LEXMIN PTY LTD
Lexmin® is a sure winner now!
Company Overview
1. Lexmin® Pty Ltd, a family-owned West Australian
company established in 2018, specializes in agriculture post-harvest plant-food
processing technology. The company has completed its R&D to provide
holistic plant nutrition for health and wellness. Lexmin®’s food technology
processes nutrients from plant parts into dietary food supplements in the form
of capsules, tablets, beverage sachets, and powder. Additionally, Lexmin®
markets organic kitchen spices to the changing demographics of Asian migrants
around the world, including the rapid urbanization of Asian cities.
Growth and Market Position
2. After completing a high-risk 5-year R&D
phase on its tropical farm in Cambodia, Lexmin® is now scaling up to enter the
global multi-billion-dollar plant food industry. Lexmin®'s products are
certified to meet 10 global food safety standards, facilitating global sales in
a seamless process.
Business Model
3. Lexmin® operates its own farm to supply premium
superfoods directly to consumers worldwide, bypassing middlemen and minimizing
human intervention. Products are sold through eCommerce platforms like Amazon,
Walmart, eBay, Shopify, etc., as shown in Tables A and B below. Lexmin® has
achieved a minimum risk-free status and is well-positioned to succeed in the
plant food industry.
Market Demand
4. The generational demand for plant-based
superfoods as supplements for health and wellness is driven by:
- Aging population drawn from the 8 billion global population
- Increased consumer awareness of preventive healthcare
- Rise of the self-directed consumer (self-diagnosis over doctors’ diagnosis)
- Multiple marketing channels: eCommerce platforms and OTC
- Shift from single ingredients to broader, wholesome packaging
- Post-COVID-19 effects: Plant-based natural food to increase immunity
Market Analytics and Projections
5. According to Bloomberg’s report from August 11,
2021: "The plant-based foods market could represent up to 7.7% of the
global protein market by 2030, with a value of over $162 billion, up from $29.4
billion in 2020. The report identifies growth expectations for the plant-based
foods market through 2030 as global animal and dairy protein demand is expected
to reach $1.2 trillion by then."
Furthermore, Fortune Insight projects:
"The global dietary supplements market is expected to grow from $71.81
billion in 2021 to $128.64 billion in 2028, at a CAGR of 8.68% during the
forecast period." (Source: Fortune Business Insights)
Given these favorable market
conditions, the question for investors is whether the projected sales figures,
as computed in Table B below, are achievable. This requires strategic due
diligence. The founders are confident that with strategic navigation on a
global consumer platform, Lexmin® will succeed in becoming a multi-million, if
not billion-dollar, company.
Lexmin® aims to sell 1.1 million units
of its products in 11 selected countries, where 96 billion consumers visit 22
platforms annually. Out of these 96 billion visiting consumers, the company
plans to sell 1 million units of superfood. The founder is confident that this
target is easily achievable.
5.1 eCommerce Strategy
Lexmin® has chosen to market and sell
its products online through eCommerce platforms as the primary channel.
Globally, 62% of consumers purchase most of their needs online, a trend that
has increased, especially post-COVID. Even older generations are becoming more
adept at using the internet. We have carefully selected 11 countries with a
high number of supplement consumers, as shown in Table A.
5.2 Platform Details
In Table A, Amazon is the most popular
platform in every country where it is present. Amazon provides warehousing,
fulfilment services, and sales and promotional support. Lexmin® has
successfully registered a global account with Amazon and will use Amazon in the
11 selected countries. In Australia, 88 million people visit Amazon monthly,
while 2.6 billion people visit in the USA. Overall, we have selected 22
platforms across 11 countries, where 8.048 billion visits occur monthly. Over a
12-month period, this amounts to 96.57 billion visits. We plan to expand to 50
platforms in additional countries as funds become available. Lexmin® eliminates
the need for middlemen and sub-distributors, controlling its own food
processing technology, design, packaging, and distribution directly to
consumers, ensuring a seamless process with high profit margins. Lexmin® has
established its first platform in Malaysia on August 31, 2024. Amazon Australia
will become operational in the next 10 days, followed by the other 9 countries.
5.3 Product Line and Sales Targets
Lexmin® now offers 73 lines of dietary
food supplements from 12 plants and 8 kitchen spices to meet the demands of
changing Asian migration patterns in the USA, Canada, Europe, Australia, and
the growing urban population in Asia. The target is to sell 1.163 million items
within a 12-month period in 2028, as shown in Table B. Ultimately, Lexmin® will
target the 96.5 billion annual visitors to the 22 platforms in the 11
countries. At an average price of USD 14.00 per unit, Lexmin® aims for a 50%
pre-tax profit margin from gross revenue.
Sales Projections and Revenue:
5.4 Operational Plans
For the remainder of 2024, Lexmin® will
focus on setting up the 22 platforms listed in Table A, as well as advertising
accounts on Google, Facebook, and other major social media. All promotions will
be managed in-house with existing resources.
5.6 Capacity and Expansion
We have reviewed the capacity of Lexmin®'s
farm to supply raw ingredients. Based on current land usage of 10%, our farm
manager assures that we can meet the demand for raw yield for the next decade.
Lexmin® plans to establish a second modern packing factory in Western
Australia. The company is well-structured, owning its farm to source raw,
semi-processed plant food.
5.7 Product Example
For instance, 8 kg of fresh black
turmeric rhizome yields 1 kg (1000 grams) of powder when organically processed
and milled. This 1 kg of powder produces 2,500 capsules at 0.4 g each. These
capsules are packed into 16 bottles of 150 capsules, currently sold at USD
65.00 per bottle. Approximately 1,500 kg of fresh black turmeric rhizome is
needed to produce 3,000 bottles (one-third of 1 million units) of 150 capsules.
Lexmin® currently has 1,400 kg of rare black turmeric chips in the warehouse,
valued at USD 1,411,200, ready for milling and bottling.
Summary of Financial Metrics
6 The financial metrics are extracted from
the Financial Statement for 2018 to 31/12/2023, audited by the independent
agriculture accountant B&G of Cambodia and the Central Tax Authorities of
the Cambodian Tax Department in 2024. The figures are:
i. Capital
injected into Lexmin® from 2018 to 31/12/2023: USD 2.196 million
ii. Liability
to crowd funders, small loans: USD 250,000
iii. Fixed
assets including organic assets: USD 1.1 million
iv. Revenue
from market testing on saleability: USD 150,000
6.1 Based
on these metrics, the company is valued at USD 4.2 million. The founder is
initially open to negotiating up to 10% equity, with the possibility of
increasing this percentage based on further discussions. Alternatively, an
equity loan or bond of USD 100,000 is sought to cover scaling expenses. All
proceeds from the equity sale or loan will be reinvested in the company to
settle crowdfunding loans and for marketing expenses. The value of the equity
share is anticipated to change as negotiations progress.
6.2 We are also pleased to inform our valued customers and business partners that Lexmin® has significantly bolstered its production capacity, with available factory stock now valued at USD 4.2 million. This stock is prepared for immediate sale, ensuring our ability to meet the growing demand for our products globally. By maintaining this level of stock, Lexmin® is well-positioned to scale quickly and efficiently in response to market opportunities
Please contact the Founder & Group CEO
Mr. Robert K Chelliah
+60123482961, +61455235264 or +61892464088
Email at rkc@lexmin.com.
Robert K Chelliah
Founder/CEO
Lexmin® Pty Ltd
12 September 2024
Comments
Post a Comment