BIGAAGROGROUP
BIGA ARMENIAN DUTCH JV LLC
ExpansionBusinessPlanBIGAARMENIAN‐DUTCHJVLLC
BIGAAGROGROUP
TableofContentExecutiveSummary 3
CompanyBackground 5
ManagementStructure 8
SWOTAnalysis 12y
MainProducts 14
OperationsandProductionPlan 16
ProductivityPerCropType 20
QualityAssuranceandControl 21
MarketingPlan 22
IndustryAnalysis 23
MarketDescription 25
Competition 26p
BusinessDevelopmentPlan 27
FinancialPlan 29
ExpansionBusinessPlan page
RiskAnalysis 36
BIGAAGROGROUP
EXECUTIVESUMMARY
BIGAAGROGROUP
Entirebusiness isconductedthroughBiga Armenian‐DutchJVLLCandAmster FlowersArmenian‐DutchJVLLC.
ExecutiveSummary
Mission Investments Planned
MissionoftheCompanyistoproducehighqualityfresh
agro‐productionanddeliverittotheultimatebuyersboth
in local and foreign markets.General objectives of the
Item Total,USD’mln BIGA EBRD
Strawberry‐ New 12.2 1.7 8.3inlocalandforeignmarkets.
TheCompanyaimstobeaneconomicallyviable,consistent,
sustainableanddiversifiedbusinesswhichishighly
competitivebothinlocalandexportmarkets,whichuses
goodagriculturalpracticestoproducethehighestquality
Generalobjectivesofthe
businessare:
Toincreaseproduction
capacities.
Todecreasenegative
Mushroom‐ New 4.2 0 4.2Tomato‐ New 2.7 0 2.7HangarConstruction 0.2 0 0.2Lamps–Tomato 0.3 0 0.3Pl
cultivated,natural,non‐GMOcropsforitsconsumers.
ConceptproposalDevelopmentPlan
TheCompanyintendstoestablish: CurrentlytheCompanyseeksastrategicpartnertoattract
seasonalityeffectsby
diversifyingproductline.
Touseadvancedand
moderntechnologiesfor
Plants 0.3 0 0.3Total* 19.9* 1.7 16
p y Anewgreenhouseof5hectaresforstrawberrygrowing,
containing750,000plants forwintercrop
Openareaof5hastrawberryfieldswithsmallgreenhousefor
cultivatingseedlingson5hawith150,000plants
A newmushroom growing plant near the existing plant
y p y g p
financialresourcesfortheexpansionofthebusiness.
EBRDisconsideredasmainpotentialpartner.Mezzanine
financingofUSD16mlnmaybeappliedtosuccessfully
implementthedevelopmentplanwithfurtherconversion
intensiveexpansion
Anewmushroomgrowingplantneartheexistingplant.
Anew1hagreenhousefortomatobreeding, tobeconstructed
nearthecurrentone.
Aspecialstorage forkeepingfertilizers,cocopeatandother
inventoriesinsecureandsafeconditions.
toCompanyinthenearfuture.
Thefinancialresourcesanticipatedtobeattractedaretobe
fullyutilizedforbusinessexpansionpurposes.
* Additionally the cash inflows generated from the operational Installnewgrowinglightsinexistingtomatogreenhouse
ExpansionBusinessPlan page
*Additionally,thecashinflowsgeneratedfromtheoperational
activityaretobeinvestedinthebusiness:c.USD2.7mln
BIGAAGROGROUP
CompanyBackground
BIGAAGROGROUP
BIGA’slongtermvisionistoincreaseprofitsbydecreasingproductionandoperationalcostsandincreasingitsmarketreach
CompanyBackground
globally.Vision BasicInformation
Qualityassures longtermprofitability.
BIGA ltd is dedicated to produce the best quality freshSphere: Agriculture
General objectives of the BIGA ltdisdedicatedtoproducethebestqualityfresh
fruitsandvegetablesandthusincreasebrandloyaltyofits
customers,resultinginhighercustomerretentionrate.All
theabovementionedattributeswillallowBIGAto
graduallyincreasetheproductionrate,andsimultaneously
RegistrationDate: 24.02.2005
RegistrationNumber: 26411007131
TaxID: 00089298
Generalobjectivesofthe
businessare:
Toincreaseproduction
capacities.
Todecreasenegative
raisetheproductionprices.BIGAstrivestobethe
dominantfoodexportertoMiddleEastandreflect
Armenianfreshfood’simageintheregion(MiddleEast).
LongTermGoals ShortTerm Goals
LegalAddress: 36/3N.Zaryan Str.,Yerevan,Armenia
seasonalityeffectsby
diversifyingproductline.
Touseintensiveadvanced
andmoderntechnologies g
Penetrateintonewmarketsbypositioningashigh
quality,non‐GMOproductfromArmenia
Establishrelationshipwithleadingdistribution
companiesinCISandtheMiddleEast
Increaseproductivityinexistinggreenhousebyusing
newtechnologiesandbuildanew1hagreenhouse
Constructhangarforstore inproperconditions turfand
otherinputsutilizedformushroombusinessp
ExpandcollaborationwithMirak Groupbygrowingnew
vegetables(iceberglettuce)andfruits(cherry)
EstablishR&Ddepartmenttoprovideresearchesin
thefieldsofadaptingadvancedtechnologiesto(in)local
p
Buildnew12units mushroomfactory
Build5haofstrawberrygreenhousetoutilizethehigh
pricesinwinterseason
Use extensivegrowingtechnologiesinnewlyTh C d d i h
environmentalconditionsandtodevelopstrategyto
substituteimportedmaterialswithlocallyproduced
constructedstrawberrygreenhouse
Establish AccountingandManagementreportingOS
TheCompanywasawardedwithsolid awardsformany years
ExpansionBusinessPlan page
BIGAAGROGROUP
BIGA AMSTERFLOWERS
CompanyBackground
BIGAwasregisteredin2010andisoperatingin
StrawberryandMushroomgrowingbusiness.
StrawberrygrowingfieldsarelocatedinAkunq
Community,Kotayq Region,Armenia.
AMSTERFLOWERSwasregisteredin2006andisengaged
intomatogrowinganddecorativeplantsimport,
regenerationanddistribution.Tomatogreenhousesare
locatedinMargara,ArmavirRegion,Armenia.y, yq g ,
Mushroom growing plant is located in Margara, Armavir
Region, Armenia. BIGA Mushroom is using the latest Dutch
technologies in the production in order to achieve high
quality and maximum yield .
g , g ,
PlantsbusinessisoperatingfromMargara,ArmavirRegion,
Armenia(growingfacilities)and9Arshakunyats Ave,
Yerevan(Showroom).
A l l f 2013ExistingProductionCapacities Investments,USD’000,2010‐2013
Annualsalesfor2013
wasoverUSD5mln.
NetProfitforthesame
periodexceededUSD
950k.Direction Total 2010 2011 2012 2013BusinessDirection Growing
AreaAnnualYield950k.
Strawberry 4,512 1,203 2,005 1,003 301
Mushroom 4,265 ‐ 2,031 2,234 ‐
Tomato 2,760 2,760 ‐ ‐ ‐
Plant* 500 ‐ ‐ ‐ ‐
Area Yield
Strawberryfields 15ha 350tones
Mushroom 2,880sqm 720tones
Total12,037 3,963 4,036 3,237 301
Tomato
Standard
Cherry
10,000 sqm
7,500sqm
2,500sqm
362.5tones
300tones
62.5tones *Actualinvestmentsweremadein2006
Thisbusinesslineisexcludedfromcalculationsand
ExpansionBusinessPlan page
projectionsduetoitssmallshareintotalvolumes,
insteadallfixedexpensesareconsidered.
BIGAAGROGROUP
In2014,BIGAandAMSTERFLOWERSwillbegroupedundertheumbrellaofBIGAAGROGROUPtomanagethewholebusiness.Thebusinessowners
ManagementStructure
BIGA KeyManagementPersonnel
Mr Samvel Petrosyan ‐ generalmanager, whole
businesses.
Li M
areactivelyengagedin
businessmanagement
processesbyensuringShareholderName Share,%
KarenGevorgyan 30%LineManagers
Mr.DavitGhukasyan – Mushroombusiness.
Mr.AramAsatryan – Tomatogrowingbusiness.
Mr.GeorgeGadimy – Strawberrybusiness.
M D K t d St b b i
thatthebusinessis
properlymanagedand
controlled.
KimYeganyan 25%
GarnikPetrosyan 25%
Amster FlowersJCLLC 20%
Total 100% Mrs.Donara Kostandyan– Strawberrybusiness.
AMSTERFLOWERS CurrentStructure
Total 100%
ShareholderName Share,%
KimYeganyan 45%
Garnik Petrosyan 45%
KarenGevorgyan 10%
Total 100%Total 100%
Allstrategicdecisionsaredrivenbyshareholders,whoareactivelyengagedinthemanagementprocessesofthe
wholebusiness,whiledailyandoperationalmanagementisconductedbyexperiencedprofessionals,whocarry
ExpansionBusinessPlan page
y p g y p p y
outdailyworkstoensurestablemanagementoverthewholeprocess.
BIGAAGROGROUP
Strawberrygrowing fieldsarelocatedinAkunqCommunity,Kotayq Region,Armenia.
LocationsandExistingInfrastructure– Strawberry
Strawberry GrowingFields ViewonStrawberryGrowingFacilities
TheCompanyoperatesonrentedlandplotsof15
hectaresinAkunq Community,Kotayq Region,ArmeniaP h d
byrunningconstructedproductionpremiseson8
hectaresoftheabovementionedarea.
Foreffectivemanagementandtaxoptimization
purposes thepropertiesarerentedfromthe
Thefirstharvestofstrawberrywasreceivedin2012.
To be purchased
Purchased
To be purchased
shareholders.
TheconstructionprocesswasfinalizedinMarch,2013.
OverallUSD4.5mlnwasinvestedinthisbusinessline.
Thefirstharvestofstrawberrywasreceivedin2012.Source:GoogleMaps
Theequipmentandtechnologicalsystemshavebeen
purchasedfromMirak Group.
Overall500kplantsareplantedonthisarea,which
ensures350tonesofstrawberrygrowingannually(i.e.
ActualInvestments
Item Value,USD
LandPurchaseandLeveling 1,250,000
Greenhouse 600,000eachplantprovides0.7kgcropsannually).
SpecialFastcoolingSystem‐FCSwasestablishedto
prolong shelflifeanddeliverfreshproductstolocaland
foreignmarkets.TheproductioncapacityofFCSis
d d l d h
Greenhouse 600,000
Buildings 460,000
Equipment&Machinery 952,000
Plants 500,000
Perlit&Cocopeat 260,000exceedingcurrentproductionvolumesandcanservethe
expansionrequirements.
ExpansionBusinessPlan page
OtherCAPEX 490,000
Total 4,512,000
BIGAAGROGROUP
Tomatogrowing greenhousesarelocatedinMargara,ArmavirRegion,Armenia.
LocationsandExistingInfrastructure– Tomato
TomatoGrowingGreenhouses ViewonTomatoGrowingFacilities
TheCompanystartedtomatogrowingin2010and
currentlyhastwogreenhouseswith totalgrowingareaof
10,000sqm,whichensurec.360tonesofharvestannually.
Thegreenhousesarefurnishedwithmodernequipments
andtechnologies,purchasedfromAmmerlaan.The
productionisbasedonhydroponicsstandards.
Hydroponicsistheproductionofvegetablesinmodern,
temperature‐controlled,multi‐spantunnels.Intermsof
implementedsystemscomputertemperaturesensors,
automaticopeningandclosingvents,automaticmisting
nits and temperat re controlled fans are being e ploited Actual Investments
Source:GoogleMaps
unitsandtemperaturecontrolledfansarebeingexploited,
whichsignificantlyincreasetheeffectivenessandthe
efficiencyofvegetablegrowingprocesses.
Greenhouse/hothousehydroponictomatoesareusedfor
thefreshtomatomarketonly.Whilethesetomatoes
ActualInvestments
Thefirstharvestoftomatowasreceivedin
2010.Item Value,USD
Greenhouse 2,240,964
Surroundings 24,096y
commandapremiumpriceinthemarketplace,theyare
neverusedinprocessing.GHtomatoeswouldbe
consideredtrashinprocessedmarketsduetotheirwater
content.Additionally/Moreover,nobioengineeredvarieties
Construction 240,964
Other 253,976
Total 2,760,000
aregrown;mostgreenhousevarietiesareproducedby
DutchorIsraeliseedcompanies.
ExpansionBusinessPlan page
BIGAAGROGROUP
Mushroomgrowing plantsarealsolocatedinMargara,ArmavirRegion,Armenia.
LocationsandExistingInfrastructure– Mushroom
MushroomGrowingPlants ViewonMushroomGrowingFacilities
TheCompanyisinmushroomgrowingbusinesssince
2011.CurrentlytheCompanyprocessestwomushroom
plantswithoverallareaof2,400sqm,containing
productiveshelvesof2,880sqm,whichdailyproduction
amountsto2tons.Themushroomplantsarelocatedin
Margara,ArmavirRegion,Armenia.
C i f h h l d
Thefirstharvestofmushroomwasreceived
in2011.
Constructionprocessesofthegreenhouseswerecompleted
in2010‐2011,byChristiaens Group.BIGAstarted
collaborationwithMirak Groupin2011havingacurrent
productioncapacityof2tonsperdayandplanningto
increase the production capacity to 4 tons per day ActualInvestments
Source:GoogleMaps
increasetheproductioncapacityto4tonsperday.
BIGAMushroomsisusingthelatestDutchtechnologiesin
theproductionofthemushroomsinordertoachievehigh
qualityandmaximumyieldfromthesaidareas.
InitsendMirak Groupisexportingmushroomsthroughout
Item Value,USD
Factory 3,598,193
Surroundingareaofbuilding 50,000
theGCCandAsia,andlookingtoexpandtotheSoutheast
Asia.Themushroomsarepackedin250gpunnetswith8
punnetsinacartonwithanetweightof2kg.
Buildingworks 400,000
Otherbuildingworks 125,000
Waterdrill 19,277
Road 38,554
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Electricalgrid&transformer 33,735
Total 4,264,759
BIGAAGROGROUP
SWOTAnalysis
BIGAAGROGROUPThecompanypermanently paysattentiontotheimprovementofitsweaknessesbyusingitsstrengthsandopportunitiesinorderto properly overcome the threats
SWOTAnalysis
toproperlyovercomethethreats.Strengths Weaknesses
Mainshareholdersactivelyengagedinbusiness
management
Lackoffinancialresourcestofinancethepotential
growthofthebusinessmanagement
Stableandlongtermrelationswithforeignpartners
Existenceofadvancedgrowingtechnologiesand
automatedcontrolofproductionprocess
Brandrecognitioninlocalandforeignmarkets
g
Seasonalityofthestrawberry growingduetotheopenair
field
Opportunities
HighlysupportedbytheArmenianGovernment
High‐qualitytechnologiesandequipment
Professionally trained staff
Businesssynergiesand economiesofscaleduetothe
Availabilityofmorethan40hapotentialstrawberry
growingareasborderedwithexistingfarm
Hugepotentialinnewgulfmarkets(Kuwait,Saudi
Arabia,Qatar)
Easier export operations to new Customs union memberproductionvarieties
Dominantmarketshareinlocalstrawberrymarket
Diversifiedbusinessbothgeographicallyandby
realization
Professional international consultants and first hand
EasierexportoperationstonewCustomsunionmember
countries
IncreaseofthedemandforhighqualityGMOfreefood
OwnlandinArmavir regionforexpandingmushroom
andtomatoproduction Professionalinternationalconsultantsandfirsthand
marketinformation
Existenceofownpremises
ExistenceofshowroominYerevan
Presenceinmanyshopsandsupermarketslocallyand
Threats
Currencyratefluctuation
Competitioninforeignmarkets
f f bly p p y
internationally
CertificateofNon‐GMO production
Transportationissues incaseofexportofvegetables;
Emigrationofpopulation,whichleadstotheworkforce
fluctuationsanddecreaseof localmarketdemand
ExpansionBusinessPlan page
BIGAAGROGROUP
MainProducts
BIGAAGROGROUP
Strawberry Mushroom
MainProducts
TheCompanygrowsAlbion,PortolaandMonterey
strawberryvarieties.Eachplantprovides0.7‐1kgcrop
annually.Berriesaresweetflavored,redthroughout,
conicalandevenlyshapedwithahighpercentageoftop
TheCompanygrowsChampignontypeofmushrooms,
whichhaslargeconsumptionbothinlocalandforeign
marketsandiswidelyusedinlocalandforeigncuisines.
Mushrooms arecategorizedtothreesizes,bythediameter
qualityfruit.Thisvarietyisconsideredasdiseaseresistant
anddayneutralplantbyensuring10‐dayshelflife,which
makestheproductionmorecompetitiveintermsof
exportationandrealization.Thosespeciesproduceahigh
percentage of marketable fruit that are quite firm and even
ofthecap:small(3cm‐4.5cm),medium(4.5cm‐6cm)and
large(6cmandmore).Localmarketconsumesmainlylarge
andmediumcapmushroomswhileTheMiddleEast
consumesmainlysmallcapmushrooms.Market
diversification assures high prices for all produces whereaspercentageofmarketablefruitthatarequitefirmandeven
enduringprolongedwetspells.
diversificationassureshighpricesforallproduces,whereas
inArmeniathesmallcapsareconsideredasimmatureand
thusarepricedverycheap.
Tomato DecorativePlants
TheCompanygrowsCherry,Beefsteakand Standard juicy
tomatovarieties.Cherrytomatoesareslightlysmallerand
sweeterthanconventionaltomatoes.Theyareapopular
varietyoftomatoallovertheworld.Beefsteaktomatoes
l j i f f i f h f h
TheCompanyrunsbothindoorandoutdoordecorative
plantsimportationandtradingbusiness.
Overallmorethan100varietiesarepresentedtothelocal
marketbasedonspecificvolatiledemandchangingyear
Th l b i i d f H ll darelarge,juicytomatoesperfectforeatingfreshfromthe
harvest.Beefsteaksaretypicallywidetomatoes,butthe
moreroundtypeshaveasweeterflavor.
ACherryplantprovides 25‐30kg,andabeefsteakplant
provides 40‐50 kg crops annually. The highest figures of
overyear.TheplantsarebeingimportedfromHolland.
provides40 50kgcropsannually.Thehighestfiguresof
yieldwillbereachedbyusingthespecialenergyefficient
growinglights.
ExpansionBusinessPlan page
BIGAAGROGROUP
OperationsandProductionPlan
BIGAAGROGROUP
Description
ThestrawberryplantsarebeingpurchasedfromHolland,wheretheCompanyhasalongtermstrategicpartner,Vissers
OperationsandProductionPlan– Strawberry
Aardbeiplanten BV.
TheplantsarebeingseatintheendofAprilandthefirstharvestisbeinggatheredafter2months.Afterthefirstharvest on
dailybasistheharvestisgatheredbythecollectors.TheharvestseasonlaststilltheendofNovember.Eachplantproduces up
to1kgcrop,whichcanbeincreasedupto1.5kgwithin1‐2years,viatheimprovementofproductionprocess.Thestrawberry
f i h l i A i hi h h h h l i ll d i h I i l d h f f lifarmistheonlyoneinArmenia,whichhasapostharvesttechnologyinstalledinhouse.Itincludesthesystemoffastcooling,
whichallowsmaintaining“just‐picked”freshqualityofberries,facilitatesthe(easies)transportationandprolongsthelifespan
ofberriesbyextra10days.Theberriesgrowopenair,whichmakesthemexposedtothedirectsunlight,windandrainand
thusimprovestheplants’photosynthesisandabsorptionofoxygenthroughrain.Thepollinationiscarriedoutbyspecially
imported bees. Harvesting berries in special boxes located above 80cm ground level allows eliminating the risk of various
Currentlythe
businessowners importedbees.Harvestingberriesinspecialboxeslocatedabove80cmgroundlevelallowseliminatingtheriskofvarious
diseasesthatcanoccurbyberriesinteractingwiththesoilifgrownontheground.Italsoincreasesthecropcollection
efficiencybyworkersastheydonotbenttocollectthecrop.Closedcontrolledirrigationcircleinplacesaveswaterandreduces
quantityofmineralsubstancesused,resultinginabetterqualitycrop.Alltogether,thedetailedconsiderationandcontrolover
harvestingandpost‐harvestingprocessesextendstheberriesshelflife.
andspecialists
thinkabout
increasingthe
efficiencyand
Theforeignbuyerssendcompanyspecialiststo Armeniatotrainthelocalstaffeachyearfor2months.Theyalsofollowthe
cropcollectionprocessandthuscarryoutqualitycontrolprocessonsite.Thegatheredproductionispackagedinboxes,which
ensuretheproductsarenotdamagedduringthetransportation.Therealizationisbeingconductedbydrivers,whoarrange
transportationoftheproductsfromthefieldstotheAirportforexportortothelargesupermarkets.Tobenotedthatretailers
effectivenessof
strawberry
growing.
Particularly,special
b andbuyersofsmallervolumespurchasestrawberryrightfromthe field.potsaretobe
installedfor
constructing8‐level
growingareas
(overall 4 plants on
ExpansionBusinessPlan page
(overall4plantson
eachlevel).
BIGAAGROGROUP
Mushroom growingfactoriesarefurnishedwithequipmentimportedfromthewell‐knownproducerCHRISTAENSGROUPto
OperationsandProductionPlan– Mushroom
ensurehigh‐qualifiedproducts.Description
Thecompanyimports3rd phaseready‐to‐growmushroomcompost fromNetherlands.Othercomposts(Hungarian,Polish,
Armenian)testingshowedthatthebestprice/quality/quantityratioisprovidedbytheDutchcompost. Thecompostisbeing
placedontheshelvesandbeingirrigatedwithwaterenrichedwithfertilizers.Specialsystemsareinstalledtoallowpermanent
controloverthehumidity,airconditioningandtemperatureineachhall,wheretheshelvesarelocated.
Specialsoftwaresystemisinstalled,whichisusedtomonitorandcontroltheproductiveenvironment.Thesoftwareallowsthe
managertocontrolitremotelyviamobileorotherdevices.
Aspertechnologythefirstharvestofmushroomisbeingreceived12daysafterseeding.Actuallythefirstharvestisabout
248 8 k f th d ti Th d ti f th h t i i d ft 14 d Th th d h248,8kgpersqmoftheproductionarea.Thesecondportionoftheharvestisreceivedafter14days.Thegatheredmushrooms
arebeingpackagedinspecialboxesforfurthertransportationtoexportmarketsorlocalresellers.
Thereisafastcoolingsystemwhichisbeingutilizedforkeepingthegatheredmushrooms’freshproductlooktillits
transportation to the buyer.transportationtothebuyer.
Growingprocessesinmushroombusinessaremanaged,monitoredandcontrolledbyasoftwareproduct,developedby
FANCOMspecializedSoftwarecompany.Thesoftwareallowssettingtheindicatorsacceptablethresholdsandincaseof
deviationsfromthoselimitsspecialalarmsaresenttothecontroller.
TheCompanyhasownvehicleswhichareexploitedfortheproducttransportation.
ExpansionBusinessPlan page
BIGAAGROGROUP
Tomatogrowinggreenhouseisequippedwithhigh‐qualitytechnologiesincludinghydroponicanddripirrigationsystems.
OperationsandProductionPlan– Tomato
Description
ThetomatoseedsareimportedfromtheNetherlands.TheplantsareusuallyseatinJuly‐Augusteachyearandthefirstharvest
isgatheredfromSeptember,whichlaststillJune(nextyear).Overall50kgofstandardtomatoand25kgofcherrytomatois
being gathered per 1 sqm of the growing area annually For effective business management purposes July‐August is selectedbeinggatheredper1sqm ofthegrowingareaannually.ForeffectivebusinessmanagementpurposesJuly Augustisselected
asaperiodforplants’renewalgiventhatthemarketpricesareatthelowestlevelforthatperiod,thusitisnoteconomically
justifiedandeffectivetogrowtomatoingreenhousesduringthosemonths.Toarrangeproperpollinationwithinthe
greenhousesectionsspecialbee‐hivesarebeingused,whicharepurchasedfromBiobest BelgiumN.V.Thosebee‐hivesare
renewedevery6weeks.Overall8bee‐hivesareinstalledinthegreenhouseto“serve”thewholearea.Giventhefactthatthe
wholeharvestseasonis8months,thetotalquantityofbee‐hivespurchasedisabout30annually.Acorrectbalancebetween
macronutrientsandmicronutrientsisprovidedtoobtainthebestresultsfromtomatocrops.Awaterreservoirisinstalledin
thegreenhousewhichensurespermanentwatersupplytotheplants.Beforesupplythewaterisbeingenrichedwithfertilizers
andspecialmedicinesarebeingaddedtothewatertoeliminatetheriskofanypossiblediseases.
Specialsoftwaresystemisinstalledinthegreenhouse,whichallowstopreliminarilysetthresholdsforhumidity,air
temperature,daylights,etc.Incaseofanydeviationofthoseindicatorsspecialalertsarebeingsenttothestaffmembers for
preventiveorcorrectiveactions.Inthecurrentstagethebusinessownersintendtoinstallspeciallamps,whichwillensure
properlightinginthegreenhousethusencouragingtheplantsgrowfasterandmoreeffectively.Thiswillalsoleadtothe
decrease in gas utilization expenses by c 25% There is also a special water tank located in the greenhouse where the water isdecreaseingasutilizationexpensesbyc.25%.Thereisalsoaspecialwatertanklocatedinthegreenhousewherethewateris
beinggatheredduringdaytimewhichinthenighttimeisusedtoreducegasutilizationexpenses.TheGreenhousehasitsown
heatingsubstation,whichcanindependentlyprovideheatingtothewholegreenhouseincaseoftheinterruptionofgassupply,
basedondieselengine.
Theharvestisbeinggatheredondailybasisandimmediatelytransportedtotheresellersandotherbuyers.Someportionofg g y y p y p
theharvestisbeingcollectedbythebuyersthemselves.
ExpansionBusinessPlan page
BIGAAGROGROUP
Eachplant hasitsowngrowingcyclewhichdirectlyimpactstheproductionvolumesandcashflowsofthewholebusiness.Totalareaof
ProductivityPerCropType
Annual yieldspersquaremeterforeachcroptype(kg/sqm)strawberrygrowingis
arrangedonthefields
of15hectares.
Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tomatoisharvestedon
10,000sqmgreenhouse
comprisingoftwo5,000
sqm sections one for
Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Strawberry N N N H H H H H H H H N
Tomato H H H H H H N N H H H H
Mushroom H H H H H H H H H H H Hsqmsections,onefor
Beefsteaktomatoesand
theotheronefor
Cherry.
Plants H H H H H H H H H H H H
H– HarvestSeasonN– NoHarvest
TheMushroom
productionplantisin
thesamelandplotwith
tomatogreenhouseand
Product Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Strawberry‐500k plants 0 0 0 0 0 50 50 50 70 80 50 0 350
( f k) 40hasareaof1,000sqm,
withproductive
shelvesof2,880sqm.
Tomato(Beefsteak)m2 3 3 3.5 7 7 5.5 2.5 0 0 1 3 4.5 40
Tomato(Cherry)m2 1.9 1.9 2.2 4.4 4.4 3.5 1.5 0 0 0.6 1.9 2.7 25
Mushroom–m2 16,2 20,2 24,7 24,7 24,7 24,7 13,5 13,5 13,5 24,7 24,7 24,7 250
ExpansionBusinessPlan page
BIGAAGROGROUP
ToensurethequalityoftheproductsisproperlysatisfyingthestandardsandiswithintheacceptableframeworktheCompany
QualityAssuranceandControl
conductsregularqualitycheckprocessesQualityAssurance Actions
Onmonthlybasisthewater utilizedintheproductionprocessesoftomatogrowingcyclesissenttotheNetherlandstoget
th l b t ltthelaboratoryresults.
Onmonthlybasisthestatisticaldataregardingtheweatherconditionsandthequalityoftheproductreceivedareanalyzed
torevealtheimpactofweatherconditionsonthequalityandquantityoftheharvest.
Plantsofstrawberry(Vissers Aardbeiplanten BV),compostformushroomgrowing(Walkro InternationalBV/alsofrom
theirsubsidiarycompany‐ DTO/)andseedsoftomato(fromthegrowers)arebeingpurchasedfromtheNetherlands.t e subs d a y co pa y O/) a d seeds o to ato ( o t e g o e s) a e be g pu c ased o t e et e a ds
Cocopeatisbeingpurchasedfromawell‐knowncompany,locatedinSriLanka.
Cardboardbox“beehives”arepurchasedfromBiobest BelgiumN.V.,whichhasagoodreputationinitsfield.
Mirak Group,strategicpartneroftheCompany,conductsregularvisitstotheproductionpremisesbyanalyzingthe
productionandharvestgatheringprocesses.
Dailymonitoringandcontrollingactivitiesarebeingconductedbythestaffinthelocalworkstationsandproduction
facilities.
Thecomputersystemsallowsettinguprequiredsettingstomanagetheclimatewithinthegreenhousesbyautomatically
changingtheinternalclimatedependingonexternalweatherconditions,i.e.sun,light,wind,etc.
ExpansionBusinessPlan page
BIGAAGROGROUP
MarketingPlan
BIGAAGROGROUP
CurrentstrategyofRAgovernmentismostlyinclinedtoencouragethedevelopmentofforeigninvestmentandfoster
IndustryAnalysis
Overall11,406.03tonesof
freshfruitsandvegetables
businesscooperationwithforeigncompanies.MacroeconomicHighlights ExportStatisticsbyProductTypes3
Currentlytheagriculturesphereisoneofthevitalareasof
th l l
wereexportedfrom
ArmeniaasofMarch20,
2014,againstthe3,312.64
tonsinthesameperiodlast ProductType
Year Volume,tones
Amount,USD’000thelocaleconomy.
Thisstrategyhasafundamentalroleforthefulluseoflocal
economicpotential.
Inrecentyearstheagriculturalindustryhasbeenensuring
about17%ofGDP,which,combinedwiththeshareofagro
year4.yp
Tomato 2010 898 559
2011 113 66
2012 66 55
2013 734 2,149Country Volume,Tones
G i 8 815 58 about % o G , c , co b ed t t e s a e o ag o
processing,resultsinc.23%ofGDP.1
About97%ofagriculturalproductionisprovidedby
privatesector.
Current Trends
Mushroom 2010 531 285
2011 660 587
2012 830 1,293
2013 1 347 2 284
Georgia 8,815.58
RF 2,486.97
Iraq 66.72
UAE 36.60
Uk i 0 16 Current Trends
Giventhesmallsizeofthelocalmarket,developmentof
industrialagricultureinArmeniaislargelycontingenton
theexportpotential.
There are c 900 greenhouses in the country in 2013 with
2013 1,347 2,284
Berry 2010 72 52
2011 74 69
2012 414 770
Ukraine 0.16
Total 11,406.03
Therearec.900greenhousesinthecountryin2013with
totalareaofabout130hectares.Thelargestgreenhouseis
5hectares.
About60%oftheiroutputsarevegetables– tomatoes,
cucumbers,beansandpeppers,and40%areflowersand
2013 323 596
Flowers 2010 26 81
2011 50 136
2012 202 1,447
ornamentalplants2.
Source:(1)http://www.minagro.am;(2) http://arka.am;(3)http://armstat.am (4)http://news.am page
2013 307 2,199
BIGAAGROGROUP
The Companysellsitsproductsbothinlocalandforeignmarkets.TheexportmarketincludesmainlyUAEandRF.
MarketDescription
The whole business can be
Strawberry Mushroom
Localmarketcapacityofstrawberryisalmost200tons
annually,whichisprovidedmostlybytheCompany(c.
85%) and a number of small local household producers
IntermsofMushroomgrowingandrealizationcurrently
theCompanyhassolidmarketpositionbybeing
represented in all large supermarket chains and shops
Thewholebusinesscanbe
describedasexport‐oriented
andwelldiversified.
85%)andanumberofsmalllocalhousehold‐producers
(c.15%).In2013,morethan50%oftheproduced
berrieshavebeenexportedtoDubai,UAEandRussia,
whiletheresthasbeenconsumedlocally.
Local sales are conducted mainly via major supermarket
representedinalllargesupermarketchainsandshops.
AspertheCompany’scalculationshalfoftheproductionis
consumedinlocalmarket,whichassuresc.50%oflocal
marketvolume.
TheremainingpartofproducedmushroomisexportedTheexportmarketincludesLocalsalesareconductedmainlyviamajorsupermarket
chainsandwholesalers,throughwhichtheCompany’s
productionisdelivereduptolocalcornershops.
mainlythroughMIRAKGROUPtoCarrefour,Waitroseand
Spinney'ssupermarketchainsinMiddleEast.
Tomato DecorativePlants
Dubai,UAE,wherethe
Companysellsthroughits
mainpartnerMIRAKGROUP
andtheRussianFederation,
h TomatogrownbytheCompanyishistoricallyrealizedin
localmarket.However,thebusinessownershave
preliminaryintentionstoarrangeexportationof
tomatoesstartingfromRussianmarket.
Decorative plantstradingbusinessiscomparativelynewfor
Armeniaandcurrentlytherearenomanylargeplayersin
thismarket.
whereBIGALLCcooperates
withAGRIKONLTD.
Given the diversification of the whole business the Company’s main clientele consists of both corporate
ExpansionBusinessPlan page
(wholesale) and individual (retail) customers. Furthermore, the Company realized the production in local andforeign markets. Currently proper arrangements are in process to get certification of organic production, whichaims to strengthen the Company’s market positioning.
BIGAAGROGROUP
Strawberry andMushroomarebeingexported,whileTomatoandDecorativePlantsarefullyrealizedinlocalmarket.
MarketDescription
Strawberry Mushroom
TheCompanyhas245tonesmaximumcapacityof
strawberryproductiononannualbasis.Basedonthe
market demand the Company has selling potential up to
TheCompanyhas720tonesmaximumcapacityof
mushroom productiononannualbasis.
Note that the market is also introduced with canned
Russianmarketfor
strawberrysupplyhas
noseasonality. marketdemand,theCompanyhassellingpotentialupto
1,000tonsperseason,mainlytoUAEandRussia.MIRAK
Groupisreadyandwilingtoensure1,000tonesofannual
purchaseofstrawberry.
NostrawberryharvestisgatheredduringApril–September
Notethatthemarketisalsointroduced withcanned
mushroomproducts,whichtakesomemarketshare.
AmongthemainplayersBONDUELLEcanbementioned.
Dubaimarketis
attractiveforApril‐
Septembereachyear.
inDubai.Forlocalmarketitistypicalthatthepricesare
veryattractiveandbeneficialduringOctober‐November
months.
MainCustomers
SalesStructure:Localvs.Export
ClientName Location Products Payment
Methodp
Mirak Group Dubai,
UAE
Strawberry
Mushroom
100days
after
shipment
Agrikon LTD RF Strawberry In cash60%70%80%90%100%
Agrikon LTD RF Strawberry Incash
Supermarket
Networks
Local,
Armenia
Tomato
Mushroom
60days
after
shipment0%10%20%30%40%50%
Strawberry Tomato Mushroom Plants
ExpansionBusinessPlan page
Individuals Armenia Plants IncashStrawberry Tomato Mushroom Plants
Foreign Local
BIGAAGROGROUP
The Companysellsitsproductsbothinlocalandforeignmarkets.TheexportmarketincludesmainlyUAEandRF.
Competition
Tomatopricesdepend
Strawberry Mushroom
Duetoitslargesizeandexistingproductionfacilitiesthe
Companyhasnocompetitorinlocalmarketintermsof
strawberry production
TheCompanyhassolidmarketpositionbybeing
representedinalllargesupermarketchainsandshops
locally As per the Company’s calculations half of the
ontheseasonal
availabilityandthe
qualityoftheproduct.
This also emphasizes the strawberryproduction.
Thereareonlysmallfarmerswithlittleproduction
volumes.
However,thelocalfarmerscanpartlycompetewiththe
Companyonlyinhighseasons(1‐2months),byensuring
locally.AspertheCompany scalculationshalfofthe
productionisconsumedinlocalmarket,whichassuresc.
50%oflocalmarketvolume.
TheCompanyhascompetitorsinmushroombusiness
line,asthereareseverallargeandsmallmushroom
Thisalsoemphasizesthe
competitioninsummer
seasons,whenthesmall
farmersalsoenterintonocompetitioninautumnmonths.
ArmenianHarvestPromoting Centeralsoenteredinto
market.
growersinArmenia.ThemaincompetitorisAROGHJSUNK
Company(translatedfromArmenian“HealthyMushroom”).
InDubaimarkettheCompanycompeteswithGulf
MushroomProductsCo.(S.A.O.G),whichalsoenjoysgoodTomato
thelocalmarketby
introducingtheir
harvest.Furthermore,marketreputationbytakingcertainmarketshare.
Thereareseverallargeandsmalltomatogrowing
greenhousesinArmeniaandtheCompanyhasthe
relativelyhighercompetitioninthisregard.
MaincompetitorsintomatomarketareMAVASGROUPand
DecorativePlants
RegardingdecorativeplantsbusinesstheCompany’smain
localmarketis
introducedwith
importedstandardp
GIOGROUP.competitorinArmeniaisBRABIONFloraServicewiththeir
businesslinecalledABIO.tomato,mainlyfrom
TurkeyandIran. Competitor Area, hectares Location
MAVAS Group 4.2 Dzoraghbyur , Kotayq
ExpansionBusinessPlan page
BIO Group (to
be constructed)
10.7 Jrvezh, Kotayq
BIGAAGROGROUP
BusinessDevelopment Plan
BIGAAGROGROUP
Atthecurrentstageofbusinessdevelopmentthecompanyhasintentionstoexpandtheproductioncapacities hence
BusinessDevelopmentPlan
EXPANSIONPLAN
Anewgreenhouseof5
encouragingsalesandrealizationvolumesbyalsoenteringintonewmarkets.High‐level Overview Estimated InvestmentsBreakdown
hectaresforstrawberry
growingisplannedto
establish,containing
750,000plants.The
planting area is sed 3 TheCompanyintendstoexpandstrawberry growing
areas. Itisplannedtopurchasenewlandplots(5hectares)
adjacenttotheexistingstrawberryfields, constructanew
greenhouse,aswellastorenewthewholeplantsof
strawberry coco peat and fertilizers The planned
plantingareaisused3
timesmoreeffectively
comparedwithopenarea
fields
Openarea5ha
Item Total,USD’ml
n
BIGA EBRD
Strawberry‐ New 12.2 1.7 8.3Mushroom‐ New 4.2 0 4.2Tomato ‐ New 2 7 0 2 7strawberry,cocopeatandfertilizers.Theplanned
greenhousewillprolongtheharvestperiodfor
strawberries.
Thenewmushroom growingplantwillbeconstructed
nearthecurrentplantsbydoublingtheproduction Comments on Investments
p
strawberryfieldswith
smallgreenhousefor
seed‐ plantgrowingon5
hawillbeestablished
Tomato‐ New 2.7 0 2.7HangarConstruction 0.2 0 0.2Lamps–Tomato 0.3 0 0.3Plants 0.3 0 0.3Total* 19.9 1.7 16
p y g p
capacities. Furthermore,ahangaristobeconstructednear
themushroomgrowingplantscoveringtotalareaof40x12
sqm.
The newtomato growinggreenhousewillbeconstructed
CommentsonInvestmentscontaining150,000plant
Anewmushroom
growingplantwillbe
constructednearthe
AfterimplementationofsubjectbusinessplantheCompany
willhave:
5,760sqmmushroomgrowingareawithproduction
i f 4 h d iladjacenttotheexistingfacilitiesbysignificantlyincreasing
theproductivity.Notethatspeciallampsaretobeinstalled
intheoldandnewgreenhouses toensureextrahigher
yield of25‐30%.
existingplants.
Anewgreenhousefor
tomatogrowingwillbe
constructednearthe
current one (10 000
capacityof4tnmushroomdaily;
1,250plantsofstrawberrywithaverageannual0,85kg
yieldperplant(existingopenarea350,000+newopenarea
150,000+newgreenhouse750,000);
20 000 sqm tomato growing area with the following
ExpansionBusinessPlan page
currentone(10,000
sqm).
20,000sqmtomatogrowingareawiththefollowing
productivity:
(i)Cherry‐3Okgpersqm(ii)Beafstick‐50kgpersqm
*Notethatcashinflowsgeneratedfromtheoperational
activityaretobeinvestedinthebusiness:c.USD2.7mln
BIGAAGROGROUP
FinancialPlan
BIGAAGROGROUP
Tomakethefinancialanalysismoreclearthefollowingmainassumptionsaretobeconsidered.
FinancialProjections
600
MainAssumptionsforProjections Financial Model– Content
Depreciationiscalculatedonastraight‐linebasis.
The following terms are used in amortization
Assumptions
GrowingArea/NumberofPlants
Productivity per season400
450
500
550
Thefollowingterms areusedinamortization
calculations:
Land– 20years
Buildings&Property– 20years
Equipments‐ 10years
Productivityperseason
Salespermarket,kg
Pricespermarket,USD
SalesUSD
Inputperkgofcrop
300
350
Dec‐10
May‐11
Oct‐11
Mar‐12
Aug‐12
Jan‐13
Jun‐13
Nov
‐13
EUR USD OtherAssets– 14years
Currency ExchangesRateusedincalculationsare:
USD/AMD=415
EUR/USD=1.39
Annualperkgofyieldcostcalculation
COGS
DirectMaterialsandInputsCalculationsperkg
Payroll
EUR USD
Salesprojections arecalculatedconsideringlocaland
exportprices.
COGSforeachproductwascalculatedtomakerealistic
calculations and projections
Assets
Loans
ProfitandLossStatement
CashFlowStatement
Balance Sheet
TheFinancialModel
containsinformation
abouttheyieldand
l d i calculationsandprojections.
Payrollcalculationsarebasedonthenumberof
monthseachpositionworksannually.
VATisnotincludedintheModelconsideringthefact
thatVATreceivedisalwayslessthatVATpaid(the
BalanceSheettotalproducingareas.
CompanyisimportingmaterialswithVATandgetVAT
backasanexporter)
ExpansionBusinessPlan page
BIGAAGROGROUP
Both companieshavebeengrantedwithloansbycommercialbanksandareproperlyservedinlinewithrepaymentschedules.
FinancialRequirements,CreditHistory
OutstandingPortfolioSt t b C i
MainIntentions CreditHistory&LoanPortfolio
CurrentlytheCompanyislooking forastrategicpartner
financialinstitutiontoattractfinancialresourcesforthe
expansion of the business
TheCompanyhasattractedloanfacilitiesfromcommercial
banksinArmenia– Ameria BankandIneco Bank.
Loan exposures of both companies have been historically
AMD,26%
EUR,53%
StructurebyCurrencies
expansionofthebusiness.
EBRDisconsideredasoneofthepotentialpartners.
Mezzaninefinancingmaybeappliedtosuccessfully
implementthesubjectexpansionplan.
Thefinancialresourcesanticipatedtobeattractedaretobe
Loanexposuresofbothcompanieshavebeenhistorically
servedinlinewiththerepaymentscheduleswithnodelays
intermsofrepaymentschedules.
Thefirstloanwasgrantedin2010.
Theexistingloansofbothcompanieswereadjustedwith
USD,21%
fullyutilizedforbusinessexpansionpurposes. exchangeratestogetthewholeportfolioinUSD.
CBArateswereusedforcalculations.ActualLoanServiceHighlightsFinancialRequirements
Currency InitialBalance Outstanding RepaidPortion
Item m/u Value
Amount USD 16,000,000
AIR % 6%
Year LoanReceived,
USD
2010 240,964
2011 3 894 578
AMD 800,000,000 532,567,458 267,432,542
USD 1,200,000 1,049,115 150,885
EUR 2,695,000 1,898,095 796,905
15.00% 12.5319%Term Months 24
Note:*Loanof16mln.isconsideredtobeconvertedintoequity in2016.Only interestwillbepaidduring2yearspriortoconversion.
2011 3,894,578
2012 1,544,277
2013 1,181,928
0.00%
5.00%
10.00%10.0000% 9.0843%
ExpansionBusinessPlan page
p o to co e s oAMD USD EUR
Blended Average Rate per Currency
BIGAAGROGROUP FinancialProjections– BalanceSheet,USD’000
Item
Historic Projections
2012 2013 2014 2015 2016 2017 2018
ASSETS
TotalCurrentAssets 180 1,903 938 6,806 12,959 20,312 28,036FixedAssets 9,874 9,424 28,507 27,005 25,503 24,001 22,500(Less)AccumulatedDepreciation ‐ 544 ‐ 517 ‐ 1,502 ‐ 1,502 ‐ 1,502 ‐ 1,502 ‐ 1,502N Fi d A
Detailed
informationis
presentedinthe
FinancialModel,NetFixedAssets 9,330 8,907 27,005 25,503 24,001 22,500 20,998
TOTALASSETS 9,510 10,810 27,943 32,309 36,961 42,812 49,034
LIABILITIES
TotalCurrentLiabilities 180 330 367 780 782 798 798T l L T Li bili i
beingpartofthis
businessplan.
TotalLong‐TermLiabilities 4,566 4,664 19,351 17,911 669 157 ‐TOTALLIABILITIES 4,746 4,993 19,718 18,690 1,451 954 798
NETWORTH
Owners'Investment 5,012 5,106 6,806 6,806 6,806 6,806 6,806Sh C it lShareCapital 0 0 0 0 16,000 16,000 16,000RetainedEarnings ‐ 249 710 1,418 6,812 12,703 19,051 25,429TOTALNETWORTH 4,763 5,816 8,225 13,619 35,509 41,857 48,235
40 00050,000 60,000
‐10,000 20,000 30,000 40,000
2012 2013 2014 2015 2016 2017 2018
ExpansionBusinessPlan page
Historic Projections
TOTAL ASSETS TOTAL LIABILITIES TOTAL NET WORTH
BIGAAGROGROUP FinancialProjections– AssetsBreakdown,USD’000
Item
Historic Projections
2012 2013 2014 2015 2016 2017 2018ASSETSASSETSCurrentAssets
Cash 71 1,575 550 6,006 12,157 19,494 27,217
AccountsReceivable 36 66 73 156 156 160 160
Inventory 73 262 314 644 646 658 659
Detailed
informationis
presentedinthe
FinancialModel,
TotalCurrentAssets 180 1,903 938 6,806 12,959 20,312 28,036FixedAssets
Land 1,128 1,072 1,268 1,205 1,141 1,078 1,015
Property 7,559 7,251 25,239 23,977 22,715 21,453 20,191
beingpartofthis
businessplan.
Equipment 884 796 1,216 1,095 973 851 730
OtherAssets 303 305 784 729 674 619 564
Subtotal 9,874 9,424 28,507 27,005 25,503 24,001 22,500
(Less)AccumulatedDepreciation ‐ 544 ‐ 517 ‐ 1,502 ‐ 1,502 ‐ 1,502 ‐ 1,502 ‐ 1,502
NetFixedAssets 9,330 8,907 27,005 25,503 24,001 22,500 20,998
TOTALASSETS 9,510 10,810 27,943 32,309 36,961 42,812 49,034
40,000 50,000 60,000
60%80%
100%
15 00020,000 25,000 30,000
‐10,000 20,000 30,000
2012 2013 2014 2015 2016 2017 2018
0%20%40%
2012 2013 2014 2015 2016 2017 2018
Historic Projections
‐5,000 10,000 15,000
2012 2013 2014 2015 2016 2017 2018
Historic Projections
ExpansionBusinessPlan page
Historic Projections
Current Assets Fixed Assets TOTAL ASSETS
Historic Projections
Other Assets EquipmentProperty Land
Historic Projections
Land PropertyEquipment Other Assets
BIGAAGROGROUP FinancialProjections– IncomeStatement,USD’000
ItemHistoric Projections2012 2013 2014 2015 2016 2017 2018
SalesRevenueDetailed
informationis
presentedinthe
Financial
Strawberry 175 1,225 1,750 6,460 6,460 6,460 6,460Raspberry ‐ 180 180 180 180 180 180Tomato‐ Standard 352 540 390 975 975 975 975Tomato‐ Cherry 360 375 1,350 2,700 2,700 2,700 2,700Mushroom 1 560 2 880 2 880 5 760 5 760 5 760 5 760Model,beingpartof
thisbusinessplan.
Mushroom 1,560 2,880 2,880 5,760 5,760 5,760 5,760TotalSales 2,447 5,200 6,550 16,075 16,075 16,075 16,075COGSDirectmaterialsandinputs 1,436 2,653 2,796 6,040 6,040 6,040 6,040Strawberry 190 176 117 294 294 294 294Raspberry 59 59 143 285 285 285 285Raspberry 59 59 143 285 285 285 285Tomato‐ Standard 40 277 396 1,203 1,203 1,203 1,203Tomato‐ Cherry ‐ 23 23 23 23 23 23Mushroom 1,147 2,117 2,117 4,235 4,235 4,235 4,235Directlabor 254 254 343 429 429 429 429Strawberry & Raspberry 139 139 192 239 239 239 2395,000
6,000
7,000
Strawberry&Raspberry 139 139 192 239 239 239 239Tomato‐ StandardandCherry 40 40 52 65 65 65 65Mushroom 75 75 100 125 125 125 125TotalCOGS 1,690 2,907 3,140 6,469 6,469 6,469 6,469GrossProfit 757 2,293 3,410 9,606 9,606 9,606 9,6062,000
3,000
4,000
SGAexpenses 93 110 125 125 125 125 125EBITDA 664 2,183 3,285 9,481 9,481 9,481 9,481InterestCommercialbanks 369 466 418 277 136 44 7InterestEBRD ‐ ‐ 480 960 480 ‐ ‐Depreciation 544 517 1,502 1,502 1,502 1,502 1,502
‐1,000
‐
1,000
2012 2013 2014 2015 2016 2017 2018
Historic Projections
ExpansionBusinessPlan page
EBT ‐ 249 1,199 885 6,742 7,363 7,935 7,973Taxes ‐ 240 177 1,348 1,473 1,587 1,595NetProfit ‐ 249 959 708 5,394 5,891 6,348 6,378
j
Net Profit
BIGAAGROGROUP FinancialProjections– CashFlowStatement,USD’000
Item
Historic Projections
2012 2013 2014 2015 2016 2017 2018
C h t b i i f i d 71 1 575 550 6 006 12 157 19 494Detailed
informationis
presentedinthe
Financial
Cashatbeginingofperiod ‐ 71 1,575 550 6,006 12,157 19,494
Cashflowfromoperatingactivities
Cashreceiptsfromcustomers 2,447 5,200 6,550 16,075 16,075 16,075 16,075
Cashpaidtosuppliersandstaff ‐1,783 ‐3,017 ‐3,265 ‐6,594 ‐6,594 ‐6,594 ‐6,594
Netcashfromoperatingactivities 664 2,183 3,285 9,481 9,481 9,481 9,481Model,beingpartof
thisbusinessplan.
p g
Cashflowsfrominvestingactivities
Land ‐ ‐ ‐250 ‐ ‐ ‐ ‐
Property ‐2,452 ‐71 ‐18,350 ‐ ‐ ‐ ‐
Equipment ‐420 ‐ ‐500 ‐ ‐ ‐ ‐
Plant ‐77 ‐23 ‐500 ‐ ‐ ‐ ‐
Netcashusedininvestingactivities ‐2,948 ‐94 ‐19,600 ‐ ‐ ‐ ‐
Cashflowsfromfinancingactivities
InvetmentfromShareholdersinWC 2,000 ‐ 1,700 ‐ ‐ ‐ ‐
Proceeds from issue of share capital ‐ ‐ ‐ ‐ 16 000 ‐ ‐
25,000
30,000
Proceedsfromissueofsharecapital ‐ ‐ ‐ ‐ 16,000 ‐ ‐
ProceedsfromEBRDLoan ‐ ‐ 16,000 ‐ ‐ ‐ ‐
ConvertingofEBRDloanintoequity ‐ ‐ ‐ ‐ ‐16,000 ‐ ‐
PaymentofinterestonEBRDLoan ‐ ‐ ‐480 ‐960 ‐480 ‐ ‐
ProcedsfromBankloans 1,544 1,192 ‐ ‐ ‐ ‐ ‐10,000
15,000
20,000
Paymentoflong‐termborrowings ‐820 ‐1,070 ‐1,335 ‐1,440 ‐1,241 ‐513 ‐157
Interestsonlong‐termborrowings ‐369 ‐466 ‐418 ‐277 ‐136 ‐44 ‐7
Paymenttobudget ‐ ‐240 ‐177 ‐1,348 ‐1,473 ‐1,587 ‐1,595
Netcashusedinfinancingactivities 2,355 ‐585 15,290 ‐4,025 ‐3,330 ‐2,144 ‐1,758
‐
5,000
2012 2013 2014 2015 2016 2017 2018
Hi t i P j ti
ExpansionBusinessPlan page
Netcashflow 71 1,504 ‐1,025 5,456 6,151 7,337 7,723
Cashattheendofperiod 71 1,575 550 6,006 12,157 19,494 27,217
Historic Projections
Cash at the end of period
BIGAAGROGROUP
RiskAnalysis
BIGAAGROGROUP
TheCompanypaysproperattentiontotherisksassociatedwiththebusinessandpermanentlyensurespropermitigation
RiskAnalysis
mechanismsandactionstobeinplace.RiskMatrix
Giventhediversified
nature of the business
RiskType Level Description
Mediumnatureofthebusiness
includinglocaland
foreignmarkets,aswell
aspermanent
consultanciesand
Generaleconomicenvironment Medium Giventhattheonlystrawberryfieldsareinopen‐airarea,whichistobemitigated bygreenhouseconstruction.
Political/regulatory Low ThewholebusinessisnotrelatedtopoliticalpersonsandoperatesinitsnormalwayregardlessthepoliticalchangesinArmenia.
Lowadvisoryprovidedby
theirstrategicpartners
theriskscanbe
consideredmitigated.
Changesinpublicopinion Low TheCompany’sproductshavegoodreputationinthemarket.
BuyerRisk Low TheCompany’sproductsarebeingrealizedbybothcorporateandindividualclientslocatedinlocalandforeignmarkets.
SupplierRisk Low TheCompanyhaslonglastingandstablerelationshipwiththesuppliersof Thebusinessowners
areactivelyengagedin
strategicmanagement.
Nokey‐manriskexists
equipment,seeds,technologicalassistance,etc..Eachproductionfacilityisequippedwithownsubstationtoensureheatingincaseofinterruptionofgasandelectricitysupply.Specialwaterreservoirsarelocatednearthefieldstoensurepermanentwatersupply.
Technological Low Thebusinessprocessesarebeingpermanentlymonitoredandcontrolledbyforthebusiness.
g p g p y youtstandingexpertsinthefields,includingvisitstofieldsandproductionpremises,controloverthequality,etc.
Lawsuits Low Therearenolegislativerestrictionsandbarrierstooperateinthesubjectarea.TheCompanyhasproperdocumentationregardingexportationprocesses.
M di
ExpansionBusinessPlan page
Staffing Medium TheCompany’smanagementhighlyemphasizesstaffmanagementissuesandmotivationsystemtoensurelowlevelofstafffluctuation.Mainlyurbanpopulationisbeinghiredtowork.
BIGAAGROGROUP
The subjectbusinessplanispreparedbyShirakamut ConsultingCompany.
SHIRAKAMUTCONSULTING
AboutShirakamut Consulting CustomerDetails
SHIRAKAMUT ConsultingCompanyoperatesinconsulting
marketsince2008.Thecompanyisspecializedinthe
sphere of business and strategic planning as well as offers
Sphere: Agriculture
Registration 24.02.2005sphereofbusinessandstrategicplanning,aswellasoffers
suchserviceslike:taxandmanagementaccounting,loan
managementandconsulting,investmentplanningand
financialanalysis.
Date:
RegistrationNumber
26411007131
TaxID: 00089298
ContactDetails
ImportantDisclaimerName SHIRAKAMUTCONSULTINGCOMPANY
LegalAddress: 36/3N.Zaryan Str.,Yerevan,Armenia
Thesubjectbusinessplan,includingthefinancialmodel,is
preparedbySHIRAKAMUTConsultingCompanybythe
orderofBIGAARMENIAN‐HOLLANDJOINTVENTURELLC.
Thefinancialmodelattachedtothisbusinessplanisowned
COMPANYWeb‐page www.shirakamut.am
E‐mail [email protected]
Address Room 201 26/3 V Sargsyan YerevanbyShirakamutConsultingCompany.
Theinformationcontainedinthisdocumentishighly
confidentialandcanbeusedonlybypermissionofBIGA
ARMENIAN‐HOLLANDJOINTVENTURELLC.
Address Room201,26/3V.Sargsyan,Yerevan
Tel.No: +(374)10581807
ExpansionBusinessPlan page
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