AgriNova Sugar SA Business Plan › Section 6 › Products, Services & Value Proposition

6.1 Product Portfolio Overview

AgriNova will produce and sell a portfolio of approximately 25
distinct stock-keeping units (SKUs) by Year 5, organised across four
divisions. The product mix has been engineered to maximise yield from
each ton of sugar cane, balance high-volume commodity output with
high-margin specialty lines, and create natural offsetting cash-flow
profiles across the calendar.

6.2 Sugar & Milling Division — Product Detail

Raw Sugar

Raw sugar (sucrose content typically 96.5–98% on dry-weight basis) is
produced as the primary output of the milling process. Market channels
include direct sale to the central refinery (Hulett Refinery, Durban),
export under SACU and African destinations, and limited US TRQ exports
(subject to current 30% in-quota tariff).

Refined White Sugar

Refined white sugar (sucrose 99.7%+) is produced via the central
refinery channel. AgriNova’s strategy is to negotiate a long-term
refining tolling arrangement during Phase 1 and to evaluate construction
of an in-house refinery at Mill 1 from Year 4, subject to the
demonstrated economics.

Brown Sugar and Specialty Lines

Brown sugar, demerara, golden and unrefined raw lines command a
15–25% premium over white refined sugar in the SACU retail market.
AgriNova will launch a branded specialty range under the ‘AgriNova
Naturals’ label from Year 3, supported by a dedicated brand budget and
listing arrangements with the major SA retailers (Shoprite, Pick n Pay,
Woolworths, SPAR).

Molasses

Molasses is the residual syrup after sucrose crystallisation.
AgriNova will use 60% of molasses as feedstock for the ethanol plant and
30% as feedstock for animal feed; the remaining 10% will be sold to
third-party off-takers (mainly distillers and industrial
fermenters).

6.3 Bio-Industrial Division — Product Detail

Fuel-Grade Ethanol

Anhydrous ethanol (99.5%+ purity) for petrol blending is the flagship
product of the bio-industrial division. The 80 ML p.a. ethanol plant,
sized to consume approximately 1.0 Mt of equivalent cane (via molasses
and direct juice routes), is targeted for first commercial production in
Year 5. The plant will be designed to also produce industrial alcohol (a
higher-margin product) when fuel ethanol margins are unfavourable,
providing a margin-protection mechanism.

Animal Feed

The animal feed mill, commissioned in Year 2, produces molasses-based
liquid feed, ruminant compound feed and dairy concentrates, leveraging
both molasses (from the sugar mills) and contracted maize (from the Free
State maize belt). Annual capacity is 250,000 tons.

Starch and Glucose

The starch and glucose line, commissioned in Year 4, produces
food-grade starch (used as a thickener in the food and beverage
industry) and glucose syrup. Estimated capacity is 80,000 tons p.a. of
starch and 65,000 tons p.a. of glucose syrup. Off-take is targeted to
the major SA beverage manufacturers (Coca-Cola Beverages South Africa,
Pepsi/Bevcorp), confectionery (Mondelez, Tiger Brands) and bakery
(Premier, RCL) accounts.

6.4 Land & Property Division — Product Detail

The Land & Property Division generates revenue from the sale of
plots in mixed-use estates, industrial sites in the Richards Bay
logistics park, and selective rental income from logistics warehousing.
The Division operates two distinct cash-flow models:

• Bulk land sales: transactions of 50–500 ha to
  other developers, generating large but lumpy revenues. Margin:
  30–40%.
• Direct development: AgriNova installs bulk and
  internal services and sells serviced plots to retail buyers, builders
  and end users. Margin: 25–35% but capital-intensive and slower.

6.5 Energy & Utilities Division — Product Detail

The Energy Division sells two primary products and one ancillary
service:

• Firm cogeneration power (60 MW):
  bagasse-fuelled, dispatchable, sold under a 20-year PPA to a basket of
  corporate off-takers via wheeling. Tariff: R1.35/kWh indexed at CPI –
  100 bps.
• Solar utility power (80 MW): ground-mount PV
  with a 20-year corporate PPA. Tariff: R1.05/kWh fixed-real with sleeved
  municipal off-take.
• Wheeling and trading services: AgriNova holds an
  aggregator-trading licence, allowing private supply to multiple
  corporate off-takers using the Eskom and municipal grids under wheeling
  tariff arrangements.

6.6 The AgriNova Value Proposition

Across all divisions, AgriNova will compete on five differentiators
rather than on price alone:

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of AgriNova Sugar SA (Pty) Ltd.