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Dear sirs,
I have MS in chemical engineering and have been engaged in stone industry for more that 15 years.

With considerable knowledge and experience in production abrasive segments to polish marble, recently I have developed a very high quality final polisher called 5-Extra. Each piece's cost is around 2.2 USD and can be easily sold at 4 USD. For a light production of 12'000 pieces per month, plus working capital, we need at least a 200 Sqm area plus 10'000 USD to buy some hardware. My selling network in Iran, where I used to import 5-Extra from Italy, is able to sell much more than this amount, so we will expand rapidly to cover huge market of Mid-East.


Best regards,

Omid Tahernia

--- Jun 09, 2013 ---

Sounds very interesting, I'd love to know more details and total investment required.

Dear Mr. Ihab,

Thanks for your kind reply, polishing the stone is done by segments which contain a hard abrasive named silicon carbide. They scratch the stone physically and in several grains from coarse to fine, finally to remove the scratches we need a chemical reaction to polish the stone like a mirror, this is done with 5- Extra segment. My formulation for 5-Extra which has been developed after 5 years of researches and experiments and has passed all the tests successfully, now I claim that it is among the highest qualities in the world. I have found only 2 competitors who their quality is comparable with mine, first Tenax S.p.a from Italy and the other one HAZ Abrasive from Turkey, both of them are sold in Iran's market around 5.5 USD per piece.

There are many others who produce it, for example in China and Spain but non has the same quality.

If we produce in UAE at the price of 2.2 USD and sell them ex-factory to the hole sellers, it will reach to the end users less than 5 USD. After 2 or 3 months of presentation our product in the market we can expect to sell by L/C or T/T. Also we can increase the price when they are confident with the quality.

So let's assume we need a capital working for 4 months to produce 12'000 pieces per month at the cost of 2.2 USD containing raw materials and labor,therefore total amount of the working capital will reach to 105'600 USD Plus 10'000 USD for the hardware and a small workshop to begin the production. I have dedicated half of the share to the investor who supply 115'000 USD and a workshop which we have to rent.

I would like to explain why it is better to produce it in a free zone in UAE than Iran, because of the sanctions the price of the raw materials to import from abroad is high and those who doesn't have special connections with the government - like me - has many problems for getting the permissions. Further more the clients prefer to buy a foriegn made product, as local ones have mainly a poor and unstable quality.

In future we can make the other segments which are needed to be used on the polishing machine before 5-Extra, normally an automatic polishing machine has 12 heads which 2 of them are equipped with 5-Extra, the other segments which work physically, have larger amount of consumption, but their added precious are less than 5-Extra and there are many competitors in the market, because they are easy to produce.

I have experiences in producing artificial stones made by shells from the sea and polymers they are used in luxurious places, they are produced in large slabs and could be cut-to-size as clients order. If you are interested I can send their pictures for you by email.



Meanwhile I want to invite you to Iran to see the wonderful quality of this 5-Extra, it will be my pleasure be your host here.

Best regards,

Omid

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