Working Capital Financing for Purchasing Raw Materials to Manufacture LT 643 Modems

  Arg Jadid Telecommunications Services established its manufacturing plant in 1392 to meet the telecommunications needs of the country's communications industry and to transfer and localize new technologies. With a view to the expansion of the country's high-speed internet network and the growing number of its users, the company prioritized the production of customer premises equipment (CPE) in its first phase. It currently produces a wide range of these products, including ADSL, VDSL, GPON  and LTE modems under the UTEL brand. The variety of modems and customer premises equipment manufactured at the Arg Jadid Telecommunications Services plant fully covers the requirements of high-speed internet subscribers. In this regard, Arg Jadid Telecommunications Services has collaborated with Hamrah-e Aval, Irancell, MobinNet and Iran Khodro Automotive Group  on various projects. Customers for the manufactured modems include mobile operators such as Hamrah-e Aval, Irancell and Rightel. Arg Telecommunications Services intends to produce 8,952 units of the 643LT modem to meet market and customer demand. To this end, it intends to raise 125,000 million rials through the Halal Fund crowdfunding platform to provide working capital for purchasing raw materials for modem production. According to the applicant's statements and the modem production formula submitted by the applicant, this amount will be spent on purchasing various capacitors, resistors, processors, LEDs, etc. More than 90 percent of the components used to manufacture the product in question are imported from China. The project duration is estimated at 12 months. Based on the applicant's projections, this includes four months for registering the foreign currency remittance, 2 months for transporting components to the factory located in the Arg-e Bam Special Economic Zone in Kerman Province, 3 months for production through completion of product testing, and 3 months for settlement with the operators after delivery of the goods. Based on the applicant's statements and the latest invoices submitted for sales of the 643LT modem to mobile operators, the price is estimated at 25,500,000 rials. Accordingly, project revenue from the sale of 8,952 units of the 643LT modem is projected at 196,500 million rials. The project's eligible expenses will consist of the cost of purchasing raw materials and direct materials for manufacturing the intended product, as well as the crowdfunding fee. Other project expenses, including wages, overhead costs, etc., are the applicant's responsibility. It should be noted that, given the requirement for a formal audit of the project, the cost of carrying out this audit will be borne by the applicant.   This project  has a flexible funding model and will be considered successful upon raising at least half of the amount  requested by the applicant. The project is backed by a guarantee issued by the University of Tehran Research and Technology Fund under Sepas number 1004814020955573 that is valid until 1403/09/05 and may be extended at the request of Hesab Yari Amin Melal.
Project symbol: حلالمودم/halalmod