment from certain parties to mitigate the “cash being stuck in a cycle for too long” issue.
- Inflation and macroeconomic issues: Investors should already be aware that prices of materials are going up worldwide and coupled with the devaluation of taka, this is making products costlier. This is also impacting the lifestyle and purchasing power of consumers. However, the probability of the demand going down for backpacks and similar items is low. But volatility of the raw materials price can hurt the profit margin of the business significantly.
- Golden Touch’s strategy: The business has a moderately stable sourcing channel. Moreover, buying raw materials in bulk will allow the business to enjoy extra discounts that will increase the margin slightly.
biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Golden Touch within a very short time frame.
Golden Touch would have the right to reject the products due to quality etc. The risk is expected to be minimal since Golden Touch themselves will be choosing the items before biniyog.io buys them.
This is a necessary risk to ensure Shariah compliance of the transaction.
biniyog.io has done in-house analyses of the projected returns of the business and they are expected to be able to repay on time, if not hugely impacted by macroeconomic issues.
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Please note that the business may be given an incentive in the form of a discount on early repayment, which can only come in effect if the investors agree.
Following example is an illustration:
If the business repays within 5 months, the markup profit can be 6% (instead of 6.5%). This benefits both parties – the business has to pay back less and investors get their money back faster at a higher annual rate of return (e.g. 6% in 5 months means 14.4% per annum).
18% per annum)
Golden Touch will share instalment cheques with biniyog.io. A personal guarantee security cheque will also be kept from the business owner.
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.
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05-01-2023
This campaign is now live on biniyog.io!
The funding campaign has started. The target is BDT 5 lac. -
30-01-2023
Extension
The funding campaign has been extended till 3rd February. The target is BDT 5 lac.
