1. Strategic Purpose
Plantation Management & Contract Farming model allows the company to scale plantation footprint without owning all the land, while generating early, recurring cash flows and securing long-term supply of high-value crops.
This focus area:
- Reduces capital intensity
- Accelerates geographic expansion
- Strengthens farmer and landowner partnerships
2. Plantation Management Services (End-to-End)
- Core Services Offered
- Site assessment & agroforestry design
- Land preparation and planting supervision
- Seedling supply and species matching
- Fertilization, pruning, and pest management
- Agarwood inoculation scheduling & execution
- Growth monitoring and harvest planning
- Delivery Model
- Per-hectare or per-tree management contracts
- Multi-year agreements (3–10 years typical)
- Performance-based management benchmarks
3. Contract Farming Framework
- Partnership Structures
- Management + Profit Share
- Landowner provides land
- CAPI provides technology, planting material, and management
- Harvest profits shared by agreed ratio
- Buy-Back / Offtake Model
- Guaranteed purchase of agarwood or perfumery outputs
- Quality and grading standards defined upfront
- Joint Plantation Ventures
- Special purpose plantation blocks with co-investment
- Structured exit options at harvest stage
4. Revenue Streams Generated
- Annual management fees (stable, recurring)
- Technical service fees (planting, inoculation, training)
- Share of harvest revenues
- Supply margin from secured raw material inflow
- Optional premium from certified or traceable outputs
5. ROI Logic (Investor Perspective)
- Asset-light revenue improves cash flow in early years
- High ROIC: expertise monetized repeatedly across hectares
- Profit share delivers biological upside without land CAPEX
- Early revenues de-risk long biological crop cycles
- Contracts create predictable income profiles attractive to investors
6. Risk Management & Quality Control
- Standardized SOPs and plantation protocols
- Centralized monitoring and reporting
- Controlled inoculation timing to optimize resin formation
- Harvest-grade quality assurance to protect pricing
- Legal contracts with clear tenure and harvest rights
7. ESG & Social Impact
- Inclusive growth through farmer participation
- Skills transfer and technical training
- Stable rural employment
- Encourages sustainable land stewardship practices
- Enhances social license to operate
8. Strategic Advantage
- Rapid footprint expansion without heavy balance sheet strain
- Secured future supply for downstream Crown companies
- Builds farmer loyalty and ecosystem lock-in
- Enhances scalability and valuation multiples
Investor Soundbite
CAPI’s Plantation Management & Contract Farming model converts expertise into recurring income while securing long-term biological upside—without the capital burden of land ownership.