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Pitch Deck Sample for a Hemp Cultivation and Processing Business in Zimbabwe
Zimbabwe Hemp Industry – Hemp CBD Business Plan Templates https://hempcbdbusinessplans.com/zimbabwe-hemp-industry/
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Pitch Deck Sample for a Hemp Cultivation and Processing Business in Zimbabwe
- 1. website PRESENTER: 2025 Month Purpose:Do good for the People and Planet. Investor Pitch Deck
- 2. 1 Start-up Summary 2 Project/Vision 3 ExecutiveSummary 4 Products & Services 5 6 Market Opportunities 7 Strategy 8 Production/Sales Forecast Content Team/Management 9 Financials
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- 4. 4 New Business Introduction BUSINESSNAME (website) is a new hemp grower and Hemp/CBD oils products supplier in …, Zimbabwe. BUSINESS NAME will cultivate hemp, then extract and refine the crude oil into a highly purified concentrate using a CO2 extraction and short path distillation processes with 3.5% yields of impute material. BUSINESS NAME is also dedicated to produce fiber building materials such as hemp blocks for construction, fiber boards and insulation for roofing. Produce and sell the highest-quality Hemp/CBD products through wholesale transactions. Own and operate hemp cultivation and extraction facilities in Location. Utilize cutting edge and proprietary extraction. Market analysts estimate that the global hemp market will grow at a compound annual growth rate of 16% to $12 billion by 2028. INDUSTRY TECHNOLOGY PRODUCTS
- 5. 5 Financial Summary -$1.0 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 Year 1Year 2 Year 3 Year 4 Year 5 Millions Revenue Net Income $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 Year 1 Year 2 Year 3 Year 4 Year 5 Millions Cash Flow (ending period) From a total investment of $0 million, Company is expected to generate nearly $0 million in gross revenues with pre-tax income of nearly $0 million in Year 3, its first full year of operations. Revenues are expected to grow to nearly $0 million in Year 4 and $0 million in Year 5, with pre-tax income of nearly $0 million and over $0 million respectively.
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- 7. 7 Mission Statement To growsome of the best hemp plants and produce high-quality extracts Main Goals: A. Own and operate 000 sq. m hemp cultivation facilities in Location. B. To produce high-grade Hemp/CBD oil and build a recognizable brand in a rapidly growing industry. C. To be fully compliant with regulations and be primed and ready for expansion. D. To be supplying one of the best hemp building materials for construction. E. To have the BUSINESS NAME brand become a trusted household name nationally for high quality products. F. To align ourselves with investors and partners who share our values.
- 8. 8 Business Objectives Own andoperate hemp cultivation and extraction facilities in Location. Getting cultivation and processing licenses Lookout for ways to improve our processes and maximize our returns on the hemp plants we use. Processing the hemp in a clean and compliant laboratory Monthly sales and capacity increasing steadily throughout the first year. Net annual income to support operational expenses Maintaining a nimble operational structure and cultivation strong relationships with retailers that will allow it to quickly respond to shifting customer needs. Become profitable by the end of the first year of operations 01 02 03 04
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- 10. 10 Start-Up Summary $ 0,000,000 Thecost to start-up our company $ 0,000,000 Assets $ 000,000 $ 000,000 Direct Costs Operating Costs
- 11. 11 Start-Up Assets &Use of Funds Start-Up Assets Quarter 1 Building/Land for cultivation $000,000 Equipment for growing $000,000 Building for extraction/manufacturing $000,000 Extraction equipment $000,000 Manufacturing equipment $000,000 Other equipment $000,000 Other equipment $000,000 Security System $00,000 Total $0,000,000 Total Use of Funds $0,000,000 Use of Funds Assets $0,000,000 Direct costs, cultivation $000,000 Direct costs, processing & manufacturing $000,000 Operating expenses, first 6 months $000,000 Salaries $000,000
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- 13. 13 Product & Services Cultivation Companywill have the ability to grow up to 0,000 plants from seedling to finished product. Description: Extraction BUSINESS NAME will produce high-quality concentrates as own product line. Description: Service Strategic partnerships with hemp cultivators to offer them processing service. Description:
- 14. 14 Products Revenue Structure Wewill strive to provide our clientele with both high-end and affordable hemp-derived CBD products. We want to build a brand that our customers will count on for professionalism, consistency, quality, and innovation. % of Revenue by Product Category: revenue Concentrates 65% Biomass 25% Fiber 10%
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- 16. Global Hemp Cultivation Thesedays, at least 70 countries cultivate hemp for commercial or research purposes. The largest producers of hemp are currently China, Europe and North America. In 2023, hemp acreage in North America and the European Union countries totaled about 75,000 acres and 85,000 acres respectively, China – the world’s largest hemp fiber and seed producer – planted more than 340,000 acres of hemp, which put global acreage at about 520,000 acres. - 100 200 300 400 500 600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Acres (1,000) 0 200 400 600 800 1000 1200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Million kg
- 17. Global Hemp Production Accordingto marketing analysis reports by Technavio, the global industrial hemp market size is set to reach $6.47 billion by 2026 with a CAGR of 17.7% . Asia Pacific 33% North America 31% Europe 27% South & Central America 6% The Middle East & Africa 3% USA 4% Canada 11% Europe 16% China 66% Other 3% HEMP-BASED PRODUCTS SALES, 2023 HEMP CULTIVATION LEADERS' ACREAGE, 2023
- 18. Global Hemp Market Asseen in Europe, which has the longest experience in fiber hemp cultivation, it is likely that products that require the least processing and calibration will be the first to achieve market viability. Construction Materials Automotive Bioplastics Non-woven Textiles Consumer Textiles Paper & Pulp Others 0% 5% 10% 15% 20% 25% % of respondents Hemp fiber applications with growth potential 18 A survey of fiber processors by New Frontier Data showed that they expect the best five-year growth potential among segments including construction materials, automotive parts, bioplastics, and nonwoven textiles, respectively. The hemp seed segment dominated the global hemp industrial market on the basis of type with the largest market share at 29.97% in 2023 while the hemp fabric segment dominated the market on the basis of application with 23.56%. Furniture Automotive Others Paper Construction Materials Animal Care Food & Beverages Personal Care Textiles 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Global Hemp market share, by application As the industry matures, increasingly profitable hemp fiber applications should become viable. Strong demand from the construction industry due to product compliance with the green building concept has influenced the penetration of hemp fiber into the construction industry.
- 19. 19 Global CBD Market In2023, hemp-derived CBD dominated the market and accounted for 55.7% of total CBD sales Cannabidiol (CBD) is one of the numerous compounds found in the cannabis plant. Hemp-based CBD oil products have a lower delta-9 tetrahydrocannabinol (THC) concentration, while marijuana-derived CBD oil products have a relatively high concentration of THC. Therefore, marijuana-based CBD products can be used only when they are prescribed by doctors while hemp-based CBD oils do not normally require a prescription. Grand View Research estimates that the global hemp-derived CBD market size has increased to $4.3 billion in 2023 from $2.7 billion in 2022, and it is expected to grow at a CAGR of 15.8% from 2024 to 2030. B2B segment dominated the market and accounted for the largest revenue share in 2023. 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 billion $
- 20. 20 African Hemp Market InAfrica, the history of hemp production can be traced back to Ancient Egypt, where it was used for a variety of purposes including paper, rope, textiles and boat sails, while the seeds were consumed as food and the oil was used for medicinal purposes. Currently, 11 countries are reported to allow the growing of industrial hemp in Africa, including Botswana, the Kingdom of eSwatini, Ghana, Lesotho, Malawi, Morocco, Rwanda, South Africa, Uganda, Zambia and Zimbabwe. Most countries adopted the 0.3% THC standard used in the United States and other countries for hemp plants, but Malawi and Zimbabwe set the limit between marijuana and hemp at 1.0%. According to a New Frontier Data report (The Africa Regional Hemp and Cannabis Report: 2019 Industry Outlook), industrial hemp can be an alternative crop to offset contraction of the tobacco market. Favorable climate and fertile soils create ideal conditions for growing hemp, resulting in high yields and quality.
- 21. 21 Hemp CBD Marketin Zimbabwe Zimbabwe is poised to become a regional leader in hemp production Zimbabwe legalized medical cannabis in 2018, and in February 2019 harvested their first crop of legally grown industrial hemp. Hemp industry regulations were released in October 2020, creating four permits: cultivator, merchant, research and breeding, and import/export. In 2022, the Medicines Control Authority of Zimbabwe announced a change which made the sale of hemp-based CBD products as complementary medicines to patients legal, expanding on previous laws that only allowed production for export. Amended legislation in 2023 removed industrial hemp from the country’s list of dangerous drugs and set the defining limit between marijuana and hemp at 1.0%. The recent Industrial Hemp Overview report prepared by the Agricultural Marketing Authority highlights significant progress in the industrial hemp sector in Zimbabwe. From 21 registered participants in the 2020/21 farming season, the number grew to 42 the following year, rising to 61 for the 2022/23 season. Since 2020, Zimbabwe has exported over 8,000 tons of hemp biomass, in particular for CBD production.
- 22. 22 SWOT Analyses Diversification ofbusiness - cultivation, extraction and manufacturing Diversified, Strategic Partnerships Extensive industry knowledge STRENGTHS Positive Negative Internal External Strengths S Weaknesses W Threats T Opportunities O Product liability / legal issues Enhanced risk of banking / financial scrutiny Crop loss possibility due to pests, heat, human error, etc. High energy consumption WEAKNESSES High growth industry Growing interest and demand for natural, alternative medicine Global market OPPORTUNITIES Indicators of a slowed global economy Competitive market THREATS
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- 24. 24 Growing Facilities The physicaladdress of our cultivation area will be …. The cultivation operations will take up 00 hectares and will be adequate to grow up to 000 plants. We have contracted for our facilities for 0 years with options for an additional 00 years without rent increase. Lease costs is $0,000 per month. 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Year 1 Year 2 Year 3 Year 4 Year 5 Biomass Fiber kg Farming Area For the purposes of this plan, we will assume that one ha of farming land will yield about 0,000 kg of high- quality hemp biomass and 0,000 kg of hemp fibers.
- 25. 25 Manufacturing Facilities The physicaladdress of our extraction and manufacturing facilities will be …. The manufacturing premises will be located in a 000-sq. m building and will include processing, manufacturing and packaging machines. This facility will offer a significant advantage in the development and manufacture of our hemp products. We have contracted for our facilities for 0 years with options for an additional 00 years without rent increase. Lease costs is $0,000 per month. For the purposes of this plan, we will assume that a 10 kg of raw materials will yield about 0.35 kg of high-quality pure extractions. We intend to start with 0.0 kg of biomass per day for first months and increase by 0.0 kg more during next months until reaching 0.0 kg per day. Floor Plan 206,550 757,350 826,200 160,650 589,050 642,600 140,569 515,419 562,275 YEAR 1 YEAR 2 YEAR 3 Isolate Distillate Crude Oil gram CBD Oil Production
- 26. 26 Technology Supercritical C02Extraction We intend to use a High Production CO2 Extraction Equipment to get a CBD primary extract containing a full spectrum of cannabinoids and terpenes of which the THC level is below 0.3%. The equipment utilizes a Dual-Phase Pumping System – a liquid pump that allows for high CO2 flows at higher pressures and the Diaphragm Compressor Technology gas pump for energy efficiency and cold separation, this system will provide high production with a wide range of processing options for supercritical and subcritical extractions. We will also use a High Production WFE system which offers high-capacity, high-production operations with fast, efficient molecule of botanical oils without thermal degradation. 0 20 40 60 80 9 12 15 18 21 24 Hours KG Processed CO2 Supercritical C02 Extraction Run Time (Minutes) 480 Changeover/Prep (Minutes) 30 Time Window (Hours) 24 Capacity (Litres) 100 Biomass Per Run (kg) 22 Biomass within Window (kg) 63 Yield within Window (Tons) 0.07 Oil Yield (kg) 9
- 27. We intend touse a High Production Extraction system, which is equipped for both ethanol and hydrocarbon based solvents, to get a CBD primary extract containing a full spectrum of cannabinoids and terpenes of which the THC level has tested below 0.3%. We will also use a High Production WFE system which offers high-capacity, high-production operations with fast, efficient molecule of botanical oils without thermal degradation. 27 Ethanol & Hydrocarbon Extraction Technology Ethanol Advantages The FDA classifies ethanol as “Generally Regarded as Safe,” or GRAS, meaning that it is safe for human consumption. The ethanol removed from the finished concentrate can be reused in multiple extractions, which effectively eliminates the production of chemical waste. Ethanol extraction can eliminate the need for a dewax or winterization and suites for creating a full spectrum hemp extracts and tinctures. Hydrocarbon Advantages Butane/Propane extraction technique is the most cost-efficient extraction method available. BHO is the fastest commercial extraction method. Can resolve some ethanol extraction disadvantages, including the limitation in the products can be produced and high post processing labor intensive, involving the use of several different methods of refinement and filtration.
- 28. We intend touse Rosin Press Extraction technology, which uses no butane, alcohols, or other solvents and produces a pure and clean product. The rosin pressing technique separates the resin from the plant material using heat and high pressure. The plant material is fresh-frozen before use as a solventless starting point; this preserves more of the volatile terpenes of the cultivar that is being directed into a concentrated product. Main Factors Quality of the input material Freshness of the input material Temperature at which the material is pressed While flowers of cannabis strains have a CBD content rage of 10%- 20%, concentrates like rosin may be 60-80% CBD with some forms can even reach up to a 90% CBD content level. 28 Rosin Press Technology
- 29. We intend touse an Ice Water Extraction technology, which separates trichomes from flowers or trim using ice, water and silk-screen filters. The bubble hash can be used in the vaporizer, in the bong, in pipes, in the joint itself and it can also be mixed with butters to produce edible forms. 29 Ice Water Technology Main Factors Low temperature Ultra-purified water Quality and freshness of the input material Freeze Dryer While flowers of cannabis strains have a CBD content rage of 10%-20%, concentrates like bubble hash can have about 30%-40% CBD.
- 30. 30 Fiber Production 1. Processing.The raw hemp gets separated into three separate basic building blocks – hemp fibers, hurds and leaves. 2. … We intend to start with 000 kg of hemp fibers per day for first months and increase by 000 kg more during next months until reaching 000 kg per day. 0 5,000 10,000 15,000 20,000 25,000 30,000 Year 1 Year 2 Year 3 Year 4 Year 5 Hemp insulation Fiber boards Hemp blocks units
- 31. 31 Marketing Strategy andPositioning TARGET MARKET PRODUCT It is through top-notch client service and products impeccable quality that we can secure a fair share of the available market. We will have Information kits for clients that include brochures, and general information on the hemp and CBD products BUSINESS NAME produces. LOCATION …
- 32. 32 TECHNOLOGY We will growcrops utilizing innovative agricultural approaches with industrial hemp to create premium products and services. Our extraction and manufacturing equipment will be extremely versatile allowing BUSINESS NAME to offer a wide range of premium products. PROMOTION We will have a professionally designed SEO optimized website, develop a social media presence, and advertise on hemp/CBD-related business platforms. To facilitate promotion of CBD products on Meta platforms and Google, we will obtain a LegitScript product certification for our CBD products. Marketing Strategy and Positioning PEOPLE BUSINESS NAME will meet with whole buyers and stores management. We will provide trade samples to aid in making purchasing decisions about our new or existing products. We will actively participate in hemp/CBD-related conferences and trade shows to showcase our products.
- 33. 33 Expenses Cut Operating Needs SalesGrowth Year 1: Sales are expected to start conservatively the first few months and increase steadily through the second, third and fourth quarters of the first year of operations. Cash will be retained in the business to cover cash operating needs as well as future expansion to meet the demands. After the first year of operations, it is expected that BUSINESS NAME will be able to trim expenses through realizing business efficiencies, gaining operational experience and industry knowledge. Sales Forecast $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 YEAR 1 YEAR 2 YEAR 3 MILLIONS Tolling Isolate Distillate Crude Oil
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- 35. 35 Cristopher Johnson Company CEO Confidential Experience:15 years Confidential Eva Smith Company CEO Experience: 10 years Management Team Shean Collins Company CEO Confidential Experience: 8 years
- 36. 36 Company Organization Director Production Department Manager, Extraction ExtractionTech Sales Department Admin and Logistics Personnel Master Grower Assistant Growing Tech Operational Directors Inventory Manager Security Receptionists
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- 38. 38 Projected Profit andLoss, $ YEAR 1 YEAR 2 YEAR 3 Revenue COGS - Cost of Goods Sold Gross Profit % of revenue SG&A Expense Initial & General Costs Operating Expenses Total Sales & Marketing Expenses Total Senior Management Salaries & Benefits Total IT Salaries & Benefits Total Other Salaries & Benefits Total SG&A Expense Operating Income (EBITDA) % of revenue Depreciation and Amortization Earnings Before Interest & Taxes (EBIT) Interest Expense Earnings Before Taxes (EBT) Income Tax Net Income % of revenue
- 39. 39 Projected Cash Flow,$ YEAR 1 YEAR 2 YEAR 3 Net Income Cash Flow from Operations Depreciation Change in Receivables Change in Inventory Change in Accounts Payable Change in Accrued Expenses Total Cash Flow from Operations Cash Flow from Investing Capital Expenditures (CAPEX) Other Total Cash Flow from Investing Cash Flow from Financing Revolver Issuance / (Repayment) Long-Term Debt Issuance / (Repayment) New Equity Investments Dividends Total Cash Flow from Financing Total Change in Cash Beginning Period Cash Ending Period Cash
- 40. 40 Ratio Analysis Ratio AnalysisYEAR 2 YEAR 3 YEAR 4 YEAR 5 Avg. (2-5 years) Return on Equity 76.1% 47.5% 33.9% 25.3% 45.7% Return on Assets Return on Sales 29.9% 30.6% 30.9% 30.9% 30.6% Asset turnover 2.55 1.55 1.10 0.82 1.50 Profitability Gross margin 56.9% 57.7% 58.1% 58.1% 57.7% SG&A as % of Sales 6.9% 6.5% 6.3% 6.3% 6.5% Operating Margin 49.8% 51.0% 51.6% 51.6% 51.0% Asset Turnover Ratios Accounts Receivable Turnover 36.2 36.1 36.1 36.0 36.1 Fixed Asset Turnover 38.5 48.2 58.4 69.0 53.5
- 41. 41 Funding Analyses, $ YEAR1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 Long-Term Debt Beginning Balance Long-Term Debt Repayment Long-Term Debt Ending Balance ROI Profit Share (Investors) Company intends to raise $0,000,000 for 5 years with ROI 12% and profit share 5%. First repayment will start from 11th month.
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