Current Status Pre-Revenue
Amount Invested RM 1,500,000
Funding Required RM300,000 or less
Description Malaysia is a country where you can find Waste Biomass (Waste Agricultural By Products) in abundance.
Saw Dust in huge volumes are found in almost everywhere in the country.
Our project is to add value to this waste materials by converting them to a “Solid Bio-Fuel” called High Density Saw Dust Briquettes or Fire Logs.
Fire Logs are used especially in the European continent for the Fire Places, during the Winter Season. Approximately 1,000,000 Tons of this fuel is needed each year for the fire places during this season. It is also been used as a Fuel for the Steam Boilers, worldwide.
Our Target is to Export this Commodity, Worldwide in a consistent manner.
We have plans to develop a system to produce the same Fire Logs with EFB (Empty Fruit Bunch) from the Oil Palm Factories & Wax Mixed Fire Logs when we become financially sound in the near future.
Business Opportunity The Foreign Partner involved in this business, M/s. Demeco Enterprises, Sri Lanka is a pioneer in manufacturing of Bio Mass Briquetting Equipment, since year 2000. The Machinery & Equipment needed for this project is provided by DEMECO, as a part of their investment. Therefore, we have sound Technological Background as far as the Know How & Equipment Maintenance are concerned. We have great chances over others to succeed in achieving our targets within a shorter period of time due to the above reasons.
The market for our products is unlimited, worldwide as explained earlier.
Opportunities for exploitation for new markets are unlimited as well.
Revenue / Business Model Initially, during the first 06 months of operation our targeted volume is around 500 Tons per Month.
This will bring in a minimum revenue of around RM 350,000 each month. After the first 06 months we shall increase the production volume to 1000 Tons per month & then our revenue would be doubled to RM 700,000 per month. At the same time our overhead recovery would improve tremendously.
This business would earn over 60% gross margin, provided it is managed in a professional manner.
Therefore we are very confident in achieving high profits within a short period of time.
We shall continue to expand & increase the volume of production & exploit in to possibilities of producing & marketing additional products as well, as explained earlier.
Management Team The Malaysian Partner is well experienced in the Field of Marketing & would very much capable of marketing our products to high end buyers.
The Foreign Partner is well conversant with the Production Process & Manufacturing / Maintaining any kind of equipment needed for the industry.
This is the Best Combination, any manufacturing business should have.
We will also have an expatriate Production Manager engaged full time in time to come.
Company Background The Company; Demeco Bioenergy (M) Sdn. Bhd. (1186911-M) was established on 10th May 2016 & have leased out a factory premises in Klang area on the 19th of October.
The 1st 40ft. Container loaded with machinery & equipment has already reached Port Kelang & awaiting clearing. Another 40ft. Container, also loaded with Machinery & Equipment is due to leave Colombo, Sri Lanka by Mid November. The 3rd Consignment too would be arriving from China, during the same period of time.
Investment to date would be exceeding RM 1,500,000 by first week of November.
Funding Milestone By end of the current year our total investment would exceed RM 2,000,000. However, there is an immediate requirement to raise around RM 300,000 to facilitate expenses incurred locally (within Malaysia) in order to expedite the process of urgently setting up of this facility.
These funds would be used mainly as working capital & expenses for utilities etc.
If the required funds are received immediately, we could expedite the entire process of commencing the production even at an earlier date.
This would lead us to achieve our targets in a more realistic manner.
% Equity Allocation 15%
Expected ROI Less than 18 months
Risks and Mitigation Frankly, there are no unforeseen Risks, worldwide affecting this industry or in Malaysia as a country.
As Mitigation is an essential factor in business, we have plans to diversify our activities by producing a wide range of products in the future as explained in details, earlier.
Exit Strategies Any prospective investor would be free to exit after 15 months from effective date of the investment or after 12 months by giving 03 months prior notice in writing.
Company Name Demeco Bioenergy (M) Sdn. Bhd.
Business Address PT 71185, Jalan Keretapi Lama / Ku 15, Taman Pererat Makmur, Mukim Kapar, 42200 Klang, Selangor, Malaysia.
Contact Person Mr. Kesavan Periasamy