Gauging Systems Specialists

Gauging Systems Specialists

Offers up-to-date online measurement technology and quality control systems to the manufacturing sector in particular the plastic, rubber, aluminium, woven/non-woven and paper industries. Seeking Investors to funding on the business with potential first-year revenues of RM1,087,000, growing to over RM4,089,000 by three year operation.

Offers up-to-date online measurement technology and quality control systems to the manufacturing sector in particular the plastic, rubber, aluminium, woven/non-woven and paper industries. The company is structured as a Sendirian Berhad in Kuala Lumpur, Malaysia in alliance with subsidiaries in Indonesia, Thailand and South Korea. There are two founding general partners, each with equal equity interest in the company.

Online measurement and quality control systems are highly competitive industries and appeals to a niche market both locally and internationally. The online measurement solutions market is growing tremendously worldwide as well as in Malaysia.

There is a good deal of general competition in our immediate area. Our initial focus will be customers in the plastics industries, each of which has potential for stellar growth when properly nurtured. We shall extend our focus to other industries such as pulp and paper, metal, rubber etc in stages. Our partners are superbly positioned to serve these needs, each bringing unique specialized skills to the marketplace. That high-level of expertise and experience provides a strong competitive edge, particularly in this close-knit business community where firms such as ours can be sustained by referrals.

Description of Product and Services

Our core product is a Scantech brand X-Ray Gauging System which originates from France. This system is reputed to be one of the best for products of this type. This gauging system is widely used worldwide but its presence was relatively unknown in the South East Asia region due to the absence of a distributor for this region. Our company has seized the opportunity to obtain the sole distributorship of Scantech brand Gauging Systems for this region but was only given the sole rights of distribution for Malaysia, Indonesia and Thailand by our principal generate satisfactory sales in these countries, we are confident that we can obtain the rights to the entire South East Asia region and possibly beyond these countries.

Business Opportunities

Nevertheless, the market potential for Malaysia, Indonesia and Thailand is huge and can be considered the most important markets in this region for our products.

Apart from sales of the gauging systems, we are also offering service contracts to customers who already has an existing gauging system in their factory (regardless of brand) to maintain and service their systems. This is a very lucrative aspect of our business but this would require more manpower in times to come.

We had initially projected a sales volume of about ten units a year which would translate into revenue of about USD 1 million per annum. However, due to the worldwide economic downturn, we have reduced this projection to about five units per annum for the years 2009 and 2010 which is about USD 500,000 in revenue for each of the two years.

We believe that if we could weather the storm of the global economic downturn, our business would flourish when the economy heals. This is due to the increase in global demand for plastics, paper etc which would translate to more lines being opened in factories and increased demand for our gauging systems.

Business Strategy

Scantech Solutions will utilise the existing talent pool and in addition to this, we will invest in hiring experienced and top notched sales and technical personnel.

To create product knowledge to potential customers in related industries, we plan to participate in as many major trade related exhibitions throughout South East Asia. A demo gauging system unit is essential to us in order to demonstrate the capabilities of Scantech’s products to potential customers.

We would also conduct seminars to introduce, promote and create awareness in Scantech’s gauging Business Opportunitiessystems which are relatively unknown in this region. The main objective of these seminars is to introduce customers to the theory of gauging systems and X-Rays. By this, we will achieve both the objective of promoting the product and providing an in depth knowledge of gauging systems to potential customers and hence as the saying goes, killing two birds with one stone. The other essential strategy that we could work towards with customers is by installing a demo unit in their production line with their consent for a time span of averagely a month or two. With this, they would be able appreciate the system’s capabilities and after the trial period, they would be more inclined to purchase the system because they would be comfortable with the system. We foresee that this strategy might be able to have a success rate of 80% in persuading the customer to purchase the system. As a value added service, we are working towards offering the gauging system together with an insurance package that would extend to cover the system against normal perils such as fire, theft etc. However, we would arrange for the insurance to extend to cover other risks such as breakdowns.

Due to the current unfavourable economic climate, many companies are cash strapped or preserving liquidity and may not be willing to invest on a relatively high costing asset in one lump sum. We are addressing this problem by tying up with leasing companies which would not require the customer to invest in such a large initial outlay of cash if they should wish to purchase the system. However, not all companies would be agreeable to leasing or hire purchase as it involves high interest rates. As a last resort in order to close the sale, we may offer a shortened instalment plan, perhaps 50% down payments and the rest in four to five separate instalments. This would depend on Scantech’s terms to our company.

Sales Forecast

The company expects to have total first-year revenues of $1,087,000, growing to over $4,089,000 by year three. The bulk of these revenues will come from a combination of sales revenue, service; spare parts and consultancy .Revenues are expected to grow at a healthy clip, for two key reasons. First, as word of mouth spreads of our product and services. Second, as the economic situation improves over the next three years, customers will be investing in new lines, upgrades and demand for our product will soar as the foundation work in marketing has been done.

For more information, kindly contact :

Beh Hock Chuan
Technical Director
Scantech Solutions Sdn Bhd (844061-W)
Mobile: +6019 355 9395