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Nigeria imports about 2 Million Tonnes of rice annually making it the second largest importer of rice in the world despite its comparative advantage in rice production. Current projections indicate that Nigeria will require 36 Millions Tonnes of rice annually by 2050 to meet the needs of its 300 Million people. KRC seeks to fill the demand-supply gap through the development of its Integrated Rice Production project which will harness local capacity and Nigeria’s comparative advantage in rice production. http://www.Homestrings.com/VehiclePreview/a03F0000009uUWiIAM
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Integrated Rice Production Project (IRPP)
About KIG
KOHATH PROPERTY DEVELOPMENT COMPANY KOHATH MINING COMPANY KOHATH RICE COMPANY KOHATH ENERGY
Kohath Property Development Company (KPDC) is establishing itself as a major player in developing New Cities in Nigeria and other African Countries. • KPDC is the operator and
Joint Venture owner of the “Land of Honey” City development company.
• Land of Honey City is mixed use new city development occupying 1767 Hectares.
Kohath Mining Company (KMC) is focused on harnessing the earth’s natural resources to improve our lifestyle by supplying raw materials to manufacturers around the world. • KMC’s current acquisitions
are in Tantalite, Iron Ore, Coal and Gold.
• KMC is currently developing a tantalite mining field and a tantalum processing plant in Kwara State, Nigeria.
Kohath Rice Company (KRC) is strategically positioned to harness the Agricultural Potentials in Nigeria through Rice Cultivation and Processing.▪ KRC is in the process of
setting up an Integrated Rice Production Project.
▪ Estimated annual production of 31,500 MT high quality parboiled long rice.
Kohath Energy is poised to take advantage of emerging opportunities in Nigeria’s energy sector. KE’s Key Business Areas are:▪ Power generation and
transmission▪ Natural gas utilisation for
LNG production▪ Oil and gas business
consulting▪ Crude refining through set
up of modular refineries
About KRC
KRC IRPP: Project Overview
• Aimed at harnessing Nigeria’s advantage in rice production
• 3 Key components:
✓ 5 TPH state of the art rice mill
✓ 10,000 Hectare irrigated & mechanized paddy cultivation estate
✓ Development of outgrower scheme
• Project locations – Adena village, Kaiama LGA, Kwara state
• Initial annual production of 27,000 MT of export quality long grain parboiled rice
• Production to be tripled within 36 months of project commencement
• Project to be developed in 3 phases
• Production to be technology driven
• Development of agricultural production corridor with supporting infrastructure
• KRC will employ an inclusive business model to engender smallholder farmer growth
• Production to commence Q2 2015
KRC Integrated Rice Production Project
Rice milling
Paddy cultivation
Outgrower scheme
KRC IRPP: Project Execution Strategy
SPV Shareholding Structure
SPV(Integra Rice Company)
KRC(80%)
Kwara State Govt.(20%)
KRC IRPP: Project Objectives
KRC IRPP: Paddy Production Model
KRC IRPP: Our Rice Products
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KRC IRPP: Project Drivers
Others:• Increase in rice import levy from 50%
to 100% by FGN• Availability of suitable land, water for
irrigation and labour
KRC IRPP: Development Partners
KRC IRPP: Financials
■■■■■ PROJECT COST ITEMS
CAPEX OPEX
Rice processing equipment Land preparation and leveling
Farm mechanization machinery Agri inputs (Seeds, fertilizer, CPPs …)
Farm buildings and structures Buy back costs
Power generation Wages and utilities
Operational vehicles Packaging materials
Office equipment and furniture Advertising and promotion
KRC IRPP: Financing Strategy
Agro Insurance (Risk Mitigation)• Agro insurance cover to be procured by SPV and Outgrower Coops • Insurance will provide cover from floods, drought, pests, fires and other man made/natural disasters• Insurance will serve as a risk mitigation strategy for equity investors and commercial banks
Debt Funding into SPV (Term Loan & Working Capital)• Debt funding to be provided by commercial banks• TERM LOAN to fund FIXED ASSETS, WORKING CAPITAL to fund OPEX
NIRSAL (Risk Mitigation)• Credit Risk Guarantees (CRG) to be procured by KRC from NIRSAL• 75% default cover on loan issued by commercial banks• Interest Drawback to be provided by NIRSAL
SPVOutgrowers Equity Funding
How can you get involved?