QIN most trees will be harvested in 2025. Monopolistic...

QIN most trees will be harvested in 2025.

• Monopolistic Supply:Wild sandalwood forest has been harvested to the point where its natural existence has been classified as “vulnerable”. We estimate that TFS manage over 80% of commercially grown sandalwood plantations; therefore the company will be able to exhibit high price control, a highly attractive characteristic.
  
  
•   High Barriers to Entry:With a long tree lifecycle of 15+ years, there is considerable lead-time between planting and cash return. Combined with the large up-front capital costs, the threat of new entrants is low. The 18 years of R&D and silviculture knowledge built up by TFS strengthens the barrier further – it would require additional years in which a potential competitor would have to operate and invest to attain a comparable product standard and capacity as TFS.
  
  
•   Growth in End Markets:TFS have established relationships with buyers across many industries in numerous countries. The use of sandalwood spans carvings, religious use, fragrance & flavouring, incense, cosmetics, dermatological and pharmaceutical. Previously, sandalwood was primarily only accessible through black-market trade, however now dormant industries will likely be re-established with the prospect of a reliable, legal sandalwood supplier in TFS.