|Funding Required||RM300,001 to RM600,000|
|Description||Lemon myrtle is known for its highest citrus content. The leaves can be used in food and beverages industry. Whereas the essential oil extracted from the leaves can be used in pharmaceutical and healthcare industries. The plant can be harvested as early as 9 months after planting and matured at year 4 with an average of 4.5 kg of fresh leaves per tree per year. Lemon myrtle has a long life span which is 30 years. This crop is yet to be explored but the demand for its leaves and oil is worldwide. We are planning to venture into this new industrial crop which has a very wide potential in current and future market.|
|Business Opportunity||Currently, there are only 1 company venturing into lemon myrtle in Malaysia with plantation area of 22 acres. It is a good opportunity to get involve in this new and growing industrial crop. Currently, the leaves and oil get high demand from the USA, Germany, Korea and Australia.|
|Revenue / Business Model||We are planning to plant lemon myrtle on 4 acres land for starting. The planting material must be bought from Qzen company due to lemon myrtle is under Plant Variety Protection (PVP) acts. Maintaining the crop required less input material. No chemical fertilizer or herbicide will be used as it an organic product. Only mulching using palm empty fruit branch and sufficient water supply. Lemon myrtle is harvested by cutting the branch according to height specification. At first year the plant can produce an average 2.6 kg/tree/year. The yield will be increased to 4.5 kg/tree/year when matured at year 4. The leaves can be sold back to Qzen under “Buy-back Guarantee Agreement” with Qzen company. Price for fresh leaves is RM 4/kg. Dry leaves can be sold at much higher price, RM50/kg but required additional facilities to dry the leaves. The dry leaves weight is 40% of fresh leaves.|
|Management Team||Founder – Mohamad Hanif Bin Mohd Marzuki (Mechanical Engineer)
– Iedil Bin Jalaluddin
|Company Background||The company name is iH IdealHarvest resource established on 31st March 2016 which is an enterprise company. The main purpose of our company is to venture in lemon myrtle plantation as it provide better opportunity compared to other industrial crop like rubber and palm oil. As for now our company is still looking for interested seed angel investors to help us start up the plantation.|
|Funding Milestone||We are planning to set up a 4 acres lemon myrtle plantation as a start up. The capital cost for 1 acre lemon myrtle plantation (3000 trees) is about RM 160,000. The total cost for 4 acre will be around RM640,000 but we need about RM 700,000 to bear the operating cost for at least 2 years.
Seed stage (RM 700,000) – will be used to start 4 acres lemon myrtle plantation.
|% Equity Allocation||We will considered an equity share of 25% for RM 700,000|
|Expected ROI||3-4 years|
|Risks and Mitigation||Lemon myrtle is very tolerant to extreme condition when fully grown. Currently there are no insurance coverage for this crop. The product has guaranteed buyer as there are a buy-back guarantee agreement with the supplier.|
|Exit Strategies||The exit strategy for lemon myrtle plantation is by selling the plantation to a bigger company.|
|Company Name||iH IdealHarvest Resource|
|Business Address||A-09-01, Jalan Juara 1/5, Taman Juara Jaya,Apt Juara Suria,43300,Seri Kembangan,Selangor|
|Contact Person||Hanif Marzuki|