Planting of Aloe Saponaria with properties of Ginseng based on technology From Korea

Planting of Aloe Saponaria with properties of Ginseng based on technology From Korea

Average ROE of the project is for three projected years of FY 2011 (P), FY 2012 (P) and FY 2013 (P) is approximately 32%.

BUSINESS ACTIVITIES

Planting using Biotechnology Methods under license from Do Yeong Aloe, Korea. The planting of Aloe Saponaria with both Aloe and Saponin based on doubled haploid technology shall be provided by Korea upon the execution of a technology license agreement. Saponin are a structurally diverse class of glocosides comprising a central aglycon, ( non-sugar portion) which is typically a triterpenoid with sugars attached one of two locations ( C-3 and C-28) comprising the glocon. Sapnonins are widely found in plant genera including ginseng.

Extraction. Extracts from Aloe Saponaria shall be extracted based on methodology to be provided by DY upon the execution of licensing agreement.

Profiling and standardization. The ingredients in the extracts shall be profiled, determined and standardized with the assistance from both DY and research conducted locally.

MISSION & OBJECTIVES

The company’s main mission and objective is to become a regional exporter of extracts of Aloe and Saponim extracts and downstream end products of Aloe and Saponim extracts combined with Ginseng and other juices for the global market.

EXPANSION STRATEGIES

(i) Extracts -There is a ready market for extracts produced as DY has agreed to buy back under a buy back agreement to be executed of which the terms are presently under negotiation.

(ii) End Products – There are numerous ranges of end products that could be produced when the Company embarked on its down stream activities as end products such as beverages, health drinks and cosmetic products are being produced in Korea.

This means that expansion strategies are tremendous and could be implemented speedily as there are a range of end products that have been manufactured by DY, Korea. In addition, as there is already a ready market in Korea and Japan for such products it makes business sense to produce such end products in Malaysia, as the cost of production is lower in Malaysia compared with Korea. This shall therefore enable the Company to market its products more competitively to capture market share.

INDUSTRY OVERVIEW

Aloe Vera is also known as the “plant of immortality” and the “medicine plant”. Aloe Vera is an amazing mixture of more than 200 constituents, including polysaccharides, enzymes, glycoproteins, amino acids, vitamins and minerals. The healing power of Aloe Vera comes from increasing the availability of oxygen to the skin, and by increasing the synthesis and strength of tissue.

Aloe Vera is one of the most potent sources of Vitamins E and C -anti-oxidants that counter the aging effects wrought by free radicals. There are young people who take it to prevent the premature aging symptoms, and of course those who take it to cure physical problems.

However, at xxxx (M) Sdn Bhd we aim to pioneer in Malaysia the unique beauty secrets that will far surpass the benefits of ordinary Aloe Vera.
Our technology works miracles in anti-aging, tissue regeneration and rejuvenation; giving you not just beautiful skin with vibrant vitality, but also a regenerated younger, healthier you. Your face will also look younger and healthier in texture and color. Your body will be physically fitter and more flexible.

xxxxx’s product range will concentrate exclusively on Aloe Vera Products, such as

Aloe Beauty Gel
Aloe Ginseng
Aloe Prune Juice
Aloe Soap
Aloe Collagen
Aloe Apple Juice
Aloe Facial Mask

Cultivation of Aloe Vera plants is predominant and most successful in warm, dry countries. The Malaysian climate is well suited for Aloe Vera cultivation. Aloe Vera plant requires low maintenance once the climatic conditions are right, it grows slowly and needs little water.

It is a medically proven and well established fact that aloe vera is good for skin. It is also one of the most vitamin and mineral-packed nutrition drinks that you can find. Many people drink aloe vera as well as use it on their skin, gums, hair and scalp, for a number of reasons. Among the top 10 reasons include: Energy, Immune Function and Support, Digestion, Skin Regeneration, and more.

There are over 240 different species of Aloe, growing mainly in the dry regions of Africa, Asia, Europe and America. Though Aloe vera is a member of the Lily family, it is very succulent-like in appearance. Of the 240+ species of Aloe, only four are recognized as having nutritional value. Aloe Vera gel contains over 75 nutrients and 200 active compounds, including 20 minerals, 18 amino acids, and 12 vitamins.

The proposed activity of the Company involves the planting of Aloe Saponaria which is specially treated using Korean technology that provides high Saponims in the plant.

SWOT Analysis

STRENGTHS

Ready Markets. The end products already has a ready market in South Korea and Japan. Upon full scale commercialization in Malaysia, there is a ready market ( under buy back agreement ) with technology provider Do Yeong, Aloe. There is a large untapped market in Europe, Middle East and Australia.

Strategic partner with proven busines concept. The technology partner has successfully, started from the planting, right up to full scale down stream products. With the technology transfer agreeement, the Company shall be able to replicate the Company in this region with exclusive market territorial rights.

Scalability. The business could be expanded as Malaysia has available resources which are competitive such as land, labour and intellectual knowledge workers.

Barriers of entry. The cultivating, planting and extraction requires technology know how of which the Company is able to secure under a technology licensing agreeement, of which shall provide some form of exclusivity in its identified markets.

OPPORTUNITIES

Large untapped global markets. The end products has a large global market. The Company has plans to set up various regional marketing offices in various parts of the world and having strategic alliances with its global contacts to enhance on the distribution channel.

Biotechnology, a promoted sector in Malaysia. The project falls under Biotechnology which the Company is able to explore some tax and grants incentives by Malaysia government.
WEAKNESS

1. Not identified.
THREATS

1. Threat of competition. This threat is mitigated as all the Company shall be given an exclusivitiy with territorial rights to market the product of extracts from Aloe Saponaria with high Saponim contents.

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