Asia forestry management investing in agarwood


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Asia forestry management investing in agarwood

  1. 1. ASIA FORESTRY MANAGEMENT Investing In Agarwood!
  2. 2. TREEDOM Group of Companies
  3. 3. Asia Forestry Management • Founded in 2006 • Formed for the purpose of investing in and implementing environmentally sound forestry development projects sustaining and strengthening an ecological balance within its operational areas. • Our vision is to reduce the pressure on the worlds natural forests enabling investments into forestry that will create sustainable plantations over the long term • Aim was to be a forestry management company allows the general public to diversify their portfolio and invest in:  Themselves  The community  The environment
  4. 4. Business OverviewThe Asia Forestry Group is engaged in forestry management in Thailand. The groupis focusing on Aquilaria plantations and distillation divided into 2 key business units,Asia Forestry Management Co., Ltd. and Asia Forestry Distillery Co., Ltd. Company Name Operation Registered Year 1. Asia Forestry Management Co., Ltd. • Investing in Aquilaria trees plantations September (“AFM”) 2006 (Agarwood trees) • Offering investment units in Agarwood trees to investors 2. Asia Forestry Distillery Co., Ltd. • Producing and selling premium grade oud October (“AFD”) oil 2008
  5. 5. Group Operation AFM Plantation: AFM  Initial plantation: AFM invests in both Planting/Buying corporate owned plantations and farmer Plantation Process contracts. Inoculation  Inoculation: the trees will be inoculated Resin Development with a particular technique.  Resin development: After 1-2 years of the Send to AFD inoculation process, the dark resin is developed.
  6. 6. Group Operation Distillation: AFD  Harvesting: the wood is cut and transported to the factory. AFD  Wood chip preparation: the log is chopped Harvest & Cutting Distillation Process and grinded, then fermented  Distillation: distill the prepared mix raw Distillation material for 10 days to extract Oudh oil.  Oil grading & Stocking: After Inspection oil Stocking 9-Sep-12 is classified into quality grades, the bottled oil is stored in secured rooms in safe due to its high value.
  7. 7. Aquilaria • Agarwood is a precious resinous wood forming in Aquilaria trees, native to the Southeast Asia region. The dark resin is formed as an antibody for healing after injury or fungus infection. The agarwood is widely used in perfume and cosmetic industry, and religious activities. • Agarwood trees are registered as an endangered species by CITES due to its precious value, causing illegal wood smuggling. • Thailand has been recognized worldwide as a source of premium quality agarwood; however, most of agarwood supply is derived from wild cutting or illegal logging. • In respect of tree conservation, the concept of Aquilaria plantations was initially developed in Thailand, with inoculation techniques, capable to provide premium quality agarwood comparable to the wild source.
  8. 8. Our Plantations All AFM plantations are located in Trat province, next to the Cambodian border providing perfect growing conditions of agarwood inoculation. 60 plantations currently able to supply more than 60,000 trees and the inoculated trees account for 40% of total trees. Trat is also known as the ‘Fruit capital’ of the world. The 380 kilometer stretched forest grounds, the very fertile soil and the rainy climate make Trat the most perfect place for our plantations. The best Agar oil from Thailand comes from this region. Trat is situated near the Cambodian border.
  9. 9. Our Plantations Asia Forestry Plantations • Thepnimit Plantation 99 rai • Nongsri Plantation 105 rai • Asia Forestry Distillery
  10. 10. Plantation Process Nursery Stage Site Preparation 2 years old 6 years old Innoculation Individual ID Infected Wood
  11. 11. Nursery
  12. 12. Infected Tree
  13. 13. Distillation Process AFD Factory is located close to the raw material supply via AFM plantations, to minimize logistic cost. AFD currently operates 59 stills which is capable to produce Oudh oil of approximately 4,500 - 5,000 tolas/year or 54 -60 kgs./year. Asia Forestry is currently in an expansion phase and will in 2012 have the largest Oud Oil manufacturing facility in Thailand with plans to expand further in 2013 to become S.E. Asia’s largest producer of Oud Oil. AFD 2012 2013 2014 No. of Distillation Stills 220 320 400 Avg. Distillation Capacity 38-60 56-80 80-102 Kgs./month)
  14. 14. Our Factory Production Capacity Expansion 2012 AFD will have the largest Oud Oil manufacturing facility in Thailand. 2013 AFD will be expanded further to become S.E. Asia’s largest producer of Oud Oil.
  15. 15. Production Process Preparation Storage Factory From the tree to the pot – Preparation – PHASE I
  16. 16. Production Process Extracting the oil from the tree Fermentation – Phase II Distillation Mash Room Filling 10 Days Oil Distillation – Phase III QA – Phase IV Testing – Phase V
  17. 17. Traditional Distilling Process 32 ml. Wood Fired 10 days per still
  18. 18. Modern Distillation • Electrically Heated process • Distillation time - 3Days • Production 50 Kg per month Advantages: • Consistency of Quality & Quantity • Economies of scale - lower price
  19. 19. High Grade Oud oil • Oud al Seyufi Cambodia • Oud al Safii Cambodia • Oud al Safii Trat • Oud Powder • Woodchips Products are CITES certified and a Worldwide Islamic Halal Accreditations
  20. 20. Middle East Market The Middle East market is the main market for Oudh Oil, mainly the Muslim community, as this is the world’s most popular region for using oudh. The needs of the target group can be divided into different parts: • Religious: The needs of the Muslim community are related to religious aspects. They highly cherish the oudh and use it for ceremony purposes. • Cultural: oudh oil is often used as special gifts and as a welcoming fragrance in their houses. • Esthetical reasons: Oudh oil is has a very strong and distinct smell and is hardly used anywhere outside the Arabian Peninsula. This distinct smell is adored by both men and women and stands for wealth. The Middle East market uses Oudh oil for the following end products:  Perfumes  Incense  Medicines
  21. 21. Premium Product Agarwood - woodchip Agarwood oil Perfumes/Scents/lotions AFD Oud Oil Recommended Retail Price Wholesale Price Grade A USD35,000/ Litre USD16 - 22,000/ Litre• Oudh oil can be practically classified into 4 grades, i.e. grade A, B, C and D. The grade-A is currently the main product of AFD which is priced approximately $21,000 to $35,000 per litre• The retail price of AAA vintage oud, strictly preserved under perfect conditions, is extremely expensive, over $1000 per tora, or $83,000/Litre.• Asia Forestry Group offers high grade agar products - 100% PURE OIL
  22. 22. Gold Price The value of Agar Oil compared with the value of gold:  Today’s gold price is US $ 1,350 per ounce.  1 kilogram equal 35.27 ounces.  Gold per kilogram US $ 47,600  Grade A – Agar Oil (retail) is US $ 80,000+ 1 tola $1000-2000 84 Tola Per Kg The most expensive essential oil in the world!
  23. 23. CSR Activities
  24. 24. Investment PackageAG2 6 years investment AG 6 years investment 3 with the first return in the 3rd year
  25. 25. Investment Package – AG2UNIT : THBNo. of Trees Investment Return Profit Profit (%)
  26. 26. Investment Package – AG3UNIT : THB No. of Trees Investment Return in 3rd Year Return in 6th year Total Return Profit
  27. 27. THANK YOU