Wiese Asia Sdn Bhd

FABRICATION & SERVICES WORKSHOP

Executive Summary
This Business Plan is design to give us a blue print for Wiese Asia Sdn Bhd operation,
sales and finance. We have included a complete market analysis, financial projection,
target market summaries, and other relevant discussions. This business plan is geared
towards raising capital for Wiese Asia Sdn Bhd to begin the East Coast Engineering
Workshop.
Wiese Asia Sdn Bhd main activities will be providing excellent services in:
(A)

Fabrication: Unloading & Loading Technology System

1.
2.
3.
4.
5.
6.

(B)

Marine & Land Loading Bay Facility

Safety System for Marine and Land Loading Bay
Floating Suctions and Floating Roof Drains
Piggable & Pipe Cleaning System
Flexibles and Connector
Fabrication focus to pipe
Servicing

1.
2.
3.
4.

Marine & Land Loading Bay

Pigging/Cleaning
Troubleshooting and Consultation in Loading Arm & Safety System.
Compressor & Generator Set

Our mission is to bring service and quality to a higher level in our main business of
supplying hydraulic and industrial hose solutions to industries such as Oil & Gas,
Petrochemical, Palm Oil Industrial, Terminal & Bunkers, Manufacturing and General
Industries.
Our vision is to be the leading stockiest and supplier of integrated solution of hose and
fittings in Malaysia and the South East Asia Region.
In addition Wiese Asia Sdn Bhd also emphasize on quality, to provide the highest quality
and standards of products & services at the best value to meet the needs of our customers.

1.0 The Business

Wiese Asia Sdn Bhd is a limited liability company dealing with engineering services that
includes:
(A) Fabrication: Unloading & Loading Technology System
7. Marine & Land Loading Bay Facility
8. Safety System for Marine and Land Loading Bay
9. Floating Suctions and Floating Roof Drains
10. Piggable & Pipe Cleaning System
11. Flexibles and Connector
12. Fabrication focus to piping
(B) Servicing
5.
6.
7.
8.

Marine & Land Loading Bay

Pigging/Cleaning
Troubleshooting and Consultation in Loading Arm & Safety System.
Compressor & Generator Set

The target customer of Wiese Asia Sdn Bhd will be:

Marine Industry
Oil & Gas Industry
Chemical Processing Industry
Power Industry
Palm Oil Industry
Cement Industry

1.1 The Location

Wiese Asia Sdn Bhd workshop/ warehouse will be located in Kuantan, Pahang. Kuantan
is chosen because of its close proximity to the Oil & Gas, Chemical Processing Hub and
Marine industry in the East Coast.
The cost of renting a workshop/ warehouse in Kuantan is very competitive. Further
Kuantan is well connected via land with the current road system and the new East Coast
Highway from main capital of Kuala Lumpur, sea route via its Kuantan Port, and via air
Kuantan airport.
Skilled manpower is also available In Kuantan as most workers in the East Coast
Industries residing in Kuantan.

A small office will be set up for Wiese Asia Sdn Bhd in Kuala Lumpur. The function of
this office mainly to liaise with government bodies, supplier and PETRONAS.

2.0 The Marketing Plan

2.1 Situation Analysis
With Bank Negara forecast of 6.0% GDP growth for 2006 and the unveiling of 9MP
could stimulate economic activities in such industries. It is a significant development for
Wiese Asia Son Bhd business.
Looking at the growth of Gebeng Petrochemical Hub, Petronas Petroleum Industry
Complex (P.P.I.C) in Kertih, it has drawn billions of ringgits in foreign direct investment.
Among the global industry companies that have invested in this areas are ExxonMobil,
Dow Chemical, BASF, DSM, Mitsui, Mitsubishi, Idemitsu and W.R.Grace. The success
of Gebeng Petrochemical Hub and P.P.I.C in attracting foreign investment is attributed to
Malaysias competitive feedstock supply, investment incentives, proximity to markets
and Malaysias political and socio-economic stability.

Kertih Petrochemical Industrial

Kemaman Industrial & Port
Gebeng Petrochemical Area
Kuantan Terminal & Port

Tanjung Agas Oil, Gas &

Marine Industrial

Another significant development is in Marine industry. Malaysia is a geographically

blessed nation with an extensive coastline (4,490 km), a substantial Exclusive Economic
Zone (598,450 km2), a further maritime territory of 148,307 km2 and situated along one
of the worlds busiest maritime trade route (Sea Line of Communications) the Straits of
Malacca. With a land territory that is separated by the South China Sea into West and
East Malaysia, it is imperative for the country to take into account its nascent trading
needs and defense cum security measures to develop and promote the growth of its
maritime industry.
The Malaysian shipping sector has grown rapidly over the last decade and today provides
a carrying capacity close to 7% of the volume of the nations international trade. The total

number of vessels registered on the Malaysia Registry as at 30 September 2005 is 1,194

vessels compared to 324 vessels in 1995, a 269% increase in the number of vessels over
the period of 1995 2005.
Shipping is a derived demand and as such the demand for its services and its relative
growth or decline depends on international seaborne trade. Currently, Malaysia is ranked
17th as a trading nation and is 22nd in terms of fleet ranking.
Traditionally, maritime industries focus on shipping and its ancillary services. However
of late, it has come to include marine fishing, shipbuilding and repairs, marine tourism,
marine sciences, and marine construction (offshore and onshore).
The last few decades however have seen a greater exploitation of resources towards
marine mining such as oil and gas exploration and production. Further, shipping
infrastructure facilities i.e. Port Services have grown with the development of Westport
and Port Tanjong Pelepas (PTP) & Tanjung Agas Oil, Gas and Maritime Terminal

Wiese Asia Sdn Bhd

Terminal & Loading Technology

2.2

Marine & Land Loading Arm

Safety Cages & Platform
Folding Stairs
EPCC for Loading Bay
Market
FloatingNeeds
Suction & Floating
Roof Drains
Piggable System
Flexibles, Connector &
Coupling
Tank Valve
Flow-Meter
Heat and Steam Tracing
Composite Hose
Offloading & Submarine Hose

Compressor & Generator Set

Maintenance, Servicing, Repair

& Overhaul

Minor Fabrication Works

Sleeve, Seal Shaft, Gear, etc

Our target market is segmented by the respective industries each have different needs.
The markets and their needs are as follows:

Oil and Gas Industry

This market needs fast turnaround of engineering services such as Hydraulic
Transfers lines replacement, Petroleum transfer lines supply, valves replacement
and servicing and engineering product supply. Downtimes are expensive for
refineries with critical rotating equipment failure could stop production. With
average of USD 1 million losses per day of non-production, this industry is
willing to pay for more uptime. This industry also appreciates and expect
excellent after sales service.

Chemical Processing Industry

The needs of this market are very much similar to the Oil & Gas Industry above.
The distinction is CPI handles more variety of chemicals that range from safe to
toxic. This industry is more cost conscious then Oil & Gas Industry as such gave
better opportunities to Wiese Asia Sdn Bhd as a company the give excellent
service at a very competitive cost and prompt service.

Marine Industry
Marine industry uses Hydraulic hoses and Transfer hose mostly for vessels
systems. Generally the operating condition on the equipment in this industry is
less demanding than in Oil & Gas. However, the demand for fast service is still
paramount and reasonable after sales services.

2.2.1 Market Trends

Market trend is in our favor. All sectors are cutting cost down to compete in the current
economic situation. As such the need for cheaper engineering solution such as ones
provided by Wiese Asia Sdn Bhd is on the rise.
2.3 Services Offering
Wiese Asia Sdn Bhd offers the following engineering services:
1.
2.
3.
4.

Marine & Land Loading Bay

Pigging/Cleaning
Troubleshooting and Consultation in Loading Arm & Safety System.
Compressor & Generator Set

2.3.1 Target Customer

1. BASF Petronas
2. MTBE/ Polypropylene/ Propane Dehydro
3. Eastman Chemical
4. Grace Chemical
5. Flexsys Chemical
6. Kaneka
7. Polyplastic
8. FPG Oleochemicals
9. Tioxide
10. TCL Industries
11. Kertih Refinery
12. Optimal
13. Gagasan Carriers
14. PSC Shipyards

2.4 Keys to Success

To succeed in this business we must:

Sell our services and provides highest standard of customer support that includes
but not limited to technical and commercial support to the oil & gas industry,
petrochemical industry and marine industry.
Sell services that are value for money
Provide for the satisfaction of 100 % of our customer. Our customer are very
valuable to us, and we will design a customer care plan to manage complaints,
implement employee and customer feedback, implement Key Performance Index
based on International Standards for employee and management, manage supplier
accounts and predict future conflicts.
Providing specialized 24 hours mobile services to cater to emergency needs of
customers.

2.5 Critical Issues

As we penetrate and expend into oil & gas, petrochemical and marine industries, our
success will depend on whether we will be able to provide exceptional services at very
reasonable prices.
The most important issues are this: We must stay the course and build our strength in our
target market conservatively and spend accordingly. Projects must be kept on budget and
on time, marketing programs must be cost efficient and backed by solid data gathering
and a high potential for success, measured or otherwise.
Other related problem or issue with our competitor like KANON, FMC the well on
brands with client. They have facility & equipment with big workshop
3.0 Marketing Strategy
1. Provide high level of pre and post sales services. We need to create trust in our
customers in order to generate repeat sales.
2. Forge strong relationship with all our customers.
3. Always able to provide the best pricing to our customers.
3.1 Mission
Our mission is to bring service and quality to a higher level in our main business of
supplying hydraulic and industrial hose solutions to industries such as Shipbuilding, Oil
Exploration, Petrochemical, Manufacturing and General Industries. We respect all
customers who respect our company and people, and show respectful diligence towards

those who choose not to show our people respect. Our customers are our most important
assets, and we rely on them for feedback.
We have a plan and our goals are clear: To be the best in pre and post sales of Loading
Arm and Industrial lines services in Malaysia as well as South East Asia Region.
3.2 Strategies
Our main marketing strategy is to focus on fast, efficient, reliable and competitive priced
engineering solution. Industrial customers, especially in the oil & gas, petrochemical and
marine industries are known to actively communicate with one another. A good
reputation at one customer site will propagate throughout the market. With our mobile
hose team among the strategies in tapping the market, we believed that Wiese Asia Sdn
Bhd have the niche. That is our focus.
3.3 Marketing Mix
We rely mostly on direct sales, walk-in and good customer relationship as our marketing
vehicle. We will also provide brochures to our entire target customer to inform them of
services we offer.
3.3.1 Price
In the face of stiff competition, it is important that we maintain a flexible pricing strategy.

Our pricing strategy will be based on competitive parity guidelines. We will not
exceed competitors price and always try to give the most competitive pricing
against competitors.

3.3.2 Service
Service is the most important to our mix. We have an obligation to provide quality
products and, fast and efficiently. Added with our mobile hose service that can be
mobilized 7 days a week is the niche for the market. Our service goals are simple and
easy to maintain; minimize the equipment downtime for the customers and gain their
confident.

3.3.3 Sales Forecast- 5 Years Projection

(Refer to the following chart)

4.0 Financials
The following sections will outline Wiese Asia Sdn Bhd Financial Planning that includes
Start-up Cost, 1 years projection of Income and Retained Earnings Statement and 1
years projection of Cash Flow Statements. All figures are in Ringgit Malaysia (RM)
4.1 Start-Up Cost
Fixed Assets

Air Compressor, 300CPM

Lathe Machine
Cutting Machine
Misc. Tools
Electrical Welding Set for SUS, SS
Office Equipment (incl. Computers)
Crane, 3 Tan
Generator Unit 250A for portable arc weld

2,500.00
22,556.45
3,345.00
2,000.00
7,500.00
10,500.00
15,000.00
5,000.00

Factory Renovation

20,000.00

Total

83,401.45

First Year Current Expenses

Workshop Rental
Payroll
o Managing Director
o Engineering Manager
o Engineer
o Clerk
o Contract (Welder & Draftsman)

14,700.00
120,000.00

Office Expenses
Transportation
Stocks + Cost of Sales

10,000.00
12,000.00
100,000.00

Total

256,700.00

Total Start-Up Cost for First Year

340,101.45

Cost per Month for First Year

12,550.00

4.2 Projected 1 Years Income and Retained Earnings Statements

Wiese Asia Sdn Bhd

Sales Target
For the Year Ended December 31, 2011

Sales
Target

Terminal
Technology

Servicing

Fabrication

Gross
Sales (RM)

Operating
Cost (RM)

PO Value

Invoiced

Sales

10
Month 1

0.00

0.00

0.00

0.00

(12,550.00)

87

Month 2

0.00

0.00

0.00

0.00

(12,550.00)

74

Month 3

0.00

5,000.00

5,000.00

10,000.00

(12,550.00)

10,000.00

Month 4

160,000.00

5,000.00

5,000.00

170,000.00

(12,550.00)

170,000.00

10,000.00

Month 5

0.00

10,000.00

15,000.00

25,000.00

(12,550.00)

25,000.00

170,000.00

10,000.00

59

Month 6

0.00

10,000.00

15,000.00

25,000.00

(12,550.00)

25,000.00

25,000.00

170,000.00

21

Month 7

160,000.00

15,000.00

15,000.00

190,000.00

(12,550.00)

190,000.00

25,000.00

25,000.00

22

Month 8

25,000.00

15,000.00

15,000.00

55,000.00

(12,550.00)

55,000.00

190,000.00

25,000.00

24

Month 9

25,000.00

15,000.00

15,000.00

55,000.00

(12,550.00)

55,000.00

55,000.00

190,000.00

41

Month 10

25,000.00

15,000.00

15,000.00

55,000.00

(12,550.00)

55,000.00

55,000.00

55,000.00

46

Month 11

160,000.00

15,000.00

15,000.00

190,000.00

(12,550.00)

190,000.00

55,000.00

55,000.00

50

Month 12

1,100,000.00

15,000.00

15,000.00

1,130,000.

(12,550.00)

1,130,000.

190,000.00

55,000.00

54

1,130,000.

190,000.00

72

1,130,000.

1,

Month 13

(12,550.00)

Month 14

(12,550.00)

62

49

Wiese Asia Sdn Bhd

Cash Flow Projection
For the Year Ended December 31, 2011

Wiese Asia Sdn Bhd

Income Statement and Statement of Retained Earnings
For the Year Ended December 31, 2011
Gross Sales
Cost of Sales
Gross of Margin
Expenses
Workshop Rental
Payroll
Office Expenses
Income before tax
Less: Income tax (25%)
Net Income
Cash Divides
Retained earnings December 31, 2011
Break Even at Month of 8

1,905,000.00
724.800.00
1,180,200.00
14,700.00
120,000.00
10,000.00
1,035,500.00
776,625.00
(258,875.00)
776,625.00
(356,700.00)
419,925.00

Bagus ni.
Ada beberapa section yang belum ada:
Team - who are the team members and their roles
Manpower needs (e.g. admin, welder, pipe fitter, permanent, contract,
etc)
Must be included in the cost
Market overview, locations
How big is this market? (e.g. number of loading arms per year, genset
service
contract, value per year .... etc)
Who are the major players, and market share
Target
What is our target (e.g. % of market share, number of loading arms ...
etc ....)
Problems expected
How to overcome the problems
How much we need, and when can we break even?
Kalau you nak buat untuk loading arm, hose dan service genset, kesemua
mesti ada
market research, cost & sales forecast.