Project Cost: 2.5 Million
Knowledge / Experience Required: general management; strategy; production; sale & marketing
Proposed Investor’s Role: part-time; as mentor; as consultant
Industry: agriculture; biotechnology / healthcare
Project Stage: concept; seed; start-up
Who We Are
Tanitek is the producer of Grow Bio, a one of its kind bio organic fertilizer that can significantly increase yield, improve crops health and repair soil conditions. It is a top class bio organic fertilizer that is unrivaled in terms of price and performance. Our objectives at Tanitek is to bring a green and cheaper alternative to the industry, vastly improve productivity of growers, help reduce the dependencies on chemical fertilizers and keep the environment green. We believe this is the future of agriculture this is the direction that the market is moving. The timing is right for this venture as prices of minerals and chemicals have skyrocketed in the past few years. The effect of the usage of chemicals also caused huge environmental and health issues that directly or indirectly costing everyone from growers to the consuming public. Fertilizer is a 9.17 billion Ringgit industry in Malaysia in 2010 alone. Therefore, we are very positive that there is a massive opportunity to enter the market successfully with Grow Bio.
Tanitek is founded by two entrepreneurs: Mukhlis Baharuddin and Azzuwan Aziz who have been involved in the biotech and fertilizer industry for a few years prior to setting up the company. They found their gems, Grow Bio as a result of their adventure into the industry after a following a trail of learning and searching and experimentation.
What We Sell
We produce Grow Bio, a perfectly balanced bio organic fertilizer with special blend of species of microbes and fungi. It is a premium bio organic fertilizer product which offer dramatic improvement in crops yield and health and restoration of the soil and it is suitable for all types of crops. Grow Bio is a products that is in a class of its own. Organic and bio organic product in the market suffered from inconsistencies in nutrients output compositions or nutrients release capability that makes them unsuitable for mainstream usage. Grow Bio is the first bio organic fertilizer product in Malaysia that has the capability of stable release of micro nutrients that ensure consistent result. It’s nutrients output consistency and it\’s multiplying effect on productivity, coupled with its relatively competitive price make Grow Bio a viable alternative to chemical fertilizer in many commercial crops.
Who We Sell To
Grow Bio is applicable to all types of crops. Therefore, we sell to everyone that grows anything! Basically we market to all types of growers and planters for example:
• Big plantations
• Small holders
• Individual farmers
There are 6.89 million hectares of cultivated land in Malaysia according to the statistics from the Malaysian Ministry of Agriculture and every single acre can be fertilized with Grow Bio. It’s that simple!
Tanitek is planning to setup a new production plant, establish distribution channels and embark on a full scale marketing campaign nationwide .Implementation of the plans will entail the following notable items:
• RM 80,000 to set up a new factory with 600 metric tonnes holding areas and a small microbiology lab for soil and bio input analysis.
• RM 150,000 to acquire machinery that will be used for mixing and packaging.
• RM 50,000 to setup 2 warehouses in Kedah and Pahang.
• RM 80,000 will be needed to purchase bio inputs (bacteria, fungi) and composts
• RM 800,000 will be spent on salaries of 25 people for 12 months in the first year of operation.
• RM 400,000 will be allocated for marketing purposes that will involved television, radio and newspaper advertisements. This will includes appearance in live segments of popular television stations and also participation in expositions and exhibitions around the country.
Based on our analysis, we need around 2.1 million Ringgit to maintain a good working capital and cash flow. We are going to achieve this by seeking funds from any of these sources:
• Private investors
• Institutional investors
• Government grant
We are expecting sales for the first year to reach 6,000 Metric Tonnes which translates to 18 million ringgit in revenues. This number is based on the targeted market penetration of about 0.6% or equivalent to about 2907 hectares of oil palm plantation. This is roughly the size of a combination of to 3 or 4 small and medium sized private plantations. Just for comparison, the total size of oil palm land in 2010 is around 4.5 million hectares. Majority of the sales will be driven by direct sales which will amount to 60% of total sales. The remaining 40% will come from large private and quasi government plantations. We expect sales to increase by twofold in the fourth quarter of second year operation.
Azzuwan ( email@example.com)
Postal Address : H1-2-203, Persiaran Meranti, Bandar Sri Damansara
State : Selangor
Post Code : 52200
Country : Malaysia