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Gambier ekstract and pure catechin production, Indonesia

Gambier ekstract and pure catechin production, Indonesia

Project Cost: US$ 425,000. –

Amount Invested : US$ 8,000.-

Amount Required : US$ 425,000. –

Knowledge / Experience Required: internationalisation

Proposed Investor’s Role: as consultant

Industry: agriculture

Project Stage: start-up

The Business:

Gambier is an extract from the leaves of plants uncaria Gambier. Catechin and the tannin is important economically valuable compounds contained in Gambier. Gambier many in need in the cosmetic industry, pharmaceutical, leather tanning, as well as for consumption of betel (a habit of the people of India, Pakistan, Bangladesh, Nepal, Sri Lanka, and most of the Middle East).

Company profile :

CV.Ronamora founded in Padang, West Sumatra, Indonesia in January 2004. In the course of the early moves in the field of General Trading especially in trade and spice plants, and only works on local trade (not export).

Alhamdulillah, Allah willing, in March 2009 we agreed to produce Gambier, Gambier mainly yellow to fill orders exporter company in Padang.At that time we invested the money of
US$ 8,000.00 for equipment and production costs and has had the ability to produce yellow Gambier by 10 MT / month. Because it has no direct market to the consumer countries, particularly Pakistan and Bangladesh do not develop our work, in December 2011 our production activities temporarily closed and re-turned to trade. After we did the production and Gambier catechin is not economical on a small scale (small capital). For that we intend to go back in production after having sufficient capital or obtain financing to fund the production and marketing.

Problems and solutions:

The problem that we face today is lack of capital so that the cost of inefficient production, and can not meet the export quantity. When the company\’s ability to produce:
Production Equipment:
1. Gambier black = 40 kg / day
2. Gambier yellow = 350 kg / day (due to lack of capital for purchasing raw materials and we only produce a maximum of 150 kg / day)
3.Catechin = no equipment for large scale production.

To increase the quantity, quality, and efficiency of production costs is the large scale production (Yellow Gambier 10 MT/month, Black Gambier 10 MT/month, and Catechin 1 MT/month). These capital needs are great, because we have to build a factory, making equipment, and purchase of raw materials are many.

Our proposed budget is US$ 425,000. – The details are:

1.Land and factory building US$ 100,000.-
2.Production equipment : US$ 180,000.-
– Black Gambier Production equipment capacity of 10 MT / month US$ 80,000.-
– Catechin production equipment capacity 1 MT / month U $ 80,000.-

3. Raw materials for 2 months : US$ 90,000.- For production during the two months it takes as much as 600 MT of raw materials and raw material prices currently US$ 150/MT
4.Production Costs for 1 month : US$ 20,000.-
-Production costs for Yellow Gambier US$500.-/MT x 10 MT/month = US$5,000.-
-Production costs for Black Gambier US$750.-/MT x 10 MT/month = US$7,500.-
-Production costs for Catechin US$7,500.-/MT x 1 MT/month = US$7,500.-
5.Transportation, Truck capacity 5MT 1 unit : US$35,000.-

The Market:
We target to enter a major market that is yellow and black Gambier Gambier. This product is in the average export 150 MT / month to the country India, Pakistan, and Bangladesh from Indonesia. We currently do not have the export market, but we have been making plans to visit the country to market directly to consumers.For the production of pure catechin our target markets of Europe, Japan and the U.S. that had been supplied from India. Overall market and Gambier catechin extract large enough range 150-250 MT / month with a growth rate of 5-10% / year.

The Competition:
Every business must have no competition. In the production of Gambier extract our main competitors are the local farmers who perform traditional production. For the production of pure catechin our main competitor is India. For marketing Europe, Japan and the U.S. Our main pesaiung India as well, but we are optimistic in the face of this competition with our two main plans cost efficiency of production and marketing directly to consumer countries.

The Financial :
During this time we are working with a small capital and a small quantity so that the efficiency cost can not be applied.The result is little advantage gained is US$ 200.-/MT with the production of 4 MT / month.

With large scale production we projected the production of capital:
Gambier yellow US$ 20,000/10 MT = US$ 2,000 / ton
Gambier black US$ 22.500/10MT = US$ 2.250 /ton
Catechin (min level 90%) U$ 22.500 / ton

Current selling price for FOB Indonesia:
Gambier yellow US$ 2,500 / ton
Gambier black US$ 2.750 / ton
Catechin (90%) US$ 60,000 / ton

The potential of the company\’s gross income each month:
Gambir yellow (US$ 2.500 – US$ 2,000) x 10 =US$ 5.000
Gambir black (US$ 2.750 – US$ 2.250) x 10 = US$ 5.000
Catechin (90%) US$ 60.000 – US$ 22.500 = US$ 37.500
Total potential gross income = US$ 47.500 / month

We are ready to offer to the results with interested investors and we made the target for 5-year repayment.As an exit strategy if the 5-year settlement is not reached, then we are ready to sell the equity that we have to others, or we allow the investor to sell its equity. We understand that investors usually only menanm capital and supervise, but we can accept that investors also want to be actively involved in marketing and financial management. We expect investors who are interested in coming to our country to see first hand and we are also willing to bring investors to meet with government officials the authority to deal with foreign investors. With your arrival we hope you will see first hand the truth of our business and offer more guarantees your investment.

Contact Information

Roni Aulia ( auliahasibuan@yahoo.co.id)

Postal Address : Jalan Palinggam No 48 Padang
State : Sumatera barat
Post Code : 25213
Country : Indonesia
Telephone : +6275120055
Fax : –
Mobile: +6285365053702