Under this model, the investor owns or co-owns the plantation and also controls downstream processing, such as agarwood oil extraction, resin processing, branding, and export.
This strategy enables full value capture across the agarwood supply chain—from tree to premium product.
Key Advantages
Higher Margins
By producing and selling value-added products (essential oils, perfumes, incense), investors capture significantly higher profits than selling raw chips alone.
Faster ROI on Processing
Revenue from distilled oils and branded products can materialize sooner than waiting for full agarwood resin maturation.
Control Over Quality & Branding
Full oversight of cultivation, extraction, and product marketing ensures premium-grade standards, which increases market competitiveness.
International Market Access
Ownership of the supply chain simplifies exports to GCC, EU, and Asian markets, providing a strong foundation for premium pricing.
Business Diversification
Revenue streams include:
- Raw agarwood chips
- Distilled oil
- Branded perfumes & wellness products
- Niche export markets
Considerations & Risks
Higher Capital Requirement
Requires funding for:
- Plantation operations
- Extraction/distillation equipment
- Processing facilities
- Packaging and branding
Industry Expertise Required
Investors must understand:
- Extraction techniques (steam, CO₂, resincore)
- Product quality grading
- Market positioning & export regulations
Complex Supply Chain
Managing cultivation, extraction, processing, and sales involves multiple operational, regulatory, and logistical layers.
Operational Risk Exposure
Failures in processing, equipment downtime, or export issues can impact returns more than in raw-wood-only models.
Best Suited For
- Experienced investors or entrepreneurs in agro-industry / perfumery
- High-net-worth individuals seeking full-value capture
- Investors targeting premium international markets
- Those willing to actively manage or oversee operations