Project for Edx course

1. Unlocking Investment and Finance in
Emerging Markets and Developing
Economies (EMDEs)
Final Project
View point: Direct Investor

2. About the investor
 The investor FabFoods Ltd. is an American food and
beverage company that specializes in developing processed
and canned food products.
 The company focuses on connecting farmers to develop
quality products and provide high quality food products for
customers.
 The company is looking to expand and develop a wide
variety of products. The target market is Asian countries
Best-in
class
logistics
Modern
technology in
manufacturing
High
quality
produce
Company Philosophy

3. Target opportunities
 FabFoods Ltd is aims to expand operations and is focused on following two
dimensions:
 New products; and
 New markets
 The geographic focus is Asia and is looking to at opportunities in Asian
countries of Nepal, Bangladesh and Bhutan
 These countries are primarily agrarian economies and export raw materials.
Our strategy is to leverage the raw materials and produce finished goods
which can be used to service the global markets

4. Anticipated Challenges and potential
solutions
Challenges Ideas to overcome challenges
Lack of adequate value chains such as cold storages,
sorting and processing centers
- Invest in a modern state-of-art technology storage and
processing centers
- Partner with local farmer associations to build
awareness on food handling
Ensuring food quality - Investing in adequate screening and technology to
ensure food safety
Logistics support – part of the reason for lack of
development of the industry is the economies of scale in
logistics, making individual products very expensive
- Develop transport hubs eg. Bangladesh where products
from Nepal, and Bhutan will be aggregated. A hub will
help bring down costs and improve efficiencies
- Hub at Bangladesh will address the problem of
accessibility to global markets which land-locked
countries (Nepal and Bhutan) face, thus reducing the
barriers to trade
Managing the hurdles to do business in Asian countries
which result from difficult local bureaucracy, regulations,
approval procedures
- Partner with a regional/ local organization who are
well versed in the local markets
Risk of political/ currency risk - Leverage tools like WBG’s MIGA political risk insurance
and seek local currency financing and currency hedging
through WBG’s IFC

5. Impact investing to maximize value
 The diagram below shows how the company will endeavor to maximise value through
the principles for Impact Investing:
Strategic Intent
• Identify the clear
objective –
diversify product
base and
geographic reach
Origination and
Structuring
• Select partner for
a joint venture
• The partner should
have good reach
locally and should
be well versed
with local rules
and regulations
• The JV partner
will be responsible
for the day-to-day
operations. The
Company will
focus on
leveraging the
brand to develop
products
Portfolio Management
• The investment
will be monitored
regularly to review
profitability,
revenue, cost
optimization,
inventory
management etc.
• Quality standards
shall also be
monitored
Impact and Exit
• The investments
shall be regularly
monitored. Non-
performing assets
shall be reviewed
and appropriate
‘stop loss’
measures shall be
considered

6. Thank you