Duration

12 months

Min. Investment

৳ 10,000

Projected ROI

16% per annum

Risk Grade

B

Repayment

8 instalments (monthly from the 5th month)

Overview

Maa Agro Farm and Poultry Hatchery is a poultry focused business. They hatch eggs in incubators and sells 21-day old chicks. They are also feed reseller and Local Service Provider (LSP). The business is seeking financing to purchase incubators that will help to increase the hatchery capacity. Investors can expect to get an ROI of 16%* over 12 months.

*subject to investment risk (details below)

Bollomjhar, Gaibandha, Bangladesh

Maa Agro Farm & Poultry Hatchery

৳ 1,427,200 Raised
৳ 0 Being Processed
0 Days Left
Raised:
101.94%
Goal: ৳ 1,400,000
The campaign is successful.
By Saif
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The Business

Accordion Content

Maa Agro Farm and Poultry Hatchery sells 21-day old chicks that are hatched in-house. Additionally, the business has a poultry feed reselling business along with beekeeping and fruit farming. 

The business buys eggs from local farmers or from farms in the Gaibandha district. Around 80% of the chicken is sold to local farmers, and the rest is sold outside. Only some loyal customers are occasionally provided with credit facility for a short period of time; all other transactions are made by instant payment, which saves the business from credit risk. 

In the beginning of the business, one incubator was used to hatch 100 eggs. Nearly 3,000 eggs can now be hatched with the advanced incubators. As the demand for young chicks is growing over time, the business is facing a sweet trouble being unable to keep up with the demand. So, they are looking to use the capital to buy an incubators which will help them cater to rising demand.

Office/Factory Address: Uttar Dhanghora, Bollomjhar, Gaibandha. 

FAQ:
💡 Is the business Shariah-compliant?

  • The business model (selling chicks, poultry feed and honey) 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. Monowar started his work life in Gazipur Tokyo Mode Ltd in 2007. After this he got an opportunity to work in a buying house, Jerome Industry in the sampling section.

From childhood, he loved cattle and planting trees in his small nursery. So, he wanted to start his own business instead of working for others. So, he started with a small farm consisting of local bred chicken (দেশী মুরগীর খামার). After seeing all the other farms facing a huge loss in this business, he wanted to do farming in a different way. 

Beside his job he started with buying 10 pieces of chicken. He collected the eggs from these chickens and bought a machine, which could hatch 100 eggs. Now he has machines that can cater to hatching of almost 3,000 eggs per month.

He has received training from Department of Youth Development (যুব উন্নয়ন অধিদপ্তর) and started rearing chicken hatched by his own machine. He also took training from BIDA in 2018, BSCIC (Bangladesh Small and Cottage Industries Corporation), Gaibandha in 2019, and from M4C Project and Better Stories in 2022.

Currently he is facing difficulties to meet the huge demand. To diversify his overall business model,  he has initiated bee farming and also has a fruit production business. Each wing of the business generates good level of revenue and margin.

  • Experienced owner with proper training, knowledge and education 
  • Diversified business that generates revenue from multiple sources
  • Track record of working with renowned organization such as the M4C

The Contract

Accordion Content

The investment is for a period of 12 months, from May 2023 to April 2024.

Projected ROI (for the duration of project): 16%
Projected ROI (annualized): 16% 

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 116k by the end of April 2024.

  • Investors will go into a Murabahah agreement (sale contract) with Maa Agro Farm and Poultry Hatchery  for purchasing incubator machines to increase the production of chicks and some other items.
  • It will be a “buy-and-sell” process where investors will first buy products through biniyog.io. Maa Agro Farm and Poultry Hatchery  will then buy those items from investors on credit and pay the amount over 12 months in 8 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 Maa Agro Farm and Poultry Hatchery .
  • biniyog.io has proposed a price to Maa Agro Farm and Poultry Hatchery  for the products after considering a minimum 16% profit on actual cost of product procurement. Maa Agro Farm and Poultry Hatchery  has agreed to it.
  • Investors can expect to get their returns over 12 months in 8 instalments:
    • 10% at the end of Sep’23
    • 10% at the end of Oct’23
    • 10% at the end of Nov’23
    • 10% at the end of Dec’23
    • 15% at the end of Jan’24
    • 15% at the end of Feb’24
    • 15% at the end of Mar’24
    • Final 15% at the end of Apr’24

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 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

Accordion Content
  • Price volatility of the poultry products: Abnormal price fluctuations have been observed for almost all kinds of poultry products in the last one and a half months. If the abnormal fluctuating trend continues, the business might not be able to keep a healthy profit margin by utilising the funds.
    • Maa Agro Farm and Poultry Hatchery’s strategy: The business has a multi-winged business model (egg hatching, poultry feed reselling and honey production) that helps it move capital according to seasonality and ongoing trends.  
  • Inflation and macroeconomic issues: Prices of almost everything are going up worldwide and coupled with the devaluation of taka, this is making products costlier. The price of poultry feed, chick and accessories have become volatile at this time of uncertainty. Significant price hikes of such products can hurt the profit margin of the business badly.
    • Maa Agro Farm and Poultry Hatchery’s strategy: This is a macroeconomic crisis that is likely to hurt almost every kind of business. However, being a producer of chicks and reseller of poultry feed, the business gets the flexibility of availing chicks and feed at a lower rate than most of the competitors. Thus, it helps the business to keep a better margin.  

biniyog.io will buy the products on behalf of investors first and secure ownership. The products will then be handed over to Maa Agro Farm and Poultry Hatchery within a very short time frame.

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.

    ==============

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 10 months, the markup profit can be 15% (instead of 10%). 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. 15% in 10 months means 18% per annum)

Maa Agro Farm and Poultry Hatchery  will share instalment cheques with biniyog.io. A 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.

  • 10-04-2023

    This campaign is now live on biniyog.io!

    The funding campaign has started. The target is BDT 10 lac with a stretch goal of BDT 14 lacs.