1

EXECUTIVE SUMMARY:
Engineering For You (EFY) is a concrete product manufacturing company that provides
concretes of consistently high quality and reliable service to clients, contractors, and consultants
across the world. We advance the well-being of those we serve through our relentless focus on
continuous improvement and our efforts to promote a sustainable future.

Parallel with the market segmentation, our targeted customers are mostly developers, contractors
and consultants (engineers). The location of our company will be located in Damansara Utama,
Selangor. After surveying, we find out that Damansara Utama is currently experiencing steep
development, such that houses and shops, a Damansara Utama bypass and etc soon will be
constructed there, which will be a great opportunity for us. Our factory has a cross section
around 100 x 200 ft2.

EFY is founded in Malaysia, 2014 which across an agreement among six persons: Lau
Yew Ling, Tan Wei Zhou, Ekin Ibrahim, Norsyahirah Alias, Ashikin Shafinaz Whayab and
Nazieha Binti Mohd Isa with a proportion of ratios contribution of 2:1:1:1:1:1. All of the capital
profit and loss, goodwill, disbursement, liquidation and any other transactions to be full under
the business name shall be treated under such ratios. In fact the authority power of making
decision was decided to be hold by the partners accordingly to the ratios of contribution. We
expected that we will be grown from a local player to one of the top global companies in our
industry. In the future, we will be strategically positioned in the Americas, Europe, Africa, the
Middle East and Asia. Our operations network produces, distributes, and markets ready-mix
concrete, precast concrete and spray concrete to customers. Normally, concrete is a composite
material composed mainly of water, aggregate and cement. But, the uniqueness of our concrete
product is that chemical admixtures are added to our product to upgrade its quality.

Sustainability is central to our business strategy and one of the keys to our future growth. As one
of the concrete producer in the world, we have both responsibility and a great opportunity to help

to move toward sustainable development. That, in turn, would be a critical element of a low
carbon economy.

The challenges of building the sustainable housing and infrastructure required by a growing
global population are immense. Society needs innovations not only in design, materials, and
construction processes, but also in creating access to green housing and infrastructure, especially
for those who are in most need. EFY is committed to helping stimulate those innovations, while
improving the sustainability of our own operations and increasing our social investment.

CHAPTER I

COMPANY PORSPECT

1.1

OBJECTIVES
To generate a well-being through quality building materials.
To achieve sustainable construction.
To apply new technologies.
To increase sales steadily each year for the next 5 years.

1.2

MISSION
To grow from a small local player to one of the global companies.
To serve the global building needs of its customers, and build value for its stakeholders
by becoming the worlds most efficient and profitable cement company.
To offer a high quality of concrete at a competitive price to meet the demand of our
clients.
To establish a strong relationship with the areas home builders.

1.3

Vision
Become the most trusted single source and multi-trade industrial contracting and
engineering concrete provider based on technical expertise and continuous development.
Become a safety icon based on the high strength concrete we offer.
Become an innovative company which determines the concept of reliability, technology
and quality in the rapidly changing the world.

1.4

Keys to Success
Business and Financial Strategy
-

We have a geographically diversified portfolio of assets in well-balanced sustainable

and profitable growth markets, focused on our core business of our products.

We create value for our shareholders through a forward-looking growth strategy and
disciplined fund allocation. Our vertically integrated portfolio of cement, aggregates,
and ready-mix concrete - tailored to each markets needs - provides us with the
opportunity to manage our assets as one integrated business rather than as distinct
businesses, further improving our operational efficiency and profitability.

Customer Focus
-

We are committed to providing our customers with the most reliable and
comprehensive array of products. To this end, we tailor our products and services to
suit our customers' specific needs, from home and commercial construction,
improvement, and renovation to infrastructure, agricultural, industrial, and other
specialty applications.

We strive to create value for our customers by focusing on more vertically integrated
building solutions rather than separate products. We foster long-term customer
relationships by providing them with reliable, high-quality service and consistent

product quality. We constantly adapt to our customers needs through innovative

products and financing schemes, providing them with solutions for the challenges
they face in their specific market and business climate.
Innovation
-

We recognize that the construction industry is shifting toward more cost-effective,

efficient, and environmentally friendly solutions; this inspires us to be more
innovative in conducting our global business.

Operational Efficiency
-

Our industry-best processes allow us to satisfy the needs of our customers while using
the optimal amount of resources, thus creating the most value. We constantly seek to
improve our performance as an efficient, agile, and innovative company by
identifying, sharing, and implementing best practices across our global network of
plants and facilities.

Sustainable Development
-

Sustainable development is embedded in our core business strategy and our day-today operations. We seek to build a smarter world through a simple and focused model
that follows three main lines of action:
a. Enhancing our Value Creation: We seek to increase our operational efficiency
through innovation and collaboration, in order to develop building solutions to
meet the needs of a world with limited resources.
b. Managing our Footprint: We contribute to the development of a low carbon
economy, helping to address climate change which is one of the worlds greatest
challenges.
c. Engaging our Stakeholders: Our long-term success rests on fostering positive,
long-term relationships with key stakeholders.

CHAPTER II

COMPANY DETAILS

2.1

COMPANY OWNERSHIP

The legal name of the company will be EFY Corporation. EFY stands for a meaning of
Engineering For You. It will be formed as a concrete manufacturing and servicing company. The
figure below has shown the logo of our EFY.

2.2

COMPANY BACKGROUND

EFY, is a concrete product manufacturing company that provides concretes of consistently high
quality and reliable service to clients, contractors, and consultants across the world. EFY produce,

distribute, and sell ready-mix concrete, precast concrete and spray concrete. EFY currently
operates on Malaysia, with 300 concrete facilities, 80 quarries, 50 distribution centers and a
marine terminal.

EFY is continually searching for new and innovative ways of producing concrete that develops
sustainable construction. Although concrete is the most inherently sustainable building material,
we intensified our work to improve its characteristics. This included developing concretes that
improve structural strength, provide extra insulation or allow water to filter through. EFY started
using compositing chemical admixture with a suitable proportion ratio for improving the
properties of concrete. We also apply carbon footprint tools which introduced by CEMEX, is a
tool to measure the greenhouse gas emissions of our ready-mix and other concrete products.

2.3

COMPANY CORE VALUE

Collaboration
-

We work with others in a collective pursuit of excellence. Collaboration is at core of

all our relationships. We collaborate with customers, colleagues, suppliers, and other
partners in order to reach common goals.

Integrity
-

We act with honesty, responsibility, and respect towards all the people and
organizations with which we interact.

Leadership
-

We aim to be leaders not only in concrete manufacturing company, but also in all of
our relationships. We are a company with a sound vision for the future based on
sustainability, excellence, and innovation.

CHAPTER III

MANAGEMENT

3.1

MANAGEMENT TEAM

3.1.1 Group Management

LAW YEW LING
Chief Executive Officer
Year of birth: 1979
Age : 35
EDUCATION
2000 IMD Lausanne, University of St. Gallen (HSG),
Switzerland
Executive Training
1997 Business Administration at University of Fribourg,
Switzerland, and Stetson University, Florida, USA
PROFESSIONAL EXPERIENCE
2014 - now

Chief Executive Officer

2007 - 2014

General Manager at MDC Precast Industries Sdn.

Bhd

2004 - 2006

Head of Industry Division and Member of the

Group Management at CEPCO Sdn. Bhd.

2001 - 2004

Market Development Manager, Industry Division

at CEPCO Sdn. Bhd.

NAZIEHA MOHD ISA

Deputy CEO, Building Systems & Industry
Year of birth: 1977
Age : 37
EDUCATION
2007 IMD Lausanne, Switzerland,
Executive Training.
1999 Graduate School of Business Administration, Oregon
State University, Corvallis, USA, MBA.
1995 National University of Malaysia, B.Hons Civil
Engineering and Structure
PROFESSIONAL EXPERIENCE
Deputy CEO and
2014 - now
Head Building Systems & Industry and Member
of Group Management
2007 - 2013

Head of Marketing, at Alliance Precast Industries

Sdn Bhd

2004 - 2006

Assistant to the Head of Export, Alliance Precast

Industries Sdn Bhd

2002 - 2003

Project Leader, Dr. Staudacher & Siegenthaler

AG, Switzer

10

NORSYAHIRAH ALIAS
Chief Technology Officer
Year of birth: 1977
Age : 37
EDUCATION
2004 - 2007 University of St. Gallen, Switzerland, Executive
MBA
National University of Malaysia, B.hons. Ing.
Chem.

1995

PROFESSIONAL EXPERIENCE
2014 - now Chief Technology Officer
2003 - 2013

Business Development Manager at Kimlun sdn.

Bhd.

1999 - 2002

Research Chemist Industry Adhesives at Kimlun

Sdn. Bhd.

NOR ASHIKIN SHAFINAZ

Chief Financial Officer
Year of birth: 1975
Age : 39
EDUCATION
2004 Advanced Management Program, INSEAD
1994

lic. oec. publ. Economics, University of Zurich

PROFESSIONAL EXPERIENCE
CFO and Member of Group Management
2014 - now
2005 - 2013

Market Development Manager, at Kimlun

Sdn. Bhd.

1997 - 2003

Business Analyst, at Hays

11

TAN WEN ZHOU

Chief Marketing Officer
Year of birth: 1980
Age : 34
EDUCATION
Graduate School of Business Administration,
2001
Zurich, Switzerland; MBA
1998

Swiss Federal Institute of Technology, Zurich,

Switzerland; B.hons. Business

PROFESSIONAL EXPERIENCE
Chief Marketing Officer
2014 - now
2011 - 2013

Head Corporate Business Unit Concrete

2006 - 2010

Head of Marketing Construction

Market Development Manager Concrete
at YTL Corporation

2003 - 2005

Project Manager Infrastructure, at YTL

Corporation

NURASYIKIN IBRAHIM
Chief Operation Officer
Year of birth: 1975
Age : 39
EDUCATION
Graduate School of Business Administration,
1997
University of Washington/Zurich, MBA.
1993

National University of Malaysia, B.Hons. Civil

Engi.

PROFESSIONAL EXPERIENCE
2014 - now Chief Operator Officer
2005 - 2013

Product Manager / Head of Sales Industry at

Brunsfield

2001 - 2004

Project Manager Air Condition Plants, Luwa AG,

Hong Kong, China

1999 - 2000

Production Manager, at Cantilever

12

3.1.2

Organization Structure

Law Yew Ling

Chief Executive
Officer

Nazieha Mohd Isa

Deputy CEO, Building
Systems & Industry

Norsyahirah Alias
Chief Technology
Officer

Nor Ashikin
Shafinaz Whayab
Chief Financial
Officer

Tan Wen Zhou

Chief Marketing
Officer

Nurasyikin
Ibrahim
Chief Operation
Officer

13

3.1.3

Schedule of Remuneration
Table 3.1 Schedule of Remuneration

POSITION

MONTHLY

EPF (12%)

SOCSO (2.5%)

TOTAL

RM10000

RM1200

RM250

RM11450

RM8000

RM960

RM200

RM9160

RM6000

RM720

RM150

RM6870

RM6000

RM720

RM150

RM6870

RM6000

RM720

RM150

RM6870

RM6000

RM720

RM150

RM6870

Staff A

RM3500

RM420

RM87.5

RM4007.5

Staff B

RM3500

RM420

RM87.5

RM4007.5

SALARY
CEO
Law Yew Ling
Deputy CEO
Nazieha Mohd Isa
Financial Manager
Syafinaz Asyikin
Marketing Manager
Tan Wen Zhou
Operation Manager
Nurasyikin Ibrahim
Technology Officer
Norsyahirah Alias

GRAND TOTAL

RM 56,105

14

3.2

MANAGEMENT TEAM GAPS

Our management team is comprised of people with many years of experience in the
long-term care provider and software development industries. Our philosophy is
laser-like focus on the customers needs. We have a Chief Executive Officer (CEO),
Vice CEO and four Managers that responsible to conduct the business. We believed
we have a solid team constructed in order to cover main points of business plan. The
present team requires business development and administrative support. Most of the
partners have been working in business environments where this kind of support was
provided to them as part of a larger organization.

3.3

PERSONAL PLAN

The Personnel Plan reflects the staffing levels required to manage and achieve the
anticipated levels of production, and establish the customer base needed to achieve the
revenues projected and reach profitability.
We have projected a staff of 25 employees in 2013. This includes 5 managers, 2
supervisors, 10 equipment operators, 4 labours, and 2 secretaries. This staff of 25 will
operate the batching plant and moulding the precast equipment. Moreover, 2 drivers
will responsible for the transportation of pre-cast concrete.
Table 3.2

Personal Plan for Three Years

Year 1

Year 2

Year 3

Management/Supervisory RM 445500

RM 635500

RM 809500

Production Labor

RM 294800

RM 585800

RM 779800

Material

RM 266000

RM 364000

RM 512000

Other

RM 0

RM 0

RM 0

Total People

25

50

75

Total Payroll

RM 1006300

RM1585300

RM2101,300

15

CHAPTER IV

OPERATION

4.1

BUSINESS PREMISES

4.1.1

Details

EFY Corporation is located at Bangunan Th Uptown 2, 3, Jalan SS 21/39, Damansara

Utama, 47400 Petaling Jaya, Selangor. We chose this location because of its strategic
area which is situated near Kuala Lumpur , Bandar Utama, Ampang, Batu Caves and
Subang Jaya. As we know, these locations are a very progressively developed area.
It is also easy to access to the main road which are Lebuhraya Damansara-Puchong
(900m fromt factory) , Lebuhraya SPRINT(5.9km), Lebuhraya Bandar Utama
(10.0km), Lebuhraya Utara Selatan (9.0km) and Lebuhraya Persekutuan (13.0km).

EFY Sdn.
Bhd

Figure 4.1 Map to EFY Corporation

16

4.1.2

Rental details

The rental of the factory lot is RM70, 000 per month. The land area is about 80,000 square
feet and the factory has been built used around 65,000 square feet. It is the end lot unit
type. Rental price per square feet per month is RM2.00. Facilities include telephone
services, electrical services and data line within the Tenants premises Building, Security
System, Closed Circuit Television (CCTV) System, Card Access Control System and
Guard Tour System. The gate also guarded, ceiling height approximately 50 feet, office
attached with air-conditioner, fire drill equipment. Nearby from the factory also have
cafeteria, dobi, petrol, kiosk and car shops.

4.1.3

Distribution of materials from factory to site working area

The ready-made precast concrete is transported to the construction site by using the truck,
lorry and other suitable transportation through Lebuhraya Damansara-Puchong and also
Lebuhraya SPRINT. We chose these path because these path are the nearest highway
from the premises making them the easiest, the shortest distance travel and also save the
time consuming.

17

4.1.4

Factory Layout

Figure 4.2 EFY Corporation Factory

Floating equipment
Pallet stacker
Turning equipment

Concrete distributer + compacting

equipment

Tilting equipment
Reinforcement placing robot

Pallet cleaning and release agent spraying

equipment
Mesh welding
plant

Plotter, shuttering and stripping robot

Run-off carriage

Figure 4.3 EFY Corporation Factory Layout Plan

18

4.2

PROCESS FLOW DIAGRAM

4.2.1

Precast Concrete Process

Table 4.1 Precast Concrete Processes
1. Production of reinforced cages and main connections

The precast factory often has specialist workshops for the

manufacture and maintenance of moulds, and for the
production of jig-built reinforcing cages and connections.
2. Assembly of moulds

The reinforced cage is positioned in the partly assembled

mould, then the remaining mould section is completed.

3. Mix being poured

Carefully specified concrete is placed into the mould.

Many precast works now employ computer controlled
batching plants.

19

4. Compaction of concrete using poker vibrator

To ensure that optimum density is obtained and that
specified strengths are achieved, concrete is placed and
compacted using high-frequency external vibrators or
pokers.

5. Precast concrete being moved to the storage area

Once an appropriate strength has been reached, the
precast units are moved to the storage area. Units are
usually handled within hours of casting as part of the
rapid production cycle.
The product exhibits a high degree of dimensional
accuracy and quality of finish. Economies of
production are achieved through the repetitive and
automated process.
6. Storage of high-quality units in works area

The finished precast components are stacked on clean

battens or plastic pads positioned to suit the design of
the component. Care is taken to keep the stacks vertical
and to ensure that battens are placed directly above one
another within the stack.

20

7. Transport to site
The components are delivered to site in a predetermined sequence to ensure that hardened concrete
are ready for instant erection.
8. Erection at site

The components are erected straight from the lorry.

This leads to faster erection times with reduced on-site
activity.

4.2.2

Concrete Repair and Protection

Concrete is strong in compression, but comparatively weak in tension. The inclusion of

steel reinforcement improves the tensile strength of the element and, consequently, its
resistance to stress. Unfortunately, in the presence of water and oxygen, steel corrodes.
Therefore, in almost all likely exposure conditions for reinforced concrete, corrosion of
the steel is a potential hazard.

21

Figure 4.4 Typical Concrette Problems

EFY Solution
EFY offers a complete range of high performance repair mortars and concrete for
applications ranging from cosmetic to structural repairs. Our repair mortars and concrete
systems are compatible with a full range of EFY repair and protection materials so that
not only the visible signs of damage are repaired, but deterioration is addressed,
extending the service life and sustainability of the structure.
1. Treat Any Exposed Steel
EFY Armatec 110 EpoCem protects against corrosion and improves the bond of
repair mortars.

Protects reinforcement in a high alkaline cementitious environment.

Can be applied on the damp surface obtained with SSD dampening.

Increases barrier to water and chlorides.

22

Fully compatible with load transfer requirements.

Ensures homogeneous bond.

2. Protect from Future or Latent Damages

EFY FerroGard 903 is a corrosion inhibiting impregnation that penetrates and
protects not only the repair area, but also the surrounding concrete from future
corrosion due to latent damages.

Performance not dependent on chloride levels.

Active cathodic and anodic passivation.

Totally nitrite free (non-toxic).

Can penetrate to the reinforcement in one week.

3. Repair the Spalls

EFY MonoTop repair mortars are easy-to-use one pack polymer modified mortars
for replacing the concrete in spalled areas.

High build for security of application.

Easy to use, vertically or overhead.

Physical properties closely match parent building concrete.

Lower modulus for increased durability in high thermal movement (i.e., on

building facade elevations).

23

4. Level and Waterproof the Surface

EFY Leveling Mortars are protective leveling mortars which restore a
level profile to the concrete and effectively waterproof the
surface.

Fills bug holes and minor surface defects.

Provides an ideal substrate for protective coatings.

Application method controls consumption to needed volume only.

5. Protect from Carbonation

EFYgard Elastocolor is a protective, decorative and dynamically crack-bridging
coating which protects the entire structure from the harmful effects of carbonation
and water ingress.

Bridges dynamic moving cracks up to 12 mils (0.3 mm) at 16 mils (400 microns)
dry film thickness.

Effectively halts carbonation.

Allows each way water vapor diffusion.

Prevents water and chloride ingress.

Enhances the appearance.

Gives excellent design opportunities with durable color.

24

4.2.2.1

Concrete Repair and Protection Process Flow Diagram

Figure 4.5 Concrete Repair and Protection

Process Flow Diagram

25

4.3

PROXIMITY TO THE SUPPLIERS AND MAKING PARTNERSHIP

4.3.1

Proximity To The Suppliers

In order to maintain the performance of our company, finding well-established and

trusted suppliers is a must.

We must understand and uphold the quality of production.

The suppliers will send the materials straight to the company. The suppliers will provide
our business with top quality products but low price and great service.
Table 4.2 List of Suppliers, name of companies and contact information.

Types of Supplies

Name of Company

Contact
Address: No. 7, Jalan 1/77, Plaza

Computer
Printer

Low Yat, Bukit Bintang, 55100,

Apaq Technology Sdn
Bhd

Kuala Lumpur.
Phone: 03-21417162

photostat machine
Website: www.apaq.com.my
Address: No. 34, Jalan Tanjung SD
Fax Machine

Inter Register
Communications (M)

Cash Register Machine

13/1, Bandar Sri Damansara,

Kepong, 52200, Kuala Lumpur.

Sdn Bhd
Phone: 03-62728000
Website: http://www.irc.com.my

26

Table
Chair

Address:
IKEA Malaysia

No.2,

Jalan

Mutlara

PJU

7/2,

Damansara,

47800 Petaling Jaya, Selangor Darul

Ehsan, Malaysia

Meeting desk

Address: longcheng industrial

garden, 122000, Liaoning, chaoyang,
Air compressor

China
Chaoyang Chaogong

Welding set

Machinery Co., Ltd.

Telephone: 86-421-3810060
Website:
http://www.chaogong.com.cn

Backhoe

Address: Lagoon Street, 006

Sunway, Kuala Lumpur, Malaysia

Excavator
David Wang
Lorry Crane

automobile Inc.

Telephone: 60-014-6466495
Website:

Lorry 10 wheel

http://my901519814.fm.alibaba.com
Lorry 6 wheel
Address: 4235 W Capitol Ave

Skylift-24m

West Sacramento, CA
Skylift-20m
Backpusher

Mayer Equipment
Inc.

95691
Telephone: (888) 291-4268
Website:

27

http://www.commercialtrucktrader.co
m

Address: No.10, Jinqueshan Road,

276004, Shandong, Linyi City,

Forklift
Linyi Haotian
Compactor (20 ton)
Compactor (1 ton)

Construction
Machinery Co., Ltd.

China.
Fax: 0086--539-7207796
Website:
http://www.chinahaotian.cn/en
Address: Room 502, Building 10 of
Shuntai Square,No.2000, Shangdong,

32mm Bar Cutting

Machine
32mm Bar Bending
Machine

Jinan, China
Jinan Qingong
Machinery Co., Ltd.

Telephone: 86-531-81958193
Website:
http://qgtruckcrane.en.alibaba.com

28

Alamat :
Crane 16 ton

9-1-1,

1st

Floor,

Jalan

3/109F, Danau Business Centre, Off

Jalan Klang Lama, 58100 Kuala

Crane 20 ton

Cantilever Bumi Sdn

Bhd

Lumpur.

Crane 25 ton
Telephone
Crane 45 ton

Faks

42mm Bar Cutting

Machine

: 03-79845685

Address: No. 24, Lorong Abdul

WH Machinery Sdn
Bhd

42mm Bar Bending

Machine

4.3.2

: 03-79808438

Rahman 9, Taman Muhibbah, Kapar,

42200, Selangor.
Telephone: 03-61866535

Making Partnership

In order for the company to operate smoothly and to enlarge the empire, we make
partnership with these company and association. Some of the associations are :
Table 4.3 Members of Partnership
World Business Council for Sustainable
Development
Responsible Care

29

United Nations Global Compact

Green Building Councils

United Nations Environment Program (UNEP)

Carbon Disclosure Project

Vinyl Foundation

Network Sustainable Construction Switzerland

Transparency International

30

4.4

ORGANISATION OF TASKS
Precast concrete
and concrete
repair protection
(General
Manager)

Hiring workers

Research and
Development
Function

Selling and
Buying Function

Production
Function

Controlling
Function

(Technology
Manager)

(Marketing
Manager)

(Operational
Manager)

(Financial
Manager)

Design the precast

concrete sizes.
Do research on the
rebar sizes for each
precast concrete
Design the
concrete repair
protection according
to cases.
Preparing the
layout of the factory.

Seeing salespersons
Viewing showrooms
Advertising
Doing inside displays
Maintaining a clean store
Pricing
Selling
Trimming windows

Finding
suppliers
Placing orders
Receiving and
stocking
Taking
inventory

Cashiering
Checking
invoices
Issuing credit
Keeping records
Making bank
deposits
Paying bills
Securing loans

31

4.5

DESCRIPTION OF EQUIPMENT

4.5.1

Amount Of Item Needs And Cost

To start our business, the tools and equipment and the estimated cost for each item is
shown as below:
Table 4.4 Amount of Item Needs and Cost
QUANTITY
(UNIT)

ITEM

COST PER UNIT

(RM)

TOTAL
(RM)

OFFICE EQUIPMENT
Computer

2,500

15,000

Fax Machine

300

600

Printers

250

500

Photostat Machine

4,000

8,000

Cash Register Machine

300

300

Total

RM 24,400

FIXTURES AND FITTINGS

Table

500

3,000

Chairs

20

50

1000

Air Conditioner

2,000

8,000

Meeting Desk

300

300

32

Display Cabinet

1300

Total

2,600

RM 14,900

OTHERS EXPENSES
Stationery

300

300

First Aid Kit

30

30

Dustbin

25

Clock

20

40

800

800

Decoration (carpet, lighting, curtains)

Total

RM 1,195

START-UP COST
Renovation

500,000

500,000

Rental Deposit (3 months)

210,000

210,000

Business Registration Fee

1000

1000

Total

RM 711,000
TOTL COST = RM751,495

33

4.5.2

Machines And Transportations Renting Cost

EFY Corporation is a new built company and it is hard to suddenly buy the new machines
and transportation because of the constraint of money. Therefore, we will use the concept
of renting for these few years and will buy our own from time to time.
Table 4.5 Machines and Transportations Renting Cost

MACHINES AND TRANSPORTATIONS

ITEM

QUANTITY
(UNIT)

COST PER
MONTH
(RM)

TOTAL
(RM)

Crane 16 ton

14,800

14,800

Crane 20 ton

16,500

16,500

Crane 25 ton

20,000

20,000

Crane 45 ton

29,000

29,000

Backhoe

8,900

17,800

Excavator

13,500

13,500

Skylift-20m

8,500

8,500

Skylift-24m

9,200

9,200

Forklift

2,100

4,200

34

Compactor (1 ton)

1,000

1,000

Compactor (20 ton)

9,500

9,500

Lorry 6 wheel

8,840

17,680

Lorry 10 wheel

15,000

30,000

Lorry Crane

10,000

20,000

Backpusher

7,500

7,500

Air compressor

1,100

2,200

Welding set

1,100

2,200

32mm Bar Bending Machine

500

1,000

32mm Bar Cutting Machine

500

1,000

42mm Bar Bending Machine

900

1,800

42mm Bar Cutting Machine

900

1,800

TOTAL

RM229,180

35

CHAPTER V

PRODUCT AND SERVICES

5.1 INTRODUCTION
In this chapter will be discussed about our product and services that we have provided to
the customers.
5.2 PRODUCT OF COMPANY
As known, our companys name is EFY which is Engineering For You. Thus our product
is based on engineering field which is focused on production of concrete. Concrete is
widely used for making architectural structures, foundations, brick/block walls,
pavements,

bridges/overpasses,

highways,

runways,

parking

structures,

dams,

pools/reservoirs, pipes, footings for gates, fences and poles and even boats. Concrete is
used in large quantities almost everywhere mankind has a need for infrastructure.
Generally, concrete is a composite material composed mainly of water, aggregate,
and cement. Often, additives and reinforcements are included in the mixture to achieve
the desired physical properties of the finished material. When these ingredients are mixed
together, they form a fluid mass that is easily molded into shape.

36

The demand for admixtures and additives is currently on the rise, particularly due
to the increased performance requirements placed on concrete, cement and mortar,
especially in urban areas and for infrastructure construction. Therefore, our concrete can
enhances specific properties of the fresh or hardened concrete, such as workability, water
tightness, durability, or early and final strength.
The successful construction of many structures concrete is based on EFY
technology, in combination with our experience in the development of the best mix
designs, product quality, reliability and support from the customers. Below are the several
advantages of our concrete product.

Excellent workability and concrete properties.

Good in strength and durability which are not weakened by moisture,

mould or pests.

Our concrete is very versatility which can be used in buildings, bridges,

dams, tunnels, sewerage systems pavements, runways and even roads.

Specific and excellent in water tightness of concrete to achieve the

workability.

New technology concrete with easily handle and care.

37

Basically our main types of product is in form of ready mix concrete (RMC), spray
concrete and pre-cast concrete. Here are the lists of some our product and its function.
Table 5.1 EFY product and its function
EFY Product

Function

EFY Top- Armatec 110 EpoCem

Protects reinforcement in a highly alkaline

cermentitious environment.

EFY MonoTop

One- component steel reinforcement primer

and bonding bridge.

EFYTop Repair Mortars

Replacing damaged concrete.

EFY FerroGard-903

Protecting against the development of latent

damage.

EFYgard Impregnation

Sealing and coating purpose and preventing

the ingress of aggressive influnces.

EFYgard- 720 EpoChem

Lavelling the profile and filling surface

pores.

38

Figure 5.1 Ready mix concrete (RMC) by EFY

Figure 5.2 Spray concrete by EFY

39

Figure 5.3 Pre-cast concrete by EFY

5.3 SERVICES OF COMPANY

EFY companys offer the services most commonly required and we do so with the quality
and professionalism that customers deserve. Our company provides concrete products
that can use in many type of design such as buildings, bridges and dams. Besides that our
concrete came out with in large scale and small scale used. Our factory is located at
Damansara Utama, Selangor. The capacity of our concrete production is around 10, 000

40

tons per year. By referring the capacity that our company provides, we believe that our
company can supply the concrete to the South country in Malaysia.
EFY company also provides delivery services to customers who are in Selangor
for free. While, for customers who live outside the state also can enjoy this service but the
delivery charge is charged according to the places. We send our concrete to customers as
soon as possible for at least three days after ordering. Our factory operates 6 days a week
from Monday to Saturday from 9 am to 5 pm.
Besides that EFY also offers give free consultation to our customers. If a problem
exists at any time, as a customer of EFY, customers may request a free consultation by
calling us. We will diagnose customers problem and recommend the proper approach
toward correcting the situation. Basically our company provides the services as below.

Assessment survey of the condition of the structure.

Diagnosis of the causes of deterioration concrete.

Determine the option repair and protection customers problems structure.

Choose and select the appropriate repair and protection strategy for future
maintenance requirements.

The service that our company provides is qualified because we have qualified and
experience workers that can handle the survey and assessment. For information to the
customers our services include all the problems concrete damage and defects due to the
mechanical, chemical and physical. Besides, our services also can prevent concrete
damage problems due to the carbonation, stray or electrical current, and from corrosive
contaminants.

41

For example, the problem of loading and impact damaged architectural precast
cladding panels. The cracks and inadequate cover over steel reinforcement is identified as
a major problem to the housing block. Therefore, our company will give the solution by,
remove the loose concrete and prepare of exposed reinforcement. We will protect the
reinforcement by using EFY top and replace the damaged concrete with EFY repair
mortar and also provide the uniform protection to the housing block.
We work with our customers to help them take their concrete beyond a
commodity product and stand apart from the competition. Predictable performance is just
one way, but our products can also help to improve finishability, slump retention,
shrinkage and many other common concrete issues. With some of the most experienced
concrete professionals in the industry, our sales team works hand and hand with
customers to produce value added concrete.

5.4 COMPETITVE COMPARISON

According to analysis and observation, we found that our major competitors are
Larfarge Malaysia bhd located at Klang Valley and YTL cement located at Perak. Our
factory has to compete with these two factories since these two factories produce and
supply concrete in Malaysia.

42

Table 5.2 Comparison EFY Company with competitors

FACTORY

EFY

/CATEGORY

LARFARGE

YTL

MALAYSIA

CEMENT

BHD.
Location

Damansara Utama, Klang, Selangor

Perak

Selangor
Year of

2014

1956

1977

Establishment
Production Per Year

10,000

tons

concrete per year

and

by

High

Strength

of 110,000

tons

concrete per year

of 350,000

tons

concrete per year

Workability
Not

weakened

moisture
Produced

Quality Concrete

and

Produce in many size

Environmentally
Friendly
Easily

handle

care

and scale
Versatility

of

43

Come out with new

technology
Delivery Service to

Customer

Free Consultation for

Customer

5.5 SALES LITERATURE

EFYs samples of products sheets and company brochures are attached in the appendix.
For any further inquiries and any information, go to our companys website
www.EFY@concrete.com

5.6 TECHNOLOGY OF PRODUCT

Concrete is strong in compression, but comparatively weak in tension. The inclusion of
steel reinforcement improves the tensile strength of the element and, consequently, its
resistance to stress. Unfortunately, in the presence of water and oxygen, steel corrodes.
Therefore, in almost all likely exposure conditions for reinforced concrete, corrosion of
the steel is a potential hazard.
EFY offers a complete range of high performance repair mortars and concrete for
applications ranging from cosmetic to structural repairs. Our repair mortars and concrete

44

systems are compatible with a full range of EFY repair and protection materials so that
not only the visible signs of damage are repaired, but deterioration is addressed,
extending the service life and sustainability of the structure.
Our EFY concrete has several features which are:

Can treat any exposed steel by protect them protects against corrosion and
improves the bond of repair mortars.

Can repair the spalls by using one pack polymer modified mortars for
replacing the concrete in spalled areas.

Protect corrosion inhibiting impregnation that penetrates and protects not

only the repair area, but also the surrounding concrete from future
corrosion due to latent damages.

Concrete has level and waterproof the surface which is protective leveling
mortars which restore a level profile to the concrete and effectively
waterproof the surface.

Can protect from carbonation which give a protective, decorative and

dynamically crack-bridging coating which protects the entire structure
from the harmful effects of carbonation and water ingress.

The best technology in concrete EFY is come out with ready-made, spray and
precast concrete. Ready mix concrete production is the core of the concrete industry.
With our full range of concrete admixtures we work every day to formulate products to
enhance productivity and ensure concrete consistency. Predictable concrete performance
means that producers spend less time and effort dealing with concrete issues and more
time looking for ways to enhance their business.

45

While the spray concrete is apply to provide superior protection in thin layers
compared to conventional concrete. The two types of spray application include wet-spray
and dry-spray processes. For precast concrete, the unique of this product helps to improve
the finished surface and limit bug holes. For precast producers this means less time and
money spent on rubbing concrete.
5.7 FUTURE PRODUCT AND SERVICES
Nowadays, with developing countries there is a high demand for construction sector. The
increasing demand in construction sector, the contractor needs the concrete in large
quantities for their construction project. Therefore, EFY will initially focus to improve
product quality, increase the number of production from year to year to increase
companys profit. Future expansion efforts will focus upon promoting products
manufactured by EFY not only in Malaysia but also at the international level.
EFY also planning to further expand the types and technology of concrete
products produced. A wide range of different types of concrete give customers the option
to choose a more suitable concrete for their construction project. This can make them
more confident to choose EFY as their first choice in the construction field.

46

CHAPTER VI

MARKETING

6.1

MARKETING

Marketing is the methodology of communicating the value of a product or service to

customers, for the purpose of selling that product or service. Marketing involve the
several important part such as marketing analysis, marketing management, marketing
strategies and marketing plan. All of these are very important as to develop a company
and promote the product.
6.2

MARKETING ANALYSIS

A market analysis is to determine the attractiveness of a market, both now and in the
future. Organizations evaluate the future attractiveness of a market by gaining an
understanding of evolving opportunities and threats as they relate to that organizations
own strengths and weaknesses. A lot of types of market analysis need to conduct such as
competitor analysis, promotion analysis, sales analysis, gap analysis, retail/distribution
analysis and consumer behavior analysis to ensure that the product that we produce still
have the market in local or worldwide.

47

Figure 6.1 Types of marketing analysis

The analysis can be done by obtaining information from several sources such as:
i.

Market Survey
A market survey must be carry out before operating our company to ensure
that the products produce still obtain high demand in the market. Through
market survey, we can accept the feedback from public and set as guideline to
operate our company.

48

ii.

Reading
The information about types and uses of concrete and the response of those
who involved in construction such as engineer, contractor, developer and
others to the concrete can be obtain through magazines, newspaper and also
some reading materials such as Science Direct.

iii.

Online research
Same information like what we find through reading such as type and uses of
concrete. Besides that, the demand and supply of the market value can be
obtained in some website. On top of that, some others competitor information
could also be obtain through this method.

6.2.1

Target Market

The targeting market for our company can be divided into two main categories which are:
i.

Concrete
EFY develops and markets numerous admixtures and additives for uses in
concrete, cement and mortar production. These produces enhance specific
properties of the fresh or hardened concrete, such as workability, water
tightness, durability or early and final strength. The demand for admixtures
and additives is currently on the rise, particularly due to increased
performance requirements placed on concrete, cement and mortar, especially
in urban areas and for infrastructure construction. Furthermore, the growing
use of alternative cementitious materials in cement, mortar and thereby also in
concrete increase the need for admixtures. EFY admixtures and additive
solutions enable significant improvement of cement and concrete quality and

49

workability. EFY is also a reliable supplier for the readmix industry, precast
manufacturers and site batched concrete.

ii.

Refurbishment
This segment features concrete protection and repair solutions, e.g. repair
mortars, protective coating, grouts and structural strengthening system. It also
includes products for interior finishing, specifically cementitious leveling
compounds, tile adhensives and tile grouts. Market trend are dictated by the
rising quality requirements placed on products and services, with global
customers expecting uniform standards worldwide. The present uptrend in
demand is attributable to a rising volume of infrastructure rehabilitation
projects in the transport, water management and energy sector. The global
urbanization trend and the increasing need for renovation in developed
countries also fuel demand in the interior refurbishment sector.

6.2.2

Market Segmentation

Market segmentation is the process of defining and subdividing a large homogenous

market into clearly identifiable segments having similar needs, wants or demand
characteristics. Its objective is to design a marketing mix that precisely matches the
expectations of customers in the targeted segment. Figure below show the example of
market segmentation,

50

Figure 6.2 Example of market segmentation

The concrete that produced by EFY company have two major market segments:
i.

Construction
As demand on building construction projects rises in Malaysia, the concrete
produced by EFY very suitable for the civil engineers (contractor, consultant,
developer and etc) to use as construction materials in order to improve the quality
of the construction building structure and also able to offers environmental
friendly properties and long life in any structure. Besides that, EFY as a world
leader in specialty chemicals and other products specifically engineered for
concrete bring technologies to the market that focuses on the optimization of costs
and durability of concrete.

51

ii.

Protection and Repair

Concrete deterioration causes serious problems for many structures ranging from
the smallest residential complex to large commercial building and civil structures.
Atmospheric and environmental conditions can impact concrete structure over
time, triggering reinforcement corrosion and spalling of the outer concrete layers.
EFY will provide the best concrete repair and protection systems for every
structure application at the best value. The scope of services offered by EFY
include concrete surface repairs, structural strengthing, stabilization, concrete
protection systems, waterproofing, post-tension repairs and others for all types of
structures including high rise buildings, bridges, parking structures, water and
wastewater treatment plants, as well as diverse.

6.2.3

Market Size and Trend

Market size and trend analysis had done when we planning to carry out this business.
These analyses allow us to understand what the problem that we might be face during
running the business.

The present construction industry in Malaysia had moved one step further for
Malaysia in becoming a developed country under the Vision Malaysia 2020. During the
year, major infrastructural projects such as Penang Second Bridge, the new low-cost
carrier terminal at Kuala Lumpur International Airport (KLIA 2), Sabah-Sarawak Gas
Pipeline and the Sabah Oil and Gas Terminal were completed. Despite completion of
these infrastructural projects, we see growth in the construction sector to be driven mainly
by the continuing infrastructural activities of the awarded packages of the Klang Valley

52

MY Rapid Transit (MRT) system under the Economic Transformation Programme (ETP)
and the implementation of the other packages for the MRT lines and Tun Razak
Exchanges. The increasing demand of concrete and cement production proved that the
total market for concrete is very large in Malaysia in order to meet the requirement in
construction sector. Hence it is important that the concrete suppliers are adequately
equipped to address the challenges and opportunities of using new innovation raw
materials in producing high performance and consistent quality concrete.

As the prime choice of construction material in Malaysia, the demand for the
concrete in Malaysia had increase greatly since year 1998 till now. Demand for cconcrete
in 2014 was sustained mainly by construction activities in the development of key
infrastructural projects under the governments 10th Malaysia Plan and the ETP. We
estimated the demand of concrete in Malaysia for 2014 to be at a modest growth of 5%.
Growth in the construction sector in 2013 moderated to 10.9% from 18.1% in 2012
according to Bank Negara Malaysias report that the construction sector growth remained
firm underpinned by the construction activities in the non-residential and residential subsectors.

The coming on stream of increased capacity in concrete and cement production by

some manufacturers, the increase in electricity tariff, rising fuel prices and rising
transportation costs may put pricing pressure and pose challenges to the concrete
industry. But for 2014, the consumption growth of concrete in the industry may see a
better trend depending on the implementation of the other infrastructural packages and
projects. This is despite the governments move to tighten some of its fiscal policies and
the slowdown in expenditure on some of its government-related projects and

53

infrastructural projects. Based on analysis, EFY company can be run without any major
problems.

6.2.4

Competition

Complete analysis regarding to the competitor had done before deciding the type of
business that would like to run. The competitors around the same area required more
detail analysis as this will directly affect the profit of our company.

According to Cement & Concrete Association of Malaysia (C&CAM), there are 9

cement and concrete company are register as C&CAM membership in year 2009 which
include Lafarge Malaysia Berhad (LMB) group, YTL Cement Group, CIMA Group of
Companies, Tasek Corporation Berhad, Holcim Malaysia Sdn Bhd (HMSB), Hume
Cement Sdn Bhd (HCSB), CMS Group, Aalborg Portland Malaysia Sdn Bhd (APMSB)
and Cement Industries Sabah Sdn Bhd.

The main competitor for our company will be focus to Lafarge Malaysia Berhad
( LMB) group. LMB is the market leader in cement and major player in the concrete and
aggregates industries. The company built and operated Malaysia first industrial-scale
cement plant, which opened in 1953. And now they operated a nationwide network of
facilities which include three integrated cement plants in Langkawi, Kanthan and
Damansara Utama, one grinding plant in Pasir Gudang and distribution channels by road,
rail and sea.

The research and development done by LBM will improve the quality of cement
from time to time, which may lead to high competition with our company. In order to

54

solve this problem, we will development the R&D department to ensure that the quality
of our concrete and cement will always reach the requirement of market and develop
product which has better quality and yield. Besides that, the operation period of LBMs
company is far longer than our company, thus LBM will have more specific and fixed
client compare to us. However, we will keep more effort to promote our products, attract
more customers and widen our market.

Table 6.1 Competitive Edge

Criteria

Explanation

Cost

The price of concrete produced by our company is around the same as

the market price.

Service

Our company provides service to client to solve concrete

deterioration/ corrosion problem.

Chemical

Our company mixes chemical substances with the concrete which

improve and strengthen the quality of concrete, fulfill the
requirements of the market and will be environmental friendly.

R&D

Development of newer and higher quality product will be always

carrying out by R&D department.

Location

Our company will located nearby to developing area which can

ensure enough source of material and easier to sell to nearby
construction area

55

6.2.5

SWOT Analysis

In the SWOT analysis will analyze the strengths and weaknesses of this business. The
type of opportunities and threats that might be face during running the business also will
be considered.

Table 6.2 SWOT Analysis Table

Criteria
Strength

Weaknesses

Explanation
i.
Savvy owner-operator
The outperformance of this company to its savvy leadership,
closely guided by EFYs management.
ii.

Concrete sustainability
With our cement grinding aids, concrete admixtures, and mix
design tools, EFY can help concrete manufacturers, building
owners and designer make their concrete structures longer
lasting and more environmentally friendly. EFY products and
services can help to make concrete transform to a more
sustainable product.

iii.

Engineering background
The production process and process control can be well
managed by the supervisor which obtains engineering
background. Besides that, formation of R&D department will
lead to development of higher quality products in lower cost.

iv.

Extra service s (concrete protection and repair solutions)

EFY offers solutions which allow progressive construction to
the required standards and optimize the construction process.
Our company also provides concrete repair and protection
product as well system to client.

i.

A mature industry
The cement industry is relatively mature, with the top three
cement makers controlling almost 90% of the market share

56

which is Lafarge Malaysia Berhad (LMB) group, CIMA Group

of Companies and Tasek Corporation Berhad. Growth by way
of acquisition will be tough for EFY.
ii.

Inconsistent amount of raw material

Production of concrete is a critical factor for the resulting
concrete and consists basically of dosing and mixing the
components. The following parameters such as type and
dosage of admixture, addition of raw materials as well as
mixing intensity and mixing time can affect the concrete
properties during mixing.

iii.

Over-dependence on expansionary fiscal policy

Bulk cement and ready-mixed concrete (RMC) demand is
heavily dependent on a healthy economy with a spending
drive. Making up over 70% of total sales, the demand for bulk
cement and concrete typically comes from large-scale projects.

iv.

Opportunities

Regulated price ceiling, with no cost pass-through

We reiterate our caution on the rising cost of materials and
production, given that concrete makers will have to absorb all
the cost hikes (rise in price) and are unable to pass through the
hikes to customers due to the price ceiling
(*Price ceiling: a government-imposed price control or limit
on how high a price is charged for a product.)
i. Cement and concrete demand to rise
The bullishness of the pump priming budget will trigger more
construction activity and will inevitably result in higher
consumption of building materials such as cement.
ii. Recent price hike to boost growth
The recent 10%-blended price revision in December 2009 will
benefit every cement manufacturer including EFY. With the
price hike in place, coupled with the heightened demand from
the construction sector, we forecast an earnings growth for
future.
iii. A laissez-faire market
The cement makers are currently lobbying the C&CA to

57

completely remove the price ceiling, and to allow market

economics to determine the price of cement. Once
deregulated, we believe the cement makers will cooperate
and raise cement prices systematically.
Threats

i. Competition with others company

During the starting of our business, competition with other
company may lead to low profit in the first few months.
ii. Price war, again
Although the previously price war is ended with a mutual
agreement among cement makers, but this does not
guarantee that another price war will not take place again.
In desperate times, it believe that smaller cement makers
will create a price war to defend their market shares and to
stay afloat, inevitably forcing larger players to follow suit.
EFY are always prone to such price wars, unless the
C&CA implements a price floor

6.3

MARKETING PLAN

The main focus of our marketing plan will be the strategy to increase the sales of product
and become a profitability business in the shortest time.

6.3.1

Marketing Strategy

In order to generate the sales of products, appropriate marketing strategies must be taken.
The marketing strategy will be focus on few main objectives:

Provide high quality service and products

Emphasize the benefit of products

Focus on specific fields which will be the target of our products

58

Several strategies had developing in order to reach EFYs missions and visions.

a. Product Strategy

The design of concrete is more than merely a technical issue: it inevitably also
deals with finding cost-efficient raw materials and developing ecologically
friendly concrete mix design. The interaction of all materials used in concrete as
well as the demand to take ecological issues more and more into consideration
make the design of concrete a daily challenge.
In order to continue creating value and serving our customers better, besides the
conventional standard concrete, EFY also leads the way in innovative mixes by
carrying out research and product development according to the market trend. In
response to the growing demand of environmental friendly, high quality
decorative and structural concrete solutions, EFY has released a full range of
innovative concrete products into the Malaysian market which includes
waterproof concrete, corrosion resistant concrete, frost and freeze concrete, sulfate
resistant concrete, fire resistant concrete, chemical resistant concrete, abrasion
resistant concrete, coloured concrete, heavy/lightweight concrete, underwater
concrete and others. Different concrete with different function will gives specific
advantages to our customer.

b. Price Strategy
An effective pricing strategy takes into account the products perceived and actual
values. The final price should be based on both these in order to make the product

59

attractive to both buyer and seller. The price of our product is around the same as
the market price and will make some changes according to the market trend.
About the price of our product can refer to our website. Price list of variety types
of concrete products and services is provided.
Well, after our company had successfully enter the market, we will continued to
absorb the increases in raw materials and transport related costs and has achieved
this by further efficient in Procurement, Production and Logistics. Price structures
have to review and new price will be consider on a number of products. To assist
our customers in keeping costs under control we are continuing with more
competitive prices for those who are able to order their materials with a more
sustainable approach. Therefore, we are continuing with pricing breaks for bulk,
drum and pallet supplies.
We also welcome new customers/clients to propose their national price
list/quotation for our supply. EFY will values their custom and as always will
continue to operate with high levels of technical and sales support. We remain
clearly focused to deliver the most competitive products in optimized cost. To
discuss any point in more detail about the price of products can contact our sales
manager and we will meet them to explain in more details.
c. Promotion Strategy
The aim of promotion is to promote EFY to the public and attract the potential
customers to purchase our products. The promotion strategy mainly divided into
two stages. The first stage of promotion purposed to enter the concrete and cement
market and let the products become well known in the shortest time. This stage
estimated to be done in half year after operating our company. Meanwhile the

60

second stage will be long term promotion to ensure long term growth of products
in the market.

1.

First Stage Promotion

During the first stage promotion, we have to maintain a strong social
media presence on popular social media networks such as newspapers,
internet, magazines, television and others. The used of media has ensured a
better brand awareness and association among target audience.
Formation of website is required to promote our products to others. Our
website will be www.EFY@concrete.com.my. All the information about
products and services provided by our company will be explained in detail
in this website. Customers may also make the order with us through this
website.
Besides that, we tried to base our promotions on the actual lifestyle of our
target market. We created a few of apps which able to download from
Google Play, iTunes or Blackberry World. One of the examples is EFY
Product Finder, which allow us to access our product catalogues
worldwide with smart phone or tablet. Further information like technical
or safety data sheets can be accessed as well. Then, EFY Barcode Scanner
is an application that reads QR codes and Barcodes. Just by scanning the
EFY Product Barcode, customers can access product information along
with uses and benefits. All of these apps mentioned above will let our
customer to have more understanding and concept about our product.

61

2.

Second Stage Promotion

During second stage promotion, advertising about the company will reduce
and only will be advertise in internet in order to save the cost. However,
we still will send a few of well-trained salesman to every engineering firm
to promote our products and try to get more potential customers. As the
business grows and expands, specific discount will be providing during 1st
anniversary in order to attract the attention of customers.

d. Place Strategy
Our plant will be located near the customer base it serves, minimizing the
transport of the finished product to their customers, as well as the associated fuel
use, traffic and exhaust emissions. It also located near public transportation which
many of the plant employees used. Besides that, the plant is close to their raw
material sources. Cement kilns product cement not too far away and sand and
stone are produced nearby. Next, plant siting and construction was done with the
environment in mind. Green areas remain, providing some wildlife habitat, a
buffer of thick screening vegetation was preserved along property lines reducing
noise and visual impact. However, our company will be located in the Kuala
Lumpur area where is full with development project. Ideal location will ease
customers or clients to visit us for more details. Delivery service is provided not
only in Kuala Lumpur area but also to other state. It aims to promote our concrete
products and widen our markets.

62

CHAPTER VII

FINANCIAL PLANNING

7.1

START-UP FUNDING

The following details are initial expenses of Engineering For You (EFY) Corporation
which covers all the equipment costs, brochures costs, samples and reference books costs.
Resources such as office renovation, furniture and fitting also included. To start the
business, we have initial investment of RM300,000 from the directors of the company.
The company also has assets of a total RM150,000 and a start-up expenses of RM100,
000. This will lead to an initial total start-up funding of RM300,000.
7.1.1 Start-Up Expenses
For starting our company, a lot of expenses need to be considered thoroughly in order to
build up and market out products and to be competed with others.
Table 7.1 Total Expenses Spent By EFY
Expenses

Total

Legal

RM 1,000

Insurance

RM5 ,000

63

Website Maintenance

RM45,000

Brochures, samples and reference books

RM 15,000

Renovation and office furniture

RM 15,000

Office rental (include deposit)

RM 10,000

Others

RM 9,000

Total Start-Up Expenses

RM 100,000

Table 7.2 Start-Up Assets Needed By EFY

Start-Up Assets Needed

Total

Cash Required

RM 50,000

Other Current Assets

RM 50,000

Noncurrent Assets

RM 50,000

Total Assets

RM 150,000

Table 7.3 Start-Up Funding Needed By EFY

Start-up Funding

Total

Start-up Expenses to Fund

RM 100,000

Start-up Assets to Fund

RM 150,000

Total Funding Required

RM 250,000

64

Table 7.4 Total Liabilities Owned By EFY

Liabilities

Total

Current Borrowing

RM 0

Long-term Liabilities

RM 0

Other Current Liabilities

RM 0

Total Liabilities

Table 7.5 Investments by Company Directors

Investment

Total

Lau Yew Ling

RM 50,000

Tan Wei Zhou

RM 50,000

Nurasyikin Ibrahim

RM 50,000

Nazieha Isa
Nursyahirah Alias

RM 50,000
RM50,000

Nor Ashikin Shafinaz Whayab

RM50,000

Additional Investment Requirement

RM 0

Total Investment

RM 300,000

Total Capital and Liabilities

RM300,000

7.2

ASSUMPTIONS

We are projecting profit based on the assumptions and judgment which determine our
company future success:

We assume of course that there are no unforeseen products problems and damages.

65

We assume by using marketing strategies, good customer relationships, high

quality products, and good management practices, we will succeed.

We assume that 50% as an initial payment for each project is acquired for every
products purchases and receiving the remaining balance of these revenue within
30 days period upon completing the given project.

We assume by reducing operating costs especially in products purchased

transportation and zero faulty products order from supplier will increase monthly
net profit.

We assume that customers will buy our products because they believe in the
quality and agree with our perception that the products are trustable.

7.3

BREAK EVEN ANALYSIS

Break even analysis is a calculation of the sales volume in units required to just cover
costs. A lower sales volume would be unprofitable and a higher volume would be
profitable. Break-even analysis focuses on the relationship between fixed cost, variable
cost (cost per unit), and selling price (selling price per unit).
Break Even Point = Fixed Costs / (Selling price Variable costs)

The following chart and table summarize our break-even analysis. With fixed
costs of RM 80,000 per month and a variable cost with an average of RM5,000 per
project. As such, we will need to conduct at least 6 projects per month at RM 120,000
(RM20,000 per project) to cover our monthly costs.

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Table 7.6 The Projected Cost And Profit For Break Even Analysis
Selling Unit
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Total Revenue
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
240,000
260,000
280,000
300,000

Fixed cost
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000

variable cost
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000

Total Cost
80,000
85,000
90,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
130,000
135,000
140,000
145,000
150,000
155,000

Net Profit
-80,000
-65,000
-50,000
-35,000
-20,000
-5,000
10,000
25,000
40,000
55,000
70,000
85,000
100,000
115,000
130,000
145,000

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RM

Breakeven Analysis

Total
Ravenue
Total Cost
No. of selling Unit

Figure 7.1 Break-even Analysis

Note: Break-even point is where line revenue intersect line expense
Table 7.7 Break-even Analysis
Break-even Analysis

Total

Monthly Units Break-even

Monthly Revenue Break-even

6
RM 120,000

Table 7.8 Profit Assumption of EFY

Assumptions
Average Per-Unit Profit
Average Per-Unit Variable Cost

Total
RM 20,000
RM 5,000

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Estimated Monthly Fixed Cost

7.4

RM 80,000

PROJECTED PROFIT AND LOSSES (INCOME STATEMENT)

The projected profit for EFY Corporation is shown on the following table. Sales are
increasing from RM900,000 in year 1 to RM2,700,000 in year 3. We are projecting a
gross margin of 89% for all the 3 years. This is an aggressive projection that will help our
efforts to keep total cost of sales low while increasing gross margin. We expect to have a
profit from the 2nd year of RM566,400 and 3rd year of RM1,342,400 as we expect lower
profit for the first year due to being a new company that is lack of awareness and also
covering the start-up cost which causes the cost of that year to be higher than usual.
Therefore, the breakeven period is at the 6th month of the 2nd year.
Table 7.9 Gross Profit Margins Made By EFY
Sources

Year 1

Year 2

Year 3

Sales

RM 1,200,000 RM 2,400,000 RM 3,600,000

Direct Cost of Sales

RM 120,000

RM 240,000

RM 360,000

Production Payroll

RM 0

RM 0

RM 0

Other

RM 0

RM 0

RM 0

Gross Profit

Gross Margin %
(Gross Profit/Sales x100%)

RM1,080 ,000

90%

RM 2,160,000

90%

RM 3,240,000

90%

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Table 7.10 Total Expenses Spent By EFY

Expenses:

Year 1

Year 2

Year 3

RM 150,000

RM 200,000

RM 200,000

RM 5,000

RM 5,000

RM 5,000

RM 100,000

RM 150,000

RM 200,000

Insurance

RM 60,000

RM 60,000

RM 60,000

Labor Cost

RM200,000

RM200,000

RM200,000

Website Maintenance

RM600,000

RM600,000

RM600,000

Maintenance (others)

RM 100,000

RM 150,000

RM 200,000

Rent

RM 60,000

RM 60,000

RM 60,000

Legal Charges

RM 12,000

RM 12,000

RM 12,000

Others (start-up cost)

RM100,000

RM1,392 ,000

RM1,452,000

RM1,562,000

Sales and Marketing and Other

Expenses (include interest expenses)
Depreciation
Utilities

Total Operating Expenses

Table 7.11 Net Profit Margin Gained By EFY

Profit Before Interest and Taxes

(RM312 ,000)

Taxes Incurred (20%)

Net Profit
Net Profit/Sales

(RM312 ,000)

RM 708,000 RM1,678,000
RM141,200

RM 335,600

RM566,800 RM1,342,400
-

23.5%

37.29%

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7.5 PROJECTED CASH FLOW

Projected cash flow is a revenue or expense stream that changes a cash account over a
given period of time. The following cash flow projections are a key part of EFY early
success. The annual cash flow figures for 3 years are included here. It is expected that
year one will have a cash outflow but in year 2 onwards will be expected a cash inflow.

7.5.1 Statement of Cash Flow for the Year Ended

The cash flow in and out for our company has been conducted for 3 years as shown in
Table 7.12 .
Table 7.12 EFYs Statement of Cash Flow
Assets
Cash flow from operating activities
Net Profit before tax
Adjustments for:
Depreciation
Investment
Interest Expense
Operating profit before working capital changes
Increase in trade and other receivables
Decrease in inventories
Decrease in trade payables
Cash generated from operations
Interest paid
Income taxes paid
Net Cash from operating activities
Cash flow from investing activities
Purchase of property, plant and equipment
Proceed from sale of equipment

Year 1 Year 2 Year 3

RM'000 RM'000 RM'000
566.8
1,342
-312
5
0
0
-307
0
0
0
-307
0
0
-307

5
0
193.6
765.4
0
0
0
765.4
0
141.6
623.8

5
0
0
1347
0
0
0
1347
172.6
335.6
839.2

50
0

0
0

0
0

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Interest received
Dividends received
Net Cash used in investing activities
Cash flow from financing activities
share capital investment
Proceeds from long term borrowings
Payment of finance lease liabilities
Dividends paid
Net Cash used in financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at Start (Open.Bal)
Cash and cash equivalents at end (Clo. Bal)

7.6

0
0
-257

0
0
623.8

0
0
839.2

0
0
0
0
-257
50
50
-157

0
0
0
0
623.8
50
-157
516.8

0
0
0
0
839.2
50
516.8
1406.0

PROJECTED BALANCE SHEET

Projected balance sheet is a summary of financial balances. The balance sheet shown
below as table shows varying but managed net worth and a sufficiently healthy financial
position.
7.7

BUSINESS RATIO

The business ratios for the 3 years are shown below. We expect to generate acceptable
ratios for our profitability and return.

Table 7.13 Business Ratio Projected For EFY Corp During 3 Years Period
Ratio Analysis
Earnings before tax

Year 1
Earnings before Tax

x 100%

Year 2
0

29.50%

Year 3
46.61%

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as% Revenue =
Non-Current Asset
Utilization ratio=

Revenue
Sales
Non-Current Asset

24

48

72

Asset utilization ratio

=

Sales
Total Asset

4.31

2.68

Profitability ratio =

Gross Profit
Sales

0.9

0.9

0.9

Profitability ratio =

Cost of Sales
Sales

0.1

0.1

0.1

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CHAPTER VIII

CRITICAL RISK

To be in this business, we also consider and aware about the risk that we might face,
moreover our business is based on the precast concrete manufacturing and also we
provide services for concrete. Therefore, we must make sure the quality of the
manufacture and services is fulfilled our requirement.

There are several problems that we addressed. First, is Precast/prestressed

concrete manufacturing locations face a variety of loss exposures, such as employee
injuries, automobile accidents, equipment theft and damage, and liability claims
from many areas that include damage to property of others. There are also unique
exposures, depending on the job site environment, that may require the need to address
cargo securement, equipment storage, and overhead electrical power lines.

Furthermore, risk include time quality to make sure the precast concrete satisfy
the strength needed. Precast concrete is a big component such as wall, floor beam and
also column, so we need a big storage to store them before we deliver to our customer. So,
we need to provide big space to make sure our production will increase.

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Last but not lease is about the continuous improvement on our products. We need
to make sure our quality of concrete, concrete strength and also our adhesive is getting
better than others.

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CHAPTER IX

CONCLUSION
As the conclusion of this business plan, we are truly hoping that our business plan will be
accepted as we try our best to make it as good as possible. Our future prospect of the
business is that it is able to expand and become one of the largest precast concrete
manufacturing and services companies in Malaysia. We are also hoping that we can make
variation to our product such as IBS and so on. To realize this potential, EFY started to
move forwards and cooperate with more developer in Malaysia. We believe that having a
good foundation will be a stepping stone in order to realize our future prospect in no time.