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Solar-powered pumping for irrigation

Opportunity Description: PV pumping systems 5HP, 7.5HP, 10HP (which represents 80% of the market). Systems designed to suit client needs and budget, as well as provide maintenance and follow ups.
PRODUCT: Solar-powered pump
Sector: Renewable Energy, Sustainable Agriculture and Food Processing
Market: Reclaimed Lands
Initial Investment Required: EGP 280,000
Details Available: Opportunity Study
Market Potential: Desert farms for underground water pumping. It can expand to cover other machinery including pest control equipment, grinders, ventilation system for poultry farms.
Supply: PV Panels, Pumps, Inverters.
Process: Assembly of components
Human Resources: Technical and Business Development Manager – 1
Operations and Maintenance – 2
Manual Labor for installations – 2
Financial: CAPEX required EGP 10,000
6-month OPEX required EGP 270,000
IRR expected is 61%
Payback period around 1.3 years
Risk: Risk – reliance on few suppliers for components, can cause delays
Mitigation - Building network of suppliers who can provide financial facility.
Risk - Cash flow due to the market method of payment which expects the client to only pay 25% down payments.
Mitigation - Start as advanced sales office to suppliers and work with commission.
Risk - Cost of transportation from suppliers to client. Mitigation - Arrange for systems to be transferred to client directly and assembled at premise till cash allows building an inventory.
IMPACT: Environmental - CO2 emission reduction
Social - Sustainable and more reliable energy for better farming