Estonia, Linnuse

Perfume Oils

Funded

Perfume Oils

Borrower:

Saviaugu Puit Osaühing

Type:

Business growing

Opens:

03 Oct 2019

Extended till:

-

Interest rate:

18.30% per annum

Loan period:

7 months

Funding target:

€ 329 750

Still need:

€ 0

Funded:

€ 329 750

Buyback:

6 % fee

Risk level:

Low

Collateral agent:

Monethera GROUP OÜ

Guarantees:

Pledged commercial assets and personal guarantees of the director

Repayment schedule:

Monthly on the 1st day of each month

As always, we at Monethera research and investigate the market in order to uncover the best investment opportunities for our partners. Now, we are pleased to present you “Saviaugu Puit Osaühingis”, a perfume oil manufacturer based in Linnuse, Estonia. Founded in 2007, the company has proven itself to be a high-quality producer, a reliable supplier, and a profitable partner. Years of successful activity in the market allowed the company to build a global supply chain and to ensure the superb quality of the product. The specialists of the company play a significant role in establishing, implementing, monitoring, and guaranteeing that everything comes together like clockwork. Nowadays, “Saviaugu Puit Osaühing” is an outstanding example of successful management and administration, and it has at its disposal warehouses in the European Union. It also cooperates with retail chains in the EU, and it specializes in perfume and basic household chemicals manufacturing around the world. Taking into consideration the fierce competition in the market, the company has experienced permanent growth and the ability to adapt to rapid fluctuations. They have also implemented recent technologies and adopted an innovative approach, so they are at the vanguard of guaranteeing the environmental friendliness of their products.

Project's target

Ultimately, “Saviaugu Puit Osaühing” has decided to increase their representation in the market and extend the list of the products they offer. The company wants to invest a considerable amount of money to make a wholesale purchase of essential oils manufactured in Bulgaria and to establish permanent cooperation with retailers in Estonian and European markets. Essential oils are in high demand and there are currently some preliminary orders of the product. To cover the demand, it is necessary to have some oils in stock, thus, “Saviaugu Puit Osaühing” set a target to increase stock in the warehouses situated in EU countries. This procedure, in addition to purchasing, requires extra expenses such as transportation, testing, customs formalities, etc. At Monethera, we are strongly convinced that investing in such a well-thought-out proposal with a product that is in high demand is promising. This project will bring you earnings and create new opportunities for future investments. The global market demand for essential oils was 226,9 kilotons in 2018, and it is projected to expand at 8,6% from 2019 to 2025. Robust growth on the part of end-use industries such as food and beverage, personal care and cosmetics, and aromatherapy has translated into an upswing in demand for the product.

Several overall health benefits offered by these oils are anticipated to fuel their demand in pharmaceutical and medical applications. Essential oils play a vital role in treating dermatological issues such as acne, eczema, rashes, hives, and psoriasis, which makes them suitable for skincare cosmetics and is thus stimulating industry growth. Increasing consumer awareness of the harm in using synthetic chemicals in cosmetic products will cause a surge in the demand for essential oils. The growing inclination of consumers to purchase natural and organic products is also leading to an increased usage of essential oils in food and beverages. The market size for essential oils in cleaning and home care applications is anticipated to exceed 550 million EUR by 2024. Growth in the hospitality market along with companies introducing products with additional benefits, including germ-fighting properties, better cleaning, and higher quality fragrances and easy to use packs is likely to stimulate product demand in this sector.

“Saviaugu Puit Osaühing” plans to purchase lavender, menthol, citronella, eucalyptus, cedar, and cinnamon oils. Rising demand for aromatherapy will have a positive impact on the market and contribute to its growth significantly over the next five years. Aromatherapy is an alternative medicine practice that involves the use of plant-based materials, such as essential oils.

These are aromatic and they are inhaled by patients to alleviate various adverse health conditions.

Aromatherapy helps to reduce anxiety, ease depression, boost energy levels, speed up the healing process, eliminate headaches, boost cognitive performance, induce sleep, strengthen the immune system, reduce pain, improve digestion, and increase circulation.

The demand for aromatherapy is growing globally, and various players are coming up with essential oils exclusively for aromatherapy practices.

The European region led the market in 2018, followed by North America.

It is expected to register the highest growth rate in the European region due to the rising awareness about the health benefits of various essential oils such as basil essential oil and lavender essential oil.

About the company

The main office of “Saviaugu Puit Osaühing” is situated in the north-eastern part of Estonia, in Linnuse. During the years of its activity, since 2007, the company has shown excellent results and established long-term cooperation with many companies in Estonia, the EU, and Asia. The company has established relations with the best manufacturers and laboratories responsible for quality control. They also have agreements with logistics companies that guarantee the timely delivery of goods to the final buyer. Having impeccable credentials is imperative in the essential oils market and “Saviaugu Puit Osaühing” command the respect of clients, partners, and competitors. The company provides constant assistance and is ready to help with every query. The Monethera team is firmly convinced that this company is an ideal example of a prosperous and predictable market player.

Summary / Project description

Industry: Essential oils manufacturing/re-selling.

“Saviaugu Puit Osaühing” decided to make a wholesale purchase of essential oils manufactured in Bulgaria with the purpose of re-selling them to the manufacturers of cosmetics, perfumes, and other household chemistry products in the European market. In order to guarantee an uninterrupted delivery, the company must accumulate stock in warehouses situated in the EU. To cover all the expenses needed for the realization of this project, the company decided to ask for additional financial funding to replenish their working capital for the purchase of raw materials (essential oils).


The total amount of product to be purchased is 9250 kg.

The amount of money it is necessary to borrow is 329.750 EUR.

The loan period is for 7 months.



This project guarantees high profitability, with short time-limits for the realization of the sales and continued liquidity. If you want to diversify your investment portfolio and to earn your money back rapidly, this offer is an optimal option.

The current investment opportunity will allow you to lend money with an 18,3% annual interest rate.

Stages of the project:

1

Payment to the commodity producers (for the raw materials).

2

Raw material testing.

3

Transportation from the point of departure to the warehouse situated in the EU.

4

Customs procedures and certification.

5

Accumulation of the stock.

6

Selling of the essential oils to the final buyers.

Range of commodities:

Lavender oil. The total amount of lavender oil to be purchased is 1500 kg. The total cost of the shipment is 127.500 EUR.

Menthol oil. The total amount of menthol oil to be purchased is 2250 kg. The total cost of the shipment is 31.500 EUR.

Eucalyptus oil. The total amount of eucalyptus oil to be purchased is 2250 kg. The total cost of the shipment is 78.750 EUR.

Citronella oil. The total amount of citronella oil to be purchased is 1500 kg. The total cost of the shipment is 42.000 EUR.

Cedarwood oil. The total amount of cedarwood oil to be purchased is 1250 kg. The total cost of the shipment is 25.000 EUR.

Cinnamon oil.  The total amount of cinnamon oil to be purchased is 500 kg. The total cost of the shipment is 25.000 EUR.

The total amount of purchased raw material (essential oils) is 9250 kg. The total cost of the shipment is 329.750 EUR.

Selling:

In percentage terms, retail comprises 0,50% of total sales. In absolute figures, this is 46 kg. The gross profit is 19.785,00 EUR.

Wholesale in chain stores comprises 14,50% of total sales. In absolute figures, this is 1341 kg. The gross profit is 57.376,50 EUR.

Wholesale manufacturers comprise 85,00% of total sales. In absolute figures, this is 7863 kg. The gross profit is 140.143,75 EUR.

Additional expenses:

1. The total cost of testing and certification is 3000 EUR.

2. The total cost of storage is 15.000 EUR.

3. The total amount of money to be paid as salaries to staff members is 72.000 EUR.

4. The total amount of taxes and duties to be paid is 33.000 EUR.

5. The total cost of office expenses is 3500 EUR.

6. Containers and packaging will cost 4000 EUR.

Total additional expenses are 130.500 EUR.

Total purchase cost is 329.750 EUR.

Loan period: 7 months.

The amount of money received from sales is 547.055 EUR.

Total profit is 86.805 EUR.

Time-limits for the realization of the first shipment: for purchase the limit is 45 days, for certification and testing the limit is 15 days, for sales, the limit is 150 days.

Why is “Saviaugu Puit Osaühing” looking for funding?

“Saviaugu Puit Osaühing” decided to purchase essential oils manufactured in Bulgaria with the purpose to re-sell them to the manufacturers of cosmetics, perfumes, and other household chemistry items in the European market. To cover all the expenses needed for the realization of the project, the company management made a decision to borrow 329.750 EUR in order to secure the supply of essential oils for their business. We at Monethera have carefully examined “Saviaugu Puit Osaühing’s” proposal and we are convinced that the company is able to fulfill the assumed obligations and guarantee the repayment of the entire loan.

Loan

The funding target is 329.750 EUR.

Interest rate: 18,3% annual, secured debt.

Loan period: 7 months.

Repayment schedule: Monthly on the first day of each month.

Loan purpose: Purchase of the essential oils manufactured in Bulgaria to re-sell them to different manufacturers in the EU.

Repayment of Principal Loan in full at the end of the loan period.

The future of the project and long term cooperation: Once the total amount of loan is repaid, “Saviaugu Puit Osaühing” is open to discussing further cooperation opportunities.