OUR BUSINESSES
“Malaysia is the second largest producer and exporter of palm oil in the world, accounting for 25.8% and 34.3% of the world’s production and export, respectively”
Our Palm Oil Commodities
Trading Activities
According to the Malaysian Palm Oil Board (MPOB), the Malaysian oil palm industry fared better in 2022 compared to 2021 with a slight increase in crude palm oil (CPO) production and export. With the exception of the second quarter of 2022, the production of CPO recorded higher performance in other quarters as compared to the same period in 2021. The year 2022 ended with higher CPO production by 1.9% and palm oil export by 0.9%. Other key industry indicators also witnessed higher performance such as yield of fresh fruit bunches (FFB) and palm oil stocks, while national oil extraction rate (OER) and imports of palm oil witnessed declines. The tight supply situation had pushed prices to a new record of high annual average price at RM5,087.50/ton in the palm oil history and boosted total export revenue to RM137.89 billion.
In 2022, the prices of all oil palm products were traded higher.
CPO price was traded higher by 15.4% or RM680.50/ton to RM5,087.50/ton as compared to RM4,407.00/ton in 2021
We are going to be one of the very few oil palm dealerships in Malaysia that will also engage in wholesale distribution of palm oil and its byproducts across globally at competitive prices. Another competitive advantage that we have is the vast experience of our management team, we have people on board who understand how to grow the business in a sustainable and profitable manner.
OUR TARGET MARKET
We are in business to established sales and distribution network throughout Malaysia and exporting Worldwide.
RBD Palm Oil
RBD Palm Oil( RBD mean Refined Bleached & Deodorised) is used as frying oil for food industries such as instant noodles and snack food. It can also be used to manufacture margarine, shortening, ice cream, condensed milk and soap. RBD palm olein(Cooking Oil) is obtained from fractioning refined palm oil to separate liquid parts (olein) from solid parts (stearin). RBD Palm Oil can be marketed to local or international buyers to fractionated and produce RBD Palm Olein ( cooking Oil)
Palm Olein
RBD palm olein is obtained from fractioning refined palm oil to separate liquid parts (olein) from solid parts (stearin). It is clear yellow liquid at room temperature. RBD palm olein is used as cooking oil as well as frying oil for food industries such as snack food and ready-to-eat food. RBD palm Olein can be marketed to Cooking Oil repacking company or both local and international buyers.
Crude Palm Oil
Crude Palm Oil is used in nearly everything – it's in close to 50% of the packaged products we find in supermarkets, everything from Cooking oil, pizza, doughnuts and chocolate, to deodorant, shampoo, toothpaste and lipstick. It's also used in animal feed and as a biofuel in many parts of the world, Crude Palm Oil can be marketed to all Palm Oil Refinery both local and international buyers
Palm Fatty Acids
Palm Fatty Acids Distillate is used as a renewable raw material in biofuels production as well as to produce candles, soaps, other oleochemical products, and animal feed.
Palm Kernel Cake
The pulp left after oil is rendered from the kernel is formed into "palm kernel cake" , used as high-protein feed for dairy cattle and Animal feed. Palm kernel cake can be marketed to both local and international Animals Feed Manufacture to produce animals feed.
Sludge Palm Oil
Sludge Palm Oil is classified as low grade oil due to its high free fatty acid (FFA) content (>20%). The FFA in SPO can be used as supplements in animal feed, low-grade soap and as feedstock for biogas production
Palm Kernel
The palm kernel is the edible seed of the oil palm fruit. The fruit yields two distinct oils; palm oil derived from the outer part of the fruit, and palm kernel oil derived from the kernel. The pulp left after oil is rendered from the kernel is formed into “palm kernel cake”, used either as high-protein feed for dairy cattle or burned in boilers to generate electricity. It has a wide range of applications, including nourished hair, soft skin, and healthy food. It is used for various snack products, wax, skincare and cosmetic products. Palm Kernel can be marketed to local and international buyer.
Sources of Income
ORIX Pro Grid Sdn. Bhd. is established with the aim of maximizing profits in the oil palm dealership business in Malaysia, ASIA and Worldwide. ORIX Pro Grid Sdn. Bhd. will generate income by selling and exporting:
- RBD PALM OLEIN Cp8 and Cp10
- RBD PALM OIL.
- PALM FATTY ACIDs.
- PALM KERNEL
- PALM KERNEL CAKE
- PALM OLEOCHEMICAL
- CRUDE PALM KERNEL OIL
- SLUDGE PALM OIL.
- CRUDE PALM OIL.
- RBD PALM OLEIN Cp8 and Cp10
- RBD PALM OIL.
- PALM FATTY ACIDs.
- PALM KERNEL
- PALM KERNEL CAKE
- PALM OLEOCHEMICAL
- CRUDE PALM KERNEL OIL
- SLUDGE PALM OIL.
- CRUDE PALM OIL.
Sales Forecast
We are well positioned to take on the available market in Malaysia and other countries of the world where we intend on exporting our oil palm byproducts to and we are quite optimistic that we will meet our set targets of generating enough profits within the first few years of operation.
These sales projections are based on information gathered from the MPOB report and some assumptions that are peculiar to the CPO market in Malaysia:
- First Fiscal Year: RM250 million
- Second Fiscal Year: RM275 Million
- Third Fiscal Year: RM302 Million
- Fourth Fiscal Year: RM332 million
- Fifth Fiscal Year: RM365 million
N.B: Please note that the above projections are subject to market fluctuations and are based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and/or there won’t be any major competitor offering the same product and customer care services as we do within the same location.
Marketing Strategy and Sales Strategy
ORIX Pro Grid Sdn. Bhd. has a good understanding of the oil palm business to develop marketing strategies and help us achieve our business goals of obtaining a larger percentage of the available market for our products.
In summary, ORIX Pro Grid Sdn. Bhd. will adopt the following sales and marketing approach to sell our produce:
- Introduce our oil palm dealership business by sending introductory letters to merchants and other stakeholders both in Malaysia and abroad.
- List our business and products on local directories.
- Leverage on the internet to promote our product cum business.
- Engage in direct marketing and sales.
- Encourage the use of Word-of-mouth marketing (referrals)
Our Pricing Strategy
Our pricing system will conform to what is accepted in the industry, but we will ensure that within the first few years of operation, our palm oil byproducts will be sold a little below average market prices when compared to other palm oil retailing businesses in Malaysia.
We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.
Payment Options
The payment policy adopted by ORIX Pro Grid Sdn. Bhd. is all inclusive because we are quite aware that different customers prefer different payment options through either Maybank, CIMB or Public Bank.
These are the payment that ORIX Pro Grid Sdn Bhd has available for clients:
- Payment via Letter of Credit (LC)
Sustainability and Expansion Strategy
The future prospect of a business lies with the number of loyal customers that they have; the capacity and competence of its employees; their investment strategies and business structure.
One of our major goals for starting ORIX Pro Grid Sdn. Bhd. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our palm products a little bit cheaper than what is obtainable in the market, and we are well prepared to survive on lower profit margins for a while.
ORIX Pro Grid Sdn. Bhd. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken care of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is a top priority.
We know that if this is put in place, we will be able to successfully hire and retain the best minds in the industry as they will be more committed to help us build the business of our dreams.