| Duration | 8 months |
|---|---|
| Min. Investment | ৳ 10,000 |
| Projected ROI | 16.5% |
| Risk Grade | B |
| Repayments | 4 installment (starting from the 5th month) |
Overview
Joslon Ltd. is an export-oriented handmade leather products manufacturer, looking to raise funds to increase product inventory to cater to both domestic and international client base. They need to purchase leather and accessories needed for making bags, wallets, purses, belts, etc. leather items.
This is a “buy-and-sell” (Murabahah) contract where investors can enjoy an ROI of 11%* over 8 months (annualized expected return of 16.5%).
*subject to investment risk (details below)
Joslon Ltd.
The Business
Joslon Ltd. is an innovation-driven lifestyle Company that manufactures high-quality leather goods mainly for export. Joslon has the capacity to make all types of leather goods as per the customer’s requirement. They collect the main raw material (leather) from a certified tannery. With a highly skilled workforce and high-quality materials, they intend to capture a larger international market with their products. They have a factory in south Manda with a good production capacity and 60 workers.
In partnership with the Bangladesh EC4J Project, Joslon took part in the 8th Gardabags in Riva Del Garda, Italy. They frequently travel to foreign markets to get opinions on their products’ quality and innovations from R&D professionals around the world. To communicate with European Buyers, they went to MIPEL 115 in Milan, Italy. Additionally, they worked together in 2022 in Culemborg, Netherlands, with the World Fair Trade Organisation. They value their workers and offer a range of welfare facilities to ensure a work-friendly environment.
Office/Factory Address: 252, South Manda, Garments Road, Dhaka-1214, Bangladesh
Explore: Facebook Page | Website
FAQ:
💡 Is the business Shariah-compliant?
The business model (selling bags, backpacks, wallets, purses, belts, and other leather products) 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 Murabaha (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.
Mr. Zayed Bin Karim is the Managing Director of Joslon Limited. He has completed his undergrad at North South University and an MBA from the University of Wales Trinity Saint David. After completing his education, he worked with Daraz for 2 years. His experience, good level of networking with suppliers and the international market, and his passion for leather goods drove him to start Joslon with a dedicated team of 2-3 professionals and the support of 5 missionaries.
Mr. Zayed was featured in CEO Insights Asia as a “Top 10 Business Leader From South Asia- 2023 “. He received the appreciation crest from Inspiring Bangladesh for being one of the youngest Exporter of Bangladesh in the South East Asia Startup Summit. Currently, he is working as an Ambassador for the Commonwealth Entrepreneurs Club.
- Factory space of 4200 sq feet with a production rate of 7000 pcs per month.
- Catered to renowned fashion brands from all over the world, such as Rapanui, Lasocki, Carpisa, Crocodile, and many more.
- Working with 7 renowned brands in BD.
- Has an experienced and skilled workforce with an Innovative R&D department.
The Contract
The investment is for a period of 8 months, from the third week of September 2023 to the third week of May 2024.
Projected ROI: 11%
Projected ROI (annualized): 16.5% per annum
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 111k by May ‘24.
- Investors will go into a Murabahah agreement (sale contract) with Joslon Limited for purchasing leather and other accessories.
- It will be a “buy-and-sell” process where investors will first buy the products through biniyog.io. Joslon Limited will then buy those items from investors on credit and pay the amount after 8 months.
- 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 Joslon Limited.
- biniyog.io has proposed a price to Joslon Limited for the products after considering a minimum 11% profit on the actual cost of product procurement. Joslon Limited has agreed to it.
- Investors can expect to get their returns in 4 installments in 8 months:
- 10% in Feb ’24
- 25% in March ’24
- 25% in April ’24
- The final 40% in May ’24
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 a buy-and-sell (Bai Murabaha) agreement.
biniyog.io‘s Shariah advisors have approved the basis and application of this Murabahah contract.
Potential Risks
- Compliance and regulatory risks: Export-oriented businesses need to comply with various international standards and regulations regarding quality, safety, labor rights, and environmental practices.
- Joslon Ltd.’s strategy: Joslon has a Factory (DIFE) License and a Fire License. It has global membership with Registered Exporter System (REX) and Commonwealth Entrepreneurs Club UK; and Local Membership with BIDA, EPB, and BFLLFEA.
- Supply Chain Disruptions: The availability of quality leather and other raw materials could be disrupted due to factors like price fluctuations, supply conditions, or geopolitical issues.
- Joslon Ltd.’s strategy: Joslon Ltd. has connections with many suppliers for different types of raw materials. Moreover, the business also has connections with importers for procuring premium accessories that are hard to find domestically.
- Deferred payments from domestic buyers: Joslon Ltd. serves some of the very renowned brands of Bangladesh. However, the orders received from such brands come with a condition of deferred payments. The business often has to wait over 60 days to get the payments.
- Joslon Ltd.’s strategy: The business has been doing business with such brands for a long time now. It has built a good rapport with these brands. As a result, Joslon Ltd. gets a good amount of orders in every season. As the orders have become quite frequent, the deferred payments have become part of its payment chain resulting in an almost uninterrupted payment system.
- Currency Exchange Rate Risk: As an export-oriented business, exchange rate fluctuations can impact the company’s revenue and profitability. Sudden changes in exchange rates can make their products more expensive or less competitive in international markets. The dollar crisis might increase in the near future and there is a record-breaking drop in LC opening.
- Joslon Ltd.’s strategy: The business has ample experience with currency exchange rate risk due to being in this line of business for a significant duration. The business often gets the opportunity to get an advance payment on orders as per certain LC conditions.
- Trade Regulations and Tariffs: Joslon Ltd. is subject to trade regulations and tariffs, imposed by importing countries which can hinder market access and impact export volumes. However, this issue is equally applicable to all exporting businesses.
- Political turmoil due to the upcoming election: There might be some macroeconomic turmoil towards the end of 2023 before the general election. This may impact any business.
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 considering their cash flow.
biniyog.io will buy the products on behalf of investors first and secure ownership. Joslon Limited would have the right to reject the products due to quality etc. The risk is expected to be minimal since Joslon Ltd. will choose the items before biniyog.io buys them.
Joslon Limited will share a security cheque. Moreover, a guarantor will be introduced in the contract for adding 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.
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06-09-2023
This campaign is now live on biniyog.io!
The funding campaign has started. The target is BDT 15 lac.
