Car brake shoes manufacturer at Indonesia

Car brake shoes manufacturer at Indonesia

Project Cost: RM 970,000

Amount Invested : RM 430,000

Amount Required : RM 540,000

Knowledge / Experience Required: general management

Proposed Investor’s Role: part-time

Industry: manufacturing, industry products

Project Stage: early expansion

EXECUTIVE SUMMARY:

Company History:

PD. Spartindo Jelita Part has been established since 1996 which mainly focuses on brake pad of motorcycle. It was formed by Mr. Hasan Chahyadi Tjhang with the vision to accommodate Indonesia with high quality brake pad and affordable price. He spotted a huge market demand in car industry and the supply could not accommodate the demand of market which makes him believes that there is a huge untapped market in car industry. He is the expertise in manufacturing motorcycle and car brake pad/ brake shoes since he was young. It was the talent he gained from generation to generation.

Product / Service Description:

For starting, PD. Spartindo Jelita Part will be producing 25 models of different car brake shoes and will be distributed around Indonesia with the help of sales team and connection of existing distributors. The car brake shoes mainly accommodate the cars that are frequently used by Indonesian citizens such as Honda Jazz, Toyota Kijang, Toyota Avanza, Hilux, etc. For future expansion, PD. Jelita Spartido Jaya aims to accommodate 100 different models of cars including truck, sedan, and family car.

Business Opportunity:

Indonesia is the largest automotive market in the Association of Southeast Asian Nations region with 2011 sales growing 16.4% and in 2012 the sales growth 7.5% (Harman. A, 2012). This fact gives a huge market for Indonesia in automotive industry especially brake shoes which the demand is higher than the supply making this industry having a ready market to be tapped. It is expected the growing market of automotive industry in Indonesia is increasing because there is a lot of liquidity in the banking system currently helping loan interest for car purchases to remain low (Bisara. D, 2012), therefore, bank regulation makes it easier for Indonesians to purchase car.

Revenue Model:

PD Jelita Spartindo Part earns the profit from the sales of brake shoes of car which the initial production will be 20,000 units.
The net profit of each unit at minimum RM 2 and maximum RM 7
Total the minimum profit for initial stage: 20,000 units x RM 2 = RM 40,000
Total maximum profit for early stage: 20,000 units x RM 7 = RM 140,000
PD Jelita Spartindo Part has ready distributors which covers all parts of Indonesia.

This business model is sustainable because of the founder of company is having sufficient knowledge and experience to run the automotive manufacturing business provided with strong team which has been in the company for over ten years.

Our company has executed bonuses to employees which make employees become more productive. Our company will introduce bonuses for distributors and sales team who able to hit the target of sales. Moreover, PD Jelita Spartindo Part will be having few departments to ensure the growth of the company such as marketing & PR team, sales team, accounting and manufacturing team.

Management Team: PD. Jelita Spartindo Part will be consisting on four departments which are:
1. Marketing & PR team – The team will be responsible in developing strategy to monopoly Indonesia market and build a good image of Motogawa to Indonesia market
2. Sales team – The team will be executing the sales job by channeling Motogawa product to distributors and automotive workshop around Indonesia. Commission scheme will be introduced.
3. Accounting – This person will be accountable in keeping record of expenses and income and allocate budget for each department. This person will be the one to keep track on the health of company.
4. Manufacturing team – This team will be responsible in producing Motogawa product with best quality and on time.

Current Status:

Currently PD. Jelita Spartindo Part has made investment up to RM 430,000 to purchase most of the machines to produce and the factory for the production place. The company still need RM 540,000 to run the business.

Funding Milestone:

First stage of funding: RM 200,000 to produce 5 models of car brake shoes to be distributed in few parts of Indonesia. Once we get the profit it will be shared with the investor based on equity which can be discuss further. The remaining RM 340,000 can be invested once the profit shown in six months time.

Business Valuation: Depend on the amount of money invested in the business. Can further discuss during meeting.

Expected Return On Investment: n/a

Investment Risk and Mitigation: n/a

Exit Strategies: Investor can sell the shares in 3 years time.

CONTACT INFORMATION

Felicia Regina Tjhang ( felletjhang@gmail.com)
Company Name: Jelita Spartindo Part
Postal Address : Jalan Dadap Raya, Periuk, Kota Tangerang, Banten 15131, Indonesia
tate : Tanggerang
Post Code : 15131
Country : Indonesia
Telephone : 0182863220
Website : n/a
Mobile: 0182863220

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