Bringing growth, ingenuity, and experience to market.
Aries Magnum Sdn Bhd is a plantation management company in Malaysia. The company is focussing on a banana plantation that will be cultivated in Perak. Bananas are the second most widely cultivated fruit in Malaysia.
Intensive agri-activities require heavy investments for small scale farmers. Running a banana plantation has added challenges that result in high maintenance cost. The challenges include high labour cost, fertilizers, wrapping plastic material, transportation.
In short, a Banana Plantation needs experienced planters for proper crop maintenance that covers fertilization, grass cleaning, and branch cutting to produce quality yields.
Most importantly, anyone planning to operate a banana requires a large plantation area that must consist of suitable land. The economy of scale for banana plantation requires at least 20 acres and above.
The land that we have selected is strategic and suitable. Our plantation will be located at 45 Mile, Kampar Road, Perak. The ground is ideal for a banana plantation due to adequate sunlight and fertile soil. There is also sufficient rain and water supply with five big ponds in the area.
We also have the expertise and talent required. Mr Teo, our CEO, has ten years of experience in operating a banana plantation.
We will not stop there. There are plans to work with local universities for better plantation practices to ensure a consistent supply of high-quality bananas.
Our plantation will be planted with Cavendish Banana trees. The Cavendish Banana is most commonly eaten fresh, though they may be fried or mashed and chilled in pies or puddings. They may also be used to flavour muffins, cakes, or bread. Cooking varieties, or plantains, are starchy rather than sweet and are grown extensively as a staple food source in tropical regions. They are cooked when ripe or immature. Ripe fruit contains as much as 22 percent of carbohydrates. It is high in dietary fibre, potassium, manganese, and vitamins B6 and C.
We expect to gain quick market acceptance. According to the analysis of China customs data from Fresh Intelligence Consulting, in the first seven months of 2020, China imported 1.09m tonnes of bananas, an 8 percent decrease from the same period in 2019.
Imports from China’s current largest supplier, the Philippines, has notably changed throughout this period. It exported 498,000 tonnes, a 23 percent year-on-year decline.
China has a market demand of 12 million tonnes of bananas a year. Malaysia, Thailand and Cambodia exports of bananas to the Chinese market is increasing. Banana exports in Malaysia are expected to double in 2021 . This year, banana exports to international markets from January 1 to July 8 reached 147,760 tonnes, an increase of more than 150 percent compared to last year.
Bananas will be harvested and sent for packaging and then exported to China. A certain percentage will also be sold in the local market. Cavendish bananas command premium prices and we will enjoy good margins.
The world produced 113 million (m) MT of bananas, harvested from 5.4m Ha of cultivated land in 2016. However, not all top producers are top exporters of this fruit. India produced 26% of the world’s total bananas, and its harvested area is 16% of the world’s total area. Still, its export share in the global banana trade is less than 1%. South American countries, notably Ecuador, dominate the international banana trade. The Philippines was the only Southeast Asian country ranked in the top ten banana exporters in 2016. Meanwhile, the United States, Germany, Belgium, and Russia are top banana importers.
Historically, Malaysia has been a net exporter of bananas. The country’s primary export market in 2017 was Singapore, where we exported more than 20,000 MT of bananas (about 8% of estimated production in 2017), valued at RM40.1m.
Aries Magnum Sdn Bhd is raising RM3,000,000 in exchange for 27.3% equity in the form of ordinary shares to fund the company’s growth. The fund will focus on four key areas: the lease of the land (Capex), maintenance, strategic partnerships, and machinery.
The fund would be utilized in the proportions highlighted below:
The plantation will be located at 45 Mile, Kampar Road, Daerah Hilir Perak, Mukim of Durian Sebatang, Malaysia
By implementing modern farming practices and sound science, our vision is to become a quality banana brand in Malaysia and South East Asia.
Ng Boon Keong (Director) provided the initial capital and seat equity and Teo Poh Chon (Operations Director). This equity crowdfunding round is Aries Magnum’s first fundraising exercise.
Teo Poh Chon
Teo Poh Chon, the Chief Executive Officer, is the founder of this venture. He has ten years of experience in agriculture-related businesses. He also has four years of experience in project management and human resource management.
The core team will consist of three members with experience in banana farming. Another five staff will support them.
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