Upload
wee-chek
View
219
Download
0
Embed Size (px)
Citation preview
INCINER5 Pte Ltd 2013
TABLE OF CONTENT
1 EXECUTIVE SUMMARY-----------------------------------------------------------------------------4
1.1 Introduction----------------------------------------------------------------------------------------------------------------------4
1.2 The Company--------------------------------------------------------------------------------------------------------------------4
1.3 Products and Services---------------------------------------------------------------------------------------------------------5
1.4 The Market-----------------------------------------------------------------------------------------------------------------------5
1.5 Financial Considerations------------------------------------------------------------------------------------------------------6
2 INTRODUCTION--------------------------------------------------------------------------------------7
3 COMPANY DESCRIPTION--------------------------------------------------------------------------9
3.1 Mission Statement-------------------------------------------------------------------------------------------------------------9
3.2 Vision-------------------------------------------------------------------------------------------------------------------------------9
3.3 General Descriptions of the Business------------------------------------------------------------------------------------10
3.4 Industrial Background-------------------------------------------------------------------------------------------------------12
3.5 Company Potential-----------------------------------------------------------------------------------------------------------14
3.6 Milestones----------------------------------------------------------------------------------------------------------------------15
3.7 Uniqueness of Product & Service-----------------------------------------------------------------------------------------16
4 PRODUCTS AND SERVICES----------------------------------------------------------------------23
4.1 Features-------------------------------------------------------------------------------------------------------------------------24
4.2 Benefits--------------------------------------------------------------------------------------------------------------------------28
4.3 Pricing Strategy----------------------------------------------------------------------------------------------------------------29
1 | P a g e
INCINER5 Pte Ltd 2013
5 MARKETING PLAN--------------------------------------------------------------------------------31
5.1 Market Research and Analysis--------------------------------------------------------------------------------------------31
5.2 Marketing Plan----------------------------------------------------------------------------------------------------------------40
5.3 Marketing Strategy-----------------------------------------------------------------------------------------------------------40
6 OPERATION PLAN---------------------------------------------------------------------------------42
6.1 Location--------------------------------------------------------------------------------------------------------------------------42
6.2 Rental----------------------------------------------------------------------------------------------------------------------------43
6.3 Transportation-----------------------------------------------------------------------------------------------------------------43
6.4 Legal Requirement------------------------------------------------------------------------------------------------------------43
6.5 Personnel------------------------------------------------------------------------------------------------------------------------44
6.6 Storage System----------------------------------------------------------------------------------------------------------------44
6.7 Provider/ Supplier------------------------------------------------------------------------------------------------------------45
6.8 Operating Cost-----------------------------------------------------------------------------------------------------------------46
6.9 Cost Rebate---------------------------------------------------------------------------------------------------------------------47
7 MANAGEMENT ORGANIZATION---------------------------------------------------------------48
7.1 Management Team and Key Personnel---------------------------------------------------------------------------------48
8 FINANCIAL PLAN-----------------------------------------------------------------------------------50
8.1 Financial Resources-----------------------------------------------------------------------------------------------------------50
8.2 Pro Forma Statement of Financial Performance---------------------------------------------------------------------52
8.3 Pro Forma Statement of Comprehensive Income--------------------------------------------------------------------53
2 | P a g e
INCINER5 Pte Ltd 2013
8.4 Pro Forma Statement of Changes in Equity----------------------------------------------------------------------------54
8.5 Pro Forma Cash Flow Statement------------------------------------------------------------------------------------------55
8.6 Break Even Analysis----------------------------------------------------------------------------------------------------------56
8.7 Financial Ratio Analysis-----------------------------------------------------------------------------------------------------58
8.8 Highlights------------------------------------------------------------------------------------------------------------------------59
9 BUSINESS RISKS------------------------------------------------------------------------------------60
9.1 Securing of Economic Efficiency-------------------------------------------------------------------------------------------60
9.2 Quantity and Quality Risks of Municipal Solid Waste--------------------------------------------------------------60
9.3 Clarification of the Scope of the Government Side------------------------------------------------------------------61
9.4 Inflation Risk-------------------------------------------------------------------------------------------------------------------61
9.5 Risks Related to Residents’ Opposition Campaign-------------------------------------------------------------------62
9.6 Local Business Partner-------------------------------------------------------------------------------------------------------62
9.7 Prospects of loans-------------------------------------------------------------------------------------------------------------62
10 CONCLUSION-------------------------------------------------------------------------------------63
11 APPENDIX----------------------------------------------------------------------------------------64
3 | P a g e
INCINER5 Pte Ltd 2013
1 Executive Summary
1.1 Introduction
INCINER5 Pte Ltd is a start-up waste management company that has been specialized on
incineration and gasification technologies since 2010. We had practiced our expertise widely
across China with the local authorities for 10 years before venture our business into Malaysia in
2010. We are located in Senawang Industrial Park, Selangor. INCINER5 expects to catch the
interest of clients with our feasible solid waste disposal services. Our company plans to build a
strong market position in the country, due to our partner’s industry experience and mild
competitive climate in Malaysia.
Our main serve purpose is aiming to provide an alternative solid waste management to Malaysia
with the most efficient and feasible incinerators. In the same time, the company offers products
at a competitive price to meet the industrial demand and local market areas such as hospitals and
restaurants.
1.2 The Company
INCINER5 is incorporated in Bandar Baru Bangi, Selangor. It is equally and owned by its 5
partners.
Mr Ahmad Nazrul Hakimi has extensive experiences in civil engineering and earned himself
MBA in University of Michigan, United Sates. He was a regional general manager of Waste
Management, Inc of South East Asia. Now he also owns a civil engineering company in Penang.
Mr Yeu Wee Chek brings experiences in the area of marketing and administration, including a
stint as chief marketing officer in manufacturing industry and the national retail store chain,
Padini Company.
4 | P a g e
INCINER5 Pte Ltd 2013
Miss Tee Yee Yeong comes from a strong analytical background of finance and she was
financial consultant who previously served Shell Malaysia and Dell Malaysia. Miss Noor Zaiyan
is an experienced human resources manager with 10 years experiences. Besides, we have Miss
Mazni joined the company as operation manager who work previously in Nestle Malaysia for 5
years.
The company intends to hire 3 engineers, 2 supervisors, 4 operators and 6 truck drivers to handle
customer service and day to day operations.
1.3 Products and Services
INCINER5 Pte Ltd is technology-based company, which has developed proprietary combustion
technologies for providing alternative solid waste disposal in Malaysia. We offer solutions for
the treatment for industrial hazardous waste and hospital medical waste, as well as organic
wastes from hotels and restaurants. We comply with the international standard ISO 14044 and
also certified by ISO 9001:2008 Malaysia Standard.
The company develop own unique WasteDry® technology that uses heat and vacuum to separate
the hazardous contaminants. The state-of-art of WasteDry® technology is also far more energy
efficient than other thermal incinerators and delivers extreme low emission volumes. Due to
higher moisture content of municipal wastes in Malaysia, INCINER5 Pte Ltd targets services
more in some specific fields like industry waste and medical waste rather than municipal waste.
1.4 The Market
The national development and industrial activities has grown rapidly under boost of Malaysia
Economical Plan. Plus, community populations are growing dense and exponentially. These
factors lead to generate tones of solid wastes throughout the year.
INCINER5 wants to establish a large regular customer base, and will therefore concentrate its
business and marketing on industrial clients, as well as hospital and retailed restaurant potential
5 | P a g e
INCINER5 Pte Ltd 2013
clients. This will establish a healthy, consistent revenue base to ensure stability of business. The
target segments are industry sector mainly manufacturing sector, since that this industries
growing rapidly over the year.
1.5 Financial Considerations
The company anticipates sales of about RM 3,210,000 in the first year 2013, RM 3,691,500 in
the 2014 and RM 4,245,225 in 2015, the third year of plan. It should break even by the sales of
RM 3,219,000 of its operation. Hence, it expects to welcome the break even after the first three
month in 2014 as sales steadily increases. The company does not anticipate any cash flow
problems.
6 | P a g e
INCINER5 Pte Ltd 2013
2 Introduction
INCINER5 Pte Ltd was incorporated on the 8th August 2010 and was registered in the same year
as an incinerator manufacture and management Company. Its Head Office is located;
41-43, Kawasan Perindustrian Senawang,
70450 Seremban,
Negeri Sembilan, Malaysia.
INCINER5 has been specialized on incineration technology since 2010 and has Certified ISO
9001:2008 quality management system and CE Certificate. INCINER5 aims to manufacture the
most efficient and feasible incinerators while maintaining the environmental quality and
sustainability. In accordance with those scopes, many incinerators serving for different purposes
has been manufactured and most of them has satisfied the requirements of the customers and are
still in operation. INCINER5 is superior to other waste disposal systems because of its,
Easy maintenance,
Fully automated control mechanism that prevents operational handicaps,
Compliance with EPA and EU regulations related to solid and
Hazardous waste incineration.
Minimized operational and maintenance cost,
Energy can be recovered by means of heat recovery.
Easy accessibility of the spare parts,
Feasibility and long life.
Following types of machines are currently in our area of business; Hazardous Waste Incinerator Medical Waste Incinerator Animal Waste and Carcass Incinerator (Crematory) Sludge Incinerator Shipboard Incinerator Propellant Incinerator
7 | P a g e
INCINER5 Pte Ltd 2013
INCINER5 Pte Ltd has supplied over 10,000 produce and sell incinerators of various types to
meet the demand of customers toward achieving the company primary mission.
“WORKING TOGETHER TO KEEP OUR WORLD CLEAN”
INCERN5 Pte Ltd is proud of these accolades, but the greatest reward is the satisfaction in
protecting the integrity of the Earth’s natural resources. From the employees who manufacture
pollution control and recovery products, through the dealer network, and ultimately to the
responders who work tirelessly to clean up environmental disasters, INCERN5 Pte Ltd is
dedicated to the mission of keeping our world clean.
8 | P a g e
INCINER5 Pte Ltd 2013
3 Company Description
3.1 Mission Statement
INCINER5 Pte Ltd
Is committed to the pursuit of
Excellence In Quality.
Our aim is to manufacture the most efficient and feasible incinerators while maintaining the
environmental quality and sustainability.
To provide customized solution through reliable, efficient, safe, and cost effective waste-to-
energy (WtE) plants that meet the highest environmental standards and to provide excellent
services that satisfy our customers’ requirements.
3.2 Vision
“To be innovative leader in the field of combustion technology for the biomass industry”
INCINER5’s main objective is to maintain and continuously improve the quality of its services
and product by implement the seven pure values:-
I : Integrity
N : Nurture
C : Cooperation
I : Innovate
N : Notable
E : Endeavour
R : Resourceful
5 : ‘5S’ Concept (Sorting, Straightening, Systematic Cleaning, Standardize, Sustain)
9 | P a g e
INCINER5 Pte Ltd 2013
3.3 General Descriptions of the Business
COMPANY NAME INCINER5 Pte Ltd
ADDRESS 41-43, Kawasan Perindustrian Senawang,
70450 Seremban,
Negeri Sembilan,
Malaysia.
TELEPHONE NUMBER +606-678 6759
FACSIMILE NUMBER +606-678 6760
EMAIL ADDRESS [email protected]
WEBSITE www.inciner5.com .my
INDUSTRY Manufacture
BUSINESS TYPE Manufacturer, retail sales, wholesale supplier,
exporter
STRUCTURE OF BUSINESS Partnership
DATE OF REGESTRATION 8th August 2010
DATE OF COMMENCEMENT 9th September 2010
PRODUCTS Hazardous Waste Incinerator Medical Waste Incinerator Animal Waste and Carcass Incinerator
(Crematory) Sludge Incinerator Shipboard Incinerator Propellant Incinerator
10 | P a g e
INCINER5 Pte Ltd 2013
INCINER5 Pte Ltd located in Senawang Industrial Park, Senawang, Negeri Sembilan is a
company which manage the waste product from industries, restaurants, hazardous waste, medical
waste, animal waste, municipal waste, sludge, and others. INCINER5 also produce and sells the
Incinerators at reasonable price and high quality. INCINER5 has a wide range of incinerator
products, namely Hazardous Waste Incinerator, Medical Waste Incinerator, Animal Waste and
Carcass Incinerator (Crematory), Sludge Incinerator, Shipboard Incinerator, and Propellant
Incinerator. This product has been manufactured at the factory owned by INCINER5 Pte Ldt by
skilled workers to ensure the quality of the product produced is assured. This product is produced
using high-quality materials that have been imported from great authority like China and USA.
INCINER5 Pte Ltd sells their products through various ways of purchase the product directly
with us at our company located at 41-43, Kawasan Perindustrian Senawang, 70450 Seremban,
Negeri Sembilan, or purchase through our legal agents or make purchases via online at
www.inciner5.com .my , by filling in the booking form from our website. The booked items will
continue to be sent to the recipient address at no extra charge.
The name INCINER5 means ' INCINER ' which is the incinerators product that produced and
sold by our company. We are very proud of the products we produce because the product is one
of the medium to us to serve the public in General and the environment in particular. Number ' 5
' on the other hand means INCINER5 is establish due to the agreement among its five partners;
Tee Yee Yeong, Ahmad Nazrul Hakimi, Yeu Wee Chek, Mazni Jamaludin and Zaiyan Misyan
With the proportion of ratios contribution of 1:1:1:1:1. All the capital, profit and loss, goodwill,
disbursement, liquidation and any other transaction 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.
11 | P a g e
INCINER5 Pte Ltd 2013
3.4 Industrial Background
Incineration is a waste treatment process that involves the combustion of organic substances
contained in waste materials. Incineration and other high-temperature waste treatment systems
are described as "thermal treatment". Incineration of waste materials converts the waste into ash,
flue gas, and heat. The ash is mostly formed by the inorganic constituents of the waste, and may
take the form of solid lumps or particulates carried by the flue gas. The flue gases must be
cleaned of gaseous and particulate pollutants before they are dispersed into the atmosphere. In
some cases, the heat generated by incineration can be used to generate electric power.
Incineration with energy recovery is one of several waste-to-energy (WtE) technologies such as
gasification, pyrolysis and anaerobic digestion. While incineration and gasification technologies
are similar in principle, the energy product from incineration is high-temperature heat whereas
combustible gas is often the main energy product from gasification. Incineration and gasification
may also be implemented without energy and materials recovery.
In several countries, there are still concerns from experts and local communities about the
environmental impact of incinerators (see arguments against incineration).
In some countries, incinerators built just a few decades ago often did not include a materials
separation to remove hazardous, bulky or recyclable materials before combustion. These
facilities tended to risk the health of the plant workers and the local environment due to
inadequate levels of gas cleaning and combustion process control. Most of these facilities did not
generate electricity.
Incinerators reduce the solid mass of the original waste by 80–85% and the volume (already
compressed somewhat in garbage trucks) by 95–96%, depending on composition and degree of
recovery of materials such as metals from the ash for recycling. This means that while
incineration does not completely replace landfilling, it significantly reduces the necessary
volume for disposal. Garbage trucks often reduce the volume of waste in a built-in compressor
before delivery to the incinerator. Alternatively, at landfills, the volume of the uncompressed
12 | P a g e
INCINER5 Pte Ltd 2013
garbage can be reduced by approximately 70% [citation needed] by using a stationary steel
compressor, albeit with a significant energy cost. In many countries, simpler waste compaction is
a common practice for compaction at landfills.
Incineration has particularly strong benefits for the treatment of certain waste types in niche
areas such as clinical wastes and certain hazardous wastes where pathogens and toxins can be
destroyed by high temperatures. Examples include chemical multi-product plants with diverse
toxic or very toxic wastewater streams, which cannot be routed to a conventional wastewater
treatment plant.
Waste combustion is particularly popular in countries such as Japan where land is a scarce
resource. Denmark and Sweden have been leaders in using the energy generated from
incineration for more than a century, in localized combined heat and power facilities supporting
district heating schemes. In 2005, waste incineration produced 4.8% of the electricity
consumption and 13.7% of the total domestic heat consumption in Denmark. A number of other
European countries rely heavily on incineration for handling municipal waste, in particular
Luxembourg, the Netherlands, Germany and France.
13 | P a g e
INCINER5 Pte Ltd 2013
3.5 Company Potential
Awareness and open the eyes of the general public about the advantages and the positive
effect the use of incinerator.
Always do research so as to enhance the effectiveness of the use of the incinerator to the
public, animals and the environment.
Increase the number of agents who check to expand and launch the selling products this
incinerator.
Able to open a new factory branches in other countries such as Thailand, Indonesia and
others to expand this business and earn higher profits.
Long term goal was able to contribute to the general public and the environment by
helping solve the problem of disposal of rubbish that has various adverse effects to
humans and the environment. In addition, by using this product we can reduce the use of
land for landfills.
14 | P a g e
INCINER5 Pte Ltd 2013
3.6 Milestones
Week 1(12/09/13)
Week 2(19/09/13)
Week 3(26/09/13)
Week 4(10/10/13)
Week 5(17/10/13)
Week 6(24/10/13)
Research- Brainstorming (idea)- Finding information- Discuss
Combine- Make decision of product- Product design- Modify
Assign job by section- Marketing: Yee Yeong- Operation: Hakimi- Management: Wee Chek- Financial: Mazni- Catalog: Zaiyan
Combine- Review and doing correction- Making slide show
Prepare for presentation- Rehearsal
Presentation of Business Plan
15 | P a g e
INCINER5 Pte Ltd 2013
3.7 Uniqueness of Product & Service
3.7.1 Medical Waste Incineration Systems
Medical waste, due to its content of hazardous substances, poses serious threats to environmental
health. They composed of all types of wastes generated by health care organizations such as
hospitals, clinics, physicians' offices, dental offices, veterinary facilities and other medical
laboratories and research facilities. This waste is very heterogeneous in nature and often contains
some infectious elements, thus it is essential that the handling and disposal of the waste is
conducted safely. Medical wastes that can be incinerated include: Infectious wastes from hospitals, Healthcare wastes from hospitals, clinics and polyclinics, Wastes from maternity hospitals, Expired drugs, Surgery wastes, Biomedical wastes, Pathological wastes, Pharmaceutical wastes.
About 85% of a hospital's waste is general refuse, while the remaining 15% is contaminated with
infectious agents (e.g. microbiological cultures, blood and blood products, isolation wastes from
patients with communicable diseases, pathological specimens and sharps). Landfilling as a
method of disposal for medical wastes may lead big problems. First of all, there is a demand for
large area to landfill the wastes. Moreover, there should be no settlement site near landfill due to
its possible hazards to human life. Odor is the first problem that the people living close to landfill
area may face with. Additionally, leakage originated in the landfill cause soil and groundwater
contamination as well as the surface water contamination.
Unlike other methods of handling such as sterilization or autoclave disinfection, incineration
creates much less end-products. After a complete combustion of medical wastes, incineration
reduces the weight and volume of the waste as much as 95%. Moreover, above mentioned
16 | P a g e
INCINER5 Pte Ltd 2013
methods are not suitable for every type of medical wastes, like pathological tissue, chemotherapy
waste, and sharps, whereas the incinerator can be used for all types of wastes originated in the
healthcare institutions.
3.7.2 Animal Waste Incineration Systems
Animal wastes from various sources need to be handle with special care. INCENER5 offers
well-suited solutions for specifically designed for your animal wastes. Animal wastes include: Poultry animals infected from Bird Flue Disease, Farm animals infected from Swine Flu Disease, Farm animals infected from Mad Calf Disease, Animal Carcasses form Slaughter houses, Experimental Animals, Poultry animals from farms, Pet Crematoriums, Animals from zoo.
Animal Carcass Incinerators are designed especially for safe destruction of animal by-products
originated from various sources and listed above. Animal by-products (ABPs) are described as
animal carcasses, parts of carcasses or products of animal origin that are not intended for human
consumption. This includes catering waste, used cooking oil, former foodstuffs, butcher and
slaughterhouse waste, blood, feathers, wool, hides and skins, fallen stock, pet animals, zoo and
circus animals, hunt trophies, manure, ova, embryos and semen.
INCINER5 Incineration Systems are fully in compliance with the EU Animal By-Products
Regulation (EC 1774/2002). INCINER5 Animal Carcass Incinerators are designed in such a way
that the gas resulting from the process is raised in a controlled and homogeneous fashion, even
under the most unfavorable conditions, to a temperature of 850 oC with 2 second residence time.
For on-farm use, INCINER5 developed Incinerator Systems with the capacity of less than 50
kg/h so that these incinerators are classified as low-capacity range incinerators and exempt from
17 | P a g e
INCINER5 Pte Ltd 2013
planning permission. INCINER5 Animal Carcass Incinerators can be manufactured as mobile
especially for the applications of incineration of poultry wastes infected from Bird Flue Disease.
3.7.3 Sludge Incineration Systems
Sludge is a great problem for wastewater treatment plants. This problem grows every day since
the amount of sludge increases continuously and the land required for the storage of the sludge.
Moreover, it has some other problems like odor when it is kept in open areas.
Sludge originates from the process of treatment of waste water. Due to the physical-chemical
processes involved in the treatment, the sludge tends to concentrate heavy metals and poorly
biodegradable trace organic compounds as well as potentially pathogenic organisms (viruses,
bacteria etc) present in waste waters. Wastewater characteristics and specific sludge production
vary from country to country and from region to region. There are several sludge characteristics
that have a great influence on the costs of sludge treatment. The water content is very important
as it determines the sludge volume and therefore feasibility and costs of transportation and
disposal. The solids and water content of sludge depends on the type of sludge (e.g. primary
sludge, waste activated sludge, chemical sludge) and the type and quality of its treatment (e.g.
sludge digestion) and on the method of sludge thickening and dewatering.
Moreover, for the land application of sludge there exist some limiting factors such as heavy
metal content. In the case of land application, harmful effects of the sludge will be presented on
soil, vegetation, animals and humans.
As a result of the existing methods used in regular wastewater treatment plants, water content of
the sludge can be reduced approximately to 75%. This means that sludge still contains 75%
water and only 25% solid matter. Therefore, total volume and weight of the sludge still remains
as a great problem. Landfilling is not a solution for sludge disposal. On the contrary, it creates
other problems and it has a great cost for the transportation and Landfilling. Furthermore, EU
regulations states that wastes are to reduce by 2010 the amount of biodegradable municipal waste
sent to landfill to 75 per cent of that arising in 1995, with further reductions to 50 percent by
18 | P a g e
INCINER5 Pte Ltd 2013
2013 and 35 percent by 2020. Therefore, Landfilling seems not to be a solution for sludge
handling.
At this point, INCINER5 offers a system which decreases the total volume of the sludge to about
5% of its original volume with the name of Sludge Fuelisation System. Within this system,
Sludge first fed to the drying unit and dried sludge is directed to the incineration unit. With the
incineration of dried sludge necessary energy for the drying process is provided. INCINER5
Sludge Fuelisation System consists of 2 processes which are Sludge Drying System and Waste
Incineration System.
3.7.4 Hazardous Waste Incineration Systems
Hazardous Waste has listed it in one of three categories:
i. Source-Specific Waste: This list includes waste from specific industries such as
petroleum refining, wood preserving and secondary lead smelting, as well as sludge and
production processes from these industries,
ii. Generic Waste: This list identifies waste from common manufacturing and industrial
processes including spent solvents, degreasing operations, leachate from landfills and ink
formulation waste,
iii. Commercial Chemical Products: This list includes some pesticides, creosote and other
commercial chemicals
19 | P a g e
INCINER5 Pte Ltd 2013
Examples of Hazardous Waste Generated By Industries and Businesses:
Waste Generator Chemical Manufacturers
Chemical Manufacturers Acids and Bases, Spent Solvents, Reactive Waste, Wastewater
Containing, Organic Constituents
Printing Industry Heavy Metal Solutions, Waste Inks, Solvents, Ink Sludge
Containing ,Heavy Metals
Petroleum Refining
Industry
Wastewater Containing ,Benzene & other
Hydrocarbons ,Sludge from Refining Process
Leather Products
Manufacturing
Toluene and Benzene
Paper Industry Paint Waste Containing, Heavy Metals, Ignitable Solvents
Construction Industry Ignitable Paint Waste, Spent Solvents, Strong Acids and Bases
Metal Manufacturing Sludge containing ,Heavy Metals, Cyanide Waste, Paint Waste
20 | P a g e
INCINER5 Pte Ltd 2013
Working Principle
Hazardous wastes can be in the form of liquid, solid, gas, or sludge. They can be discarded
commercial products, like cleaning fluids or pesticides, or the by-products of manufacturing
processes. All hazardous waste in the form of solid, liquid, gas and sludge can be destroyed by
INCINER5 Incineration system.
To achieve individual charging of liquid wastes, incineration system is equipped with a liquid
injection system through which liquid charging to the combustion chamber is achieved. Flow is
given to the system via two spray nozzles namely double fluid atomizers. Double fluid atomizers
are used to get very fine droplets in order to get better incineration efficiency.
Hazardous Waste Incinerators has two combustion chambers. In the main combustion chamber
wastes are incinerated in 900 °C with the principle of starved air incineration and the flue gas
originated in this chamber is directed to the secondary combustion chamber. In the secondary
combustion gases formed during the incineration of wastes in the main combustion chamber are
re-burnt at 1200 °C during 2 seconds. Excess air is provided to the secondary combustion
chamber to achieve complete combustion of organic content of the waste.
Hazardous waste has high calorific value so it can be used as a source of energy. Therefore, in
the incineration process, it requires less fuel to increase its temperature to 1200 °C. Waste energy
most often recovered as steam can be used to generate electricity. There are two main
Regulations for the Hazardous Waste Incineration Systems in the world; namely, EPA and EU
2000/76/EC. INCINER5 Incinerators can be designed fully in compliance with both of these
regulations as well as the local standards.
In order to be fully in compliance with the desired Emission Standards, INCINER5 Incineration
Systems Includes flue gas treatment units. Flue Gas Treatment in these systems is multi pollutant
control approach to remove the hazardous content of combustion gas originated due waste
incineration
Advantages of INCINER5 Incinerator for Hazardous Waste:
21 | P a g e
INCINER5 Pte Ltd 2013
Hazardous waste incineration method is suitable for a wide range of hazardous wastes
such as highly flammable, volatile, toxic and infectious waste streams which should not
be landfilled INCINER5 Incinerators designed to be fully in compliance with desired emission
standards, Moisture content causes no problem, Produces clean ash in small volumes, Produces no dioxins even with added chlorine, Product gas has a much higher heating value, Feed contaminants, such as chlorine & sulfur, are reduced to their acid forms Possibility of energy recovery
22 | P a g e
INCINER5 Pte Ltd 2013
4 Products and Services
INCINER5 Ltd is technology-based company, which has developed proprietary combustion
technologies for providing alternative solid waste disposal in Malaysia. In 2009, the government
launched the National Green Technology Policy by putting green innovation initiatives inside
government agenda. The purpose of this policy aims to spur green technology as a driver of
economic growth by increasing the national capabilities and green innovations and sustainable
development.
This has attracted our company joined as a player in this new emerging market of waste
management. Therefore, we are targeting waste management as our policy key area. We design,
develop and market waste-to-energy and incineration system services for solid waste disposal
throughout Malaysia.
We offer solutions for the treatment for industrial hazardous waste and hospital medical waste,
as well as organic wastes from hotels and restaurants. Our aim is trying to avoid achieving
conservation of material resources instead.
Besides, we take into accounts of all the operation process to follow the Life Cycle Assessment
(LCA) to reduce environment impacts. Therefore, we comply with the international standard ISO
14044 that specific requirements and provides guidelines for Life Cycle Assessment. Besides, we
also certified by ISO 9001:2008 Malaysia standards.
23 | P a g e
INCINER5 Pte Ltd 2013
4.1 Features
With more than 10 years of experience in serving waste management technologies, our research
team developed the unique WasteDry® technology that uses heat and vacuum to separate the
hazardous contaminants like mercury, pesticides, organic lead compounds as well as other
evaporable hydrocarbons. The state-of-art of WasteDry® technology not only allows for
different kinds of waste to be recycled, but it is also far more energy efficient than other thermal
incinerators and delivers extreme low emission volumes.
4.1.1 Incinerator Service
In early time, incineration was always considered to be the safest and most economical way of
treating and disposing solid waste. However it is considered not very economical in dealing with
the municipal solid waste in Malaysia. This is because solid waste in Malaysia contains higher
composition of organic waste when compared to other Europe countries and China. Due to this
reason, higher fuel consumptions are needed to combust the solid waste effectively. We target
our services more in some specific fields like industry waste and medical waste rather than
municipal waste.
Medical Waste
As a leading provider in medical waste disposal services, protecting people and environment
from the risk associated with biohazards is at the heart of what we do. Medical waste, also
known as biohazards waste, consists of solids, liquids, sharps, and laboratory waste that are
potentially infectious and dangerous. Disposal of this waste is an environmental concern, as
many medical wastes are considered as biohazard that can potentially lead to infectious disease.
Therefore, it must be managed properly to protect the public health. A conventional disposal of
medical waste into landfill is not longer sustainable. By working together, INCINER5 Ltd
provides a sustainable waste disposal programme by offering our clients with full complements
of medical waste services. It is including the advanced autoclave and WasteDry® technologies
(high efficient combustion incineration technologies).
24 | P a g e
INCINER5 Pte Ltd 2013
Through a controlled process of pressure, temperature and retention time, the infectious
hazardous waste can be converted into harmless residues. Additionally, by a further drying
process with advanced technology of WasteDry®, it is also possible to convert these residues
into a refuse derived fuel. To distinguish ourselves from numerous available incinerator systems,
we have developed a incinerator plant with an exceptionally high throughput capacity between
500 and 2000 kg/h. This high throughput capacity which is only operated in one single sterilizer
chamber and it makes our technology unique in Malaysia. Other than that, the incinerator is
equipped with a shredding system which is accordance to Malaysia recommendations for the
treatment of infectious waste.
Industrial Waste
The manufacturing company and technology company produce a wide range of hazardous waste
that legally requires a responsible disposal route, this includes the use of a license waste carrier
with the appropriate site permits. All the industrial wastes possess critical risk towards
environment and huge adverse impact to human health. Often, the waste products from industry
activities leach into environment through the land and air adversely affect the health of human
and wildlife. It is revealed that discharges from industry factories contain high level of heavy
metals like boron, cadmium, lead and other nitrogen products that pollute environment.
Therefore, we are using incinerator service system to solve the industrial sludge problems.
Besides, we are determined to help client to solve the garbage in large production, such as roof
replacement, where nails and shingles create a volume of waste. Our intention is to help
customer to reduce the garbage volume and thus divert more waste from landfill. Our company
can provide a one stop service for all engineering waste including metal (ferrous and
nonferrous), oils, greases, fluorescent tubes, batteries and chemicals. We offer the infrastructure
and flexibility to collect all types of waste whilst still providing a reliable and efficient service at
a low cost.
We will provide the collection and disposal of client’s waste, including difficult and hazardous
waste streams such as electronic trash. With a fully tracked waste service and a range of
approved recycling process, our customer can be rest assured that their waste will be dealt in a
responsible manner. After the industrial trash is being incinerated, the ash that is left behind is
25 | P a g e
INCINER5 Pte Ltd 2013
sterile and can be disposed safely in a normal landfill. A part of the residues metal can also be
recycled. Other than that, we equip heat restore system in our incinerator. Part of the heat will be
used to generate electricity and turbine steams in the incinerator plants.
4.1.2 Plasma Gasification
Plasma gasification is an emerging technology which can process solid waste to extract
commodity recyclables and convert carbon-based materials into fuels. It can form an integral
component in a system to achieve zero-waste and produce renewable fuels, whilst caring for the
environment. Plasma arc processing has been used for years to treat hazardous waste, such as
incinerator ash and chemical waste, and convert them into non-hazardous slag.
Well, the technology is one of the green initiatives to convert solid wastes into biomass gas
products. Thus, we are introducing the technology of gasification to help client dispose organic
wastes like residual foods and garden waste from plantation instead of landfill. Gasification has
great potential to operate effectively than other pyrolysis and combustion system due to its high
temperature, heat density and nearly complete conversion of organic compounds into syngas
whist non-organic converted into slag.
Syngas is a simple fuel gas comprised of carbon monoxide and hydrogen that can be combusted
directly or refined into higher-grade fuels and chemicals. Slag is a glass-like substance which is
the cooled remains of the melted waste. It is tightly bound, safe and suitable for use as a
construction material. This technology has proven reliable in transforming environment
liabilities into renewable energy assets.
We would to develop this technology that can benefits the restaurants and plantation field, our
community and achieve greater environment. It can help restaurant and plantation industry
towards a more sustainable image.
26 | P a g e
INCINER5 Pte Ltd 2013
4.1.3 Sell/Order Online
INCINER5 also sell our incinerator products online, where we have a web site
(www.inciner5.com.my) that shows our products catalogue online, and we accept customer order
online. Our customer can choose to come to our shop to collect their incinerator or we can send
their incinerator by using courier service for free of charge. For those who buy our product(s)
can make their payment online by using credit card, master card, internet banking and other
acceptable method.
27 | P a g e
INCINER5 Pte Ltd 2013
4.2 Benefits
Industries and municipal authorities have always struggled with the mechanisms of waste
reduction and the methods previously used for waste disposal are getting limited. Due to the
rapid urbanization and industrialization, waste management concerns are becoming critical.
Landfill sites are shrinking and hazardous wastes cannot be dumped in landfills without treating
them. Therefore incineration is the most attractive option as compared to other disposal methods.
Here is the list of advantages of waste incineration:
Volume of waste incinerated is reduced by 90-95%
Minimum land is needed for operation compared to the dimension of landfill.
Life span of landfill can be increased.
The waste residues can be recycled and reused as concrete aggregates.
Incineration ash is sterile can be safely disposed off in normal landfill.
Hazardous component of waste can be destroyed.
Waste can be incinerated on site without having need of transporting it.
Emissions after combustion can be effectively controlled by installing air pollution
control devices such as gas scrubbers
The incineration provides two possibilities of produced energy: (i) first of all distinct
heating can be produced with the help of hot water (ii) electricity can be provided by the
means of steam turbines.
The running cost can be reduced by recovering the heat in the forms like hot water,
generating electricity, steam and etc.
Provide alternative solid waste disposal system to Malaysia
Reduce the natural loading by diverting more waste from landfill
Can control the infectious pollution
Decrease greenhouse gas emissions from landfill
28 | P a g e
INCINER5 Pte Ltd 2013
4.3 Pricing Strategy
Pricing strategy is basically built upon a solid understanding of the 5Cs of pricing: customers,
competition, cost, capacity and cycle (business cycle). Therefore, it is necessary for us to gather
the necessary data to help us understand better the five factors in the market. After that, we can
combine the data with our extensive experiences to create high impact strategies to drive our
incinerator service business forward.
4.3.1 Target Return Pricing
Target return pricing is the process of setting an item/service’s price by using an equation to
compute the price that will result in certain level of planned profit. By using a target return
pricing method, we are able to sell incinerator service at such level that to meet its profit
objectives if the sale is run at or above the specified quantity and amount. We start with a rate of
return objective, like 10% of invested capital. After that, we will arrange our price structure in
such a way it is likely to meet the target of return.
4.3.2 Market Oriented Pricing
Research into incinerator service target market is the first step to managing a market-oriented
pricing strategy. Firstly, we need to identify our customer market and which specific business
field that we are going to provide the services. Then, the segments are narrow down into ideal
markets containing the most desired consumers. Well, it is possible for us to choose to target
more than one market segment, this is because the demand of waste management in Malaysia is
huge. Most of the community needs some professional service to help them cater all the solid
waste disposal problems.
Other than that, the environment surrounding our product/service, company and target market
members play a role in pricing strategy. Factor of influence including the product’s lifestyle
stage (in our case, we consider growing), the diversity of target market preferences, industry
standards, our company available resources and capabilities and also the competitive
atmosphere.
29 | P a g e
INCINER5 Pte Ltd 2013
4.3.3 Value Based Pricing
The term is used when prices are based on the value of a product as perceived from the
customer's perspective. The perceived value determines the customer's willingness to pay and
thus the maximum price a company can charge for its product.
An essential component of value-based pricing is the necessity to determine the value for the
customer. In order to define the value a customer associates with a product, the customer value
model can be applied. This concept evaluates the economic benefits a product can offer to the
customer. In this case, we calculate the rate of pricing depending on the benefits we generate for
the client.
Incineration Packages Price (RM)
Medical Waste Contract range from 50,000 to 75,000 per year
Industrial Waste Contract range from 45,000 to 200,000 per year
which depend on the scale of waste
disposal
Organic Waste Contract range from 7000-9000 per year
Incineration Services Price (RM)
Medical wastes 500 (per kg)
Waste 1 ton capacity truck 2000 (per truck)
30 | P a g e
INCINER5 Pte Ltd 2013
5 Marketing Plan
5.1 Market Research and Analysis
Malaysia, like most of the developing countries, is facing an increase of the generation of waste
and of accompanying problems with the disposal of this waste. Waste is grouped into three
different categories in respect of disposal, which are solid waste, medical waste and hazardous
waste. According to a study by E. Grant Anderson in five states, Kuala Lumpur, Selangor,
Pahang, Terengganu and Kelantan which representing 70 % of the total amount of waste in the
country, the composition of waste is shown in Figure 5.1.
64%
25%
8%3%
domestic industrial commercial construction and institution waste
Figure 5.1: Waste Composition
Source : Roundtable on Urban Solid Waste Management. Privatization Management
on Solid Waste in Developing Countries, The Malaysia Experience
Industrial toxic and hazardous wastes are two of the key environmental pollutants. The absence
of an effective management regime for these wastes has created many issues and opportunities.
Rapid technological development enables these wastes to be handled and treated safely albeit
31 | P a g e
INCINER5 Pte Ltd 2013
increasing amount of toxic and hazardous wastes are generated. One of the solutions to this
hazardous waste generated is resolved using incinerator.
5.1.1 Target Market
The target market is defined by the customer needs that create the market and the attractiveness
of the market based on strategic value, market size, market growth, and potential for profit. We
offer solutions for the treatment for industrial hazardous waste and hospital medical waste, as
well as organic wastes from hotels and restaurants. So, the ideal customer for INCINER5 Ltd is
company or industry that produced waste will be like manufacturing plant, hospital medical,
hotel, and restaurant. The target segments are industry sector mainly manufacturing sector, since
that this industries growing rapidly over the year.
5.1.2 Market Segmentation
Manufacturing Industries
Manufacturing industries that produce many hazardous waste especially involving
chemical compound that can harm to human.
Automotive industries
Paint industries
Medical Facilities
Hospital generates many clinical waste, which is very dangerous and it need to be
incinerate.
Commercial Industries
Hotel and restaurant also give out waste that need to be treated, which mainly consist of
organic matter.
32 | P a g e
INCINER5 Pte Ltd 2013
5.1.3 Market Size and Trend
Over the past decade, Malaysia has enjoyed tremendous growth in its economy and population,
this resulted in an increase in the amount of waste scheduled generated. Furthermore, scheduled
waste management has long been a problem area for local authorities in Kuala Lumpur.
Continued illegal dumping by waste generators is being practiced at large scale due to lack of
proper guidance and awareness. In 2007, the Department of Environment Malaysia (DOE) was
notified that 1 698.118 metric tonnes were generated.
As in many other developing countries, the generation of clinical waste in Malaysia has
increased significantly over the last few decades. Even though the serious impact of the clinical
waste on human beings and the environment is significant, only minor attention is directed to its
proper handling and legal aspects. Currently, clinical is reported together with pharmaceutical
waste. The total clinical waste generated is about 8000 tonnes per year and DOE (2005)
estimated that the generation rate for clinical waste varies from 0.3 to 0.8 kg per occupied bed
per day.
There are also on-site industrial incinerators, for example a waste-to-energy plant in a paper mill
to dispose waste paper sludge and a 4 ton/day combustion paint sludge incinerator in a national
car manufacturer factory.
33 | P a g e
INCINER5 Pte Ltd 2013
5.1.4 Market Share
Currently, there are various facilities have been approved for management of scheduled wastes in
Malaysia. These include 211 licensed waste transporters, 76 recovery facilities (non e-waste), 85
partial recovery e-waste facilities, 35 on-site incinerators, 3 clinical waste incinerators and 2
secured landfills (Department of Environment, Malaysia, 2008). For Kuala Lumpur, in 2007,
there are 11 licensed waste transporters and 6 local off-sites recovery facilities (Laporan
Tahunan Jabatan Alam Sekitar Wilayah Persekutuan, Kuala Lumpur 2002-2007).
For clinical waste, the Malaysian government has made it a national policy that all clinical waste
must be incinerated. Currently, there are 5 regional medical waste incinerators with capacities of
20 to 500 kg/hour and seven small on-site medical waste incinerators with capacities of 20 to 50
kg/hour. All medical incinerators are built on the premises of the waste generators in order to
decrease handling process and exposure of labor to clinical waste.
There are already several units of municipal solid waste mini-incinerators with a capacity of 5 to
20 ton/day operating in the resort islands of Langkawi, Labuan, Tioman and Pangkor. In the past
few years, there have been many more proposals to install incinerator plants in Kuala Lumpur,
Selangor, Kuantan, Cameron Highlands, Penang and other major towns in the country.
Incineration facility is also available in an integrated hazardous waste treatment plant in Bukit
Nanas, in the state of Negeri Sembilan. The plant, officially opened in November 1998 is
modeled on the Danish hazardous waste processing plant, Kommunekemi in Nyborg. A
hazardous waste management and disposal center which incorporates incineration and secured
landfilling of scheduled and hazardous waste has also been planned in Mambong, Kuching
Division, Sarawak.
34 | P a g e
INCINER5 Pte Ltd 2013
5.1.5 Competitor Analysis
In Malaysia, there are very few manufacturer of incinerator. However, as for global there are so
many incinerator industry. Table below show some of Malaysia incinerator manufacturer.
UQ INDUSTRIES
- certified company, specializing in
the design and manufacture of
Furnaces and Incinerators.
Human Crenation Furnace
CMTS Cremation Furnace incorporates full automatic control including that of flue gas emissions. It is built to meet emission regulations laid out by European Union and World Health Organization.
The Cremation furnace operates on natural gas, LP gas or diesel oil and employs the proven two chambers design for clean discharge and reliable operation.
CMTS has concentrated on providing a simplified control interface requiring no special operator skills.
This heavy duty chamber has a 70 to 90 minutes cycle, depending on case types and offers up to six cremations per 10 hour day, whilst maintaining clean emission throughout each cycle
Security Document/ Woodwaste/ Agricultural Waste Inceinerator
CMTS MWS incineration system provides a safe, economical way to ensure total destruction of combustible waste.
Some of the advantages that you will find using the incinerator are:- The equipment has no moving parts other than the
blowers and an auxiliary burner.
The equipment is suitable for indoor/outdoor installation
Due to the sustained high temperature environment with turbulence from air nozzles, complete combustion of the saw dust waste can be achieved.
Saw dust waste can be automatically fed into the
35 | P a g e
INCINER5 Pte Ltd 2013
incinerator using a screw feeder.
THERMAX
- offers incineration of non-
hazardous industrial waste, through
an economically feasible and
environment-friendly method. Its
systems offer the additional
advantage of energy/material
recovery.
Paint Sludge Incineration
Destromat pyrolytic incinerators tap Thermax's three decades of expertise in heat transfer and combustion technology to treat infectious waste. Based on the principle of three T's: time, temperature and turbulence, the incinerators are designed to achieve the desired destruction and removal efficiency (DRE) along with stringent emission norms laid down by the Central Pollution Control Board.
Advantages
Multi-chamber design, totally indigenous design, based on controlled air principle, minimum site work for erection and commissioning, adequate instrumentation for safety and control, technical registration with DGS&D, tested and certified by Central Pollution Control board (CPCB), nationwide network of sales and service franchisees
JFE Engineering (M) Sdn Bhd
- succeeded in securing a turnkey
contract of the hazardous waste
incineration plant for Sarawak
Wastes Management Sdn Bhd.
Incineration Plant for Sarawak Waste Management
Sdn Bhd
The incineration plant functions to not only incinerate hazardous waste but also have controlled emissions system, resulting in a significant less of harmful bi-products and air pollutants produced. Capacity of the incineration is 60 tons of scheduled waste a day, which is in line with the research data on present and anticipated generation of industrial hazardous waste in Sarawak state. The incineration plant will be equipped with dual fuel burner system capable of utilizing either diesel or landfill gas or both as auxiliaries during incineration process, and will begin its operation within 2014
Paint Sludge Incinerator Project
(Perodua Manufacturing Sdn. Bhd)4 Ton / Day Paint Sludge Incenerator with Bag Filter Flue Gas Treatment (Dioxin Emission less than 0.1 ng/m3 TEQ).
36 | P a g e
INCINER5 Pte Ltd 2013
37 | P a g e
INCINER5 Pte Ltd 2013
5.1.6 Customer Analysis
The customer for our incinerator product covers most of the industries in Malaysia. The number
of hospital in Malaysia is 351, which is 127 public hospitals and 224 private hospital. Plus, there
are various manufacturing industries in Malaysia and numerous hotel and restaurant.
Malaysia, as one of the fastest developing countries in the Asia region has, for the last three
decades, been experiencing rapid development. One of the key sectors contributing to Malaysia’s
economic growth is the manufacturing industry. For thirty years, the manufacturing sector has
become Malaysia’s key economic generator. Industrial developments in Malaysia started in the
early 1960s and in 1996 contributed RM 45.2 billion to the growth domestic product (GDP).
Although during the economic recession from 1997 to 1998 manufacturing growth reduced to
13.4% of GDP contribution, the growth has bounced back to 13.5% in 1999 and 21% in 2000.
This growth has contributed to 33.4% of Malaysia GDP in 2000 (Malaysia, 2001). The
Manufacturing industry will continue as a key sector in the economy of Malaysia with target
growth of 8.9% per annum from 2001 to 2005 which will contribute 35.8% to the GDP by 2005
(Malaysia, 2001).
To boost tourism in Malaysia, the government will look into three areas for the plan to
materialize, that is to offer the basic needs to the tourists including setting up hotels, restaurants,
entertainment and attractive destinations while the second is to put in place good infrastructure to
give tourists the feel good experience and thirdly to invest in community development and
marketing. The leading operator of hotels in the Asia Pacific plans to expand its hotel by opening
10 new hotels in Malaysia by end-2014. It will make the hotel development in Malaysia also
increased.
38 | P a g e
INCINER5 Pte Ltd 2013
5.1.7 SWOT Analysis
Strength - Incinerator business in Malaysia is considered small and not
many competitor in this area of business
- Our incinerator product provide a great solution to industries
out there that needed a solution for their hazardous waste
treatment
Weakness - Industry people prefer send their waste to Kualiti Alam
which they have been trusted to dispose their harmful waste.
- The incinerator will give out emission
- High cost
- Efficiency decrease if not properly maintain
Opportunitie
s
- Growing industries in Malaysia, thus increasing the waste
generated.
- Hazardous waste must be treated properly and this is
enforced by Malaysia Government
Threat - People will doubt about the effectiveness of the incinerator
compared them to the already marketed incinerator
- People will question about the environment aspect and
impact of the product from the incinerator
39 | P a g e
INCINER5 Pte Ltd 2013
5.2 Marketing Plan
The marketing plan will emphasize the strengths of both the company and the products.
INCINER5 Ltd will position themselves as an aggressive, innovative company that use green
technology as a driver of economic growth by increasing the national capabilities and green
innovations and sustainable development. We design, develop and market waste-to-energy and
incineration system services for solid waste disposal throughout Malaysia. INCINER5 Ltd will
position themselves in campaign, within industry publications, and the Internet, to reinforce this
marketing strategy. The brochures, letterhead, and business correspondence will further reinforce
these concepts.
5.3 Marketing Strategy
In order to achieve sales forecast, INCINER5 Ltd must develop an appropriate marketing
strategies to generate sales from the target market. The 5P strategies focused by our business are
product, price, people, process and physical. We try to do the best marketing strategies to meet
the requirement business’s mission and vision and can attract potential customers.
5.3.1 Product Strategy
As the new business emerged in the market, INCINER5 Ltd offer offer solutions for the
treatment for industrial hazardous waste. Our company will ensure that we provide efficient and
feasible incinerators while maintaining the environmental quality and sustainability. We also
provide customized solution through reliable, efficient, safe, and cost effective waste-to-energy
(WtE) plants that meet the highest environmental standards and to provide excellent services that
satisfy our customers’ requirements.
40 | P a g e
INCINER5 Pte Ltd 2013
5.3.2 Price Strategy
Pricing strategy is basically built upon a solid understanding of the 5Cs of pricing: customers,
competition, cost, capacity and cycle (business cycle). Therefore, it is necessary for us to gather
the necessary data to help us understand better the five factors in the market. After that, we can
combine the data with our extensive experiences to create high impact strategies to drive our
incinerator service business forward.
5.3.3 People
Our expertise will interact with the customers and contact personnel to ensure the good
perceptions from customers on the service quality. It is essential for us to realize that the
reputation of the brand is bandy around people's mouth.
5.3.4 Process
The main processes involved are waste treatment process that involves the combustion of
organic substances contained in waste materials. Incineration of waste materials converts the
waste into ash, flue gas, and heat. The ash is mostly formed by the inorganic constituents of the
waste, and may take the form of solid lumps or particulates carried by the flue gas. The flue
gases must be cleaned of gaseous and particulate pollutants before they are dispersed into the
atmosphere. In some cases, the heat generated by incineration can be used to generate electric
power.
5.3.5 Physical (Evidence)
It refers to the experience of consuming our products. When our products exposed to the
customer, we must ensure that it containing the promising quality.
41 | P a g e
INCINER5 Pte Ltd 2013
6 Operation Plan
The operation plan is the section of our business plan where we dig more into nuts and bolts of
our business. Areas like: location of business factory, transportation trucks, legal documents and
permit for us to run the waste management company, personnel, storage system and
providers/suppliers.
6.1 Location
Our incineration plant is located in Senawang Industrial Park, Senawang. Senawang industrial
park is strategically located next to North South Expressway. Therefore, this location has
provided us a convenient accessibility to and from North-South Expressway which benefits the
supply chain of businesses and property appreciations. Besides, Senawang Industrial Park is an
industrial area comprising many detached factories. Some of the established companies operating
within the industrial estate include Phoenix Lumber Industry Sdn.Bhd., Seremban Furniture
Industry Sdn.Bhd., HeveaPac Sdn.Bhd., Sing Chuan Aik Transport Sdn.Bhd., Sin Ban Huat
Sawmill, Kim Lee & Son Sawmill and so on.
42 | P a g e
INCINER5 Pte Ltd 2013
6.2 Rental
We have rented an open space landed factory in Senawang industrial park. The factory plant site
is almost rectangular in shape that encompassing a provisional land area of approximately 15,081
sq. ft. The monthly rental for this land is RM10, 000.
6.3 Transportation
We offer customers a complete, one-stop source for the transport and disposal of hazardous
waste materials. Our experienced waste- handling specialists provide the meticulous attention
necessary to ensure each delivery is handled safely and efficiently. We have hired 6 experienced
truck drivers to help clients pick up their waste on site and transfer the trash in a safely manner.
Besides, we provide a fully tracked waste service so that our customer can be rest assured that
their waste will be dealt in a responsible manner.
6.4 Legal Requirement
In order to start our waste management company, we have complied with waste disposal industry
licenses that are required by the legislation and administered by various government agencies,
statutory bodies and local authorities. We managed to gain the specific license of approval to
install air pollution control equipment for our incineration plant. Other than that, our business
activities is restricted and controlled under the Environment Quality Act, 1974.
Under the Environmental Quality Act (EQA), 1974 and the Regulations thereunder, industrial
activities are required to obtain the following approvals from the Director General of
Environmental Quality prior to project implementation:
a) Environmental Impact Assessment reports - under Section 34A of the EQA, 1974 (for
prescribed activities);
b) Site suitability evaluation (for non-prescribed activities);
c) Written permission to construct - under Section 19 of the EQA, 1974 (for prescribed
premises-scheduled wastes treatment and disposal facilities, crude palm oil mills and raw
natural rubber processing mills);
43 | P a g e
INCINER5 Pte Ltd 2013
d) Written approval for installation of incinerator, fuel burning equipment and chimney –
under Environmental Quality (Clean Air) Regulation, 1978, EQA, 1974; and
e) License to use and occupy prescribed premises and prescribed conveyances -under
Section 18 of the EQA, 1974.
6.5 Personnel
It is important for the company to hire people to operate the incinerator activities inside the plant.
Besides, in order to provide a good waste disposal services, we need talents youth to help our
marketing team to approach potential clients throughout Malaysia. Therefore, we have hire 1
mechanical engineer, 1 chemical engineer, 2 on site supervisors, 4 operators and 6 trucks drivers
to operate the incinerator plant. Furthermore, we also have hired a marketing team consists of 4
sales executives to meet our sales target in the market.
6.6 Storage System
We have partnered with Alam Flora Sdn Bhd to offer our client sturdy storage container units
and deliver it right at customer door. The Alam Flora portable storage units are secure, all steel
and water proof. All the disposed waste will be stored as well in the warehouse which located
same land area with incinerator plant. The warehouses are 100% secure and climate-controlled.
44 | P a g e
INCINER5 Pte Ltd 2013
6.7 Provider/ Supplier
In order to provide an effective service at low prices, we must find suitable suppliers. Suitable
supplier or provider can help us to uphold our quality of services. However, it is difficult to find
match suppliers with our business concept. A good supplier will provide our business with top
products yet in low costs.
Type of supplies Companies Contact
Natural Gas Fuel Shell Malaysia Tel: 1300 22 0003
Fax: 1300 13 0041
E-mail: [email protected]
Portable Container
Units
Alam Flora Sdn Bhd Tel: 1800 88 7472
Fax: 03 2052 8144
website: http://www.alamflora.com.my
Lorry Service Huat Trading Sdn Bhd Tel: 017-9393 234
Fax: 03 3045 6577
45 | P a g e
INCINER5 Pte Ltd 2013
6.8 Operating Cost
Type Of Cost Cost (RM)
Incinerator Plant Capacity 8 tonnes
(Industrial Waste, Medical Waste)
150,000
(operating cost RM 40-60 per 500 kg)
Gasification Plant Medium
(Organic Waste)
250,000
(operating cost RM 70-90 per 500 kg)
Land Rental (Open Land) 10,000 (per month)
Typical Fuel Cost:
(i) Diesel
(ii) Natural Gas
1.70 per litres
1.30 per litres
Cost of Labors:
(i) CEO (Chief of Executive Officer)
(ii) CFO (Chief of Financial Officer)
(iii) Operating Director
(iv) Marketing Director
(v) Chemical Engineer x1
(vi) Mechanical Engineer x1
(vii) Sales Executives x4
(viii) Supervisors x2
(ix) Operators x4
(x) Lorry Driver x6
9,000
9,000
7,000
7,000
3,000
3,000
2,500x 4 = 10,000
2,300x 2 = 4,600
1,800x 4 = 7,200
2,800 x 6 = 16,800
Maintenance Cost 1,500 per month
46 | P a g e
INCINER5 Pte Ltd 2013
6.9 Cost Rebate
The incinerator plant and gasification plant are operated in energy recovery system. Therefore,
we managed to use the converted energy to generate and supply our factory electricity usage.
Besides, the by-product of gasification plant- syngas, we have used it to generate electricity by
the means of turbine steams and sell it to TNB as a renewable energy. We are said to be
sustainable because we can generate our own electricity to meet our own energy usage.
Every month, we are capable to produce constant amount of extra electricity and sell it to local
TNB. This helped us to gain another profit of RM3.00 per month.
47 | P a g e
INCINER5 Pte Ltd 2013
7 Management Organization
7.1 Management Team and Key Personnel
The INCINER5 Ltd management team consists of the CEO, and four managers.
The Chief Executive Officer (CEO) of INCINER5 Ltd is Ahmad Nazrul Hakimi Bin Ibrahim,
Bachelor of Civil Engineering, graduated from National University of Malaysia in Selangor,
Malaysia. He also a Master holder of Entrepreneurship and Business, graduated from University
of Michigan, United States. Currently, he owned a construction and civil engineering company at
Penang. He business was done successfully and he planning to challenge herself by opening a
business incinerator concept. Her entrepreneur experience in starting and managing a business
makes her the key person in INCINER5 Ltd.
The Marketing Manager of INCINER5 Ltd is Mazni Binti Jamaludin. She is a Master of
Management, graduated from University of Cambridge in United Kingdom. She has 10 years’
experience in marketing department of manufacturing industry and she had been marketing
48 | P a g e
AHMAD NAZRUL HAKIMI BIN
IBRAHIM
CEO
MAZNI BINTI JAMALUDIN
Marketing Manager
YEU WEE CHEK
Operation ManagerTEE YEE YEONG
Financial Manager
NOOR ZAIYAN BINTI MISYAN
Human Resources Manager
INCINER5 Pte Ltd 2013
manager for 5 years. She will be responsible in all about the market research and marketing
strategies for our business. Her extensive experience in marketing for sure can help in branding
our business and is the key tools for the advancement of our business.
The Financial Manager of INCINER5 Ltd is Tee Yee Yeong. She is a Bachelor of Accounting
and Finance, graduated from University of Yale in the United State of America. She has been
involved himself in banking and finance area for more than 10 years. Besides that, she had been
the financial consultant in her previous working company. She will be responsible in all the
finance and cash flow in our business. Her sensitivity towards world economy and her
experience in financing would help in the financial management of our business and help our
company to gain most profit with lesser investment.
The Human Resources Manager of INCINER5 Ltd is Noor Zaiyan binti Misyan. She is a
Bachelor of Human Resource Management, graduated from Monash University in Australia. She
had been involved himself in human resources management for an international company, Sony
for more than 10 years. With her expertise in human resources management and group working
experiences, she will be responsible for all our intake workers from staff until the committee
board of our company. Her perfect view point on workers will helps our company to gain the
strongest team of employees for our wedding services expertise.
The Operation Manager of INCINER5 Ltd is Yeu Wee Chek. He is a Bachelor of Business
Administration, graduated from Limkokwing University, Malaysia. Being an operations manager
involves overseeing and having responsibility for all the activities in the organisation which
contribute to the effective production of goods and services. He has been working with Nestle for
5 years. He is expected to continually monitor and improve the overall performance of the
operation.
49 | P a g e
INCINER5 Pte Ltd 2013
8 Financial Plan
8.1 Financial Resources
RM RMPartners ContributionVincent Tan 2,000,000Ahmad Nazrul Hakimi Bin Ibrahim 600,000Yeu Wee Chek 600,000Mazni Binti Jamaludin 600,000Tee Yee Yeong 600,000Noor Zaiyan binti Misyan 600,000
5,000,000LoanPublic Bank 200,000Hong Leong Bank 300,000
500,000Total Finance Resources 5,500,000
8.1.1 Partnership Profit Sharing Percentage
Partners Profit Sharing Percentage
Vincent Tan 40
Ahmad Nazrul Hakimi Bin Ibrahim 12
Yeu Wee Chek 12
Mazni Binti Jamaludin 12
Tee Yee Yeong 12
Noor Zaiyan binti Misyan 12
50 | P a g e
INCINER5 Pte Ltd 2013
8.1.2 Bank Loan
Public Bank
Loan : RM200,000
Interest Rate : 5%
Payback Period : 8 years
Year Interest (RM) Principal (RM) Amount to be paid (RM)
Amount Carried forward (RM)
0 - - - 200 000.001 10 000.00 25 000.00 35 000.00 175 000.002 8750.00 25 000.00 33 750.00 150 000.003 7500.00 25 000.00 32 500.00 125 000.004 6250.00 25 000.00 31 250.00 100 000.005 5000.00 25 000.00 30 000.00 75 000.006 3750.00 25 000.00 28 750.00 50 000.007 2500.00 25 000.00 27 500.00 25 000.008 1250.00 25 000.00 26 250.00 0.00
8.1.3 Bank Loan
Hong Leong Bank
Loan : RM300,000
Interest Rate : 5%
Payback Period : 8 years
Year Interest (RM) Principal (RM) Amount to be paid (RM)
Amount Carried Forward (RM)
0 - - - 300 000.001 15 000.00 37 500.00 52 500.00 262 500.002 13 125.00 37 500.00 50 625.00 225 000.003 11 250.00 37 500.00 48 750.00 187 500.004 9 375.00 37 500.00 46 875.00 150 000.005 7 500.00 37 500.00 45 000.00 112 500.006 5 625.00 37 500.00 43 125.00 75 000.00
51 | P a g e
INCINER5 Pte Ltd 2013
7 3 750.00 37 500.00 41 250.00 37 500.008 1 875.00 37 500.00 39 375.00 0.00
8.2 Pro Forma Statement of Financial Performance
BALANCE SHEET FORECASTFOR THE YEAR 2013, 2014, 2015
2015 2014 2013 RM RM RM
ASSETS
NON-CURRENT ASSETSProperty, plant and equipment 1,625,313 1,764,500 1,174,500
CURRENT ASSETSTrade receivables 7,935,000 6,900,000 6,000,000
Other receivables and deposits 487,000 320,000 110,000
Cash and bank balances 1,055,451 1,125,175 1,285,0009,477,451 8,345,175 7,395,000
TOTAL ASSETS 11,102,764 10,109,675 8,569,500
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANYShare capital 200,000 200,000 200,000
Retained profits 2,764 (21,075) (30,500)
TOTAL EQUITY 202,764 178,925 169,500
NON-CURRENT LIABILITIESHire purchase payables 520,000 480,000 300,000
Bank borrowing 200,000 320,000 400,000720,000 800,000 700,000
CURRENT LIABILITIESTrade payables 5,730,000 5,100,000 4,900,000
Other payables and accruals 600,000 500,000 400,000
Amount owing to directors 2,780,000 2,565,750 1,540,000
Hire purchase payables 50,000 50,000 50,000
Bank borrowing 100,000 100,000 100,000
Current tax liabilities 200,000 15,000 10,0009,460,000 8,330,750 7,000,000
TOTAL LIABILITIES 10,180,000 9,130,750 7,700,000
52 | P a g e
INCINER5 Pte Ltd 2013
TOTAL EQUITY AND LIABILITIES 11,102,764 10,109,675 8,569,500
8.3 Pro Forma Statement of Comprehensive Income
INCOME STATEMENT FORECAST
FOR THE YEAR 2013, 2014, 2015
2015 2014 2013
RM RM RM
REVENUE 4,245,225 3,691,500 3,210,000
COST OF SALES (3,769,125) (3,277,500) (2,850,000)
GROSS PROFIT 476,100 414,000 360,000
OTHER OPERATING INCOME 3,600 3,600 3,600
SALES AND DISTRIBUTION COSTS (212,261) (184,575) (160,500)
ADMINISTRATIVE EXPENSES (213,600) (203,600) (193,600)
PROFIT FROM OPERATIONS 53,839 29,425 9,500
FINANCE COSTS (10,000) (10,000) (10,000)
PROFIT BEFORE TAX 43,839 19,425 (500)
INCOME TAX EXPENSE (20,000) (10,000) (10,000)
PROFIT FOR THE YEAR 23,839 9,425 (10,500)
53 | P a g e
INCINER5 Pte Ltd 2013
8.4 Pro Forma Statement of Changes in Equity
STATEMENT OF CHANGES IN EQUITYFOR THE YEAR 2013, 2014, 2015
Share capital Retained profits Total RM RM RM
At 1 January 2013 200,000 (20,000) 180,000
Profit for the year - (10,500) (10,500)
Dividends - - -
Issue of shares during the year - - -
Change in - - -
At 31 December 2013 200,000 (30,500) 169,500
Profit for the year - 9,425 9,425
Dividends - - -
Issue of shares during the year - - -
Change in - - -
At 31 December 2014 200,000 (21,075) 178,925
Profit for the year - 23,839 23,839
Dividends - - -
Issue of shares during the year - - -
Change in - - -
At 31 December 2015 200,000 2,764 202,764
54 | P a g e
INCINER5 Pte Ltd 2013
8.5 Pro Forma Cash Flow Statement
CASH FLOW STATEMENTFOR THE YEAR 2014, 2015
2015 2014 RM RM
CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax 43,839 19,425
Adjustments for:- Depreciation of property, plant and equipment 700,000 500,000 Interest expenses 100,000 100,000Operating profit before working capital changes 843,839 619,425
(Increase)/decrease in trade receivables (910,000) (900,000) Decrease/(increase) in other receivables and deposits (167,000) (210,000) Increase/(decrease) in trade payables 630,000 200,000 Decrease in other payables and accruals 100,000 100,000 (Decrease)/increase in amount due to directors 214,250 1,025,750Cash from/(used in) operations 711,089 835,175 Tax paid (70,000) (70,000) Interest expenses paid (50,000) (50,000)Net cash from/(used in) operating activities 591,089 715,175
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (560,813) (775,000)Net cash used in investing activity (560,813) (775,000)
CASH FLOWS FROM FINANCING ACTIVITIES Repayment of hire purchase payables (50,000) (50,000) Repayment of term loan (50,000) (50,000)Net cash from financing activities (100,000) (100,000)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (69,724) (159,825)CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,125,175 1,285,000CASH AND CASH EQUIVALENTS AT END OF YEAR 1,055,451 1,125,175
Cash and cash equivalents comprise the following: -Cash and bank balances 1,055,451 1,125,175
55 | P a g e
INCINER5 Pte Ltd 2013
8.6 Break Even Analysis
Break-even AnalysisBreak Even Sales RM 3,219,000
AssumptionFixed Cost RM 214,600Variable Cost 20% of Average Selling PriceAverage Selling Price RM 56,000
Therefore, from with the break even sales, we compare to the forecast sales of year 2013, 2014
and 2015. Forecast sales are as summarized as below:
Year Sales
2013 RM 3,210,000
2014 RM 3,691,500
2015 RM 4,245,225
As we can see, year 2013 does not achieve the target break even sales and there will be suffering
loss. However, sales will be picking up for the following year. Therefore in no time, the
company will be profiting in covering the previous loss. This shows that this is a healthy
growing company.
56 | P a g e
Break Even Chart
INCINER5 Pte Ltd 2013
57 | P a g e
INCINER5 Pte Ltd 2013
8.7 Financial Ratio Analysis
Ratio Formula 2014
(RM)
2015
(RM)
a) Owners
Return on investment(ROI) Net IncomeOwner’s Equity
9,425178,925= 5.3%
23,839202,764= 11.8%
Return on asset(ROA) Net IncomeTotal Assets
9,42510,109,675
=0.09 %
23,83911,102,764
= 0.21%
b) Manager
Net profit margin Net IncomeSales
9,4253,691,500= 0.26%
23,8394,245,225= 0.56%
c) Short-Term Creditors
Current ratio Current AssetsCurrent Liabilities
8,345,1758,330,750
= 1.0
9,477,4519,460,000
= 1.0
d) Long-Term Creditors
Debt-to-equity ratio Total DebtTotal Equity
9,130,750178,925= 51.0
10,180,000202,764= 50.2
Times-interest-earned ratio
EBITTotal Interest Charges
29,42510,000= 2.9
53,83910,000= 5.4
58 | P a g e
INCINER5 Pte Ltd 2013
8.8 Highlights
Year 2013 Year 2014 Year 2015 $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Sales Profit Forecast
SalesGross MarginNet Profit
8.9
59 | P a g e
INCINER5 Pte Ltd 2013
9 Business Risks
There are some risks and challenges to be addressed to realize this project. This study has
identified risks and challenges below, which are described here with actions to be taken for
reducing the risks and solve the challenges.
9.1 Securing of Economic Efficiency
Economic efficiency can be secured only with waste treatment consignment fees that guarantee
an appropriate profit rate for continuity of the service. However, with a tipping fee set at an
unreasonably high level, we would fail to win an order in competition. To obtain an order, efforts
must be made to reduce costs of construction, and operation and maintenance in a vigorous
manner.
9.2 Quantity and Quality Risks of Municipal Solid Waste
Among risks related to the securing of economic efficiency, the most critical are those related to
quantity and quality of municipal solid waste. That is, without an amount of municipal solid
waste secured as assumed in a business plan, or without quality, especially a calorific value, of
waste as assumed, the business operator would fail to earn profits as prescribed. Even when a
contract specifies that a certain amount of waste shall be secured, in reality the target may be
missed. In addition, conditions of waste’s calorific value may not be specified by the Malaysian
government, but left to the business operator’s decision, instead. To avoid such risks, it would be
appropriate to take into account the following point in a tender and/or contract specifications.
Introduction of a basic fee system: In the system, tipping fee consists of fixed fee and variable
fee. The fixed fee should be paid for design, construction, operation, and maintenance, regardless
of the amount of waste which is treated.
60 | P a g e
INCINER5 Pte Ltd 2013
9.3 Clarification of the Scope of the Government Side
Development of the infrastructure around a project site is another critical risk. For instance, delay
in development of access roads to a plant would cause delay in the start of the project, making a
large negative impact on its profitability.
What is listed below should be specified in a contract as being included in the scope of the
government side. In addition, compensation for a breach should also be specified in the contract.
1. Project permission applications
2. Securing and having ownership over the site
3. Surveying and geological survey
4. Site preparations
5. Development of the infrastructure (access roads, electricity, water, etc.)
6. Measures to nearby residents
7. Securing predetermined volume of municipal waste, and collection and transport of
municipal waste to the plant
8. Preventing collection of unsuitable materials
9.4 Inflation Risk
Inflation is also a critical risk to obtaining prescribed profits from a project. An inflation rate
higher than assumed might prevent a project from generating prescribed profits, a possibility that
should be taken into account in concluding a contract. In estimating those project costs which are
sensitive to inflation, such as personnel and utilities expenditures, it is desirable to assume an
inflation rate during the entire project duration. Setting a tipping fee based on the assumed
inflation rate would be an option. This way of setting a tipping fee is adopted for this study in its
financial and economic analysis. In Japan, many of the PFI project contracts have a stipulation
that when inflation goes above a prescribed rate, consignment fees shall be revised based on a
certain price index.
61 | P a g e
INCINER5 Pte Ltd 2013
9.5 Risks Related to Residents’ Opposition Campaign
A residents’ opposition campaign is also one of the critical risks. For this study, we invited
many local experts and academics to collect information and obtain opinions from them. The
research has found that in general, the government of Malaysia should start working with nearby
residents at the earliest possible stage. Before it announces an international tender, it needs to
spend enough time for advance explanations and dialogs with nearby residents and communities,
together with work to concretize a project and pick out candidates for a project site. It is also
important that after the project gets started, the Malaysian government should play a major role
in offering information to residents and setting up “Joint Committee” and other forums to
exchange opinions with them.
9.6 Local Business Partner
For realizing this project, it is important to select appropriate local business partners. This is one
of the challenges to be addressed with top priority.
9.7 Prospects of loans
This study includes research for loans. We will have further negotiations with financial
institutions to realize this project.
62 | P a g e
INCINER5 Pte Ltd 2013
10 Conclusion
In conclusion, efforts should be done by all parties to continue to develop this incinerator
business. Short-term goals INCINER5 Pte Ltd is to create awareness among people about the use
of products that are produced by INCINER5 Pte Ltd and continuously enhancing the
effectiveness of this product should be reached in advance. If short term goal achieved, the
medium-term goals which are able to attract more buyers, increase the number of agents that are
registered and thus will be able to expand in foreign Regions like wings of Thailand, Indonesia
and others will follow in the back. Logically, long-term goals who want to maintain the quality
of the environment and sustainability will be able to achieve. We hope, INCINER5 Pte Ltd
continued to higher level as provider customized solution through reliable, efficient, safe, and
cost effective waste-to-energy (WtE) plants that meet the highest environmental standards and to
provide excellent services that satisfy our customers’ requirements and to be innovative leader in
the field of combustion technology for the biomass industry.
63 | P a g e
INCINER5 Pte Ltd 2013
11 Appendix
64 | P a g e