engineering management proposal

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


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


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


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


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


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


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 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


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


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

http://www.inciner5.com.my/

mailto:[email protected]


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

http://www.inciner5.com/


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

http://www.inciner5.com.my/


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


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


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


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


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


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


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


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


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


37 | P a g e


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


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


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


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


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


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


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


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

http://www.alamflora.com.my/

mailto:[email protected]


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


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


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


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


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


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


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


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


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 - - -


Change in - - -

At 31 December 2014 200,000 (21,075) 178,925

Profit for the year - 23,839 23,839

Dividends - - -


Change in - - -

At 31 December 2015 200,000 2,764 202,764

54 | P a g e


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


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


57 | P a g e


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


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


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


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


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


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


11 Appendix

64 | P a g e

engineering management proposal

Documents