“Essential Oils….The gold of the agricultural sector”

To transform Rural Farmers into

the biggest essential oil

producing network in South Africa

Disruptive innovation

• that creates a new market and value network

• and eventually disrupts an existing market and

value network, displacing established market

leaders and alliances

• The term was defined and phenomenon

analyzed by Clayton M. Christensen beginning in

1995.

A disruptive innovation

• Initiation - Analyse your current business model

• Ideation - Not always brand new ideas, you look

at about 55 Business Paterns

• Integration - Adapt, refine or combine

• Implementation - Implementing Carefully – Keeping

in mind Success Factors and

Pitfalls

Close-circuit

Business

Development

Value

Chain

Supply

Chain

Business

Support

Industry

Incubation

Seobi’s Strategic Approach

SEOBI deliver specialised support and services to incubatees with the assistance of strategic partners (Just a few listed

below)

Collaborative support and services to develop Essential Oils Enterprises

September 2015

December 2015

.. Company 2010 2011 2012 2013 2014 Est. 2014

Rank .. =US $ =US $ =US $ =US $ =US $ Market Share1

1 Givaudan $4074.6 $4433.4 $4541.8 $4715.9 $4818.5 19.4%

2(3) Firmenich $2673.7 $2,985.0 $3083.3 $3186.4 $3291.1 13.2%

3 IFF $2622.9 $2,788.0 $2821.4 $2952.9 $3088.5 12.4%

4 Symrise $2086.5 $2205.5 $2230.6 $2431.6 $2818.0 11.3%

5(4) Takasago $1310.9 $1425.4 $1491.1 $1345.0 $1247.1 5.0%

6 Wild Flavors NA $905.3 $1077.4 $1189.0 (est) ~$1241.3 (est) 5.0%

7 Mane SA $637.3 $738.3 $820.8 $960.7 $1022.1 4.1%

8 Frutarom $451.1 $518.4 $618 $673.7 $819.5 3.3%

9 (6,7) Sensient Flavors ~$582.6** ~$619.7** $715.2** $736.1** $724.7** 2.9%

10 Robertet SA $480.8 $483.7 $508.6 $517.4 $518.4 2.1%

11 (4) Huabao Intl. $355.7 $392.9 $407.7 $408.4 $436.0 1.8%

12 (5) T. Hasegawa $515.5 $545.8 $556.3 $462.9 $425.5 1.7%

... Top 12 $15791.9 $18086.5 $18872.2 $19580.0 $20450.7 82.2%

All Others $6208.1 $3713.5 $4027.8 $4327.6 $4439.3 17.8%

$22,000 $21,800 $22,900 $23,907.6 $24,890

Internships:

•Agronomy

•Horticulture

•Business support

•Social facilitation

Masters:

•MoU with ARC, NWU, TUT

•Moringaoleifera

•Nematode management

New development

Internships & Masters studies

Jobs

• NC, EC, LIM

• 12 jobs = 36jobs

• R2.4mil @ R200 000p/p

• 360kg = R720 000x3=R2.1mil

• 360kg = R8.2million

• X3 R24.6million

ROI = R2000000

6 Hectares Pilot

• NC, EC, LIM

• 360kg = R720 000

• 360kg = R8.2million

• R24.6million

• 6000kg = R12million p/a

• 10mil - R230

• 600 000 - R138million p/a

• R12million vs R138million

•

• 240% vs 2760% = R414million

Uses:

• Herbal skin care – perfumes, antiseptic

• Soil and water conservation

• Animal feed

• Crop protection and pest repellent

New development: vetiver

Chrysopogon zizanioides(vetiver)

Roots harvested Oil steam-distilled

THANK YOU