TitanCrete Readymix — Business Model & Revenue Streams

The business model and revenue streams across ready-mix supply, supply-and-place, aggregates and value-added services, the pricing per cubic metre and the unit economics.

Section 6 · Business Plan

Business Model & Revenue Streams

The business model and revenue streams across ready-mix supply, supply-and-place, aggregates and value-added services, the pricing per cubic metre and the unit economics.

TitanCrete operates a vertically integrated ready-mix model: it
sources cement, aggregate and admixtures, batches concrete to
specification at its own plants, and delivers and places it using an
owned, telematics-managed fleet of mixers and pumps. Revenue is earned
across four complementary streams, anchored by ready-mix concrete and
reinforced by higher-margin services and adjacent products.

6.1 The four revenue streams

Table 11. Revenue by stream (ZAR millions)

Revenue stream	Y1	Y2	Y3	Y4	Y5
Readymix concrete	142	281	481	755	1,056
Pumping services	13	29	53	88	131
Premix & bagged products	14	27	45	69	94
Aggregate & other	12	23	42	69	99
Total revenue	180	360	620	980	1,380

Table 11. Ready-mix concrete provides roughly
77–79% of revenue; pumping, premix and aggregate diversify the mix and
lift blended margin.

Figure 5.

Figure 5. Revenue contribution by stream across the five-year plan.

6.2 How each stream works

Ready-mix concrete (core). Batched-to-order
concrete sold by the cubic metre, priced from roughly R1,850/m³ at
launch and escalating about 5% per year. This is the volume engine and
the basis of framework-contract relationships.
Pumping services. Boom and line pumping for
high-rise, bridge and slab pours — a higher-margin, equipment-led
service that also pulls through concrete volume and deepens client
lock-in.
Premix & bagged products. Packaged mortars,
screeds and specialist dry products serving smaller contractors and the
retail trade, widening the customer base beyond large pours.
Aggregate & other. Sand, stone and recycled
aggregate sales that monetise the upstream supply position and improve
plant economics through backhaul and shared logistics.

6.3 Unit economics and pricing

The model is built bottom-up from volume and average selling price
rather than top-down from a market-share assumption. Concrete volume
scales from approximately 97,000 m³ in Year 1 to 614,000 m³ in Year 5 as
the plant network grows from 5 to 16 sites and utilisation rises from
the mid-30s to roughly 70% against a 55,000 m³-per-plant nameplate.
Average selling price escalates from R1,850/m³ to about R2,249/m³ over
the period, consistent with observed construction-materials
inflation.

Table 12. Volume and pricing build

Driver	Y1	Y2	Y3	Y4	Y5
Operating plants	5	8	11	14	16
Capacity utilisation	35%	42%	50%	59%	70%
Concrete volume (’000 m³)	97	185	304	458	614
Average selling price (R/m³)	1,850	1,943	2,040	2,142	2,249

Table 12. Bottom-up volume × price build;
utilisation deliberately held below nameplate to preserve service
flexibility.

ANALYST CALLOUT — Volume ramp is the swing variable —
stress it hard

Because revenue is volume-led, the plan’s outcomes hinge on how
quickly utilisation climbs toward 70%. A slower ramp delays the
crossover into positive net profit and extends the period of sub-1.0×
debt-service coverage. The sensitivity analysis in Section 18 isolates
this: a 10% shortfall in volume removes roughly R52m of Year-5 EBITDA.
Management’s framework-contract pipeline and plant-by-plant
commissioning schedule are the items diligence should scrutinise most
closely.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of TitanCrete Readymix South Africa (Pty) Ltd.