Carton Network

7/31/2019 Carton Network

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TECHNOPRENEUR VENTURE


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emphasis will be corrugated packaging

materials such as cardboard boxes

primarily used for packaging goods and

materials

suitable for food,

pharmaceuticals, hardware,

and many other types of

products


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Born with the countrys move towardsindustrialization in the mid-1960s

Progress, as with all things, was painfully slow

at the beginning

By the late 1970s to early 1980s,

more than a dozen box plants were in

operation in Peninsular Malaysia


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To deliver products that meets our customer's

satisfaction through:

Commitment

Service Efficiency

Quality Products

Competitive Price

Prompt Delivery


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Pioneer : Be the premier in the industry

People : Be a great place to work where people

are inspired to be the best they can be.

Partners : Nurture a winning network of

customers and suppliers, together we create

mutual, enduring value.

Planet : Be a responsible citizen that

makes a difference by helping buildand support sustainable

communities.


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Profit : Maximize long-term return to

shareowners while being mindful of our overall

responsibilities.

Productivity : Be a highly effective, lean and fast-moving organization.


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A company is a legal entity that is separate and distinct from its

members and shareholders. When a company is formed, it is

said to have become "incorporated".

A company is capable of owning property,

making contracts, employing people and

being sued or of suing.


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Number of members : Minimum 2 , Maximum 50

Shares cannot be easily transferred by the members

The company cannot invite the public to subscribe for any

shares in or debentures of the company

The company cannot invite the public todeposit money


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Shall pay the registration fees

The persons must subscribe their names to the memorandum

of the company

Shall lodge the memorandum and the articles of the company

with the Registration


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Companies Act 1965 is applied - the principal legislation

governing the formation and operation of companies in Malaysia.

It enables an association of persons to form various types of

corporate organization known as registered company.

It protecting the right and interests of shareholders

in particular and investors in general,

It provides facilities for the incorporation ofcompanies, its constitution, its relation with

members and creditors, management and

winding-up.


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The separate legal person of a company exists independently

of the members.

A limited company has limited liability for

shareholders.

When a business failed, shareholders are protected against the

loss of more than the nominal value of their shareholding.

It provides greater capital potential than

sole proprietorship and partnership. Most

companies have ease in securing finance for

growth.


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May have difficulties to borrow as extensively

as desired, precisely they have limited liabilitythus banks and financial institutions may be

unable to recover their funds if the business

fails.

The growth is limited : as they cannot offer shares to the

general public thus pass-through of losses to investors is not

available.

It restricts the right of members to transfer their shares.


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PRIVATE (LIMITED) COMPANY

Cannot sell shares to the general public.

The name of private limited company ends

with the word "Sendirian Berhad" or

abbreviation "Sdn. Bhd.".

Liability of the members are limited by shares in the

memorandum.

A member cannot be asked to pay more than the amount

unpaid on his shares when the company is wound up.

If he has paid in full for his shares, he cannot be asked for any

further contribution.


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1) Application to the Companies Commission of Malaysia

(CCM) on the prescribed form (13A) to ensure the availability

of the proposed company's name.

1. Business may be registered using personal name or using a trade name.

2. Complete the Business Registration Form (Form A)

3. Every business owner and partner must sign the

completed Form.

4. Person responsible submit the application to counter

or through online via SSM e-Lodgement services in the

SSMs website


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2) Stamp the company documents- Memorandum and articles of association at

the Inland Revenue Board's Stamp Office


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3) File necessary documents with the Companies Commission

of Malaysia within three months after name reservation

- The original Form 13A and a copy of the letter from the CCM approving

the name of the company have to be attached as well.

- The memorandum and articles of association and the statutory declaration of

compliance (Form 48A)

- The address or location of the registered office.

- Form 6 (statutory declaration of compliance)upholding compliance with the requirements of the

Companies Act 1965 and the Companies Regulations


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4) Make a company seal

5) Purchase statutory books and share certificates books

6) Register with the Income Tax Department

- Purchased from certain specialized stationery shops.

- Registration of the company with the Inland

Revenue Board (IRB) is done via :

- Online http://ekl.hasil.gov.my/,

OR- Form 9 (Certificate of Incorporation)

- Form 49 (Return Giving Particulars in Register of

Directors, Managers and Secretaries and Changes of

Particulars)


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7) Register for Employment Provident Fund (EPF)

8) Register with Social Security Organization

9) Notify the Director General of the InlandRevenue Board of the employment of

workers

- Promoters register with Employment Provident Fund by completing the

applicable form (Form KWSP 1) and submitting the relevant documents

- The promoter complete the form and submit the relevant documents.

Form 1 (Employers' Registration Form)

Form 2 (Employees' Registration Form)


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B2B Marketing (Business Marketing)

Facilitating other industries operation by

providing corrugated carton box for them ascomponents in product/service they offer.


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Main Companies in BURSA with the need of

carton box for their product delivery.

For example: Stationeries Factory

Computer & Electronics company.

Any Industry with the need of

carton box to complete

packaging / operation.


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Analyze the market size by adopt company list

from Bursa Main Market list.

Go through the nature of business for all the 856main company website linked by Bursa.

Production (included foods) Palm Oil & Plantation

Construction

Yellow color to indicate category of potential market.


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702 (82%)

154 (18%)

ESTIMATE MARKET SIZE

Don't need Carton Box in business

Need Carton Box in business


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Booming economy and a flourishing organised

retail have raised the expectations

Consumption of corrugated packaging will

begin to expand again as the number and

volume of goods packaged in corrugated

increases


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More and more in-line automatic plants are

being set up

Corrugated box makers gear up to meet thenew demands for high precision boxes with

attractive graphics and large integrated

production capacities


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According to Malaysia Corrugated Carton

Manufacturers Association (MACCMA), there

are 72 companies manufacturing cartons.

Northern 18

Central 21

Southern 20

East 7

Single Facer 6


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Maximum Percentage 6.41 %

Minimum Percentage 0.06 %

Highest and Lowest Market Share in the Industry

Based on Kraft Paper Consumption per Year


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Our Kraft Paper Consumption

/ Year226.8 tonnes

Total Industry Consumption 936,600 tonnes

Estimated Market Share 0.0242 %
http://c/Users/Jun4hong2/Desktop/Slides/Kraft%20Paper%20Consumption.xlsx


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Number of Boxes per Company per year 74,800

Number of Companies 12

Standard Price RM 4.50

Projected Sales RM 4,039,200


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COST

CUSTOMER

CONVINIENCE COMMUNICATION


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Acting as an intermediate process factory,

therefore the price is consider as a sensitive

issues which might directly influence the price ofcustomers products.


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Encourage large order instead of little order to

meet win-win situation.

Provide product with different level of quality to

meet diverse needs.


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Assign three PR to in charge of three different

area which is having most industries within

Malaysia which is North Malaysia, East Malaysia,and Central Malaysia in order to put concentrate

on customer from different area.


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Review the customer product, understand their

way of packaging and design a best fit carton box

before we approach them to buy from us.


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Production efficiency is important in order to

foster customer loyalty and confidence toward our

company.

Provide product accessories.

Polystyrene,

Fiber board, Bubble wraper,

Sealing tape,

Sealing tape printing with its label,

Bottle rack , etc.

Example:


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Polystyrene


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Fiberboard Bubble Wraper

Bottle

Rack


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Sealing Tape


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Provide Catalog for On-line order and phone

order.(Avoid from time and place restriction.)


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Make sure the satisfaction of customers.

Understand the diverse needs and wants amongthe core customers.


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Reason :

Product demand is highly price elastic

The product is suitable for a mass market The product will face stiff competition

soon after introduction

There is not enough demand

amongst consumers to makeprice skimming work

Penetration pricing


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Forum Advertising

Website

Advertising Banner @ Website Doorstep Promoting

Newspaper Advertising


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Address: 14, Jalan Wawasan 5/2, Pusat Bandar Puchong, Puchong, Selangor, 47100

Building Type : Single Storey Factory Annexed 2 Storey Office (Partly furnished )

Land Area : 1.04 Acre/ 45,100sf

Built-up :

Factory - 14,320sf

2 Storey Office - 7,000sf

Total - 21,320sf

Electricity Supply : 3P 415V 1,000Amps

Floor: 2

Monthly Rental : RM1.31psf / RM28,000


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Area that enables to have our company and

factory in only one location

It located in the growth area with high density

population surrounding it


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It can accessible through

Lebuhraya Damansara Puchong (LDP)

North-South Highway

KESAS highway,ELITE highway

Kuala Lumpur-Seremban Highway through the Serdang-Puchong dual carriageway

that links Jalan Puchong to Serdang, Putrajaya, Cyberjaya

Kuala Lumpur International Airport

Subang Jaya

Kajang, Shah Alam, Sunway

Damansara

Kuala Lumpur city centre.


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Partly furnished which can save cost

It designed with utmost quality, modern look and

variety of different choices for buyers whichprovide values of good business communities.


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Peaceful & quiet location, near business

centre with amenities

Major banks & shops

Giant, Tesco, IOI Mall.

Primary and secondary school

Restaurants & cafes, bakery

Hospital, Bomba, Police Station


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Supplier Distance

Hai Ming Holdings Berhad 29km-35km

Muda Paper Mills Sdn Bhd 27km-31km


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Period of rapid escalation for raw materials price

- Buying large amount during the start of the year if the warehouse if big enough.

- Try to increase the price of our product.

- Try to make our raw own raw material as when we got enough money.

Erratic product quality (Product quality got problem)-The product is checked by the standard of carton box, and has passed ISO 9001:2000

certifications.

-If proof our product got problem, we willing pay back the lost of the company.

Lack of professional man power

-We will be sending our workers for proper training course to ensure efficient manpower

and maintain the quality of the workers.

- Ask the professional worker at the machine selling factory to teach our worker how to

use the machine


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Lack of raw material and resources/ delayed supply or no supply by suppliers

- Extra raw materials and resources will be purchased so as to ensure there is no

shortage.

- In the event where suppliers do not provide the resources as state in the contract, we

will be suing them.

- Get the material from the 2nd or 3rd supplier

No electricity supply and Electric break down

-Electric generators will be purchased, and used in the event when there is no electricity

supply

Owner does not want to continue rent the factory

-We will rent the factory and make sure a proper contract is set up between us and the

owner.

-We also can buy over the factory, if we have sufficient funds after few years.


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Labor Law

Holidays Act 1951

Employment Information Act 1953

Private Employment Agencies License 1981

Children & Young Person (Employment) Act 1966

Workers Minimum Standards Of Housing and Amenities

Act 1990

Weekly Holidays Act 1950

Wages Council Act 1947

Workmen Compensation Act 1952

Employment Act 1955


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http://c/Users/Jun4hong2/Desktop/Slides/Organization%20Structure.docx


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Salary List

Chief Executive Officer RM9600Chief Operating Office RM8800

Chief Financial Officer RM7000

1. Finance manager (1) RM56002. Assistant manager (1) RM4000

3. Financial analyst junior (1) RM2800

4. Account executive (1) RM1700


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1. Manager (1) RM4500

2. Assistant Manager (1) RM3000


2. PR manager (1) RM23003. PR staffs (3) RM6600

4. A&P director (1) RM2500

Salary List


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3. Mechanical Engineer (1) RM 2700

4. Quality control engineering (1) RM 2500

5. Factory workers (10) RM 11000



Salary List


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2. Driver (2) RM30003. Warehouse Manager (1) RM4500

4. Security (1) RM1400

5. Warehouse workers (4) RM4800

Salary List


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EMPLOYEE BENEFITS

1. EPF

2. SOCSO


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COMPANYCangzhou Baoli

Carton Equipment Manufacture co.,ltd

AddressJiaozhuang Industry

Cangzhou City Hebei province,

China.

Website

http://czbljx.com


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CONTACT

MSN:[email protected] (Sales

Manager)

E-mail: [email protected]

Mobile:0086-15932716432

Fax:+86-317-7800977


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Price : RM 556,000

Function : Produce 3 Layer Corrugated Board

Type : A, B, C, E, F

Material : 3 reel Kraft Paper

Workers : 4-6

Installation

+ Training : 2 Engineers (RM 420) X (15-20 days)

Total = RM 8400


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Characteristic

Length :48 meter

Speed : 20 -80 meter/min

The product is checked by the standard of carton box, and has passed ISO

9001:2000 certifications


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Price : RM 90,400

Function : Print & Slot/Cut The CorrugatedBoard (Input Output Function)

Material : Corrugated Board and water Ink

Workers : 2


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Characteristic

Speed : 0-60/min

Max paper coverage area(mm) : 1447x3200

Effective printing area(mm) : 1447x3000


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Price : RM 20,900

Function : Glue the slotted corrugated board(Input Output Function)

Material : Slotted Corrugated Board and

Glue

Workers : 2


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Characteristic

Speed : 1-75/min

Max Dimensions of Carton Unfolding : 26001000 mm

Advantages : Clean and No Noise


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Price : RM 3,700Function : Stapling the Corrugated Board

Material : Slotted Corrugated Board and

Stapling Bullet

Workers : 1 each


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COMPANYMAKONI MUPINDISH SERVICE

No. 37, Jln Brunai Barat,

89500 Penampang,

Sabah

CONTACT

Tel : +60146209572

Fax : +60380643890

Email : [email protected]

Skype :dbeedbee1

IM :[email protected]
mailto:[email protected]:[email protected]


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Kraft Paper

For 3 Layer Production Line 35 reels Kraft Paper/Month

RM 666/reel ( Total RM23,310 )

Glue

Gluing Machine & 3 Layer Production Line RM 2000/Month

Water Ink

For Printing Machine

RM 2000/Month


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Size Order quantity=500

(3% discount)Order quantity

>=1k


>=5k


>=10k

(20% discount)150 X 100 X100 0.25 0.24 0.23 0.21 0.20230 X 150 X150 0.55 0.53 0.51 0.48 0.44300 X 150 X150 0.63 0.61 0.59 0.56 0.50300 X300 X250 1.50 1.46 1.40 1.35 1.20450 X 300 X300 2.15 2.09 1.99 1.93 1.72450 X 500 X450 4.35 4.22 4.05 3.91 3.48500 X 400 X400 3.54 3.43 3.29 3.18 2.83500 X 500 X450

4.51 4.37 4.19 4.06 3.60

550 X 400 X400 3.67 3.56 3.41 3.30 2.93550 X 500 X500 5.26 5.10 4.89 4.73 4.20600 X 550 X500 5.69 5.52 5.29 5.12 4.50600 X 650 X500 6.22 6.03 5.78 5.60 4.98

RSC
http://www.cartonsgalore.com.au/thumbnaillarge/R3.jpg


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>=1k


>=5k


>=10k

(20% discount)36X36X36 3.64 3.53 3.39 3.27 2.9146X38X40 4.59 4.26 4.26 4.13 3.6746X38X26 3.25 3.02 3.02 2.92 2.6048X40X35 4.37 4.06 4.06 3.93 3.50

HSC with lid


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Five Panel Folder



>=1k


>=5k


>=10k

(20% discount)5X5X20 0.14 0.13 0.12 0.11 0.105X5X33 0.21 0.20 0.19 0.18 0.178X8X20 0.27 0.26 0.25 0.24 0.228X8X33 0.39 0.37 0.36 0.35 0.31

11X11X25 0.50 0.48 0.46 0.45 0.4011X11X50 0.83 0.80 0.77 0.74 0.6613X13X38 0.83 0.80 0.77 0.74 0.6613X13X50 1.02 0.98 0.94 0.91 0.816


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Other Types of carton box(custom made)FFSC

Diecut carton with hinged lid and base


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Telescoping 0200s box and lid set

Box and lid blank set

Buffer corner cut folder


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RSC

Length, m 0.6

Width, m 0.55

Height, m 0.5

Total Surface Area, 2 1.81

Production speed (2per

min)25.5

2 produced per hour 1530

2 producedperday

(4.5 hours)6885
http://www.cartonsgalore.com.au/thumbnaillarge/R3.jpg


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Number of Boxes produced per day 3804

Per month 76080

Per year 912960


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Logistics

Manager

Warehouse Manager

2 x Drivers Security 4 x Warehouse

workers

Employees


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Luton Van

(Daihatsu)2 104,269 208,538

Forklift 2 30,000 60,000

Platform

Trolley10 369 3690

Equipment & Prices


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Delivery Methods

Self Delivery Third Party Delivery


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Self Delivery Rate

Transportation Cost for

Each Shipment

RM 88

3 Companies /

3 monthsRM 264

Per Year RM 1,056


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Third Parties Rate

Transportation Cost for

Each Shipment

(Per 3 Months)

RM4,000

For 9 Companies RM36,000

Per Year RM144,000


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Maybank CIMB

Loan Amount RM 50,000 RM 3 Mil RM 50,000 RM 5 Mil

Repayment

Period

3 Years 5 Years

Interest rate 5 % 4% - 6% Depends on customer risk

profile

Eligibility shareholders' funds notexceeding RM10 million

Shareholders' fundnot exceeding

RM2 million


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http://c/Users/Jun4hong2/Desktop/Slides/Carton%20Network%20Financial%20Statements.xlsx


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Documents

Carton Network