Project Cost: n/a
Amount Invested : ~ 200k
Amount Required : 2 to 3 million
Knowledge / Experience Required: n/a
Proposed Investor’s Role: as mentor
Industry: agriculture; manufacturing; biotechnology / healthcare
Project Stage: early expansion; seed
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 objective 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 and this is the direction that the market is moving.
We believe the timing is right to venture into the business as prices of minerals and chemicals have skyrocketed in the past few years. The effect of the usage of chemicals have 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. Given that our product addresses all the problems mentioned, we are very positive that there is a massive opportunity to enter the market locally, regionally and globally.
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 having gone through a trail of researching 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 can produce dramatic increase in crops yield, improve crops health and improve the conditions the soil. Grow Bio is applicable to all types of crops. 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 results in ensure consistent effect on crops yield. It\’s nutrients output consistency and it\’s multiplying effect on productivity, coupled with its relatively competitive price makes 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 anyone that grows anything! Our product appeals to all types of growers and planters for example:
• Large and Medium size plantations
• Small holders
• Individual growers
• State parks & gardens
• Home gardeners
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 major 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 3000 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.
Mukhlis Baharuddin ( email@example.com)
Postal Address : Damansara Damai
State : Selangor
Post Code : 48730
Country : Malaysia