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 PeguamU1/25,
40150 Shah Alam, Selangor
Malaysia.
EMAIL : bacto@yahoo.com.my

PHONE NO. : 03-89551122

FAX : 03-89551541



Shareholders
Nu Name Share amountPercentage
1 MUHAIMIN B. (RM)
2000 000 (%)
20
SELAWI @ ABDUL
2 MALIK
KHAIRIL B. SABRI 3000 000 30
3 NURFAIQA DYANA 3000 000 30
4 BT.
YAUMAZLAN
CHEE KEAN 2000 000 20
BOARD OF DIRECTOR
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.


Production
 The production of biofertilizers involves
 five stages:
1.Culturing of microorganisms- starter
culture and inoculum production
2.Processing of carrier material
3.Mixing the carrier and broth culture
4.Packing
5.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 is reached
-1

 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 cost
 Should be locally available
 High organic matter content
 No toxic chemicals
 Water 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
 Step4: 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
Evening

MARKETING
STRATEGY
Business Mission
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.
 Objective


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.
 SWOT
ANALYSIS
STRENGTH WEAKNESS
Abundant source of microorganisms. Small and middle size enterprises, little capital.
Well established fermentation industry Most farmers need to be educated.

foundation in Malaysia.
Fertilizer most widely used material, stable

demand in domestic and overseas markets.



OPPORTUNITY THREAT
Development of organic agriculture and Substandard and fake products in the market,
environmental protection concept on the rise in affecting credibility of biofertilizer.
many nations. Imported agriculture products affect production

Strategic alliances, integrating biofertilizer of domestic agriculture products, easily

industry, go into product diversification and manipulated by multinational companies.
reduce costs.
TARGET
MARKET
 

 CONSUMPTION BY SECTORS


Comprise the following:



Government Subsidies
Smallholders
Government Bodies
Plantation Companies
 Ø
Ø Paddy farmers
Ø Vegetable farmers
Ø Pepper farmers (mainly in Sarawak)
Ø Fruits growers
Ø Flower growers
Ø Cocoa growers (smallholders & plantations)
Ø Tobacco growers (smallholders &
plantations)
Ø Pineapple growers (smallholders &
plantations)
Ø Rubber growers (smallholders &
plantations)
Ø Oil palm growers (smallholders &
plantations)
Ø And any applications of agriculture that can
be transferred new technology from
fertilizer to biofertilizer that have value
Marketing Mix
(4 P’s)
 Product

BACPOW

BACLIQ
 Placement
SALES DISTRIBUTION SYSTEM



 Promotion
 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

 Price
q Malaysian fertilizer importers acquire from
international markets at global prices
q The purchases from global markets is
based on demand and supply
q Malaysian farmers buy from local dealers
at prevailing prices
q Smallholders usually buy from local
dealers at prevailing prices
q 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
COMPETITOR

Sea winner biofertilizer Pestimade Gujarat

Artemis and Angelio Ltd

FINANCIAL
 START UP FUNDING
SOURCES AMOUNT (RM)
Bank (loan) 2 000 000
Investor (local and international) 5 000 000
Government linked company 10 000 000
(BioNexus,share
Company Sime Darby, etc) 10 000 000
TOTAL RM 27 000 000
 SET UP COST
ITEM AMOUNT (RM)
Equipment ( Fermenter and 10 000 000
machine
Building )and office 3 000 000
(Transportation
Laboratories ) 500 000
Other 80 000
TOTAL RM 13 580 000
 ANNUAL PRODUCTION COST
ITEM 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 EXPENSES
ITEM 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/ year
 1 operation = 100 000 L
 5 operation = 2 month
 30 operation= 1 year
 total production/year = 100 000 x
5x6
 = 3 000 000 L



GROSS PROFIT PER
PRODUCTION
Size of packaging Price per unit Units / year Total price (RM)

Bottle 250 ml RM 6.90 200 000 1 380 000

(BacLiq)
1.1 Million L 500 ml RM 8.90 100 000 890 000

1L RM 25.90 400 000 10 360 000

5L RM 110.90 100 000 11 090 000

50 L RM 1 042.00 2 000 2 084 000

Plastics 20 kg RM 3.90 30 000 273 000

(BacPow)
1.9 Million L 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
Tot a l cost Ta r g e t r e t ur n on in ve st m e n t
= RM 13.58 M + RM 2.7 = (RM 7.695 M/RM 27 M)
M + RM 3.0 M  x 100%
= RM 19.28 M = 28.5 %

Tot a l p r of it p e r ye a r Pr of it m a r g in
= RM 26.975 M = (RM 7.695 M /
RM 26.975 M) x 100%
N e t t p r of it p e r ye a r = 28.53%
= RM 26.975 M – RM So we can gain our set up
19.28 M
cost aft er FOUR t im es of
= RM 7.695 M
Product ion.
THANK
YOU ….