OOSH

Raised

MYR 20,090

Offer Closed

Min Target MYR 200,000
Min Equity 4.76%




Industry Overview


The presence of large populations in Asia Pacific is expected to boost the biodegradable packaging market. Owing to the increase in the contract manufacturing process coupled with increased governmental interest to promote biodegradable products by providing incentives in some countries such as China and India, it is further expected to contribute to the growth of the market.


The biodegradable packaging market is expected to witness the fastest growth than that compared to the plastics packaging market. The biodegradable packaging market is a relatively new market, however, it is expected to capture the existing market share of the non-biodegradable plastic packaging market. The food and beverage packaging market is expected to play a crucial role in driving the overall global biodegradable packaging market. 


Market Size/Trend


The global bioplastics market was USD19.54B in 2016 and is estimated to reach USD65.58B in 2022 at an estimated CAGR of 22.36%. According to Research and Markets (2017), the world's largest market research organisation, the global demand for bio plastics is projected to grow from a constitution of 2% to 5% in plastic industry, of which this 5% will be worth a whopping USD65.58B by 2022.




Business Model

Grenomer Sdn Bhd ("Group") fully owns Proterra Pte Ltd and Oosh Pte Ltd. The Group is involved in selling and distributing bioplastics products to clients. They are adopting a Business-to-Business (B2B) model where it distributes its products to Singapore, Malaysia and Indonesia through distributors by importing from China. The factory in China, which is the supplier of Grenomer Sdn Bhd, was once owned by the Head of Business Development, Mr. Aloysius. Thereafter, he transferred his stake in the factory to his partner in China. 


The Group currently does not own any factories for production, however, the Group intends to set up factories in S.E.A, commencing in Malaysia and Singapore by 2020. By setting up the factories, it will help to increase the production rate of the Group in order to cater the demand for bioplastics, thereby allowing better reaction time from customers, which in turn will increase the revenue and the overall margins of the Group.


There are six (6) sectors which Oosh's bioplastics products can venture into, including disposable F&B tableware and carrier bags. The largest sector amongst them is the F&B tableware sector, and that is the sector that the Group is tapping into and its market opportunities are tremendous. All 6 sectors certainly provide convenience for consumers and bioplastics adoption cannot be avoided today.







The most unique part of the business is that the Group's products can be catered to all clients. Ranging from budget product range to the most expensive tier, the price paid by the client will determine how fast the rate of bio-degradation is. The more one can afford, the greener the tableware will be.



Unique Selling Points & Competitor Analysis


Bioplastics Substitute Comparison


The Group believes that Oosh products will be superior especially in areas of functionality and speed of production. No matter how eco-friendly a product may be, but if it lacks practicality and functional aspect, or if the rate of production cannot catch up with the demand, then the product will have its limitation in market penetration. It is very clear that the international legislation is moving away from the use of plastics and Styrofoam. One of the main reasons why Oosh will be well accepted is that it is targeting a growing group of concerning clients - the millennial or the Gen Y. This influential group of young consumers makes up the core of the workforce and is aware of the benefits of bioplastics, hence leading the demand worldwide. 


Competitor Analysis



Pricing Model


Cost plus pricing approach. The industry is averaging about 30% to 40% gross margins and the Group follows suit this gross margins. How the Group protects the net margins really depends on how the Group controls its costs to ensure maximum returns to its shareholders.


Business Traction















Notable customers/partners: Deliveroo, HYTT, Disney Resort (Shanghai), Universal (Beijing), UBER EATS, GRAB, Facebook, Philips and SODEXO. The Group did not enter into any contracts or agreements with these parties as the bioplastics industry currently enjoys monthly recurring order and it will not be the usual market practice to enter into contracts or agreements. 


Funding Objective


Fundraising amount: RM 200,000


Use of proceeds:


70% on Working Capital
30% on Branding + Marketing   
As bigger accounts will require longer credit terms, that will mean the Group will need sufficient cash flow to sustain the sales

Strategic marketing campaign to increase revenue  



Management Team 


Leo Kok Choy (Managing Director)
Leo Kok Choy is a civil engineer by training and has headed key departments in large property and construction giants like Lee Kim Tah Holdings Pte Ltd and Woh Hup Holdings Pte Ltd over the past 4 decades. With the experience gained, he will now bring forth his management skillsets to oversee the finances, direction and expansion of Grenomer Sdn Bhd and its subsidiaries. Mr. Leo is the decision-maker of Grenomer Sdn Bhd and he handles all major matters of the Group. He has the advice and consult from Mr. Aloysius, as the Head of Business Development, to assist in his decision marking, charting the right direction for the Group in bioplastics field based on pragmatic growth strategies, in order to generate the best possible returns for future investors right from the onset. 
Cheong Cheng Siong Aloysius (Head of Business Development)

Aloysius Cheong has strong global network within the bioplastics industry for both supply and demand over the past 12 years. He has also discussed at length with the Principal Private Secretary to YB Yeo in October 2018 at Ministry of Energy, Science, Technology, Environment and Climate Change of Malaysia (MESTECC) on the plans and how the Group can augment Malaysia government's policies in the next few years. Aloysius graduated from National University of Singapore with a double major in Economics and Political Science in 2003 and he will be responsible in business development of the Group by expanding in countries such as Singapore, Indonesia, Malaysia and China. He declared bankruptcy in July 2018 due to a past venture, however, he remains dedicated and committed in assisting the Group's development. It serves as one of the key motivating force to ensure pragmatic growth plans are set in place at all times for the Group.

**Note: Leo Kok Choy, the ultimate 100% owner of the Issuer, is the father-in-law of Cheong Cheng Siong Aloysius. Both Mr. Leo and Mr. Aloysius are Singaporeans.



Corporate Information at Glance 


Name of company
GRENOMER SDN BHD
Registration number
1303643-A
Date of incorporation
14 November 2018
Registered address
18-2, Jalan 2/114, Kuchai Business Centre, Off Jalan Klang Lama, 58200 Kuala Lumpur
Business address
29, Hillview Terrace #02-02, Hillview Warehouse, Singapore 669245
Company secretary
Tiew Sze Hann, Christina Lim Zhu 
Auditor
PWC Malaysia will be appointed by the Group by 31st December 2019
Website URL

www.proterrasg.com





** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only