Project Cost: RM1,000,000
Amount Invested : RM400,000
Amount Required : RM500,000
Knowledge / Experience Required:
Proposed Investor’s Role:
Project Stage: early expansion
ACCMS incoporated after acquired IP, trademark and knowledge from the most experience extended warranty provider in Malaysia. Andrew Choe the founder of ACCMS worked as the sales director of the said company before negotiated the acquisition and together with Co-founder, Mr.Zulhelmi who have more than 12 years in automotive aftersales, established ACCMS to be the total aftersales solution provider in Malaysia and Asia Pacific
Product / Service Description:
Incorporate in 2015, our company aim to provide a fresh and newly restructure warranty and aftersales services to the automotive industry. Our business interest consists of automotive aftersales service and repair, warranty, car replacement, and road assist.
Customers who subscribed to our warranty program, are required to a mandatory service interval and we plan to expand the business by providing mobile service directly to customer premises and retain the customers.
New car manufacturing warranty – 3 years
Yearly Sales TIV (600,000 unit)
Almost 80% of vehicle owner took 7 years to 9 years financing.Thus, there is almost half a million of vehicle market potential to purchase an extended warranty/service contract to ensure they still have peace of mind during the financing period. Cost of repair are getting higher and higher each year and getting a service contract from ACCMS, ensuring the repair is done proper and not cheated by irresponsible repairer.
Eg: Without purchasing the warranty from ACCMS, owner will have to go thru various repairers with good service and affordable pricing. With ACCMS, our team managing their breakdown and repair, and ensure the repair is at the best possible peace of mind from our panel workshop. Plus, our panel of workshops are selected and audited by our team. For the expansion, we would like to offer an additional option to customers on servicing. We would like to maintained the profit from servicing within the company.Therefore, we provide door-door mobile service at customer’s premises (home, work, etc). We have the system and SOP ready.
Average premium: RM1, 000 per vehicles
10% of the potential yearly market: 48,000 vehicles
Potential revenue: RM1, 000 x 48,000 unit = RM 48 Million yearly.
For the mobile service
Target 50% of the total warranty customers subscribed the mobile service
24,000 unit x RM250(average pricing for normal service) = RM 6 mil/year
Margin : 25% = RM 1.5 mil gross profit
General Manager: Andrew Choe (MSAE, B.Eng Automotive)
Mr.Andrew is a trained automotive engineer with vast working experience in automotive retailing, OEM manufacturing, warranty and aftersales. His experience both Malaysia and ASEAN market helping and guiding the company to be an international level company. Combine together, he has been in the automotive industry for more than 12 years and he is a member of the Society of Automotive Engineer (SAE International). Together with his 5 years management experience, he has high expectation in the company, and works together with his the team to achieve the vision on transforming the company into the most professional total aftersales solution company in Asia Pacific.
Technical and Warranty Manager: Zulhelmi Othman (MSAE, Dip Automotive, City and Guild Level 3, and Renault Co-Tech Cert)
En.Zulhelmi holds the most prestigious technical certificate from French carmaker, Renault in which he is recognized by Renault internationally. He holds also technical certificate from UK technical institution, City and Guilds and not to mentioned higher education in automotive technology. He have more than 12 year experience in aftersales, ranging from repairing, pre-delivery inspection, product development, workshop management, road assist, and spare parts. His vast experience in aftersales has helped the development of the company’s product and services.
Average Premium: RM1,000 per vehicles
Monthly sales: 100 vehicles
Revenue: RM100, 000 x 12 month = RM1.2 Million
Total average claim amount per month: RM40, 000
Yearly claims settlement: RM 0.48 Million
Profit from warranty program : RM0.72 Mil
Investment to date for warranty program mainly on marketing : RM100K above
Investment of mobile service : RM300K on base workshop (Damansara and Penang)
Yearly projected profit: RM 0.72 million
1st Milestone : RM 150,000 (Set-up 3 mobile fleet for Klang Valley)
2nd Milestone : RM 50,000 (Set-up 1 mobile fleet for Penang)
3rd Milestone : RM 200,000 (Set-up workshop base in Johor)
4rd Milestone : RM 100,000 (Set-up 2 mobile fleet for Johor Bharu)
Business Valuation: Open for discussion
Expected Return On Investment: 2 – 3 years
Investment Risk and Mitigation: n/a
Exit Strategies: Buy back of share from the company.
Andrew Choe ( email@example.com)
ACCMS Warranty Services Sdn Bhd