Namelok Dairies Ltd is a local limited company incorporated in Kenya on the 9th of November 2015 to receive, process, package and sell milk products ( extended shelf life fresh milk, yoghurt, and mala ) in Kenya and other international markets. The founders of Namelok Dairies have extensive experience in business formation, growth and transformation. The project champion, one of the shareholders, Mr. David Tanki is a seasoned entrepreneur who has grown start-up companies from zero revenues to up to KES 178 Million. With an estimated total investment of KES 117 million, Namelok Dairies is projecting to process 6 Million litres of milk, approximating KES 0.75 Billion in revenues within the first year of its operations. This is projected to grow by 30% over the next 5 years to 13.9 Million litres in the 5th year equivalent to KES 1.575 Billion in revenue. So far, the shareholders of Namelok Dairies have put in a total of KES 44 Million which has gone into the purchase and development of a 3.5-acre piece of land in Mulot where the plant is located. The purpose of this investment proposal is to apply for project financing totaling KES. 73 million over a proposed period of 5 years. This will cover equipment costs and mainly establishment and marketing expenses. Using a Zonal attack strategy, it has identified specific densely populated areas in Nairobi that still experience milk shortages and intends to supply these areas at relatively lower pricing. Despite being lower than competitors, Namelok will still enjoy net profit margins of above 16% on average in the first 5 years as the dairy industry in Kenya has relatively high margins. Namelok will also carry out intense marketing and relationship building with the vendors in these locations within the first 2 months of launching their products. Because of the rapidly growing population in Nairobi and the persistent rise in demand for milk, new milk processors have been able to grow their market share without major marketing efforts. Namelok will not only ride on this supplier advantage but also strengthen its market position using aggressive but inexpensive marketing techniques.

Agriculture

Equity Investment

117000000

KES

Growth