Mangosteen Products: Concentrate from discarded skin

Mangosteen Products: Concentrate from discarded skin

Current Status Revenue Generating, Pre-Profit
Amount Invested RM 1,200,000
Funding Required RM1,000,001 to RM2,000,000
Description It all started as I wanted to find a cure for my multiple ailments. I managed to find it in mangosteen. I extract xanthone from mangosteen and turn it into palatable juice. The juice cured my hypertension, diabetes, arthritis as well as cough. I used to take pills daily for ten years until 4 years ago I need not take any more pills. I have a list of testimonials verifying the effectiveness of my mangosteen juice and mangosteen soap. I spent the next 10 years doing research on mangosteen. The latest product that I have formulated is detergent.
Almost all detergents and shampoos use SLS as their base; and SLS itself causes skin irritation. So far nobody has found a substitute for SLS because it is cheap. Now I have found a good substitute for SLS in xanthones that can be found in mangosteen skin. Mangosteen skin can be collected and is free, therefore our raw material is free. Hence our detergent production cost is low.
Business Opportunity Our Mangosteen Juice Concentrate is comparable to Xango and Veema, the two top runners of mangosteen juice in America. And in USA mangosteen juice is a billion dollar market. The market in Middle East and China is still untouched.
Our RTD Mangosteen juice is a unique drink and has no equivalent in the market. Either you like it or you don’t. If you like it there is no substitute just like Coke.
Many people come to buy our soap because other brands give them skin problem. Our soap contains xanthones and no other additional chemicals.
We have just formulated xanthonised detergent. What is available in the market is SLS detergent and SLS is a skin irritant. With proper advertisement we should be able to capture a good market share in our detergent.
Revenue / Business Model We have the following SKU selling in the market now:

1 Xanplus Mangosteen JuiceConc
2 Xanplus Mangosteen RTD Juice
3 Xanplus Mangosteen Juice Syrup
4 Xanplus Cookies
5 Xanplus Biscuit
6 Xan-soap

Below items have been formulated but not in the market yet
7 Laundry Soap
8 Liquid Soap
9 Hair Shampoo
10 Car Shampoo
11 Floor Shampoo
12 Dish washing Detergent
13 Laundry Detergent
14 Deodorant
We are dealing with consumer products, meaning our products are needed every day. Our product have good profit margin. For example, our concentrated mangosteen juice is selling for RM 70 per bottle to end user and RM 35 to agents whereas our cost is RM 6.
We are dealing with Healthy food and drinks, a sunrise business. Our drinks are xanthonised meaning they have high anti-oxidant level.
Unlike other normal drinks that give a sticky sensation on the throat after drinking Xanplus drinks leave the throat dry and comfortable.

Should the buyer want us to take over the operation for the start we would appoint distributors and agents and set our own outlets in busy shopping malls.
Within 3 years we should be able to export our product overseas and we aim to go public in 5 years. That is the potential of this business.
With our sunrise products and right management team I foresee that the company can progress very fast and very far.
Management Team At present I have 3 assistants managing the whole set up.

Proposer’s Bio-data
Name: Richard Kee Hong Chai
Age : 68
Sex : Male

Academic qualification: BSc (Chemistry) University of Canterbury, NZ
PhD (Chemistry) University of Southampton
Professional membership:
Member of Malaysian Institute of Chemistry
Associate Environmental Auditor (EARA)
Member of Environmental Professionals Register of Malaysia
Registered Environmental Impact Assessment Consultant (DOE)

Experiences
1978 – Set up Envilab Sdn Bhd single-handedly to carryout water
and wastewater testing commercially.
1980 – Extended testing to include oil testing and air monitoring
1981 – Extended lab to include :-
Designing and constructing of wastewater treatment plants
Designing and constructing of sewage treatment plants
Formulating and compounding of water treatment chemicals
1994 – Extended services to include Environmental Impact Assessment
study.
1996 – Extended services to include Environmental Audit.
1996 – Get the laboratory accredited under ISO scheme (within 6 months).

In 2000 at the age of 52 I resigned as director of 3 companies and went over to Australia in seek for a cure for my decade old chronic ailments. And I found the solution in xanthones which can be extracted from mangosteen.
Company Background The company, Xanthone Enterprise, was formed 12 years ago with the intention of extracting xanthones from mangosteen for medical purpose.

Later we found that SLS in detergent could be causing unexplained cancers. So we went into finding ways to incorporate xanthones into liquid soap to form detergent. After years of experiment and verification we finally compounded a detergent that is non SLS based.

The first few years we just gave away samples in exchange for testimonials.
Then we sell products to friends and relatives.
We set up stalls in hypermarkets to promote our products. And last year we set up a counter beside a Hotel to display our products. Due to financial constraint we are not able to progress further. We exhausted our fund in R&D. I thought we might as well sell off the business if we cannot find any financial supporter, and partly I need a rest.
After all it is not difficult for someone to take over the production once the formula is there.
Funding Milestone Initial stage we will just make use of present premises in Johor Bahru while start looking for a bigger area at strategic place. (Getting the new factory ready will not be in our scope of work, but furnishing and installation of machinery can be incorporated).

At later stage we can consider setting up more manufacturing plants in other countries. The company here will only supply the intermediate products, hence keeping the formulation in safe hands.

Right now we are using our counter in a shopping complex to promote our products. As there are too many products with only 3 staff to handle sales and production we can only concentrate making the popular and important items. We are also doing OEM for a company. We actually started as a R&D company with a selfish aim of finding a cure for my decade multi-ailments which neither Western medicine nor Traditional Chinese Medicine could cure.
% Equity Allocation 50% to 100% depending on agreeable amount
Expected ROI around 40%
Risks and Mitigation Here the investment risk is minimal not taking political factor into account. Our products effectiveness are proven. For example baring exceptions, after taking our Xanplus concentrate mangosteen juice it takes 2 days to see positive improvement in a diabetic case; immediate result in cough, flu and constipation.

Our detergent is SLS free and that is a strong selling point.

Our production processes leave no pollution.

We are working towards a clean and green environment. We produce healthy food and drinks and non toxic toiletries.

Unless we have a poor management team there is no reason not to be successful, even if the economy is bad.
Exit Strategies Our main focus will be on RTD mangosteen juice, soap and detergent because those are fast moving items and we have lots of advantages over other brands.
Once the company goes public the investors can draw back their fund and reap their interest, we target this to happen in 5 years time.
Company Name Xanthone Enterprise
Website/Facebook http://www.xanplus.com
Business Address 64 Jalan Sena 1, Taman Rinting, Masai 81750, Johor, Malaysia
Contact Person Richard Kee
CAPITAL.MY