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Agarwood is by far the most valuable and expensive wood in the world. When Agarwood chips are grinded and distilled into oil, Agarwood oil or OUD OIL as it is officially known is the key Ingredient in some of the most luxurious and expensive fragrances in the World. 

Our team has successfully partnered with one of the most prominent and well established Agro experienced families in Malaysia. With exceptional foresight and alongside  a well seasoned, innovative and capable team with a plethora of experience, the head of this family conceptualised his idea to sow the seeds of 300,000 Agarwood Trees in total, over 12 years ago. Now is the perfect time to literally reap what was sowed.  Market for the by-products of Agarwood Trees is immense with one of the best profit ratios world wide.

  Our partner is an Agro–based organisation that was incorporated in 1979. It is the registered owner of about 4,000 acres (1618 hectares) of volcanic agricultural land, 3,000 acres (1214) in Balung River, near the city of Tawau, 1,000 acres (404) an hour away in Merotai, and is located on the eastern coast of Sabah, Malaysia. This is a family run and family owned business. 

In recent years in Malaysia, Agarwood plantation has attracted many enthusiastic entrepreneurs to venture for its promising huge return on investment. With continued research and findings on the perfection of the inoculation technique, it has enhanced the level of confidence amongst the investor - both local and foreign. The Malaysian government agencies have responded positively towards this development, and have spent millions of Malaysian Ringgit on research and studies. This has given a further boost to the Agarwood plantation initiatives in the country.  Each individual tree has been, and will continually to be sensitively nurtured, and has its own individual GPS co-ordinates.
 

The USP ( Unique Selling Point ) of the 'Agaroudh Project' is the 15 year maturity. Land Clearing started around 15 years ago, and the first tree planted was just over 13 years ago. This gives AGAROUDH a huge advantage over many other commercial plantations, taking into consideration that investors are currently buying into ongoing, or even future Agarwood seed plantation. Whereas, AGAROUDH is now at the inoculation, harvesting and then the OUD oil and other bi-product extraction stage, finally moving onto sales. This puts AGAROUDH 15 years ahead of many other plantation projects.

The process of inoculation for the first 100,000 trees will start this year - 2020, technically this means that in 24 months after inoculation starts, Agaroudh SDN BHD will start generating revenues.

 The total amount of global institutional investment in forestry has surged from an estimated US$10-US$15 billion in the early 2000s to over US$100 billion today . 

While calls are growing for investors to turn to forestry to tackle climate change and associated issues, the main factors behind the growth in this asset class are more prosaic. 

Indeed, investors have traditionally allocated to forestry for similar reasons as for other real assets, particularly as an inflation hedge, as an asset with a relatively low correlation to equity and bond markets, and as a stable, long-term   holding. 

Other factors are more forestry-specific, such as long-term appreciation of the underlying land, the growth in value of trees as they mature, and the potential for multiple income streams from different uses of the assets, such as timber production and recreational activities. 

 The Global Agarwood Essential Oil Market is expected to register a CAGR of 5.92% to reach USD 201.03 Million by 2025. 

 The global agarwood essential oil market is expected to register significant growth during the forecast period. Owing to the pleasant aroma of oud oil, its use is increasing in various industries, especially personal care and pharmaceuticals. The oil extracted from agarwood is used in perfumes, soaps, incense sticks, cosmetics, and various modern and traditional medicines. Thus, the increasing industrial application of agarwood essential oil is driving the growth of the market 

 The personal care segment is expected to be the largest, registering a substantial CAGR to reach USD 103.30 million by the end of 2025. The growth of the personal care application segment can be attributed to the rising demand for agarwood oil across the globe as a significant ingredient in fragrant soaps and perfumes.

The Asia-Pacific agarwood essential oil market is expected to be the largest during the forecast period. The region accounted for 33.75% of the total market share in 2018. China is the leading country-level market in the region and is expected to account for the largest market share during the review period. The dominance of the regional market can be attributed to the region-specific plantation and availability of agarwood trees. Europe accounted for a significant market share in 2018 and the regional market is expected to offer lucrative opportunities to processors in the coming years owing to the increasing demand for luxury perfumes and cosmetics.     

The North American market also holds a prominent share of the global agarwood essential oil market and is projected to exhibit a significant CAGR during the forecast period of 2020 to 2025. The US is estimated to hold the majority market share during the forecast period.

A Practical Example of a £ 100k Investment

• STEP 1: - £ 100k to acquire 182 fully grown Agarwood Trees @ £550 per tree

• STEP 2: - Inoculation process starts on the trees

• STEP 3: - Process takes 24 months

• STEP 4: - Harvesting and Processing of the Trees

• STEP 5: - From every single tree aged 13 years 5.29 Tola of Oud Oil is produced

• STEP 6: - Market for wholesale ( not retail ) is an average of US$ 425 per Tola

HENCE GROSS RETURN of GBP 337 x 5.29 = GBP 1782.73 PER TREE

• STEP 7 - CALCULATION

CONFIRMED SELLING 1 TREE:- £ 1782

LESS 7% FOR DISTILLATION EXP: - (£ 125)

LESS INITIAL COST TO PURCHASE:- (£550)

NET PROCEEDS PER TREE:- £ 1107

DIVIDED 50/50 WITH AGAROUDH SDN BHD

NET PROFIT PER TREE TO INVESTOR 

£ 553 OR 100% IN MAXIMUM OF 3 YEARS

33.3% PER ANNUM GUARANTEED