Project Cost: RM316,000
Amount Invested : RM36,000
Amount Required : RM280,000
Knowledge / Experience Required: general management
Proposed Investor’s Role: part-time
Project Stage: early expansion
Mr. Rama, the Technical Director, is a marine engineer by profession and has over 20 years of experience in the Oil & Gas Industry. He recently quit his job to venture into this project, which he has been developing in his mind for more than a decade. He has spent thousands of hours in designing and redesigning his version of transporter before finally decided to build the actual unit for commercial purposes. Mr Gopal, the CEO, is a degree holder in the field of Agribusiness, majoring in Financial Management and has worked with local banks and finance companies before. Currently, he is teaching Physics and Additional Mathematics at an international school. He is also a member of MENSA Society International.
Product / Service Description:
Our transporter,Voivode, is going to revolutionise the entire load-carrying truck designs in future. We have included major changes in the Design Methodology, Assembly Approach, Payload to Gross Vehicle Weight Ratio(GVWR) Ratio, Suspension System and introducing Eco-Friendly Propulsion Philosophy and the Drive by Wire system.
The Multi-Purpose Transporter (MPT) that we are designing now, will replace the existing ‘lorihantu’ in the construction and mining industry in this country. There are estimated to be around 5,000 such vehicles in this country, with the replacement rate of 50-100 units/year. The existing models incur high maintenance cost and have problems of lacking of spare parts. We see this as an opportunity as our MPT has the following unique features:-
• Multi-purpose, AWD, All Terrain, Hybrid, DbW(Drive by Wire) Transporter.
• AHRS(Attitude Heading Reference System) guided.
• At least 4 layer redundancy for onboard control system.
• Active suspension system with active height adjustment.
• Eco-friendly, vis-a-vis, light-weight, high strength-to-weight ratio material application, e.g.: Carbon fiber, Aluminum, Titanium(mainly fasteners).
Existing similar models are being sold for about RM250,000. Our variable cost per unit is about RM70,000 and the total estimated cost per unit will be kept under RM120,000 and we plan to either:-
A) Use Build and Sell concept – We have the capacity of assembling 2 units per month. Being more pessimistic, by assembling one unit per month,we can make gross profit of around around RM50,000 per month, as we can easily sell this for RM170,000-RM190,000. We will break even before the end of first year.
B) Propose For Joint Venture – JV with current players in the market is very much possible if they see the future potential of our model. Revenue depends on negotiation but surely worth doing, due to quantity to be produced.
C) Sell the idea – Once the demo model is ready, we can offer the idea to be bought over by any global investors for many times of the initial investment.
Mr. Rama, the TD will head the project and will be in-charge of the whole team
Mr Gopal will be in-charge of overall managemennt and Finance.
Mr. Rajasegaran, a very experienced mechanic, is willing to join full time once the fund is available to start the project.
We are also planning to bring in 4-5 students from a local automation college as apprentice.
We have already set-up office, fabyard and also done initial brainstorming sessions as well as crucial FEA studies on main truss. Comprehensive Gantt chart is available upon request.
RM200,000 is needed for purchasing of tools, equipments and parts to fabricate and assemble the model.
Another RM80,000 will be needed in 10 equal payments every month to cover the operations cost.
We propose profit sharing of 30% with the investor.
Expected Return On Investment:
It’s 20% for the first year itself and estimated to be 60% from second year onwards. Comprehensive cash flow analysis is available upon request.
Investment Risk and Mitigation:
The biggest risk is the stiff competition from Chinese versions and technically, our product is far superior compared to any of those models. Among other risks is the risk of competitors copying the same model and we have plans to patent our design before introducing to the market. All the innovative ideas in our design were tested and proven separately but not introduced in one single unit. However, we are doing FEA study for all major parts to overcome this issue.
Investors can exit by giving 3 months notice and all their investments will be paid in full. One of the founder has a fully paid property worth half a million and agrees to sell it off and pay the investor in the event of an exit.
Gopal Thirumalai ( firstname.lastname@example.org)
Company Name: Rammpal Engineering Sdn Bhd
Postal Address : 1-3, Jalan Solaris 2,
Solaris Mont Kiara,
State : Kuala Lumpur
Post Code : 50480
Country : Malaysia
Telephone : 03-62095899
Website : http://www.rammpal.com