Invest in Durian
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Invest in Durian
Why participate in this fundraising ?
As we have demonstrated on this site, and through the documents available for download, the data on the fast growing durian market indicate that the time is right to start a farm.
However, momentum is not everything, and certain strategic choices must be made in order to master the factors that determine the success of the project.
Geographical location :
The orchard will be located in the province of Nakhon Ratchasima, in the north-east of Thailand.
Its location at 510 m above sea level makes it immune to flooding, compared to Chanthaburi or Rayong, the leading provinces for durian cultivation in Thailand,but whose altitude is below sea level.
The chosen terrain is closer to China and Laos, which makes us ideally placed by road, or to connect with the to the Chinese railway line at 40 km instead of 300 km for the provinces of Chanthaburi and Rayong.
In this region, we also benefit from many supports and contacts that will facilitate the realization of the project.
Climate :
The plantation will be located in the Nakhon Ratchasima region, more precisely in Wang Nam Khieo. This is the area where the climatic risks are best controlled for this type of plantation.
The ThinkHazard website, which lists all the climatic risks linked to a region, estimates the exposure levels of Wang Nam Khieo as follows
Zero risk: volcanic eruption - tsunamis - coastal flooding
Low risk: water shortages - cyclones - landslides - earthquakes - urban flooding - floods
Moderate risks: extreme heat
High risks: forest fires.
For this reason, the land envisaged is in an agricultural zone and not on the edge of a forest.
The plantation land will be continuously maintained and cleared of undergrowth in order to contain a possible fire as much as possible. If such an eventuality were to occur, the irrigation system would be used to contain the fire as much as possible before the arrival of the fire fighters.
The partners :
The local support in the area will allow us to develop the project in a calm manner, with the support of the Thai government and the regional partners.
• Mayor of Wang Nam Khieo, Mr. San Raksaking, and former Mayor Mr. Jamras.
• Responsible for the government's agriculture branch in the district.
• Government support for all matters related to development aid and organic approval applications.
• Head of the phytosanitary section of the governmental antenna for agriculture within the district.
• GKP Company (earthworks and irrigation).
• King Shobu Company (organic fertilizer supplier and consultancy).
• Government Planning Office Isan Nakhon Ratchasima Region
• Local water and forestry branch.
• Pak Chong Agricultural Tourism Community Enterprise
• Nakhon Ratchasima City Hall
• The Vovan & Associates law firm .
Guarantees / insurance :
• Guarantees :
For the first part of securing the plantation, our tree supplier provides a replacement guarantee on the planted trees.
As far as the equipment is concerned, all the equipment will be new, and therefore also guaranteed, regardless of the supplier. (tools, vehicles, etc.)
• Insurance:
The necessary insurances will be taken out at the start of the project, whether it concerns trees, buildings, vehicles and of course, personnel.
As far as the trees are concerned, the risks covered are total damage to the durian trees, and which occur as a result of: windstorms - fires - lightning - forest fires - floods ...
regarding investment and proposed returns
The capital to be raised represents 49% of the 'investor' shares.
The investors finance the purchase of the land, the installation and maintenance for the first 4 years of operation.
The founders finance the legal structure and contribute to the capital in industry, for the entire life of the project.
The management work of the farms is the responsibility of the founders, the investor partners will not be obliged to take part in it.
Dividends will be paid annually after the close of t he accounting year. After payment of taxes and provision of cash for the following year, all profits will be paid out in dividends to the partners (investors and founders).
The investors also have an advisory role, and can propose improvements and partnerships, which are subject to a vote of all the partners of the structure.
An 'shareholders agreement' as well as an 'investor agreement' will govern the operation of the structure from its creation.
A fundraising will be done for each farm. You can invest 'behind closed doors', between investors of the same network, or be grouped with several other investors if you are alone. You can also invest as a single investor from € 875,00 for a solo farm.
Example of possible ROI for a shareholder with 4.9% shares, i.e. 131 325 € of investment for an 80 RAIS Farm : (After a few years of tree growth (year 8), based on the first commercial offer received)
If I invest €131,325 in a farm of 80 Rais and then have 4.9% of the shares, what is my return on investment (ROI) if the annual net profits are €4,552,507?
To calculate your return on investment (ROI), you divide your profit (in this case, your share of the annual net profits paid out as dividends) by your initial investment.
If you have invested €131,325 and own 4.9% of the shares, your share of the annual net profits would be 4.9% of €4,552,507, or €222,622.33.
To calculate the ROI, you divide your profit (222,622.33 €) by your initial investment (131,325 €) and multiply by 100 to express the result as a percentage:
ROI = (Profit / Investment) x 100
ROI = (222,622.33 / 131,325) x 100 = 1.69 x 100 = 169%.
So your ROI would be 169%.
This means that for every €100 you invested, you will receive a return of €169 if the farm makes a net annual profit of €4,552,507 from year 8.
The amount of net income is subject to change, and this is only a projection. The figures may go up or down from year to year.
The Durians produce more and more fruits over the years, with a stabilization around 100 fruits per tree to maintain good tree health VS good productivity.
Invest in Durian
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