||Concept / Business Plan
||RM5,000,000 or more
||The company (Agrostevia Worldwide (M) Sdn Bhd) is planning to set up a stevia plantation on 300 acres of land located at Lojing, Gua Musang, Kelantan under a new SPV called Agrostevia Plantation Sdn Bhd. The company had done it before 5 years back in Sepang and the project was a success. Since the project was planted under the commercial land, it was taken back by the developer and now the company has identified a 300 acres of land at the said location (owned by Yayasan Anak Yatim which is leased from Kelantan Government). The off takers have been secured and the cost of the project on 100 acres of land is RM13 million (300 acres is RM39 million but the investor can choose the number of acres they wish for) and the owner is currently looking for a partner(s)/investor(s) to fund the project. Should the investor(s)/partner(s) be interested to invest, the procedures are as per below:-
1. If you agree to invest, then, the representatives of the three parties (investor(s), Agrostevia Worldwide (M) Sdn Bhd, Yayasan Anak Yatim) will meet and discuss on the company’s formations and conditions.
2. All parties involved in the Stevia Plantation project would then visit the land intended for the plantation.
3. The company secretary/lawyers would later prepare the following documents/agreements:-
a. Share holding/equity of each party in the new company.
b. Registration of Agrostevia Plantation Sdn Bhd with the ROC.
c. The Lien documentation/agreement on the portion of land on which the plantation will be located (which the Yayasan Anak Yatim leased from Kelantan Government).
d. Open a bank account for the company.
e. Your party shall deposit the agreed investment into the bank account.
4. Agrostevia Worldwide (M) Sdn Bhd shall prepare a new projection Cash Flow and Profit & Loss in accordance to the investment amount your party will make. Thus, we would like to know the amount your party intends to invest in Agrostevia Plantation Sdn. Bhd. (which shall be formed when all parties have agreed on the terms of the Joint Venture Company).
5. Then the stevia project would commence operation as soon as possible.
6. Plantation Management and technological aspects would be provided by the Agrostevia Worldwide (M) Sdn Bhd, capital investment would be the investors’ responsibility, and Yayasan Anak Yatim would provide the land required to locate the plantation.
7. The new plantation company would purchase the stevia plantlets from Agrostevia Worldwide (M) Sdn Bhd to ensure quality stevia leaves are produced.
8. Agrostevia Worldwide (M) Sdn Bhd would sign a guaranteed purchase agreement with the new company to purchase all the dried harvested stevia leaves.
||The barriers are:
1. Tropical Climatic and Sunlight (photoperiod)
3. Watering requirements
4. Early flowering due to stress
We have overcome all the above barriers.
1. We introduce the misting watering system to lower the temperature, provide gradual watering, induce temperate climate, reduce stress and prevent early flowering.
2. Built Sheds for our nursery to reduce direct sunlight and maintain moist temperature to encourage plantlet propagation with 100% success.
3. Produced Organic fertilizer with lesser Nitrogen and introduce zeolite.
4. Provide artificial lighting to ensure plants are exposed to the required photoperiod.
5. Dig a water retention pond and pump up water to retention tanks for the misting system.
6. The beds are covered with “silver shine” a plastic cover to prevent weeds from growing.
PROBLEMS WE SOLVED
• Assist Governments and WHO to combat growing NCD (non communicable diseases) population from rapidly increasing and help control escalating global medical costs. The regional medical cost for diabetes is estimated to be RM382 million in 2013. The Ministry of Health had recently accepted stevia as an alternative to sugar.
• Provide an alternative to sugar and produce healthy food and drinks sweetened with MySweet stevia.
• Overcome manufactures’ problems by reducing product ingredient cost by up to 58% especially those products that uses high sugar content.
• Lower inflation problem by reducing retail price of products and result in a win-win-win situation for the consumers/manufacturers/governments.
• Revive abandoned agricultural land by introducing stevia contract farming projects to boost production and rural farmers’ income.
• “Global Stevia Market Analysis & Opportunity Assessment, 2014 – 2020” (BUSINESS WIRE) LONDON, Mar 10, 2015 — Future Market Insights (FMI) announced its latest report, the global stevia sweetener market is projected to account for US$565.2 Million of the overall sweetener market by 2020, registering a CAGR of 8.5% during the forecast period where Demand exceeds Supply.
• Global NCD population is 30% of World population (2.2 billion), 45% of Malaysian population (13.5 mil) and 50% Malaysians are obese /overweight (15 mil).
• Potential to be the next new export commodity for Malaysia (432,000 tons@RM120 billion). (Our Palm Oil export 18.1 million tons in 2014@ RM43.2 billion) by 2020 (stevia =RM280,000/ton > Palm Oil =RM2,386 /ton ).
• The huge market of the Global food and beverage industry (US$150 million)
• The huge Global market for organic and HALAL industry (US$85 million)
• The market for dental/Global Toothpaste to reach US$12.6 Billion, cosmetic and herbal medicinal products industries (RM10 bil/year).
|Revenue / Business Model
||Revenue for the investor(s)/partner(s)
1. The stevia crop once planted could be harvested every 45 days beginning from the 7th month for 6 years.
2. Every harvest would yield about one ton per acre which would be sold to Agrostevia Worldwide (M) Sdn. Bhd. for RM10,000.00 on a ‘buyback’ contract.
3. The approximate gross income would be RM1,000,000.00 per harvest and we could harvest the stevia crop 8 times per year, which will bring a gross revenue of RM8,000,000.00 per year. ( 4 HARVESTS only i.e. RM4 million for the first year revenue )
Revenue for Agrostevia Worldwide (M) Sdn Bhd
1. The stevia purchased from the Agrostevia Plantation Sdn Bhd will then be sold to the off takers (already secured).
||The current management team consists of a Managing Director, a Technical Manager and a Plantation Manager with more than 5 years of management experience in the stevia industry.
||Agrostevia Worldwide (M) Sdn Bhd is a modern commercial stevia plantation and the production of stevia based products, with more than 5 years of management experience in the stevia industry. Established in 2010, with a paid-up capital of RM250,000.00, the company constantly develops innovative stevia planting techniques, mechanized plantation management powered by solar energy that is globally recognized.
Our vision is, “The production of stevia extract/sweetener, a future Global food commodity on a Mechanized/Robotic plantation”. Given the demand growth of clean-label food sweetener ingredients, we believe we have created a natural, organic and GMO-free whole food-commodity platform that will disrupt the traditional food production landscape. The company is recognized by the Ministry of Agriculture (MOA), the Malaysian Agricultural Research and Development Institute (MARDI), and the National Agricultural Training Council (NATC).
What are we trying to do and why?
1. The production of stevia, a future Global food commodity, on a Mechanized/Robotic solar powered plantation. We create innovative planting and management with GPS technology in a fully mechanized plantation.
2. Our Stevia Rebaudiana Extract comes with the following qualities:
• ‘0’ calorie sweetener extract good for diabetic, high blood pressure and obese patients.
• Stevia extract (green) can be used to make dental, cosmetic and herbal medical products.
• Stevia extract (white) can be used to make healthy food and drinks at a lower cost of
||The total project cost for 100 acres is RM13 million. The fund will be use for land preparation, ploughing, making bunds and covering it, preparing plantlets and organic fertilizers, management costs, farm equipment, water pump, generator, water tanks and piping, agricultural machinery and maintenance equipment. From the 4th to the 6th year, the average net income per year would be estimated >RM5 million.
|% Equity Allocation
||Since the project will be under new SPV (Agrostevia Plantation Sdn Bhd), it will be more than 50% stake
||Estimated to be roughly 200% to 300% within 30 months
||Agrostevia Worldwide (M) Sdn Bhd
||Suite 8-1-1, Block B, Jalan Semarak Api 2, Diamond Square, 53000 Kuala Lumpur, Malaysia
||Khairul Ikhwan Bin Jamaludin