Working Capital Financing for the Purchase of Automotive Bumper Compound Raw Materials

  The applicant began operating under the name "Mehr Moldmaking" in the production of industrial molds, particularly plastic injection and die-casting molds, in 1348  and, in 1368,  changed its name to  "Mehrkar Company" and introduced a transformation in the moldmaking industry by adopting CAD/CAM  systems. A notable milestone was the manufacture of 3 sets of molds for Karavan vehicle bumpers in 1376. Drawing on the valuable experience of Mehrkar's managers and engineers, the manufacture of large industrial molds is among the company's capabilities. The company's business activities include manufacturing and producing all types of molds, industrial machinery, technical parts, tools, polymer and metal products and parts, and plastic and polymer compounds and granules; purchasing, selling, exporting and importing all types of molds, industrial machinery, technical parts, tools, supplies, metallic and non-metallic raw materials, petrochemical and polymer materials, plastic and polymer granules and petrochemical materials, and the parts and raw materials required for the aforementioned activities; and providing consulting, design, manufacturing, implementation, repair and maintenance services for all types of molds and industrial machinery. It should be noted that the company's other activities include manufacturing all types of plastic molds, metal dies and die-casting molds, machining all types of industrial parts, and repairing and maintaining all types of molds. To date, Mehrkar Company has manufactured numerous molds, including molds for VAN front and rear bumpers, Pride station wagon rear bumpers, Renault dashboard fronts, Peugeot 405 mudguards, dashboard frames, upper glove compartment frames, Matiz lower windshield-wiper grilles, seat side and outer covers, metal dies for  X100 seats, left and right Renault storage pockets, radiator covers, and Tiba 232 front and rear mudguards. It has also designed and manufactured drawing and cutting dies for kitchen sinks and molds for household appliances. Mehrkar Company is one of the buyers of Mehrkar Company's products, particularly raw materials for bumper production. Mehrkhah Company is currently a supplier in the supply chain of automotive manufacturers, with a product portfolio that includes components such as dashboards, bumpers and automotive spare parts. Based on Mehrkhah Company's estimated demand for a monthly supply of 60,000 kilograms of materials for bumper production, the investee has focused its main activities on producing bumper granules. Given the six-month implementation period of the project, total production of automotive bumper material is 360,000 kilograms. Accordingly, to provide part of the working capital needed to purchase polymer compound, the applicant is requesting crowdfunding through the Halal Fund platform in the amount of 16،500 million rials. It should be noted that the raw material cost for each kilogram of product is estimated at 302،000 rials, resulting in an estimated raw material cost of 108،720 million rials for the production of 360،000 kilograms of product. Based on Mehrkar Company's latest sales invoices for bumper materials sold to customers, the price of the product is projected at 410,000 rials per kilogram. Accordingly, sales of 360,000 kilograms of automotive bumper material over the project period will generate revenue of 147,600 million rials. It should be noted that if bumper material sales do not reach the amount estimated in the project, the investee is required to repurchase its products so that the investors' minimum estimated profit under the project is secured. The project's allowable costs consist of the fees charged by the agent and Iran Fara Bourse, and raw material costs. It should be noted that all other costs associated with producing the project's intended product are borne by the applicant. Therefore, the profit defined for this project is the proceeds from sales of the intended product less crowdfunding-related costs and raw material costs. After deducting allowable costs, the project's profit is estimated at 38،303 million rials. Taking into account the investors' 6.4 percent share of the project's profit, the monthly internal rate of return is projected at 2.5 percent, and the investors' profit over the project's six-month period is projected at 15 percent. This company will receive financing in a single round in the amount of 16،500،000،000 rials, with the project's principal and profit guaranteed by the Machinery Manufacturing Industry Fund. The contract and project evaluation are accessible through the links below. This project  has a flexible funding model and will be successful upon raising at least half of the amount  requested by the applicant. First Quarterly Report Final Report   Project Symbol: Halalmehra/ halalmeh
Project symbol: حلالمهرا/halalmeh