TitanCrete Readymix — The Investment Proposition
The investment proposition — the case for a scaled, multi-plant ready-mix concrete and aggregates platform, the value drivers and the returns underpinning the opportunity.
Section 2 · Business Plan
The Investment Proposition
The investment proposition — the case for a scaled, multi-plant ready-mix concrete and aggregates platform, the value drivers and the returns underpinning the opportunity.
TitanCrete offers investors exposure to a defensive, asset-backed
materials business positioned at the convergence of three reinforcing
tailwinds: a record public-infrastructure budget, a cement-and-concrete
sector running well below installed capacity, and a fragmented ready-mix
market in which scale, logistics and quality assurance are the principal
sources of durable advantage.
Sources and uses of funds
The opening raise of R420 million is allocated across a balanced mix
of long-life productive assets, working capital and a prudent
contingency. Roughly two-thirds is directed to land, plant civils,
batching systems and the initial fleet — the revenue-generating core —
with the balance reserved for technology, pre-launch commercial
activity, working capital and a debt-service reserve.
Table 2. Sources of funds at financial close
| Sources of funds | R’m | % |
|---|---|---|
| Equity capital (institutional) | 220 | 52.4% |
| Founder capital | 30 | 7.1% |
| Senior term debt | 170 | 40.5% |
| Total sources | 420 | 100.0% |
Table 2. Opening capital structure: 60% equity
(institutional plus founder) and 40% senior secured term debt.
Table 3. Uses of funds at financial close
| Uses of funds | R’m | % |
|---|---|---|
| Land & plant infrastructure | 150 | 35.7% |
| Fleet acquisition | 120 | 28.6% |
| Equipment & batching systems | 65 | 15.5% |
| Working capital & DSRA | 40 | 9.5% |
| Technology infrastructure | 15 | 3.6% |
| Pre-launch sales & marketing | 10 | 2.4% |
| Contingency | 20 | 4.8% |
| Total uses | 420 | 100.0% |
Table 3. Land, plant civils, batching systems
and fleet absorb the majority of the raise; a R20m contingency (4.8%)
cushions construction and ramp risk.
What investors are backing
- A demand-led, not supply-led, entry. TitanCrete
does not need to create demand; it needs to capture a defined, budgeted
share of public and private concrete consumption with reliable service
and consistent quality. - Vertical integration. Owning batching, mixing,
pumping and aggregate supply protects margin, improves on-time-in-full
delivery, and reduces dependence on third-party logistics in a market
where freight cost dictates competitiveness. - A conservative, structured balance sheet. Modest
opening leverage, a grace period, a debt-service reserve and a committed
revolver are deliberately layered to carry the business through a
loss-making ramp without covenant breach. - A clear deleveraging and exit path. Net debt /
EBITDA compresses to roughly 1.0× by Year 5, creating a clean platform
for trade sale, secondary buyout or recapitalisation.
case)
On preserved sponsor EBITDA, a 5.5× EV/EBITDA exit at the end of Year
5 implies an enterprise value of approximately R1,441m and equity value
of R1,169m after deducting net debt of R272m. Against R250m of invested
equity this yields a base-case IRR of 36.1% and a money multiple of
4.67×. The grid in Section 18 shows the return holding above 22% even if
the business achieves only 85% of projected EBITDA and exits at
4.5×.
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.