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C A Manufacturing Sp zoo

We are a leading manufacturer of cryotherapy chambers

Poland, Lower Silesia
Market: Appliances, Mechanical engineering, Medicine, Tourism, sport, Another
Stage of the project: Operating business

Date of last change: 18.04.2022
Min amount of loan
$  50.000
Estimated yield
6 % a year
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1
Total required
$ 500.000
Rating
equalizer from 1000
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Idea

Our company has spent over 1 year developing our new type of electric cryotherapy chambers to add to our portfolio. We have recruited distributors in 40 countries, including the major market of United States. We have a unique product that is gathering attention with orders in place from US, Sweden, Singapore, United Kingdom, Czech Republic and elsewhere. We are collaborating with high quality global suppliers to create the leading product in the market today. We will be highly profitable and look to return a substantial return on investment.

Current Status

C A Manufacturing has developed a ground breaking product that makes other products in this niche sector technologically weak. We have launched the product in the market and have our first installations in place. The brand is strong as it has an established portfolio of making nitrogen cooled cryotherapy chambers for such global names as the England football team, Arsenal FC, Everton FC, Southampton FC and many others.
We have orders in place and a strong sales pipeline from our distributors in over 40 countries with strategic projects planned in different locations around the world.

Market

Strong demand exists for CA Manufacturing products globally. The market potential for cryotherapy is huge with a 9.7% CAGR and a valuation of USD5.5 billion by 2024 rising from USD2.5 billion in 2015, according to GrandView Research, with demand coming from sports, health & beauty, wellness and medical applications.
Our primary market of the wellness sector is showing amazing growth with a value of USD3.72 trillion and representing 5% of the global economy, according to the Global Wellness Institute.
No single company has achieved market dominance at this stage and with its unique range, expertise and foundations laid, CA Manufacturing is well placed to be a dominant player.

Some of the benefits to our target sectors are as follows:-

HEALTH
PAIN RELIEF FROM JOINT DISORDERS, RHEUMATOID DISEASES & FIBROMYALGIA.
DECREASED MUSCLE SORENESS, SPASMS & INFLAMMATION.
PREVENTION OF CONDITIONS SUCH AS OSTEOPOROSIS.

WELLNESS
ALLEVIATION OF DEPRESSION, ANXIETY, FATIGUE, INSOMNIA, MIGRAINE, & EFFECTS OF STRESS.
IMPROVED QUALITY OF SLEEP.
ENHANCED IMMUNE SYSTEM WITH LOWER INCIDENCE OF COLDS & FLU.

FITNESS
FASTER RECOVERY FROM EXERCISE
ENHANCED ENERGY & ENDORPHINS RELEASE.
IMPROVED MUSCLE & MOTOR ACTIVATION
REDUCED EXERCISE STRESS

BEAUTY
ANTI-AGING PROPERTIES WITH COLLAGEN PRODUCTION
WRINKLES & BLEMISHES REDUCED
SKIN CONDITIONS IMPROVED
WEIGHT LOSS THROUGH BOOSTS TO METABOLISM.
CELLULITE REDUCTION

Problem or Opportunity

Our products cover a wide variety of needs. For elite sports and gyms, our cryotherapy chambers enable rapid recovery from the stresses of exercise. For a health context, our chambers enable rapid pain relief and the reduction of inflammation. This drug free therapy is widely used in various countries and is growing in popularity following the recent opioid scandal. For the aesthetics and beauty sector, cryotherapy offers anti-ageing properties and the relief from skin disorders.
This simple 3 minute exposure to supercooled air is tried and tested, offers so much to so many and is poised to become widely adopted globally. We are one of less than 5 providers of any significance and have the opportunity to become a global leader.

Competitors

We have limited competitors in our niche. The majority of the companies are small and produce low quality, less technically developed solutions.

Competitors of note are as follows-

German based Mecotec produce electric only cryotherapy chambers and represent the oldest company in the market. The products are limited with three product types. They have been a go to standard for some hotel groups with some 300 installations globally. Their high cost and limited investment in product development resulting in poor performance in comparison to competitors and their clinical aesthetic appearance is now seeing companies look to alternatives such as ourselves.
CryoBuilt
US based CryoBuilt have 170 installations in the United States and have no plans to extend their geographical reach. The products are electrical only cryotherapy chambers in various sizes. The range is priced quite keenly ranging from $115000. The products are weak technologically but they are a strong marketing operation with a ambassadors across the NFL, NBA, MMA and others. They are the incumbent operator in many large gym chains and displacing these relationships is a key objective of our US distributor.
Cryo Science
Wroclaw- based, Cryo Science is the result of a Dubai-based cryotherapy clinic moving into manufacturing. Their products are currently sold into the wellness space mainly in US. The company has two cryotherapy products, a single person chamber and a local cryotherapy unit. They have established points of presence in the EU, US & APAC markets with a distribution network in major markets.
Cryo Science product range is limited and the company is reliant upon volume sales of a low margin single person cryotherapy unit.

Advantages or differentiators

Our products have a number of advantages over the incumbents, such as-

Temperatures
Temperature is a vital component in an effective cryotherapy treatment. The aim is to cool the skin from 37.5 degrees Celsius on average by 15-20 degrees within a short a time as possible. Current vendors cannot meet this threshold and either require more time or use other techniques such as blasting the user with cooled air using high speed fans to induce a windchill effect. Both methods make the environment uncomfortable for the user and will not encourage adoption by first time users. Our own solutions can achieve this aim by creating technologies that provide coldest temperatures currently available and without the need for fans.

Method of cooling
We have a strategic alliance with a leading company in cryogenic cooling and have collaborated to integrate their cooling technology within our own. The invest millions of dollars in research and development to enhance their products which we, in turn, can take advantage. Our competitors have developed their own solutions in house and the limitations of this technology is obvious. Their average temperatures of -80 degrees Celsius are dwarfed by our own -120 degrees Celsius.
As stated earlier, our competitors use fans to generate windchill whereas our own solutions has no need of fans and relies upon creating zero windchill. This is both pleasant for this user but also reduces a major headache as fans represent a significant point of hardware failure.

Reach
Our extensive distribution network offers many benefits to our competitors as they can offer local points of sales and service. In most cases, business will be generated of which our incumbents have not been notified.

Finance

Our revenue streams are from sales, service and commissions resulting from the activities of our own inhouse sales as well from our portfolio of distributors fr9m around the world. Our products range in price from around $60000-$300000.
Our manufacturing is based in Wroclaw, Poland as this is the cultural home of cryotherapy and there is a lot of expertise available locally. Costs of production are lower than other countries and our gross profit average is around 44%. Labour is readily available and is of a high quality with a strong attention to detail and work ethic.
Based upon current projections we expect to increase our production capacity to cater for demand, from a projected 60 units in 2022 to 182 in 2024.

Loan terms

60 months

Interest rate, %

6

Pledge and assets

Tools, equipment & stocks.

Business model

Our business model is sales driven. Typically our clients and distributors pay a 50% deposit on order. Our lead time for production is 3-12 weeks currently with a further 40% payable prior to despatch. 10% is payable on completion.

Our distributors operate on an ex-works basis so costs of logistics, installation and service are met by them.

Solution (product or service)

Whole Body Cryotherapy is an extreme cold treatment. Cryoaction cryotherapy sessions are delivered at temperatures of between -120°c and -160°c with treatments delivered in our specifically designed walk-in cryotherapy chambers
This extreme cold innovation has amazing untapped potential to alleviate pain, reduce the impact of chronic diseases such as arthritis, rheumatism & fibromyalgia, as well as other contributory health and wellness benefits, thus providing a drug-free treatment to meet the needs of an increasingly health conscious and aging population.
Our CryoSolo single person Whole Body Cryotherapy chambers are designed with gyms and spas in mind. Leveraging our experience in offering larger chambers, these incorporate new technology and processes to ensure the client gets maximum treatment impact in one self contained and easy to operate unit.
Our CryoDuo, integrated Whole Body Cryotherapy chambers are designed for complete incorporation into an existing building or facility. The chambers comprise a pre-chamber with a larger main chamber and are available in a variety of sizes and shapes, allowing 2-3, 3-4 or 5-6 persons to be treated simultaneously.
Our transportable Whole Body Cryotherapy chambers offer a full-size cryotherapy chamber but incorporated into a specially designed unit of various sizes. ] Internally, the transportable cryotherapy unit incorporates a full cryotherapy chamber, a changing/preparation area and a separate technical room

Our entire range has the ability to be cooled by electric or nitrogen and the we are the first vendor to offer this option to the market with the most comprehensive range of solutions.

Team or Management

Risks

Business risks are low. During the recent pandemic, we saw some markets almost completely close but other markets continues as per usual so the impact was balanced out. The single greatest risk encountered was the global supply chain where component lead times extended to the extent where the delays impacted on cashflow due to the resulting extended delay between the payment of the deposit and the delivery of the equipment. Employees are a further risk with the current business being a small business, there is little scope for succession planning. Thankfully, we have a very small employee churn but it will be necessary to have more planning to ensure that skills are passed on to new employees.

Most technology risks have been mitigated as our systems incorporate a high level of safety systems with monitoring systems, audible and visual alarms as well as technology that will immediately suspend operations upon an alert. Our installers are highly trained with certification and testing protocols but there is always a small risk of a human factor that must be considered.

Incubation/Acceleration programs accomplishment

Participation in Welsh Business programme. (2018)
Participation in UKTI Sports technology business scheme. (2017 to date)

Won the competition and other awards

Won MEI technology award
Won Sports Technology award

Invention/Patent

We are investigating EU & WIPO patent protection for our unique methods of cooling within the cryotherapy chamber as these are ground-breaking for our sector and represent a significant barrier to entry for our competitors.

Photos

Photo 1 - We are a leading manufacturer of cryotherapy chambers
Photo 2 - We are a leading manufacturer of cryotherapy chambers
Photo 3 - We are a leading manufacturer of cryotherapy chambers
Photo 4 - We are a leading manufacturer of cryotherapy chambers
Photo 5 - We are a leading manufacturer of cryotherapy chambers

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Idea
Current Status
Market
Problem or Opportunity
Competitors
Advantages or differentiators
Finance
Financed earlier, $
Loan terms
Interest rate, %
Type of pledge
Pledge and assets
Business model
Solution (product or service)
Team or Management
Lead creditor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video