I am looking for investment partner for the creation of a closed cycle of cultivation and extraction of camomile on own plot of 50 hectares.
In the green Podolsk region in western Ukraine known for its fertile black soil, ten kilometers from the regional center Khmelnitsky along the M20 highway there is agricultural land area of 500,000 square meters, protected from the road 50 meters plantation, which is owned by my company. I propose to establish a joint venture for the cultivation and processing of a dry extract - chamomile.
The average yield of camomile based on statistics is 5-7 tons per hectare. In our case it is 47 ha × 5 tons = 235 tons of chamomile, which must be dried to obtain crude drug, actively used in the pharmaceutical and cosmetic industries. The 235 tons of fresh daisies result into 58 tons of dried medicinal plants (25%), which are purchased by pharmaceutical and cosmetic companies in Ukraine, to further the production of medical drugs, tinctures, shampoos, soaps, and more. The average purchase price of companies in Ukraine is $4375.00 U.S. dollars per ton of dry raw materials.
Overall our gross income averages U.S. $253,750.00. The basic idea of the project is to provide added value by extracting Chamomile extract from the dried raw material. The extract is most effectively applied in the pharmaceutical and cosmetic industries. The cost of the extract is much greater than the cost of dried chamomile. The average purchase price of dry extract of industrial companies in Ukraine is $150 U.S. dollars per kilogram.
The extract will be produced by the use of special technology and equipment that is sold and installed turnkey, both in Ukraine and in China at the best prices, from 60,000.00 to 100,000.00 USD. The dry powder, chamomile extract of raw materials is 1:10.
Total: 58 tons of dried chamomile = 5.8 tons extract.
Gross profit on the sale of powder will be: $870,000.00 U.S. dollars.
Stages of development of the enterprise
• Creation of the joint venture,
• Obtaining all necessary permits
• Opening an investment account in the Ukrainian bank by the investor (account owned and controlled by the investor)
• Purchase of seeds for planting daisies
• Ploughing the fields, and making fertilizer
• Preparation and creation of drying facilities in the 5,000 square meters (drying is carried out in a natural way
• Spring 2014: Sowing of camomile
• Summer 2014: Harvesting, drying and sale of dried material
• Fall 2014: Ploughing the field, setting a turnkey production chamomile extract
• Spring, summer 2015: collection, drying, extraction and sale.
Funding in the amount of U.S. $170,000.00 is necessary from autumn 2013 to autumn 2014 for the production of camomile and generation of the extract, more specifically for:
• Ploughing the fields,
• Purchasing seeds and fertilizers,
• Building a field fence on the perimeter and provide security,
• Installing the dryer areas,
• Harvesting, drying of fresh chamomile,
• Salaries of staff of 7 people.
At the same time, the sale of dried chamomile of the first harvest, the gross income is $253,750 dollars, EBITDA: 83750.00 USD.
Fall 2014 - Fall 2015: Installation of the key equipment for the extraction: U.S. $ 100,000.00
The gross income from the sale of dried chamomile extract will be: U.S. $ 870,000.00 EBITDA: $696000.00 USD.
We are offering equal participation in the joint venture with the distribution of shares of 50/50.
On the Ukrainian side: plot in sharing at least 10 years, all the administrative procedures, staffing, marketing and management.
The investor will provide 100% financing of the project at an early stage to the assumed capacity.
Project management will be collaborative.