business plan

Business Plan

BacTo Agriculture Care Sdn. Bhd.

Company Profile

Logo

BacTo Agriculture Care Sdn. Bhd.

Vision Drive Malaysian agriculture to be

environmental friendly oriented with green technology and producing sustainable product with less use of chemicals.

Mission To set up our own biofertilizer plant in

2012 To give awareness to the farmers

regarding the use of microorganism in farming instead of chemicals substance

To provide customer with the best quality agriculture product

Executive summary BacTo Agriculture Care Sdn. Bhd. was

established in 20 October 2010 with its motto “back to nature”

Our main goal is to maximize the use of biological organism in modern agriculture

With over 30 working staff we are very dedicated to deliver good quality of our product

Company background

NAME : BacTO Agriculture Care Sdn. Bhd.

ADDRESS : No. 2, Jalan Peguam U1/25, 40150 Shah Alam, Selangor Malaysia.

EMAIL : [email protected] NO. : 03-89551122FAX : 03-89551541

ShareholdersNu

Name Share amount (RM)

Percentage (%)

1 MUHAIMIN B. SELAWI @ ABDUL MALIK

2000 000 20

2 KHAIRIL B. SABRI 3000 000 30

3 NURFAIQA DYANA BT. MAZLAN

3000 000 30

4 YAU CHEE KEAN 2000 000 20

BOARD OF DIRECTORCHAIRMAN

PROF. DR.MUHAIMIN B. SELAWI @ABDUL MALIKR & D

DIRECTOR DR. YAU CHEE

KEAN

MARKETING DIRECTOR

MR. KHAIRIL B. SABRI

FINANCIAL DIRECTORMS. FAIQA

DYANA MAZLAN

Introduction

Biofertilizer is a substance which contains living microorganisms which, when applied to seed, plant surfaces, or soil, colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant

The microorganisms that we use is Pseudomonas fluorescence spp.

R & D

Pseudomonas fluorescence nonpathogenic saprophytes that colonize soil, water

and plant surface environments obligate aerobe motile by means of multiple polar flagella. has simple nutritional requirements Optimal temperatures for growth : 25-30°C suppress plant diseases by protecting the seeds and

roots from fungal infection bioremediation of various organic compounds, and

biocontrol of pathogens in agriculture.

ProductionThe production of biofertilizers involves five stages:

1. Culturing of microorganisms- starter culture and inoculum production

2. Processing of carrier material3. Mixing the carrier and broth culture4. Packing5. Proper storage and distribution

Process flow for production of biofertilizers

Steps of biofertilizer production Step 1: Culturing of microorganisms

grown under shaking conditions at 30±2°C as submerged culture

maximum cell population of 1010 to 1011

cfu/mL-1 is reached The culture obtained in the flask is called

starter culture

Step 2: Inoculum preparation The media in 250 mL flask is inoculated with

efficient bacterial strain under aseptic condition the starter culture at log phase is inoculate into

the larger flasks (500 mL, 3 litre and 5 litre) containing the media, after obtaining growth in each flask

The media (in the fermenter (20 000L) is inoculated with the log phase culture grown in 5 litre flask

1 -2 % inoculum is sufficient for each inoculation

Step 3: Preparation of carrier material Selection of ideal carrier material.

Cheaper in costShould be locally availableHigh organic matter contentNo toxic chemicalsWater holding capacity of more than 50%Easy to process, friability and vulnerability

The carrier material (peat or lignite) is powdered to a fine powder so as to pass through 212 micron IS sieve.

The pH of the carrier material is neutralized with the help of calcium carbonate (1:10 ratio), since the peat soil / lignite are acidic in nature (pH of 4 - 5).

The neutralized carrier material is sterilized in an autoclave to eliminate the contaminants

Step 4: Preparation of Inoculants packet The neutralized and sterilized carrier

material is spread in a clean, dry, sterile metallic tray

The bacterial culture from the fermenter is added to the sterilized carrier and mixed well by mechanical mixer

Equipment Autoclave

sterilized by air free saturated steam (under pressure) at a temperature above 100°C

Laminar air flow chamber used for culture transfers and inoculation

BOD (Biological Oxygen Demand) incubators Provides controlled conditions (light,

temperature, humidity, etc.) required for the growth and development of microorganisms

Rotary shaker used for agitating culture flasks by circular motion

Hot air oven Hot air oven is meant for sterilizing all glassware

materials pH meter

Useful in adjusting the pH of the growth medium Refrigerator

Used for preserving all mother cultures used for biofertilizer production

Fermenter It provides the proper environment for the growth

of a desired organism

MARKETING STRATEGY

Evening

The Malaysian Fertilizer Market Malaysian has a total land area of

327,733 km2. The soils are highly leached infertile acid tropical soils and as such fertilizer application is essential in Malaysian agriculture. Large tracts of land are cultivated with perennial tree crops such as palm oil where large quantities of fertilizers are required annually to sustain high crop yields and ultimately profitability. Besides oil palm, the other cultivations are rubber, cocoa and paddy.

Business Mission

As agriculture will continue to be an important sector of the Malaysian economy and with Malaysia

dependent on imports for all its biofertilizer.

To promote, foster and advance, in a manner consistent with the public interest, the progress

and development of the biofertilizer industry which imports, manufactures, produces, processes and/or

distributes environmental friendly of biofertilizer industry in Malaysia.

Objective

SWOT ANALYSIS

STRENGTH WEAKNESS Abundant source of

microorganisms. Well established fermentation

industry foundation in Malaysia. Fertilizer most widely used

material, stable demand in domestic and overseas markets.

o Small and middle size enterprises, little capital.

o Most farmers need to be educated.

OPPORTUNITY THREAT

Development of organic agriculture and environmental protection concept on the rise in many nations.

Strategic alliances, integrating biofertilizer industry, go into product diversification and reduce costs.

Substandard and fake products in the market, affecting credibility of biofertilizer.

Imported agriculture products affect production of domestic agriculture products, easily manipulated by multinational companies.

TARGET MARKET

CONSUMPTION BY SECTORS

Comprise the following:Government Subsidies

SmallholdersGovernment Bodies

Plantation Companies

Paddy farmers Vegetable farmers

Pepper farmers (mainly in Sarawak) Fruits growers Flower growers

Cocoa growers (smallholders & plantations) Tobacco growers (smallholders & plantations)

Pineapple growers (smallholders & plantations)

Rubber growers (smallholders & plantations) Oil palm growers (smallholders & plantations) And any applications of agriculture that can

be transferred new technology from fertilizer to biofertilizer that have value proposition

and environmental friendly.

Marketing Mix

(4 P’s)

Product

Bottles (250ml, 500ml, 1L, 5L and

50L)

Plastics (20kg, 100kg and 500kg )

BACLIQ

BACPOW

SALES DISTRIBUTION SYSTEM

PRODUCER

Stock

Dealers

Farmer

Plantations

Direct to other distributors

Dealers

Farmer

Plantations

Placement

Above the line promotion:

Promotion in the media

(e.g. TV, radio, newspapers, Internet and Mobile Phones) in which the advertiser pays an advertising agency to place the advertisement

Below the line promotion:

E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling

Promotion

Malaysian fertilizer importers acquire from international markets at global prices

The purchases from global markets is based on demand and supply

Malaysian farmers buy from local dealers at prevailing prices

Smallholders usually buy from local dealers at prevailing prices

Bigger estates & plantation groups usually call for tender, lock in prices for a period of usually 6 months to a year. The prices are also locked-in by the Malaysian importers with their overseas principals

Price

COMPETITOR

Sea winner biofertilizer Pestimade Gujarat

Artemis and Angelio Ltd

FINANCIAL

START UP FUNDINGSOURCES AMOUNT (RM)

Bank (loan) 2 000 000

Investor (local and international) 5 000 000

Government linked company (BioNexus, Sime Darby, etc)

10 000 000

Company share 10 000 000

TOTAL RM 27 000 000

SET UP COSTITEM AMOUNT (RM)

Equipment ( Fermenter and machine )

10 000 000

Building and office ( Laboratories )

3 000 000

Transportation 500 000

Other 80 000

TOTAL RM 13 580 000

ANNUAL PRODUCTION COSTITEM AMOUNT (RM)

Substrate 500 000

Raw materials 300 000

Labour 800 000

Water and electricity 300 000

Maintenance and Utilities 100 000

Transportation 300 000

Packaging 400 000

TOTAL RM 2 700 000

OTHER EXPENSESITEM AMOUNT

Insurance 350 000

Advertising and promotions 2 150 000

Waste Treatment 500 000

TOTAL RM 3 000 000

ANNUAL PRODUCTION PROFILE

Operation days / year 270 days

Operation/ year1 operation = 100 000 L

5 operation = 2 month30 operation= 1 year

total production/year = 100 000 x 5 x 6

= 3 000 000 L

GROSS PROFIT PER PRODUCTION

Size of packaging Price per unit Units / year Total price (RM)

Bottle(BacLiq)1.1 Million L

250 ml RM 6.90 200 000 1 380 000

500 ml RM 8.90 100 000 890 000

1 L RM 25.90 400 000 10 360 000

5 L RM 110.90 100 000 11 090 000

50 L RM 1 042.00 2 000 2 084 000

Plastics(BacPow)1.9 Million L

20 kg RM 3.90 30 000 273 000

100 kg RM 13.90 20 000 269 000

500 kg RM 62.90 10 000 629 000

Total RM 26.975 Million

FINANCIAL ANALYSIS

= RM 26.975 M

= (RM 7.695 M/RM 27 M) x 100%= 28.5 %

Total cost

= RM 13.58 M + RM 2.7 M + RM 3.0 M

= RM 19.28 M

= RM 26.975 M – RM 19.28 M

= RM 7.695 M

Total profit per year

Nett profit per year

Target return on investment

Profit margin

So we can gain our set up cost after FOUR times of

Production.

= (RM 7.695 M / RM 26.975 M) x

100%= 28.53%

THANK YOU ….