Professional Documents
Culture Documents
Oil Palm Strategy Presentation 2
Oil Palm Strategy Presentation 2
Oil Palm Strategy Presentation 2
Business Concept
The business concept is based on the demand supply gap for oil palm products due
to difficulties experienced by current players in the sector in getting adequate
quantity of fresh fruit bunches (FFB), thereby forcing most processing plants to
operate far below production capacity
Nigeria used to be the largest exporter of oil palm products until 1934 when the
country was surpassed by Malaysia. Africa led the world in production and export of
palm oil throughout the first half of the 20th century, led by Nigeria until the discovery
of crude mineral oil that eventually led to the abandonment of this sector.
The total annual market demand for palm oil in Nigeria is estimated to be 1.9 million
tons, while the countrys production is estimated to be 850,000 tons thereby, leaving
a deficit of about 1.05 million tons which is being offset by importation and smuggling.
(figures deduced from NIFORs report)
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
Business Model
Oil Palm Cultivation (FFB Make use of a
Production) Malaysian Technical
Partner with partner
Belgians for Land preparation
overall Seedling sourcing
management Nursery
and control Maturity
Harvesting
Power Generation
Oil Palm Processing
Utilizing wastes from the
Crude Palm Oil
FFB to fuel a bio power
Refined Palm Oil
plant.
PKO
Feed Mill
Malaysians will
Palm Kernel Meal oversee operations
while Indians will be
in charge of
engineering
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
Okomu Oil Palm Plc Staff Strength: 1,300Products Large Staff base
permanent & 3,000development Access to fund from
contract staff. Palm oil processing overseas
Revenue: N4.7Billion PKO Strong management
PAT: N 1.21 BillionRubber Processing team with vast
(2008) Palm Kernel Cake experience in agro-
Production Capacity: Power Generation allied business
25,000 Hectares of Oil Technical alliance with
Palm & Rubber foreign partners
Palm oil mill with a High financial turn over
capacity of 30T FFB/Hr Big asset base
PKO crushing plant Technology
with a capacity of
60T/Week
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
Potters Analysis
Low bargaining
Moderate threat
power of buyers
of New Entrants
Very low regulatory Weak buyers
requirements (price)
The market is big Fragmented
+
enough for so many (many but
players Entrants different)
Very few serious players Demand far
The industry is highly exceeds supply
+ Increasing
capital intensive Competitive
Moderate industry customer
High Suppliers Rivalry Buyers
regulation sophistication
bargaining relatively low
power of Low exit
suppliers + barrier
Substitutes
Very few major
players + Moderate
Moderate effect threat from
of substitutes substitutes
Growing E.g groundnut, rape,
soy oil, etc
market
Substitute not as
Alternate use
efficient in terms of
as bio fuel productivity
Multi use of oil palm
unlike substitute
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
Planned Implementation
Strategy Land Acquisition/lease and Oil palm
Acquisition/Leasing of existing palm
plantation and processing mill cultivation
Land Land
Acquisition Preparation
3 -4 Years
Field growing
Palm Oil Mill
plantation
Entrepreneur's Profile
Name : Lawason, Oladipo Akinwale
Academic Qualifications :
2003 2004 University of Lagos, Akoka-Yaba, Lagos
Master of Science in Political Science (Public Administration)
1999 2000 University of Lagos, Akoka-Yaba, Lagos
Master of International Law and Diplomacy
1985 - 1990 University of Liberia, Monrovia-Liberia
Bachelor of Business Administration (Management/ Public Administration)
Professional Qualifications And Affiliations:
Nigerian Institute of Management Corporate Member
Nigerian Society for International Law Corporate Member
Nigerian Institute for Advanced Legal Studies Registered Member
Institute of Public Administration of Nigeria Corporate Member
Work Experience
City Financial Partners (1990 -1993) Business Advisory (Finance) Financial Consultant
National Poverty Alleviation Programme Lagos Surulere Local Government Coordinator
Total Service Station, Alapere (1993 2006) Total Service Station, Alapere Dealer
Wallam Inc (June 2005 till date) Business relationships Director
Xonyx Nigeria Ltd (June 1997 till date) Business Advisory MD/CEO
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
Market Analysis
for the purpose of this concept and considering the business models of key players in the industry, it will be expedient to base
our target market segmentation on customer behaviour and geographic attractiveness.
Approximate Financial
requirement
Set up cost for a 5 ton FFB/Hr Integrated Palm Oil Mill Processing &
Refining Plant
Setup Cost
Fixed Assets
Land Acquisition (500 Hectares) 75,000,000
Building, infrastructure and Constructions 21,593,100
Tankers (10) 60,000,000
Palm oil Processing & Refining Plants 385,845,000
Storage Tanks 30,000,000
Agricultural Mchineries & Equipment 75,000,000
Trucks (5) 30,000,000
Motor Vehicle 25,000,000
Office Equipment & Facilities 8,000,000
Others 0
Total Fixed Assets 710,438,100 710,438,100
Seedling Acquisition & Land Preparation
Seedling 150/Hectare (N500/seedling) 37,500,000.0
Land clearing & Culturing 20,000,000.0
Working Capital
Operating cash needs for 1 year
Administrative Expenses 250,000,000.0
Total Working Capital 307,500,000.0 307,500,000
Total Setup Cost 1,017,938,100
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED
The economic adviser is compiling a list of the Oil Palm zones and estates in the State and their
status to give us information
We intend to use this information to determine our take-off strategy and how to proceed
We are also researching technical partners and conditions of bringing them on board of this project
We are also researching sources of Agriculture funds to aid set up when time comes
www.nextzon.com
NEXTZON BUSINESS SERVICES LIMITED