Project Cost: RM5,000,000.00 per year
Amount Invested : RM300,000.00
Amount Required : RM1,000,000.00
Knowledge / Experience Required: finance
Proposed Investor’s Role:
Industry: energy / natural resources
Project Stage: start-up
Ramli Bin Mohamed has retired from his employment having 20 years of experience in Horizontal Directional Drilling Services. He has formed up his own company “Ramli HDD Enterprise Sdn Bhd” ventured in providing (HDD Services for Tenaga Nasional Berhad. The company is just being appointed as vendor last week. He is looking for capital start up of RM 1 million for the purchase of 2 units of HDD machines and supporting equipment. Currently the company has participated a few tenders and the result should be out in 2 to 4 weeks times.
Product / Service Description:
The company is offering a service to Tenaga Nasional Berhad in providing HDD services for the installation of an underground cables. Apart from participating tenders the company is also building her strength to be appointed as penal/vendor specialised in HDD by direct award jobs all around the peninsula malaysia. The price is fixed.
The company is very new and lack of working capital. The bank is not in favour of financing the company because no track records yet. Based on the experience of Ramli Bin Mohamed, the company is very certain of winning the contracts participated and possibility of being appointed as penal contractors by getting direct award jobs from Tenaga Nasional Berhad. With strong funding the company is capable of undertaking contracts and direct jobs all around the peninsula Malaysia. Tenaga Nasional Berhad spent more than 500 millions a year for the new projects installation of an underground cables and other related maintenance. With the experience and expertise of Ramli Bin Mohamed, the company is expected to grab at least 10% of the market share. Not only TNB, the opportunity of HDD services also being extended by the telecommunication and gas companies. The total infrastructure industry is offering +/- over One (1) Billion market share in Malaysia.
The revenue is from the contracts proceed. HDD service is a very straight forward contact. The payment is based on the unit measurement in meter(s). The time frame to complete the project is 5 weeks for each contract and upon certification of CPC (Certificate of Practical Completion) the company will be paid within 60 days. The gross profit margin is +/- 50% for the direct award projects and +/- 30% for the tendered projects. The company is expected to make profit on the first year itself and will continuing to make at least 2 to 3 millions gross profit every year.
The company is managed by a managing director who is Ramli Bin Mohamed. He is also the Project Director assisted by The project manager, operation manager and commercial manager. The management team is a dynamic team that works in timely manner.
We are at the starting stage, we have invested RM200,000.00 to get one (1) team in operation. We are expecting the first revenue in 1 month time and expected to generate revenue of RM 200,000.00 monthly june onwards. From RM 200,000.00 revenue the projected profit is +/- 80,000.00 monthly. The projected company overheads is RM 35,000.00 monthly.
The fund required is for the purpose of the followings:-
1. Capital Expenditure
a. To purchase HDD machine @RM350,000.00 x 2 = RM 700,000.00
b. To purchase supporting equipment = RM 300,000.00
c. Working Capital for projects funding = RM 500,000.00
TOTAL = RM 1,500,000.00
The ROI is expected to recover within 24 months. By the 3 rd year in operation the company should be self dependant.
Business Valuation: We are willing to allocate 30% equity to the investors.
Expected Return On Investment: The expected ROI is 24 months.
Investment Risk and Mitigation: n/a
Exit Strategies: The exit opportunity for the investor is they can sell back their share/euity the existing directors/shareholder with dividen.
Ramli Mohamed ( firstname.lastname@example.org)
Company Name: RAMLI HDD ENTERPRISE SDN BHD
Postal Address : NO. 38, Jalan Ng Pi Ton, Taman Sayang, 86000 Kluang, Johor
State : Johor
Post Code : 86000
Country : Malaysia
Telephone : +607-7763355
Website : ramlihddblogspot.com