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Investment Opportunities Series: Mesh Fence Production

Investment Opportunities Series: Mesh Fence ProductionInvestment Opportunities Series: Mesh Fence Production

Mesh fence, also called chain-link fence, is usually made from galvanized steel wire. The popularity of chain-link fence is due to its relatively low cost and transparency. One can make it semi-opaque by inserting slats into the mesh.

As a product that is nearly always in demand and requires a relatively small capital, mesh fence production can be a lucrative business opportunity.

The Persian daily Forsat-e Emrooz recently published an article on the sector’s investment potential in Iran.

  Investment Requirements

According to the article, an initial investment of $32,000 is required to set up a mesh fence manufacture facility.

A 120 to 150 square-meter plot of land is needed to set up the facility, the price of which differs based on its location.

Expenses can be reduced by establishing the production line in one of the industrial parks across the country and benefiting from the price discount offered by the government there.

Close to $16,000 are needed to purchase the machinery for producing wires with a thickness of 2 to 4.5 millimeters.

About $5,500 should also be put aside for purchasing the raw materials, plus close to $10,000 as working capital.

At least two trained and experienced workers are needed to operate the facility.

The required permits can be obtained from the Ministry of Industries, Mining and Trade, which takes about 2 months.

The production line will be able to produce about 800 meters of fence daily which, considering all the costs, will yield an annual profit of nearly 30%. The initial capital will return completely in two years.

According to a player of the field, Gholamreza Rezaei, success in mesh fence production is largely tied to having a competitive edge in quality and having a diverse product portfolio such as welded fences and barbed wires.

Rezaei noted that consumers mostly opt for high-quality, durable fences and the manufacture of various products will ensure a larger share of the market.

 

Financialtribune.com