BUSINESS PLAN ADVANCE LIGHTING APPLICATION MODULE (ALAM) – REVOLUTIONIZING PORTABLE POWER GENERATION

H2E POWER SDN BHD (883367-A)

2ND OCTOBER, 2011

CONFIDENTIAL

1.0 EXECUTIVE SUMMARY Portable Generator market segment is a huge market with big potential for further expansion with the introduction of green technology and fluctuation of world oil price. Product that is currently being used widely by night traders in Malaysia is the portable petrol generator under the brand of Yamaha, Honda, and few china-made brands. These petrol generators are noisy, difficult to operate, produce a lot of smoke, a lot of vibration and need frequent maintenance. In short, the current petrol generators have high cost of operation and bad for the environment. H2E Power Sdn Bhd has developed a new product that can reduce the dependency on the fuel, very low cost of operation and also friendly to the environment. Advance Lighting Application Module (ALAM) is an electronic portable generator that can help the end users save money by not using petrol, and also friendly to the environment by eliminating the noise, vibration, smoke and odour that normally comes with the current petrol generator. ALAM is also virtually maintenance-free generator and very easy to operate. H2E Power Sdn Bhd has put a lot of effort and money in developing and testing of the product, and as a result, a batch of pilot products is currently being used in local pasar malam in Sungai Petani, and also with Polis Di Raja Malaysia (PDRM), under IPD Kuala Muda and IPK Kedah. H2E Power Sdn Bhd has foreseen the potential of ALAM and its wide application, and thus looking forward to start the manufacturing activities and marketing of the product for the Malaysian market. Therefore, the company requires some funding in terms of low-interest business loans from business financing agencies and venture capitalist. With the current open market, and unstoppable inflow of products from China, H2E Power Sdn Bhd has to be aggressive in producing and marketing the ALAM. Thus, the availability of funding is critical in ensuring success in this new product venture.

2.0 COMPANY PROFILE Name of Company:

H2E Power Sdn. Bhd.

Date of Incorporation:

22nd of December 2009

Date of Operation:

1st January 2010

Company Registration Number:

883367-A

Company Address:

No. 84, Jalan Cindai Jaya 5, Taman Cindai Jaya, 08000 Sungai Petani, Kedah Darul Aman

Tel. & Fax:

04-425 0375

Homepage of Company:

www.h2etechnologies.com

Contact person: Name Designation Tel Email

: : : :

Azhar bin Ngah Chief Executive Officer 019-4567634 [email protected]; [email protected]

Capital Structure: i) Authorised Capital : ii) Paid up Capital :

RM 100,000.00 RM 55,000.00

Company Ownership: i) Structure of Shareholding & Shareholder Details

Bumiputera Malaysian Non Bumiputera Foreign (Specify Country)

Name

No. of Shares

%

Azhar Bin Ngah

30,000

54.55

Nasrunnizam Bin Nasruddin

25,000

45.45

-

-

-

-

-

-

55,000

100

Total

ii) Board of Directors: Nationality

Address

Date of Appointment

1

Nasrunnizam bin Nasruddin

Malaysian

No. 91, Lorong BLM 3/22, Bandar Laguna Merbok, 08000 Sungai Petani, Kedah

28 Dec. 2009

2

Hasrul bin Harun

Malaysia

253, Jalan Bukit Hijau 4, Taman Tunku Yaakob, 05400 Alor Star, Kedah

17 Ogos 2011

No.

Name

Brief History / Background of Company: H2E Power Sdn. Bhd. Has been established on 22nd of December 2009. The operation is based in Sungai Petani, Kedah. The company main activities are development, manufacturing and marketing of green technology products such as Pulse Battery Regenerative System (PBRS), electronic generator ALAM, electric motor-assisted trishaw (EMAT), Campus Mobility Solution UBIKE and small-scale wind turbine. Objectives of Establishment: To introduce green technology products that can enhance the quality of life of the users in terms of cost saving and/or environmental concern. Company Structure & Group of Companies’ Structure:

Company Structure

Company Secretary (Name, Address, Tel.): Name Address Tel.

: Baskaran a/l Raghavan Pillai : 26, Jalan Anggerik ½, Bandar Amanjaya, 08000 Sungai Petani, Kedah : 04-4259600

Auditor (Name, Address, Tel.): Name

: Hisham & Co.

Address

: Left Wing, Jalan Todak 2, Bandar Seberang Jaya, 13700 Perai, Pulau Pinang

Tel.

: 04-3999119

3.0 CAPABILITIES OF COMPANY Number of Employees:

Item

No. of Existing Personnel (Current)

Category

No. of Personnel (Proposal)

Local

Foreign

Local

Foreign

1

Key Management

3

-

3

-

2

Technical / Supervisor

2

-

4

-

- Degree

1

-

1

-

- Diploma

1

-

2

-

- Certificate

-

-

1

-

- Others

-

-

-

-

3

Sales / Market

1

-

2

-

4

Clerk / Others

1

-

2

-

5

Factory workers / Direct Labor

-

-

15

-

7

-

26

-

Total

Details of Key Management Personnel – Current and Proposed with Brief Write-up on Qualification and Experience:

No.

1

Name

Azhar bin Ngah

Position

Qualification

CEO

Diploma in Mechanical Engineering (UiTM)

2

Mohd Shahir bin Azali

Business Development

Degree in Mechanical Engineering (UiTM)

3

Abdul Razak Kassim

Finance/ Account

Degree in Business Studies (UPM)

Experience 15 years in manufacturing industry, including 6 years in top management 12 years in manufacturing industry and academic research 20 years in banking industry

Details of Key Technical Personnel – Current & Proposed with Brief Write-up on Qualification and Experience:

No.

Name

Position

Qualification

Experience

1

Nasrunnizam bin Nasruddin

Technical Director

Degree in Mechanical Engineering (UTM)

12 years in engineering and manufacturing industry

Operation Director

Diploma in Mechanical Engineering (Politeknik)

8 years in automotive industry

2

Hasrul bin Harun

Company Portfolio – List of Previous and Current Projects i) Pulse Battery Regenerative System (PBRS) – (Current) Sole-distributor for PBRS in Malaysia, Singapore & Brunei from Global Power Korea. PBRS system can prolong lead-acid battery life and help reduce waste and cost. PBRS can work in two ways.

ii) Electronic Portable Generator - ALAM – (Current) Advance Lighting Application Module (ALAM) is a new generation portable power supply which is suitable for outdoor use, especially for pasar malam, burger stalls, picnic and camping. It is an environmentally-friendly product, with no smoke, no noise and no odour, unlike the current petrol generator. The greatest advantage of ALAM compared to existing petrol generator is the cost saving as it does not consume petrol, and is maintenance free.

iii) Electrical Motor-Assisted Trishaw (EMAT) – (Current) EMAT is a system where electric motor is retrofitted into Penang Beca to reduce the cycling load of the rider. By retrofitting the motor-assisted system, the beca will maintain its heritage as a popular local mode of transportation, without turning it into motorized transport.

List of Existing Equipments:

Model / Serial No.

Date of Purchase

No

Equipment

Purpose

1

Bench Drill

2/01/2010

For Drilling

2

MIG Welding Machine

2/01/2010

For Welding

3

Arc Welding Machine

2/01/2010

For Welding

4

Air Compressor (10HP)

2/01/2010

To Supply Pressured Air

5

Lifter (3ton)

For Lifting Vehicles

4.0 CORE ACTIVITY Advance Lighting Application Module – ALAM

Project Objectives: To manufacture an electronic portable generator which is designed specifically for outdoor usage that can be operated with very low cost and environmental friendly.

Project Description: Realizing the disadvantages of current petrol generator in the current world scenario, H2E Power Sdn. Bhd. has developed, manufactured and market a product that can give better option to consumers overcome these problems. ALAM is an electronic portable power supply unit which consists of Charger-Inverter and Battery as main components. The usage of ALAM is very simple. First, we need to charge the battery by using Charger-Inverter. The power source is from normal power outlet such as at home. Once the battery is fully charged, then it is ready to be used. If the ALAM system use 4 units of 18W Power Saving Bulbs, the battery will last long for 6.5 hours. Normally, pasar malam traders will use lighting fixtures for 3.5 hours daily (about 7pm – 10.30pm). So, the ALAM need to be charged every 2 days (for normal use)

The comparison between petrol generator and ALAM can be referred to table A. Cost saving for 2 years is between RM2,480.00 to RM2,030.00 and cost saving for 5 years is between RM6,270.00 to RM6,020.00.

TABLE A Genset (Petrol) Year

Item Japan Brand* Purchase

st

1 Year

800.00

Operation (300 operation day; 3 hr/day) Maintenance(M) / Battery Replacement (BR) SUB TOTAL Purchase

2nd Year

Operation (300 operation day; 3 hr/day) Maintenance(M) / Battery Replacement (BR) SUB TOTAL Purchase

rd

3 Year

Operation (300 operation day; 3 hr/day) Maintenance(M) / Battery Replacement (BR) SUB TOTAL Purchase

th

4 Year

Operation (300 operation day; 3 hr/day) Maintenance(M) / Battery Replacement (BR) SUB TOTAL Purchase

th

5 Year

Operation (300 operation day; 3 hr/day) Maintenance(M) / Battery Replacement (BR) SUB TOTAL TOTAL

China / Local Brand** 350.00

ALAM 1000.00***

5.00/day (1500.00/year)

0.40 / day (120.00 / year)

20.00/month (240.00/year) (M)

220.00

2540.00

2090.00

1340.00

-

-

-

5.00/day (1500.00/year)

0.40 / day (120.00 / year)

20.00/month (240.00/year) (M)

440.00

1740.00

1740.00

560.00

-

350.00

-

5.00/day (1500.00/year)

0.40 / day (120.00 / year)

20.00/month (240.00/year) (M)

440.00

1740.00

2090.00

560.00

-

-

-

5.00/day (1500.00/year)

0.40 / day (120.00 / year)

20.00/month (240.00/year) (M)

440.00

1740.00

1740.00

560.00

-

350.00

-

5.00/day (1500.00/year)

0.40 / day (120.00 / year)

20.00/month (240.00/year) (M)

440.00

1740.00

2090.00

560.00

9,500.00

9,750.00

3,580.00

* Japan Brand Genset can be use until 5 years before replacement. ** China / Local Brand can be use up to 2 years before replacement. *** Recommended Retail Price (RRP)

Status of the Project Currently, few pilot units has been introduced at pasar malam in Sungai Petani. The market response is very good as ALAM gives immediate saving and easy to operate. Discussion also has been taken place between H2E, PDRM, FAMA and TEKUN for the usage of ALAM in these respective organization and agencies. We have the plan to increase production to cater for the nationwide market and we need capital injection to expand the business.

Business Location The locationto manufacture ALAM is in Taman Cindai Jaya, Sungai Petani, Kedah. It is an industrial area for SME. It is a good location where located at the middle of East Outer Ring of Sungai Petani, an easy access to Plus Highway, either North SP toll or South SP toll. H2E Power Sdn. Bhd., No. 84, Jalan Cindai Jaya 5, Taman Cindai Jaya, 08000 Sungai Petani, Kedah Darul Aman

Project Schedule and Milestone:

No

Description

PIC

Duration

Output

Remarks

Market Survey Input

Done

1

Market Study and Survey

Azhar

3 weeks (1/12/2010 – 20/12/2010)

2

Design

Shahir

1 week (23/12/2010 – 30/12/2010)

3

Parts Sourcing and RFQ

Azhar

3 week (24/12/2010 – 14/01/2011)

Design ALAM 1 Design ALAM 2 Design ALAM 3 Quotations for ChargerInverter and Battery

4

Prototype Fabrication

Nizam / Hasrul

2 weeks (17/01/2011 – 31/01/2011)

Prototype 01 Qty = 1 unit

Done

5

In-house Testing

Nizam / Hasrul

2 weeks (01/02/2011 - 14/02/2011)

Result of Usage and Graph

Done

6

Field Testing

Abg Man / En. Nizar

On Going (from 15/02/2011)

Testimony

On-Going

7

Design Refining

Shahir

2 week (11/02/2011 – 25/02/2011)

Design ALAM 4 Qty = 2 units

Done

8

Marketing / Promotion

Azhar

On going (from 16/02/2011)

Promotion materials, Strategy and Plans

On-Going

9

Production Line Set up

Nizam

4 week

Floor Plan

Done

10

Manpower Recruitment

Haniza

2 week

Man Power with desired skills

Done

11

Mass Production

Nizam

On going

Product ALAM

On-Going

Done Done

5.0 DESCRIPTION OF TECHNOLOGY Description of the Technology: The electronic portable generator ALAM function is to supply electricity power in mobile mode. The prime objective is to give the customers an option for portable power supply other than conventional petrol based generator. The advantage of ALAM compared to conventional petrol based generator are it is operates without using petrol, no need of maintenance, not producing noise, smoke and vibration, easy to operate and gives significant cost saving due to low operation cost.

Technology Applications: The Smart Power Supply ALAM is suitable to supply electrical power for outdoor activities and during emergency cases. i) State of Use – In order to get the power supply from ALAM, user need to plug-in the required electrical appliances to ALAM and they can start benefited it.

ALAM Charger Battery

Electrical Appliances

Inverter

+ Battery Charger Indicator Fig. 7.1(a): State of use. Electrical Appliances use the power from battery.

ii) State of Charge – ALAM need to be charge from local power supply in order to power the battery.

ALAM Power Source

Charger

Battery

Inverter + Battery Charger Indicator Fig. 7.1(b): State of charge. Power from local source to charge the battery. However ALAM has its own innovation where in the case of the power from battery is finish, ALAM can tap the power from other auxiliary DC such as Solar Panel, Wind Turbine or other batteries such as car batteries to power the electrical appliances.

ALAM Auxiliary DC Power Source

Charger Inverter

Electrical Appliances

Battery Fig. 7.1(c): State of use from auxiliary DC Power. Power from auxiliary DC power source to power the electrical appliances.

Description of the Products: Electronic portable generator ALAM is consisting of Charger-Inverter, Battery, Battery Charger Indicator, frame and casings.

i) Charger-Inverter: It has dual functions. i.i) As a charger – To charge battery using local power source or other source. i.ii) As an inverter – To invert the DC power (from battery) to AC power to be used by electrical appliances such as lightings, audio-video equipments and computer equipments. It provides 300 watts of modified sine wave AC power from a DC source and 10-amp pulse battery charging. The system includes an LED status and battery temperature sensor. It is a smart device where it is equipped with microprocessor-controlled fan which is used to cool the internal circuit. The fan turns itself off when the internal temperature is below 60OC.

ii) Battery: ALAM is using normal 12V lead acid battery that is easily available in the market. However, the connection head is customized to fit the product.

iii) Battery Charger Indicator: It will function as an indicator for user to know the battery state of charge. So the alarm sound will alert the user to charge the battery. iv) Frame: The frame was design to be rugged and robust to suit the outdoor usage. iv) Casing: The casing was design for waterproof and has air hollow space for cooling purpose.

Comparison between R&D/Lab Prototype and Proposed Commercial Scale:

Item

R&D / Lab Prototype

Pilot Scale

Commercial Scale

Capacity

1 unit = 3 day

1 unit / day

500 unit / month

Features

a) Charger-Inverter = PIM 312C; b) Battery = 12V, 52Ah; c) Battery Charger Indicator; d) Frame e) Casing

a) Charger-Inverter = PIM 312C; b) Battery = 12V, 52Ah; c) Battery Charger Indicator; d) Frame e) Casing

a) Charger-Inverter = PIM 312C; b) Battery = 12V, 52Ah; c) Battery Charger Indicator; d) Frame e) Casing

a) Frame - Cut (manually) - Welding (manually using assembly jig) - Painting – ED Coating by supplier. b) Casing – Cutting and Painting by supplier c) Assembly – manually d) Testing – manually

a) Frame - Parts receive in cut form. (by supplier) - Welding (manually using assembly jig) - Painting – ED Coating by supplier b) Casing – Cutting and Painting by supplier c) Assembly – manually using assembly jig d) Testing – manually

Process

a) Frame: Cut, Welding and Painting – Manually b) Casing – Cutting and Painting Manually c) Assembly – manually d) Testing – manually

Comparison with Other Competing Technologies:

Item

ALAM

Petrol Generator

Methodology

a) Market Survey b) Product Research, Design and Development c) In-house Lab Testing d) Field Testing e) Pilot Production f) Mass Production g) Marketing, Promotion and Sales

-Unknown-

Application

a) Outdoor activities b) Back up power supply c) Replace the conventional fuel generator especially for ‘Pasar Malam’ traders.

a) Outdoor activities b) Back up power supply

RM 350 (China & Local Brand)

Price / Cost

RM 850 / set

Advantages

a) Cheapest in market b) The ALAM is supplied in set of ALAM + 2 bulbs 8W + Wire (6m length) c) ALAM is equipped with Battery Charge Indicator to monitor battery state of charge d) Environmental friendly e) Low operation cost f) No maintenance cost g) Robust design h) Stable current output

a) Easily available in market. b) Continuous operation, as long as petrol supply available.

a) Quite heavy = 22kg b) Suitable for low power appliances only c) Battery need to be replaced over time

a) Maintenance is needed for every 2-3 months. b) Using petrol – i) high operation cost ii) produce gas emission c) Noise d) Over spec. for ‘pasar malam’ trader who use only 2-3 bulbs. The Genset rated from 450W (min) and 600W (average) while usage only 18W – 300W only.

Disadvantages

RM 850 – RM 1450 (Japan Brand)

Details of R&D: i) Background of R&D Activity: i.i) Collecting data regarding lighting from ‘Pasar Malam’ activities. Two main finding found – First, most of the ‘Pasar Malam’ traders are using fueledgenerator (power rating about 600W) but it is use just to light up the canopy. Second, about 50% of ‘Pasar Malam’ traders are using only 2 bulbs for their canopy. i.ii) Design the ALAM system i.iii) Sourcing the relevant part such as Charger / Invertor, Battery and Battery Charger Indicator. i.iv) Prototype Design – 2 designs. First design is only frame. 2 nd design is frame with cover. For ‘pasar malam’ usage, 2 nd design is more reliable as the design is robust and suitable. i.v) Prototype Fabrication – Proceed with 2nd design for prototyping sample. i.vi) In-house Testing – run testing on prototype to get data on endurance capability against various type of batteries.

ii) Source of R&D Funding: H2E Power Sdn. Bhd had fabricated 10 units of prototype ALAM. The cost involved is about RM30,000.00 and it was self-funded by H2E Power Sdn. Bhd.

iii) Details of Result Achieved ALAM was tested in order to get the battery power durability result. We had selected battery type 12V Sealed Lead Acid 46Ah and energy saving bulb to be tested with ALAM system. The results are shown below: Duration

Bulb Power (Energy Saving Bulb)

No. of unit

1

8W

2

No.

Minute

Hour

2

1440

24

14 W

2

900

15

3

18 W

2

720

12

4

18 W

3

480

8

5

18 W

4

360

6

iv) Details of R&D Facilities: Equipment (Major)

Location

Purpose

Bench Drill

Production Line

For Drilling

MIG Welding Machine

Production Line

For Welding

Arc Welding Machine

Production Line

For Welding

Air Compressor (10HP)

Production Line

To Supply Pressured Air

Cordless Hand Drill

Production Line

For Drilling / Tightening the screw

Cutter

Production Line

For Cutting the metal

Steel Ruler

Production Line

For Measurement

Digital Caliper

Production Line

For Measurement

Assembly Jig

Production Line

For Part Assembly Purpose

Rivet Gun

Production Line

For Part Assembly Purpose

v) Details of R&D Team: Position

Academic Qualification

Roles in R&D

Nasrunnizam Bin Nasruddin

Technical Director

Bach. in Mech. Eng., UTM

Product Development, Testing & Production

Mohd Shahir Bin Azali

Product Designer

Bach. in Eng. (Mech.), UiTM

Product Design

Hasrul bin Harun

Product Development Engineer

Diploma in Mech. Eng., Politeknik Kota Bahru.

Product Development and Production

Name

vi) Next Development Activities The company has embarked on development of few variants of ALAM, among them are ALAM Extended and ALAM Hi-Spec. ALAM Extended is developed for heavy users such as fishmongers and dry goods trader like clothing. The power that they use is almost double and triple the normal pasar malam traders use. Therefore, ALAM Extended is larger, heavier and have larger capacity battery (12V 100Ah) to accommodate the power demands of these traders.

ALAM Hi-Spec is a lightweight generator, specifically designed for law enforcement agencies like PDRM and JPJ to use during their night operations. This ALAM Hi-Spec will be using advance battery cell like nano-gel, Ni-MH or Li-polymer to power the product, and designed to use with blue police beacons and other strobe lights, and computer equipments. The batteries and lightweight frame will cost more, but it will be easier to handle.

vii) Product Testing and Certification These ALAM products shall be sent for further testing by SIRIM QAS or any other relevant testing body to ensure product quality, reliability and safety. Product certifications such as MS, CE, UL, FCC and Eco-Labelling are also an important exercise to ensure that the product can compete internationally. Our target is to achieve local and international certification so that we can penetrate overseas market.

6.0 MARKET RESEARCH AND ANALYSIS Market Analysis – Description ADVANCE LIGHTING APPLICATION MODULE (ALAM) basically is a portable power supply. Therefore, the market for ALAM is portable power generator market. Portable power supply is considered among a great invention for modern world. In our modern world, most of the equipments which make our life easier are using electricity as power of source. Hence, electricity is very important. Normally, electricity is supplied through National Grid Connection where the power is generated by power generator such as Hydro, Gas/Coal Turbine, Solar, Nuclear Reactor and etc. However, for areas which do not connected to National Grid Connection due to situated at remote area, or the user is mobile from one place to another, the usage Portable Generator is very suitable for their mean. H2E Power Sdn. Bhd. has done a thorough market analysis for ALAM. We have done product SWOT analysis, market identification, market segmentation, sales forecast, competitors’ analysis, market trend and marketing tactics for our product and we are very confident that ALAM will be a successful product in the market. Potential Major Customers – Local and Foreign i) Target customer criteria: - Night outdoor activities such as trading, maintenance jobs, recreation and law enforcement - People who looking for cost saving - People who cared about green environment - People who need small, portable and clean power supply

ii) Customer for ALAM has been identified as follow: - ‘Pasar Malam’ Traders - Burger Stall Operators - Government Agencies - Maintenance Contractors iii) ALAM has good value-added factors compared to existing product: - Operational cost saving (no fuel and no maintenance) - Green product (no smoke, no noise, no odor) iv) ALAM also has the potential to be exported to other countries especially in the South East Asia region, as the customers’ profile is almost the same as local customers. Market Size, Segmentation and Trends i) Market Identification - Pasar Malam - Burger Stalls - Night / Underground / Remote Maintenance Jobs - Local enforcement such as police night operation - Camping and other outdoor activities - Export

Market for ALAM will be concentrated on these 4 segments for the first 2 years.

ii) Market Segmentation - New market (NM) – it involve new purchase activity. - Existing market (EM) – it involve replacement purchase (genset replaced by ALAM)

iii) Market Size Market Group

Total 45,000 traders;

Pasar Malam

Active (84.8%) = 38,160 traders

Burger Stall

31,800 operators

Police Station (IPD)

1,560 units ALAM

Contractors

Remarks

Class A

2,233

Class B

1,223

Class C

2,067

Class D

4,314

Class E

2,501

Class F

28,772

41,110companies; Active (80%) = 32,888 companies

Based on estimation 100 operators per district; No. of district = 318 districts Based on target of 15 unit ALAM per IPD; No. of IPD in Peninsular Malaysia = 104

According to PKK registration as per 1st March 2011.

Market Size

32,888 contractors (32.18%)

36,000 traders (35.22%)

Pasar Malam Burger Stall

1,520 units (1.49%)

31,800 operators (31.11%)

Police

Contractors

Market size for ALAM with total 102,208 units

iv) Market Trend The table below shows the market trend of power supply source for our target group: Contractor (Class F Police Only)*

Pasar Malam

Burger Stall

Japan Brand

35%

8%

25%

-

Reliability > 5years

China Brand

50%

6%

15%

-

Reliability < 2 years

Local Brand

5%

6%

20%

-

Reliability < 2 years

Battery

10%

30%

-

100%

On Grid Power Supply

-

50%

40%

-

Item

Generator

Remarks

Reliability < 4 months

*for small construction/maintenance job. Existing power supply either medium or larger generator. Target market is 30% from no. of Class F active contractor.

- ALAM is target to replace the China and local brand generator; and battery. - As for Pasar Malam, ALAM has a potential to replace about 65% of 38,160 units of old generator belong to the ‘Pasar Malam’ traders which is 24,804 units. - While for Burger Stall, ALAM has a potential to replace generator from Japan, China and local which the expected unit are 6,360 units; and the battery usage which the expected unit are 9540 units. Therefore, the total unit in this category is 15,900 units. - For category Contractor, we would like to concentrate for Class F only. Our market potential in this segment is about 30% from them which equivalent to 9,866 contractors.

1,560 units (3%)

Market Potential 9,866 contractors (18.92%)

24,804 traders (47.58%) 15,900 operators (30.5%)

Pasar Malam Burger Stall Police Contractor

Market potential for ALAM with total 52,130 units

v) Market Movement Portable generator market in Malaysia has shown significant trend toward cost saving and environmental concerns. Customers which are mainly traders are looking for product that can give them better return (low operation cost and maintenance cost). Government and local authorities are also start to introduce policies on green environment, which will require the use of environmental friendly products. These two factors will definitely benefit ALAM in making its mark in the market.

Competition and Competitive Edges Through our research, we had identified our competitors in portable power supply category and divide them into 3 groups. i. Direct Competitor – Inverter-Based Generator Product E Gen 250VA is distributed by local company, Xceed Enterprise which located in Kuala Lumpur. The product price is from USD345.00 (approximately RM 1,110.00). Marketing approach is through internet marketing.

Website of the product which similar to ALAM i.e. E Gen 250VA by Xceed Enterprise, www.batterytechsolution.com ii. Indirect Competitor – Petrol-Based Generator No.

Brand Name

Product Made in

Price (RM)

1 2 3

Tiger Yahama Honda

China India Japan

350.00 680.00 1000.00

The price is varying from cheap to premium price. The products are available at local hardware store.

iii. Indirect Competitor – 12V DC Battery Any type of automotive battery. The price range is between RM 180 – RM 300. Easily available at petrol station, spare parts store and tire service center. No.

1

2

3

4

Item

Advantages

Disadvantages

1. Low operating cost – RM0.78/day. 2. No maintenance needed 3. No noise 4. No smoke 5. No odor

1. High ownership cost – RM 1034/2. Sell through internet only 3. Unit not robust for outdoor use 4. Suitable for low power application only 5. Limited usage hours

1. Easily available 2. Low ownership cost 3. Fuel easily available 4. Very long usage hour

1. High operating cost – RM3/day 2. Need Maintenance – RM 10 to RM 35 per service 3. Noisy 4. Smoky 5. Smelly 6. Difficult to start 7. Unstable current output 8. Warranty - 1 week to 3 months only.

12V DC Battery

1. Easily available 2. Easy to use – less complexity 3. Low ownership cost – as low as RM 180/-.

1. High charging cost – RM3/charge. 2. Need to send to workshop for charging 3. Battery short lifetime – < 6 month. 4. Suitable for low power application 5. Limited usage hours 6. DC appliances only

ALAM

1. Less operating cost – RM0.40/day 2. No maintenance needed 3. No noise 4. No smoke 5. No odor 6. Easy to operate 7. Robust – suitable for outdoor use 8. Selling direct to customer 9. Longer warranty period – 4 months

1. High ownership cost – RM800/2. Battery need replacement – < 1 year 3. Limited usage hours 4. Suitable for low power applications only

Inverter Based Generator – E Gen 250VA

Petrol Based Generator

From table above, we believe ALAM will be competitive and success in the market due to our better package, better price offered and active market approach.

Competitors’ Strategy i. Established players like Yamaha and Honda from Japan are focus on producing more reliable and more environmental-friendly products. However, they are still continuing on their product line which is portable petrol-powered generator. ii. New player like Tiger and Diamond from China are focus more on making cheaper products. Based on customer’s profile, which is low income and daily earner, cheaper product will be easier to sell, even though the product is not reliable. Conclusion on Product Competition In summary, direct competition for ALAM is very few, very weak and not very competitive. E Gen 250VA is not a local product, which make after sales and service support less likely to better than ALAM. E Gen 250VA also only available through the website, where as ALAM will be distributed directly to customers. However, ALAM is expected to face stiff competition from portable petrol generator. These products are already established in the market, some through reliability and some through cheap ownership cost. Nevertheless, ALAM has held clear advantages over these products due to low operation cost and environmental-friendly factor.

Estimated Market Share and Sales The sales projection is cover only for Peninsular Malaysia and it is divided into 4 regions. Table below describes the details of the estimated market share and sales.

Region North (Penang, Kedah, Perlis) Central (Perak, Selangor, KL) South (Johor, Melaka, Negeri Sembilan) East Coast (Kelantan, Terengganu, Pahang)

No. of Traders

Potential Customer (%)

No. of Potential Customer

Pasar Malam Burger Stall Law Enforcer Contractor Pasar Malam Burger Stall Law Enforcer Contractor

6240 5200 285 5377 15960 13300 525 13754

65% 50% 100% 30% 65% 50% 100% 30%

4056 2600 285 1613 10374 6650 525 4126

Estimated Certain Customer (%) 30% 30% 100% 5% 40% 40% 100% 5%

Pasar Malam

8760

65%

5694

Burger Stall

7300

50%

Law Enforcer

360

Contractor Pasar Malam Burger Stall Law Enforcer Contractor

7551 7200 6000 390 6206

Segment

Expected Volume (unit)

Est. Sales @ RM 800 / unit

1217 780 285 81 4150 2660 525 206

973,600.00 624,000.00 228,000.00 64,800.00 3,320,000.00 2,128,000.00 420,000.00 164,800.00

33.33%

1898

1,518,400.00

3650

33.33%

1217

973,600.00

100%

360

100%

360

288,000.00

30% 65% 50% 100% 30%

2265 4680 3000 390 1862

5% 25% 25% 100% 5%

113 1170 750 390 93

90,400.00 936,000.00 600,000.00 312,000.00 74,400.00

From overall market size and market potential, we are able to estimate the percentage for market share and estimated sales in term of segmentation. The total sales for all segments is about 15,895 units worth about RM12,716,000.00. The following table shows the fraction of the market share which divided by segments. Segment

Potential Market (unit)

Market Share (%)

Market Share (unit)

Sales Projection (RM)

Pasar Malam

24,804

34 %

8,435

6,748,000

Burger Stall

15,900

34 %

5,407

4,325,600

Law Enforcer

1,560

100 %

1,560

1,248,000

Contractor

9,866

5%

493

TOTAL

52,130

-

15,895

Battery 12,840 units (14.72%)

394,400 12,716,000

Portable Power Supply

5,407 units (34.02%)

Petrol Generator Battery Pasar Malam

Petrol Generator 58,493 units (67.06%)

Burger Stall

8,435 units (53.07%)

ALAM 15,895 units (18.22%)

Local Enforcement Contractor

493 units (3.10%)

1,560 units (9.81%)

ALAM Market Share for Portable Power Supply Category Market share for ALAM for portable power supply is estimated about 18.22% or 15,895 units. Segment Pasar Malam represent the largest market with 53%, Burger Stall fall into second largest with 34% while Local Enforcer and Contractor is at third and forth places respectively. It is a good but reliable projection. With a good sales strategy and approach, we believe we could achieve this target within 2 years operation time.

Table below shows the expected sales projection for the period of five years. M2 100 50

M3 150 50

M4 200 50

M5 200 50

M6 200 100

Y1 M7 300 100

M8 300 100

M9 300 100

M10 400 100

M11 400 150

M12 400 150

Q1 1360 1102

Q2 1360 1102

Q3 1360 1102

Q4 1360 1102

Y3

Y4

Y5

Pasar Malam Burger Stall

M1 50 -

5440 4408

5440 4408

5440 4408

3 4 5

Law Enforcer Contractor TOTAL

50

150

200

250

250

300

260 30 690

260 30 690

260 30 690

260 30 790

260 30 840

260 50 860

75 2537

75 2537

75 2537

75 2537

9848

9848

9848

6

SALES @ RM 800/unit (RM'000)

40

120

160

200

200

240

552

552

552

632

672

688

2,029.6

2,029.6

2,029.6

2,029.6

7,878.4

7,878.4

7,878.4

No.

Item

1 2

Volume

Y2

Sales (RM ‘000)

Volume(unit) vs Qtr(time) vs Sales(RM)

12000

9000 8000

10000 7000 8000

6000 5000

6000 4000

4000

Contractor Enforcer Burger Stall

3000 2000

2000 1000 0

0 Y1M1 Y1M2 Y1M3 Y1M4 Y1M5 Y1M6 Y1M7 Y1M8 Y1M9 Y1M10 Y1M11 Y1M12 Y2Q1

(Time)

Y2Q2

Y2Q3

Y2Q4

Y3

Y4

Y5

Pasar Malam Sales

Market Evaluation Portable Power Supply is required by businesses which are outdoor and mobile such as pasar malam trading, burger stall operation, contractor works and etc. Most of them need the Portable Power Supply for lighting purpose. Currently, the Portable Power Supply is dominated by Petrolbased Generator. Electric Portable Power Supply like ALAM is not new in the market, but due to high ownership cost, less promotion and no attractive purchasing scheme makes Electric Portable Power Supply not a popular choice.

Value Comparison

Item

ALAM

E Gen 250VA

1

Unit Price (RM)

850.00

2

Operating Cost (RM)

3

Maintenance Cost (RM)

No.

Petrol Generator DC Battery

China Brand

Japan Brand

1035.00

350.00

680.00 – 1000.00

180.00

0.40/day

0.78/day

5.00/day

4.00/day

3.00/charge

-

-

30.00/month

10.00/month

-

Battery - 4 month Component – 6 month

Not Available

1 week

3 month

No Warranty

4

Warranty

5

Usage

ON/OFF switch

ON/OFF switch

6

Expected Life Span

5 years

5 years

2 years

5 years

3 month

7

Ownership Value (RM)

1 year

1190.00

1155.00

2210.00

2000.00

1620.00

2 years

1750.00 45Ah 7200Wh (1.5 x better than E Gen 250VA)

1775.00

4070.00

3320.00

3240.00

8

Power Rating Available Capacity

26Ah 4942Wh

Physical force needed to start

Electrical wiring needed

Market Success The key contributors to market success have been identified, studied, analyze and come out with effective solutions. 

Identify the target market group:  Pasar Malam  Burger Stall  Law Enforcer  Contractor



Identify the direct and indirect competitors; and their advantages and disadvantages.



Identify the method of marketing:  Direct Sales (for local buyer)  Agent Appointment (for non-local; outside northern region)



Sales Promotion:  Introduce promotion price for first 10 units of RM550/- and 11th - 50th unit of RM750/ Advertisement in newspaper  Distribute flyers at target market such as Pasar Malam  Join exhibition such as SMIDEX 2011

Entry Barrier 

A stiff competition for portable power supply especially from petrol-generator is expected since they have been there for quite some time already. Other factor such as product availability nationwide also plays a role.



High cost of ownership. Daily earner such as Pasar Malam and burger stall operator will face some difficulties to spend RM900/- in cash.

7.0 SALES & MARKETING PLAN Marketing Plan & Strategy  









Introduction of promotional products for local market and local enforcement agencies such as PDRM. These pilot production will be distributed strategically among the pasar malam in Sungai Petani area, and also to local PRDM to spur interest on the product. Sell directly to end-users for local area (ie Sg Petani and District of Kuala Muda, Kedah) with a lower introductory price – for local area, H2E Power will sell directly to the consumers such as local Pasar Malam traders and burger stall operators. This exercise will be crucial to the product introduction to the market. Close proximity of the customers and our manufacturing facility will facilitate our push for the product to be able to be accepted in the market. Later, the company will appoint dealership to serve this local area as well. Agencies and Dealership will be identified and appointed for nationwide and global market – to help expanding the business and product sales, agencies and dealership will be appointed throughout the nation. These agents and dealers shall be able to serve the end-users for first purchase and repeat purchase of battery. Strategic Alliance with local government agencies such as FAMA, Pusat Pungutan Zakat (PPZ) and local NGOs such as Gabungan Wawasan Generasi Felda (GWGF) – to introduce the product and its benefits to these local agencies and NGOs in order to facilitate the usage of the product by the participants of the activities promoted by these agencies such as Pasar Tani, Pasar Rakyat Asnaf, Pasar Malam Felda etc. Strategic Partnership with local companies and franchises such as Koperasi Usahawan Asas Teknologi (KUAT-NS) and Ayam Goreng Uncle Bob – the partnership will push the product to be used by the members of the Koperasi and also franchisee of the Ayam Goreng Uncle Bob. Government Concession through relevant departments and agencies such as PDRM, JPJ, JKR and Local Governments – to persuade these government agencies to use this environmental-friendly product instead of using plain 12V battery or petrol generator during their night operation.

Sales Strategy    

Individual outright purchase – through agents and dealers, hardware shops, or through online order. Installment purchase through agencies like TEKUN Nasional and Amanah Ikhtiar Malaysia (AIM). Leasing or daily rental through partnership with local companies and individuals. Bulk order for local or export market.

Repeat Purchase Strategy ALAM has been designed with repeat purchase of components in mind. Key components are the charger/inverter unit and the 12V Lead Acid battery. Even though the battery is commonly available in the market, the positive and negative terminal has been modified specially for ALAM. This will ensure the repeat order for 80% of battery for ALAM at least every 6 months, and the company will have additional income with the sales of the battery unit.

Pricing Strategy Pricing strategy is based on overall cost to produce and market the ALAM and competitor selling price. At this moment, the overall cost per set for a basic ALAM unit is about RM630.00 and competitors’ prices are about USD345 (RM1100.00) and RM1400.00 respectively. ALAM Competitor 1 RRP Price Competitor 2 Price

Ex-Factory Price

Cost + 21% Margin RM 630.00 o o

800.00

1000.00 1100.00

1400.00

The ex-factory price by H2E Power Sdn. Bhd. is RM800/- per set. The Recommended Retail Price (RRP) is RM1000/- per set.

For local introductory price, H2E Power Sdn Bhd is selling the unit at RM700.00 per unit for limited units. This is to get the product on the market as quickly as possible, and the company is absorbing the reduced margin for the benefit of the product to be seen and use in the local market. Cost LOCAL INTRODUCTORY PRICE

RM

700.00

630.00

Ex-Factory Price

800.00

ALAM Competitor 1 RRP Price Competitor 2 Price

1000.00 1100.00

1400.00

ALAM has few variants, and the pricing for these variants also based on the competitors’ pricing. For ALAM Basic, the RRP price is 10% lower than closest competitor. For ALAM Extended, the RRP price is 20% lower than the competitor. These are due to the company’s ability to lower the production cost, and the pricing are expected to go lower with the economies of scale. ALAM BASIC

RM

1000.00 1110.00

ALAM EXTENDED

1399.00

Competitor 1 Basic Competitor 2 Basic

1600.00

ALAM HI-SPEC

1750.00 1990.00 Competitor 1 Extended

Advertising and Promotional Strategy 





   

Trial run at 2 pasar malam stalls which operates around Sungai Petani. The objective is to create public awareness on ALAM. We also put up banner showing these stalls are using ALAM. We had introduced 10 pilot production units with introductory price. All the buyers will be given a banner for them to be displayed at their respective stalls. Brochure & flyers distribution at local area pasar malam, night spots and burger stalls to increase awareness towards the product. Banners and bunting will also be One of the stall with pilot production unit, AYAM placed at strategic locations around GORENGUNCLE BOB. Sungai Petani, Alor Setar and Seberang Perai. These banners and buntings will be extended to other areas and cities throughout the nation. Local newspapers, tabloids and magazines like Harian Metro, Sinar Harian, Kosmo, Mastika will also be used for product advertisement on weekly basis. The product will be advertised and promoted online through the company own website, and trade portals such as Alibaba.com and Tradekey.com. Promotion will also be carried out through television shows and programs such as Malaysia Hari Ini, Primetime News and technology documentary. Participation in the local, national and international exhibitions is also crucial in promoting and pushing the product to be accepted locally and globally.

Strategic Alliances and Collaborator H2E Power Sdn Bhd has engaged Universiti Teknologi PETRONAS (UTP) to further improving and innovating the product. The company and UTP have a well established relationship based on previously undertaken projects. Therefore, engagement of UTP as a technology collaborator will definitely enhance the product technically and commercially. The company is also looking forward to engage SIRIM as the collaborator in testing and certification of the product, in order for the product to be able to penetrate foreign markets.

Distribution Channels The distribution will be very simple. For local market i.e. Kedah, Pulau Pinang and Perlis, H2E Technologies Sdn. Bhd. will manage the sales and distribution. For other states, we will appoint Dealership and Sales Agents for sales and distribution purpose.

(Manufacturing) H2E Power Sdn. Bhd.

(Distribution – Local Region)   

H2E Technologies Sdn. Bhd. Appointed Agents Appointed Dealers

(Distribution – Nationwide)    

Appointed Agents Appointed Dealers FAMA KUAT-NS

(Distribution – Oversea)   

H2E Technologies Sdn. Bhd. Appointed Agents Appointed Dealers

Protected Market Share: Short / Medium / Long Term 

Short Term: o Introduction of introductory price of RM700.00/unit and it is limited to first 50 units. o Introduction of product discounts, rebates and trade-ins to maintain low price. o Maintaining lean manufacturing team to minimize overheads and reduce cost to sustain discounted price.



Medium Term: o To secure alliance and partnership with large agencies and NGOs such as FAMA, Persatuan Penjaja Pasar Malam, KUAT-NS, AIM and TEKUN Nasional as distribution and marketing partner because they have a strong team nationwide and financially stable. o To source for cheaper components manufacturer.



Long Term: o Engage UTP as technology collaborator to research on cheaper components o Invest in RND to improve current technology and identify new technology

Marketing Schedule (Gantt Chart) 2010 No.

Item

PIC

Dec Azhar

1/12/2010 20/12/2010

Product R&D

Nizam / Hasrul

23/12/2010 25 /02/2011

3

Promotion and Advertising

Azhar / Shahir

16/02/2011 onwards

4

Mass Production

Nizam / Hasrul

15/04/2011 onwards

5

Sales

Azhar / Shahir / Nizam

01/05/2011 onwards

6

Customer Service and Support

Azhar

01/05/2011 onwards

1

Market Research

2

2011

2012

Duration Jan

Mar

May

Jul

Sep

Nov

Jan

8.0 MANUFACTURING AND OPERATIONAL PLAN (Current and Proposed) Production Capability H2E Power Sdn Bhd has the capacity of manufacturing more than 150 sets monthly for Portable Generator ALAM ( Advanced Lightings Application Module) products. The main activities of production involve Cutting, Welding, Coating (Painting) , Assembly and Testing(Quality). The Finished Goods Storage can keep up to 5 working days. The main components is supplied by local vendor and ALAM will distributed through our local network. We also provide after sales service in whole Malaysia divided by Northern, South, East, Central region including Sabah and Sarawak.

Current Welding section

Problem/Issue 1) Combine Welding jig Advantage: a) Delegate manpower Weaknesses: a) Too Long process time b) Operator fatigue c) Complicated process

Proposed 1) Fabricate Progressive Welding jig and Sub Assembly jig Advantage: a) Systematic process b) Less defect c) Less fatigue d) High productivity Weakness: a)investment on jig-Medium

Assembly section

1) Assembly table

1) Assembly jigs

Advantage: a) Less investment

Advantages: a) Process time improve b) Systematic process c) High productivity

Weaknesses: a) Long process time b) Less productivity W.I.P rack

Weakness: a) investment – Medium

1) Wooden pallet

1) W.I.P rack / Plastic container

Advantage: a) Less investment

Advantages: a) 5 S b) High productivity c) Process time improve

Weaknesses: a) Material not in proper arrangement b) Space increase

Weakness: a) Investment – Medium

Production Facilities Current : The Production line was set up for ALAM in Small Industry area building which 2,000 ft 2 area (25 ft x 80 ft). For beginning, the Welding and Assembly line was set up side by side which to produce prototype unit and commercialize product in small volume.

i)

WELDING LINE

Material ii)

Process

ASSEMBLY LINE

Assembly line iii)

Welding jig

Assembly Tools & Equipment

Tools & Machinery

a) Co2 Welding Machine, Bench Drilling Machine, Hand Grinder, Hand Drill

List of Production Facilities CURRENT

PROPOSED

A) FACILITIES 1) 5hp Air Compressor- 1 unit

A) FACILITIES 1) 5hp Air Compressor- 1 unit

B) Tools & Equipment 1) Bosch Battery Screwdriver – 1 unit 2) Wire cutter – 1 unit 3) Test pen – 1 unit 4) ProsKit Wire Clamp – 1 unit 5) Cable Cutter – 1 unit 6) Scissor – 1 unit 7) Lighter – 1 unit 8) Assembly table – 2 units 9) Welding jig – 1 unit 10) Bosch Hand grinder – 1 unit 11) Bosch Hand drill – 1 unit 12) Mechanical Vice – 1 unit 13) Stand fan – 1 unit 14) Trolley – 1 unit

B) Tools & Equipment 1) Bosch Battery Screwdriver – 2 unit 2) Wire cutter – 2 units 3) Test pen – 2 units 4) ProsKit Wire Clamp – 1 units 5) Cable Cutter – 2 units 6) Assembly Table – 2 units 7) Assembly Jig – 2 units 8) Welding jig – 2 units 9) Bosch Hand Grinder - 2 units 10) Bosch Hand Drill – 2 units 11) Mechanical Vice – 1 unit 12) W.I.P Rack – 4 units 13) Wall fan – 3 units 14) Stand fan – 1 unit 15) Mat. Storage rack – 1 sets 16) Trolley – 1 unit 17) Heavy duty Polybox – 5 units 18) Component container - 10 units

C) Machinery 1) Bench Drill machine – 1 unit 2) Max Welding Machine – 1 unit 3) 14” Metal Cutter Machine – 1 unit

C) Machinery 1) Bench Drill Machine – 1 unit 2) Max C02 Welding Machine – 2 units 3) 14” Metal Cutter Machine – 1 unit

D) Quality Tools 1) Vernier Caliper – 1 unit 2) Measuring Tape – 1 unit

D) Testing & Quality Tools 1) Testing Equipment – 1 unit 2) Vernier Caliper - 1 unit 3) Measuring Tape – I unit

Proposed The additional investment are needed to produce more than 150 sets of portable generator ALAM. The new line set up will be able to improve the process and the productivity will be increase. The new line set up involve the improvement of new workstation, additional tools, product flow, packaging ,material storage, handling and development of human resource through On Job Training (OJT) .

(C) Plant Layout

CURRENT – PLANT LAYOUT

PROPOSED – PLANT LAYOUT

i)

PRODUCTION AREA BASED ON CURRENT AND PROPOSED AREA

NO

DESCRIPTION

CURRENT (MSQ)

PROPOSED (MSQ)

1

RAW MATERIAL STORAGE

2,842 msq (264 ft2)

2,842 msq (264 ft2)

2

FINISHED GOODS STORAGE

172 msq (16 ft2)

344 msq (32 ft2)

3

ASSEMBLY LINE AREA

1,033 msq (96 ft2)

516 msq (48 ft2)

4

WELDING LINE AREA

INCLUDED

516 msq (48 ft2)

5

MACHINESHOP AREA

430 msq (40 ft2)

161 msq (15 ft2)

9.0 RISK ANALYSIS Strengths / Weaknesses / Opportunities / Threats (SWOT) 

Strengths o Low operation cost o Environmental friendly (No noise / no emission) o No maintenance cost o Portable / Compact o Robust design o Stable current output o Clean energy



Weaknesses o Limited to low power application only o Limited power o Battery need to be replaced over time (every 8 month – 1 year) o Not widely use due to new technology o New product, difficult to penetrate market



Opportunity o Fuel price tendency to increase, higher operation cost for petrol generator o Customer prefer product that need less or no maintenance o Public awareness on green technology and environmental friendly product put pressure on local government and traders to improve environmental quality at pasar malam sites.



Threat o Competitor from local and oversea due to availability of inverter technology o Components parts price increase o Centralize power source for pasar malam sites.

Type of Risk and Mitigating Factors i) Technology Risks – the main components of this product are the inverter/charger unit and the battery. Lead Acid Battery technology has reached its maturity, and unlikely to have major technological changes in the near future. The inverter charger unit is beginning to mature. Previous inverter is big, heavy and expensive. However, with the advancement in green technology where the usage of PV solar panel and wind turbines is hitting a new high, the inverter design has improved drastically to a smaller size and cheaper in price. Therefore, it is expected that little technological changes in the product in 5 years time. However, to minimize the risk, the company has engaged UTP in fundamental research and technology improvements concerning the product.

ii) Implementation Risks – the company needs funds injection to be able to manufacture and market the product in larger scale. Without the external fund injection, the product will not be able to take off as planned. Therefore, the company has embarked on few activities to raise fund. Among those are the loan application to government agencies like MARA, personal investors, and also application to venture capitalist. iii) Market Risks – The product is very new and yet unproven in the market. This will slow down the market acceptance towards the product. Furthermore, the target market mentality is less concern towards environmental improvement. The target market is also quite reluctant in spending large sum of money upfront, while enjoying the savings later. This market resistance and risks will dwindle down when more and more people starts using the products. Fuel pricing will also be a pushing factor in market acceptance. If the fuel price starts to increase, there will be more people interested in this product due to its very low operating cost.

10.0 HISTORICAL FINANCIAL SUMMARY a) Audited Accounts: Refer Attachment

11.0 FINANCIAL PROJECTION a) Project Costing: Refer Attachment i) Total cost of the proposed project – ii) Proposed financing structure b) Summary of Income Statement: Refer Attachment c) Projected Balance Sheet: Refer Attachment d) Projected Cash Flow Analysis: Refer Attachment i) Breakeven Chart and Calculation ii) Months to Breakeven iii) Projected Return on Investment (ROI)