Okyna Rempah Bali Agro
Br. Kayuambua, Bangli, Bali – Indonesia
Phone: +62 878 6204 4578
E-Mail: wayan@baliokinastone.com Web: www.kopiluwakbaliagro.com
Executive Summary
Okyna Rempah Bali Agro prepares Luwak coffee beans grown in Kayuambua –
Bangli for exportation and also sells to domestic market. We will expand
production capacity from 139,000/60kg bags per year to 120-160,000/60kg
per year. Our coffee stands out from that of the competition. We prepare the
top +ve percent, in terms of quality standards, of all Luwak coffee beans on
the market. Our customers seek this product as it provides them with a point
of differentiation to specialty roasters. In the past six years, demand for our
coffee has exceeded the amount we are able to supply and we have been
forced to refuse requests for larger shipments.
We predict growth of thirty percent in the first year with sales exceeding (US
$) expectations. In year three the plant will run at maximum capacity and
based on the current price of coffee we expect excellent pro+ts (US $). We
have positive indicators from current importers that the additional amount of
beans will be sold.
Our keys to success are:
1. Establishing and maintaining working relationships and contractual
agreements with all importers and Indonesian coffee brokers and wholesalers.
2. Bringing the facility to maximum production within three years of
operation.
3. Increasing our profit margin with the use of improved technology in the
current facility.
4. Effectively communicating to current and potential customers, through
targeted efforts, our position as a differentiated provider of the highest quality
Luwak coffee in the world.
1.1 Objectives
The objectives of Okyna Rempah Bali Agro:
Increase production and sale from 78,000/60kg bags per year to
approximately 100,000/60kg bags per year in the first year of operation at the
proposed facility and reach maximum capacity of 120,000/60kg bags per year
by year three.
Increase sales substantially in the first full year of operation.
Increase gross margins in the next three years.
1.2 Mission
Okyna Rempah Bali Agro seeks to serve coffee importers and enthusiasts by
exceeding minimum acceptable quality standards and by providing the
highest quality product at the lowest possible price. We value our
relationships with current and future customers and hope to communicate our
appreciation to them through our outstanding, guaranteed product quality,
personal service, and e<cient delivery. Our commitment to our customers and
the country of Indonesia will be re=ected through honest and responsible
business.
1.3 Keys to Success
The keys to success for Okyna Rempah Bali Agro are:
Establishing and maintaining working relationships and contractual
agreements with importers and Indonesian coffee brokers and wholesalers.
Bringing the new facility to maximum production within three years of
operation.
Increasing our profit margin with the use of improved technology in the
new facility.
Effectively communicating, to current and potential customers, our
position as a differentiated provider of the highest quality Luwak coffee in the
world.
Company Summary
Okyna Rempah Bali Agro prepares raw coffee in parchment (pergamino), or
coffee since planting stage. The finished product, Luwak coffee beans are
packaged in 60kg sacks and sold on international and Indonesian market. Our
customers are importers and Indonesian wholesalers who provide high-quality
beans to the specialty roasting market.
2.1 Company Ownership
Okyna Rempah Bali Agro is a private, family owned preparer and exporter of
Bali-grown, Luwak coffee beans. It is owned and operated by Wayan Widana.
2.2 Company History
Okyna Rempah Bali Agro is in its seventh year of operation. The plant has
been arranged and maintained for maximum production and sales. It is
currently operating at maximum capacity.
Past Performance
2011.0 2012.0 2013.0
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Sales
Gross
Net
Past Performance
2011 2012 2013
Sales $16,262,532 $17,304,066 $18,345,600
Gross Margin $2,439,380 $2,630,218 $2,814,215
Gross Margin % 15.00% 15.20% 15.34%
Operating Expenses $12,196,899 $12,631,968 $13,346,424
Inventory Turnover 12.00 12.00 12.00
Balance Sheet
2011 2012 2013
Current Assets
Cash $0 $0 $994,260
Inventory $0 $0 $355,200
Other Current Assets $0 $0 $243,936
Total Current Assets $0 $0 $1,593,396
Long-term Assets
Long-term Assets $0 $0 $521,650
Accumulated Depreciation $0 $0 $100,000
Total Long-term Assets $0 $0 $421,650
Total Assets $0 $0 $2,015,046
Current Liabilities
Accounts Payable $0 $0 $8,435
Current Borrowing $0 $0 $58,000
Other Current Liabilities (interest free) $0 $0 $0
Total Current Liabilities $0 $0 $66,435
Long-term Liabilities $0 $0 $402,000
Total Liabilities $0 $0 $468,435
Paid-in Capital $0 $0 $525,000
Retained Earnings $0 $0 $85,985
Earnings $0 $0 $935,626
Total Capital $0 $0 $1,546,611
Total Capital and Liabilities $0 $0 $2,015,046
Other Inputs
Payment Days 0 0 60
2.3 Company Locations and Facilities
Okyna Rempah Bali Agro’s plant and o<ce is located in Kayuambua – Bangli.
The warehouse has the capacity to prepare approximately 6,000 60kg bags of
exportable coffee beans. The facility is 1.000m2 and will have 30 selecting
machines with capacity to prepare 40,000 bags for exportation and 80,000
bags for storage. The proposed facility also handle shipping.
Products
Luwak coffee comes from Bali island – Indonesia, an area well known for its
excellent coffee. Also native to the area is a small civilize animal called a
Paroxurus. The locals call them luwaks. These little mammals live in trees and
one of their favorite foods is the red, ripe coffee cherry. They eat the cherries,
bean and all. While the bean is in the little guy’s stomach, it undergoes
chemical treatment and fermentation. The bean +nishes it journey through
the digestive system, and exits.
The still intact beans are collected from the forest =oor, and are cleaned, then
roasted and ground just like other coffee. The resulting coffee is said to be like
no other. It has a rich, heavy =avor with hint of caramel or chocolate.
Other terms used to describe it are earthly, musty and exotic. The body is
almost syrupy and it’s very smooth.
3.1 Competitive Comparison
In order to differentiate our product, coffee, which is a commodity, from the
product offering of competitors, all beans are guaranteed fresh and are
shipped within seven days of preparation. The beans shipped by Okyna
Rempah Bali Agro are therefore better than most and are guaranteed fresh. In
addition, all of the farms of Okyna Rempah Bali Agro adhere to
environmentally sound farming practices and avoid the use of pesticides and
chemicals in crop production.
There are approximately ten competitors who offer a product similar to ours.
Our research indicates that with our special treatment for the coffee, we
would become one of the top four, in terms of quality, providers. We also have
the advantage of established distribution channels and reputation. In addition,
improvements to our marketing efforts will further separate us from the larger
market and from our close competitors.
3.2 Sales Literature
Okyna Rempah Bali Agro currently works with importers who handle all of our
shipments. Likewise, we have dealt with the same Indonesian wholesalers, for
internal sales, each year. Sales to this point have been handled through
personal selling. Additional sales literature will include a website, and direct
mail to specialty roasters and importers.
3.3 Sourcing
The facility is ideally located in Kayuambua, Kintamani – Bangli. The beans
produced in the region are of the highest quality. With additional financing, we
want to make more volume the product.
Market Analysis Summary
Coffee is the second largest commodity market next to oil, and Luwak coffee
comes from Bali Island – Indonesia well known for its excellent coffee. Imports
of coffee in the United States have increased ninety–four percent in the past
+ve years and consumption of coffee within Indonesia has seen similar
increases. In addition, demand for Luwak coffee is above the market clearing
level, and market price and crop yield estimates are at an all time high.
The increase in the number of independent specialty roasters in the United
States, Australia and others has contributed to and is an indicator of the
increased demand for coffee. Within the larger coffee market is our target
market is the specialty roaster. These discerning customers want the highest
quality coffee beans. They serve the growing “gourmet” coffee market and are
represented by thousands of specialty roasters. The Luwak coffee bean is
considered to be the best in the world and as such, the demand for Luwak
coffee is high on the specialty roaster market. Specialty roasters are willing to
pay more for Luwak coffee and attempt to distinguish themselves via the
characteristics of the bean they use i.e. the location in which it was grown,
