Wakao Presentation

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Wakao Presentation

  1. 1. WAKAO PROJECT Inquiry:
fbrassart@falcore.eu

  2. 2. OVERVIEW A. 
Introduction
 B. 
Cocoa
Industry
 C. 
An
Outstanding
Business
Opportunity
 Inquiry:
fbrassart@falcore.eu

  3. 3. A. Introduction • 
Synoptic
Summary
 • 
Plant
&
Equipment
 • 
The
Opportunity
 • 
Investment
required

 Inquiry:
fbrassart@falcore.eu

  4. 4. Synoptic
Summary
I
 •  WAKAO
project
plans
to
purchase,
process
&
sell
cocoa
beans

 •  Construction
of
2
facilities
in
San
Pedro
(Côte
d’Ivoire):
 –  One
for
sorting,
cleaning,
fermenting
&
drying
of
cocoa
beans
 (capacity:
90,000
tons/year)
 –  One
for
roasting
&
processing
the
cocoa
beans
into
cocoa
liquor
 (capacity:
37,000
tons/year)
 •  The
facility
will
be
positioned
as
a
grinder
&
manufacturer
 •  Our
corporate
philosophy
is
based
on
ethical
behavior,
 objectivity,
and
competitivness
 Inquiry:
fbrassart@falcore.eu

  5. 5. Synoptic
Summary
II
 •  All
the
product
will
be
exported
in
the
emerging
countries
 (Russia,
Brasil,
China,
G.C.C.,
etc.)
 •  Clients:
Chocolate
confectionary
makers

 •  The
project
is
eligible
to
the
Investment
Code
(tax
exemption
 on
profits
for
7
years)
 •  This
project
is
a
turnkey
project
 •  WAKAO
intends
to
be
differentiated
from
its
competitors
by
 the
quality
and
consistency
of
the
products
produced
 Inquiry:
fbrassart@falcore.eu

  6. 6. Plant
&
Equipment
I
  
A
manufacturer
will
supply
the
complete
chain
unit
of
equipment
needed,
including
the
 following
equipment
for:
 
 ‐
Cocoa
beans
cleaning
 
 ‐
Cocoa
beans
breaking
by
removing
the
peel
to
isolate
the
almond
 
 ‐
Almond
sterilizing
 
 ‐
Almond
hot
crushing
and
having
the
liquid
mass
cast
into
the
packaging
of
a
plastic
bag
 
 

into
box

  
This
new
equipment
shall
produce
4
tons
per
hour
(T/h),
or
37,000
tons
per
year
of
8,500
 hours.
The
plant
will
run
24h
a
day,
7
days
a
week.
Wakao
also
will
produce
up
to
90,000
per
 year
of
cleaned
and
fermented
cocoa
beans
(24h
a
day,
7
days
a
week)
 Inquiry:
fbrassart@falcore.eu

  7. 7. Plant
&
Equipment
II
 The
facility
will
include
the
following
equipment:
  
A
weight
bridge
  
A
covered
area
for
cocoa
beans
trucks
offloading
  
Tanks
for
reception
of
cocoa
beans
with
a
chain
elevator
  
A
laboratory
for
cocoa
beans
analysis
  
A
pre‐treatment
unit
for
shell
and
almond
breaking
  
A
tall
building,
the
treatment
tower
to
transform
the
cocoa
beans
into
the
mass
  
A
cold
room
  
A
stock
room
of
the
packaged
mass
as
finished
products
  
A
medium
voltage
electric
booth

 Inquiry:
fbrassart@falcore.eu

  8. 8. The
Opportunity
I
 •  Demand 
 for 
 chocolate 
 and 
 chocolate 
 products 
 is 
 growing
 around 
 the 
 world. 
 In 
 particular, 
 as 
 emerging 
 markets 
 grow
 and
people
in
those
markets
obtain
greater
wealth,
demand
 for 
 chocolate 
 and 
 chocolate 
 products 
 in 
 those 
 markets 
 is
 increasing. 
 Since 
 1998 
 for 
 instance, 
 Russian 
 spending 
 on
 cocoa 
 products 
 has 
 increased 
 by 
 600%. 
 
 WAKAO 
 will 
 be
 capitalizing
on
this
opportunity
 •  Côte
d’Ivoire
is
the
number
one
producer
of
cocoa
beans
in
 the
world
(approx.
1,360,000
tons
per
year
‐
2004)
and
its
 beans
are
considered
among
the
finest
in
the
world
 Inquiry:
fbrassart@falcore.eu

  9. 9. The
Opportunity
II
 •  Unlike
the
majority
of
cocoa
facilities
in
Ivory
Coast,
WAKAO
 will
have
both
a
cleaning
and
a
roasting
capacity,
which
gives
 us
greater
control
of
the
quality
of
the
cocoa
 •  Côte
d’Ivoire
has
experienced
several
years
of
relative
 stability.
This
is
an
opportune
time
to
enter
this
lucrative
 market
 •  To 
 guarantee 
 a 
 secure 
 supply 
 of 
 raw 
 materials, 
 WAKAO 
 is
 collaborating
with
various
agricultural
cooperative
formed
of
 Ivorian
farmers
 Inquiry:
fbrassart@falcore.eu

  10. 10. Investment
Required
 TOTAL
INVESTMENT
 CAPITAL
 AMOUNT
 BASIC
TERMS
 EQUITY
 €
7.8
million
 100%
of
the
common
stock
 DEBT
 €
8.2
million
 Reimbursement:
5
year
 term
–
18
month
grace
 period
 Factory
Buildings
 €
2.7
m
 Installed
Equipment
 €
6.8
m
 Other
Fixed
Tangible
Assets
 €
400.000
 Intangible
Fixed
Assets
&
Working
Capital
 €
4.6
m
 Legal,
Banking
&
Other
Fees
 €
1.5
m
 Total
Investment
 €
16
million
 Inquiry:
fbrassart@falcore.eu

  11. 11. B. Cocoa Industry: • 
Some
Figures
About
Cocoa
 • 
Cocoa
in
Côte
d’Ivoire
 • 
Cocoa
Supply
Chain
 • 
The
Entire
Process
/
Supply
Chain
 • 
Côte
D’Ivoire
Cocoa
Pipeline
 Inquiry:
fbrassart@falcore.eu

  12. 12. Some
Figures
about
Cocoa
 COCOA
BEAN
PRODUCTION
WORLDWIDE
(x
1,000
MT)
 Years
 2003
/
 2004
/
 2005
/
 2006
/
 2007
/
 2008
/ 2009
/
 2004
 2005
 2006
 2007
 2008
 2009
 2010
 Total
 3,539
 3,378
 3,472
 3,623
 3,742
 3,747
 3,804
 World
 Production
 Source:
Annual
Forecasts
of
Production
&
Consumption
&
Estimates
of
Production
levels
to
 Achieve
Equilibrium
in
the
World
Cocoa
Market
 MAJOR
COCOA
BEAN
PRODUCING
AREAS
 AFRICA
 72%
 SOUTH
/
CENTRAL
AMERICA
 11%
 WEST
INDIES
 2%
 ASIA
&
OCENIA
 15%
 Source:
International
Cocoa
Organization
 Inquiry:
fbrassart@falcore.eu

  13. 13. Cocoa
in
Côte
d’Ivoire
  
Côte
d’Ivoire
is
the
1st
world
cacao
producer
&
exporter
providing
about
42%
of
the
 worldwide
supply
  
2nd
Ghana:
720,000
tons/year
  
3rd
Indonesia:
400,000
tons/year
 The
main
destinations
for
export
(cocoa
beans
produced
in
Côte
d’Ivoire),
based
on
the
last
 three
seasons
are:
 1.
Europe
(69%)
 2.
America
(24%)
 3.
Asia
(4%)
 4.
Africa
and
Oceania
(3%)
 The
coffee
and
cocoa
sector
plays
a
strategic
role
in
the
economy
of
Côte
d’Ivoire
  

40%
of
export
earnings
  

25%
of
Gross
National
Product
(GNP)
 Inquiry:
fbrassart@falcore.eu

  14. 14. Cocoa
Industry
  
Production
of
cocoa,
the
key
ingredient
in
chocolate,
has
expanded
and
increased
sharply
 during
the
twentieth
century,
related
to
the
consumers’
purchasing
power
  
Production
and
consumption
of
chocolate
products
have
traditionally
been
concentrated
 in
developed
markets
such
as
Western
Europe
and
North
America
  
The
chocolate
demand
is
increasing
rapidly
in
Latin
America
(Brasil,
Argentina),
East
Asia
 (China,
South
Korea,
India),
Central
and
Eastern
Europe,
and
in
the
Middle
East.
WAKAO
will
 target
principally
those
markets/regions
  
Côte
d’Ivoire
and
Malaysia
alone
accounted
for
almost
half
of
origin
grindings
worldwide
  
Annual
volume
of
manufacture
of
cocoa
liquor
in
Côte
d’Ivoire
is
above
390,000
tons
per
 year
  
SACO
(Société
Africaine
de
Cacao
–
Nestlé)
considers
to
double
the
production
capacity
of
 its
factory
 Inquiry:
fbrassart@falcore.eu

  15. 15. Cocoa
Supply
Chain
 Inquiry:
fbrassart@falcore.eu

  16. 16. The
Entire
Process
/
Supply
Chain
 Inquiry:
fbrassart@falcore.eu

  17. 17. Côte
D’Ivoire
Cocoa
Pipeline
 Inquiry:
fbrassart@falcore.eu

  18. 18. C. An Oustanding Business Opportunity: • 
Projected
Returns
I
 • 
Projected
Returns
II
 • 
WAKAO’s
Goals
 Inquiry:
fbrassart@falcore.eu

  19. 19. Projected
Returns
I
 
 What
follows
is
a
breakdown
of
the
costs
associated
with
the
 sale
of
one
ton
of
cleaned
and
fermented
cocoa
beans
(i.e.,
 the
process
to
be
undertaken
in
the
first
phase
of
the
project):
 Phase
I
 Indicative
Cost
(€)
 Raw
Cocoa
Beans
 752
 Production
Costs
 132
 Administrative
&
 66
 miscellaneous
charges
 Packing
an
Lab
Tests

 32
 Customs
 459
 Total
Cost
 1,441
 Sale
Price
(FOB
Abidjan)
 1,509
 Profit
 67.8
 Annual
Profit
(excludes
 €
2.9
million
(Indicative
Profit)
 financing
costs)
–
44,000
tons
 Inquiry:
fbrassart@falcore.eu

  20. 20. Projected
Returns
II
 
 What
follows
is
a
breakdown
of
the
costs
associated
with
the
 sale 
 of 
 one 
 ton 
 of 
 cocoa 
 liquor 
 (i.e., 
 the 
 process 
 to 
 be
 undertaken
in
the
second
phase
of
the
project):
 Phase
II
 Indicative
Cost
(€)
 Raw
Cocoa
Beans
(1.22
tons)
 917
 Production
Costs
 141
 Administrative
&
 74
 miscellaneous
charges
 Packing
an
Lab
Tests

 32
 Customs
 459
 Total
Cost
 1,623
 Sale
Price
(FOB
Abidjan)
 1,878
 Profit
 255
 Annual
Profit
(excludes
 €
9.4
million
(indicative
profit)
 financing
costs)
‐
37,000
tons
 Inquiry:
fbrassart@falcore.eu

  21. 21. WAKAO’s
GOALS
 
‐
The
forecasting
shows
an
internal
rate
of
return
(IRR)
higher
than
20%
after
tax
and
30%
for
 the
Capital
Rate
of
Return
(without
taking
into
consideration
the
sales
of
the
cleaned
&
 fermented
cocoa
beans)
 
‐
For
a
total
production
of
37,000
tons
(which
is
possible
in
nominal
year),
the
turnover
 would
be

around
€
59
million
(F
CFA
37.5
billion)
 ‐
1kg
of
cocoa
liquor
=
1.22
kg
of
cocoa
bean
 ‐ 
This
forecast
does
not
take
into
consideration
the
annually
sales
of
44,860
tons
of
cleaned
 and
fermented
cocoa
beans
 ‐ 
WAKAO
project
easily
duplicatable
 Inquiry:
fbrassart@falcore.eu

  22. 22. Contact
Information
 Name:
Fabrice
Brassart
 E‐mail:
fbrassart@falcore.eu
 Phone:
+33
6
81
61
95
49
 Inquiry:
fbrassart@falcore.eu


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