Proteak’s founders, Hector Bonilla and Javier Diaz Calvo [3] have created a profitable, sustainable teak company in a sector otherwise marred by illegal logging and corruption. Hector’s talent for spotting market potential led him to create three startups before a drive past a plantation in Mexico inspired him to research the sizable $12 billion global teak market. Both Hector and Javier were impressed by teak’s price, which is increasing at a rate of six percent annually and commonly sells at $12 per board foot, as compared to $2-$7 per board foot for most other woods.

Proteak’s vision [4] is to operate as a business that addresses social, environmental and economic concerns. Because of its commitment to sustainable business practice, Proteak serves as a model in an industry in which illegal logging runs rampant and the major regions of production in Southeast Asia experience deforestation rates of about one percent per year. Hector candidly asserts that he does not see a separation between profits and sustainable practices. His group is committed to promoting responsible forestry practices and soil management. The 820 hectares of land that Proteak has planted are treated with the minimum possible amount of chemicals, and the trees populating these plantations take in the equivalent of 5,000 cars worth of CO2 emissions every year. The company is also committed to providing benefits for the local community; it is working to reinvigorate agriculture in a region where manufacturing has come to dominate, and Proteak employees receive better pay and benefits than the average worker in their sector.

When discussing these social concerns, Hector is quick to add that he and his board are fundamentally “all about numbers,” and argues that his 50 investors have been drawn in primarily by the 24% projected return on investment. Hector credits his management team with being one of the best and most knowledgeable in the industry. The company has bolstered its marketing strategy with extensive support from New Ventures [5], a program of the World Resources Institute dedicated to spurring investment in sustainable enterprise. With these strong management and marketing abilities, Proteak has raised $4 million of capital in five successful rounds of investment. In a sector notoriously controlled by inefficient, state-run companies, the Proteak team’s impressive private sector background makes them stand out as a highly productive and profitable enterprise.

Proteak’s superior business model and experienced team combine sustainable practices and solid leadership to create a reliable strategy for growth. This approach earned the company recognition as a winner in the 2005 New Ventures Mexico Investor Forum [6] and ensures that as it sells its first trees on the open market next year, Proteak will continue to thrive.