- Country: Philippines
- Industry: Agriculture
- Stage: Start-up
- Investment size: $25,000,000 / min. $2,000,000
- ROI: 83% in 5 years
- Type of investment: Debt, Equity
Making Hydroponics Agriculture plant (Japan technology) for supply vegetables in the Philippines. Contribute Job creation, poverty reduction.
The Hybrid hydroponics equipment which uses the technology of advanced nations (Japan) is built, and it contributes to improvement in the potential agriculture power of Philippines, regional vitalization, or employment development. Since an enterprise is possible for it even if hydroponics is not an agriculture area, it can construct also in an agriculture area and urban area.
By the ability to touch agriculture also in urban areas, it leads to buying the regional gap of an agriculture area and a business district. It enables people who live in urban areas to choose agriculture about work. The improvement in an income of establishment of continuous agricultural technology with a high rate of output and a farmhouse is the purpose.
In the Philippines, Although it is globally famous as a place of production of Fruits (Banana, Mango, Pain-apple, etc), There is very little production of vegetables. The reason is related to climate and soil. Since the Philippines is subtropical climate, it is not suitable for cultivation of soil crops. And, the Philippines has much soil of a volcanic ash fall deposit, and there is no nutrition in soil. Then, the crops which can be grown are restricted.
In recent years, the projects of Hydroponics has increased, but vegetables is in the situation for which it still depends on import almost. Therefore, People can eat green-leaf vegetables only in a hotel or a classy restaurant. However, most people is poor in Philippines. They cannot go to classy restaurant, hotel restaurant. We aim at always supplying vegetables fresh to an average citizen, and safe through a Hydroponics project. And, We contributes to Job creation, poverty reduction, technology tie-up, economic growth to Developing county (Philippines).
In Philippines, agriculture has been performed briskly for long time. An Banana, Mango, Pineapple plantation is especially famous in the world. However, There is an agricultural technology level is low, Inconsistency of water management, volcanic ash of soil, Shortage of manure and agricultural chemicals and the jump in a price, and problem if circulation and marketing. In recent years, It is improving little by little supported by advance nations.
Hydroponics business can be seen, But they have a small scale and productivity is not good.
Rationale for the deal
Marketing Strategy 1 (realistic)
Our Hydroponics plant use Japan technology. The technology of Hydroponics of Japan is the world number one. The vegetables good at no agrochemicals grown using the technology are offered. The candidates for sales are a supermarket, a restaurant, a market on the street, etc. However, It is not efficient to do business in each. Therefore, We will also contract with a broker or a wholesale house or a trading companies and set bundling as the main purpose. Used our connections based on the experience 8 years in Philippines.
Marketing strategy 2 (possibility)
Although it is advertising positively the quality of the crops fundamentally grown by the hybrid hydroponics systems, In sales promotion, it leads to a firm sales expansion and promotion by proposing in the direction which support of the Government about a plant factory materializes.
Moreover, about a customer, if not only usual vegetables and fruit but a medicinal herb is grown, collaborating to a drug company or a cosmetic company is possible.
It gazes at the whole situation of Philippines and takes various possibilities into consideration.
Use of financing
Initial Investment Expenses (3,300 square meter / 1 plant ) for start
a. Farming house : $976,893
( Frontage 10m x Depth 66m x 2 continuous house ) + ( Frontage 10m x Depth 75m x 2 continuous house ) + ( Frontage 5m x Depth 75m x 1 house )
Groundwork, Iron frame work, Aluminum and glass materials, Skylight equipment,
Construction materials and shelf, Steel sub-materials, Curtain material, Curtain construction and film materials, Other equipment, Nursery bed, Insect repellent net construction skylight other materials
b. Set of attached structure : $992,936
Installation work and cool deck, And heating and cooling equipment construction (chiller equipment), Cultivation bet works, Water-works component, Cultivation panel, Electrical work, Civil engineering [cement] room, Drainage work, Seeding germination materials, Harvesting materials, Management device, Miscellaneous expenses
c. Sales commission and set of cost : $196,983
Total Initial Investment Expenses : $2,166,812 (1plant / 3,300sqm)
Opportunity for the investor
ROI (1 plant / 3,300sqm) :
1st year 9.22% / 2nd year 27.66% / 3rd year 46.10% / 4th year 64.54% /
We're recruiting stockholder (100% Equity) for establishment of project company. We will register owner name and shareholding to SEC (Securities and Exchange Commission) when establishment project company. Owner receives dividend from profit of company (project). And, If owner also wants Director's remuneration, It can be discussed positively. And, If owner wants separate Debt and Equity, It also can be discussed positively.
Usual establishment requires stock possession of Philippine people 60%, but we can establish by stock possession of 100% by investment at more than $200,000. It is incentives for foreign capital.
We have condition. It is that we don't need other consultant, developer, etc. We need silent owner (stockholder). Because, We already have business consultant (project planner). He can management project completely, and He already decided other consultant (CDM), developer, constructor, and related companies (mostly from Japan). Needless to say, If owner (stockholder) bring other consultant, developer, It's not efficient method as like JV. It's possible to assert that it will makes time wasteful certainly.
Of course, We will report everything periodically to owner. But, Owner can confirm the progress of project at any time. It is common sense that right of owner and our duty.
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