Stevia is the only no-calorie natural sweetener in the world that is 500 times sweeter than sugar. Now we have the opportunity to enter this business and capture the giant markets that are looking for the product such as USA and Europe, using the Blue Ocean Strategy that we have designed. I am searching Venture capital and expecting to generate 70% EBITDA.
Our company is created in Perú in January 2011 with the main objective to develop new organic and green technology to produce Rebaudioside A, (pure stevia extract) and sub-products (Steviosides) with an annual capacity of 260 tons of the sweetener.
Rebaudioside A is much sweeter than cane sugar, non-caloric and fully natural. There is high global demand for the product because of the tends of consumers worldwide to prefer natural, healthy, products that have no harmful effects as does sugar or other high intensity sweeteners that are chemical and therefore harmful to the body.
To date the progress of the preparation process is at 45%. The next steps are as follows:
a) Research: To complete the development of the new technological process to produce Organic Stevia Sweetener. The research will be performed in USA, because there are more equipment, supplies and technology in USA. There are also factories of membranes that will be a key for our success.
b) Execution: In Peru, because the cost of production and taxes are very low compared with USA.
In Peru there is a law for constructing factories in "Zona Franca" without export taxes.
Pilot Stage (present time – 1.5 years after the project launch)
Includes constructing a little factory with the new technology that will produce 20 tons/year of Stevia extract, and planting 20 hectares. The company will have net sales of US $2.2 Million per year, with EBITDA of US $1.2 Million (54% of net sales) and net utility of US $900,000 per year. In that moment the company will have a value of US $12 million for EBITDA or discounted cash flow, using a COK 15%. This it will achieve with an investment of US $2.5 Million.
Expansion Stage (1.5 years - 4 years after the project launch)
With the technology verified in the pilot stage, we will construct a factory with capacity of 260 tons per year with 500 hectares plantation.
The company will have net sales of US $55 million per year, with EBITDA of US $38 Million (71% of net sales) and net utility of US $33 Million per year. In that moment the company will have a value of US $450 million for EBITDA or discounted cash flow, using a COK 15%. This it will achieve with an investment of US $21 Million.
These estimated results are considering the sale of 1 kilogram of Rebaudioside A 99% at US $130. In the market this product has a price among US $130 and US $200 dollars per kilogram.
The clients for this product are food industries, beverages, and massive consumption companies.
In the project we have considered to develop new formulations for final consumption, using our raw material (reb A), and developing a new method of distribution around the world.
The advantages of the company will be to have a cheaper and more efficient production process than existing ones, obtaining a lower end-product cost while at the same time providing a natural, almost organic and high quality product.
We need US $2.5 million in stages according to the plan to develop the Pilot Stage.