Current Status Revenue Generating, Pre-Profit
Amount Invested RM 875,000
Funding Required RM1,000,001 to RM2,000,000
Description Link Tech Manufacture has a 10 year history of inventing the world’s truly first fuel free generator. The engineer who invented this technology was formerly employed by Japanese Robotics company and has a vast experience in power electronics. This generator is powered by Lithium Ion batteries and NO it is not one of the power banks! It is a generator that has charges in it that will last an entire year without recharging if not used. The product is well accepted as can be seen by the many enquiries. In 2014 this engineer had other investors investing the capital to help it grow to the current size. In 2016, in its first real year of operation, it had sales of more the RM 700K. There are so many queries as to becoming distributors globally that the company needs to set up the structure to support the growth of the company. Recently the company hired a CEO whose charter is to raise funds and set up a professional organization while expanding the markets and sales.
Business Opportunity With extremely limited funds , as all funds were used to develop the technology and for certifications etc, the company advertised via websites and via trade sites. With this alone there are now 6 countries in discussions to distribute the products, namely, India, Slovakia, Yemen, Bahrain(Iraq and Iran), Romania, Australia and Indonesia. The products are already available in Malaysia but in very small quantities sold to initial customers.
The real opportunity for the business is very huge provided there is reasonably good marketing and sales efforts. Currently there are only 2 senior employees, namely the CEO who has just joined the company effective Feb 1st 2017, and the original creator/inventor. Patent has been applied for and is pending. SIRIM certification is pending. IEC certification is pending.
Potential value of company can be in 100’s of Million Ringgit in next few years if aggressive marketing tools are applied.
Revenue / Business Model In 2016 the revenue was just above RM 700K. About 420 units have been sold. The gross margins on the product have been consciously kept at about 40% as the company has an introductory price to distributors. The company does not sell directly to end customers but via distribution.
Raw materials are mostly brought in from China. The Intellectual Property is built into the motherboard and controller with proprietary software and this is built by the company in Malaysia. It is possible to set up a manufacturing where there are volume sales in excess of 100k per year. (India, Indonesia, Europe are potentials)
Management Team The new CEO hired recently has vast >37 years in technology operations, marketing and sales. He has worked for US MNCs as senior VP level. He has lived in the USA, Germany, Brazil, Caribbean , India and China during his tenure as SR VP of his previous Electronics technology, US based company. He is himself an electronics engineer. His success has been impeccable.
The Engineering Director is a Singapore trained Power Electronics engineer and has a track record in power electronics and power engineering.
The investors in the company are 3 angels, with 2 of them being Electronics Companies professionals as GM and VP. Both being MNCs. While the 3rd is a businessman with history of experience in Uninterrupted Power Supply business.
Company Background The engineer had resigned from the Japanese company as power engineer to invent this technology. It started in 2006 and in 2011 had units in the field for testing. 6 units in burger stalls/ pasar malam stalls to prove the concept. It was in 2011 that newer and nicer units and the technology was finalized. It took him 3 more years to find friendly investors to take it to next level. In 2015 , a Matrade exhibition at PWTC helped attract distributors from Africa and the first sale was executed. For 300 units. Yemen, however went through civil wars and this customer has put next orders o hold.
Funding Milestone xxxxx
% Equity Allocation 8% negotiable
Expected ROI 12%
Risks and Mitigation This is a Malaysian technology. Malaysian technology is somehow not well known globally. The company has an uphill task of convincing customers of its goodness.
The technology itself is world class however. After sales service is practically zero as the product requires zero maintenance. But setting up this structure is required to convince customers.
Copying of the functions is possible but due to the strong motherboard and software techniques used, copying to similar quality can be tough. The engineering is continuously developing next generation technology such as to be ahead of the game.
Exit Strategies Many options possible:
1. Grow its as a greenfield and go public in 5 years
2. M&A with reputable tech company in US or Europe
3. White label the product by partnering with established International MNC
4. Simply hold as a private company and enjoy the money!!
Company Name Link Tech Manufacture Sdn Bhd
Business Address 91, Jalan S2/C3 Green Technology Park, 70300 Seremban 2, Negeri Sembilan
Contact Person Mohana Krishnan
Notify of
Inline Feedbacks
View all comments