suchismitadharapriyankashameem

entrepreneurship presentation

Precast construction methods are commonly used in Europe, this concept is relatively new to the middle east market.

Consultants are now searching for cheaper and more efficient method construction due to the rising cost of labour, recession.

Our business deals with cost effective product which is used in construction.

“ Green Wall ”

Introduction

MissionTo create innovative wall construction which is cheaper, stronger, greener, faster.

VisionCommitted to deliver a green energy efficient solution for construction sector

We will be manufacture 3d panels with shotcrete technology for villa / low rise construction, precast insulated partition walls and external walls

Brief Overview

Industrial BackgroundPresently conventional methods of constructions are widely used. There is lots of scope for our product in near future.

3D Panel Precast Wall

Products

3d panel is a prefabricated Three Dimensional Lightweight Structural panel consisting of a super-insulated polystyrene core sandwiched between Steel welded wire fabric mesh.

Strength & Rigidity- Diagonal spacers wires welded to wire fabric on each side and covered with either concrete or gypsum.

3D Panel +

Shotcrete In-Situ

3D Panel + Gypsum 3D Panel + Concrete

Materials EPS

Inert organic material so does not rot

Cover Mesh

Steel welded wire fabric mesh

Diagonals

Steel truss wires

Pierce through EPS at offset angles

Either Concrete or Gypsum

Concrete or GRG is applied on either faces.

Panel Types

Products

3D Cladding Panels3D non load bearing panels are produced with 100mm EPS and 50 mm concrete layers on both sides. Total thickness of wall = 200mm

3D Architectural Cladding PanelsThey form part of cladding system in high rise towers. Thickness = 200 mm with 100mm EPS

3D Partition WallsInternal partition walls consists of 50mm EPS and 35mm gypsum GRG layers on both sides. Thickness = 120mm

3D Boundary WallsIt’s the boundary wall around housing units. Highly repetitive n requires minimum engineering input.

Process

Process

Process

Advantages Faster Construction 50% time saved Reduced the need of heavy equipments on site Strength, durability and structural integrity Excellent performance in seismic zone Fire resistant structure to a greater extent. Good thermal and sound insulation 3D structure 40% lighter in weight than standard

concrete construction which allows considerable savings in foundation

Transport and handling is easy due to light weight Reduced man power Reduces size & cost of HVAC systems.

Standard Specification and Pricing

Panel length: 300cm Panel width: 122cm Mesh wire diameter: 0.18-0.28cm Wire Material: low carbon steel wire, galvanized Polystyrene thickness: 5cm-10cm Total panel thickness: Max.13cm Truss wire: 0.2-0.3cm Mesh size: 5x5cm, 10x10cm Power: 380V 50HZ Price range per piece: AED 17.50 to AED 36.70

Estimated Market Share & CompetitorsThe conventional system has the biggest market share

ConventionalPre CastAlternative Systems

Location : Ajman Free Zone

Operational Plan

Developing free zone Easy Formalities Cheaper than Jabel Ali Port Good Infrastructure Within proximity of JAFZA Port

Available Shipping Port

Operational Plan

Fujairah Port Dubai Port JAFZA Port Sharjah Port

Tax

UAE – Tax heaven

No sales tax, income tax, excise duty

Only 5% import duty

Proximity to Supplier

Name of Supplier Item Name Country

EVG Group Wire mesh, 3D & EPS plant Austria

Middle East FZE EOT 8 tons over head crane Dubai

Elematic OY OB Hydraulic Tilting Table Finland

Kelly Steel Vertical Mould Dubai

Metrovlo FZE Gantry Crane Dubai

FIZA Engineering Corp. Gypsum Mixing machinery China

Webau Middle East Vacuum Device Netherland

Shanghai Machinery Co. Shape Cutting Machine China

Gargesh Power Generator Set Dubai

Al Waha Mechanical Electric Plumbing Dubai

Logistic

Operational Plan

Contract with Kawaljit Transport llc Trucks with forklift 6 wheelers 10 wheelers

Approaching target market

Marketing Strategy

Consultants

Distributor

Contractors

InitialApproach

Target market

Marketing Strategy

Abu Dhabi

KSA Dubai Oman GCC ME NA

300/35,000

500/85,000

100/15,000

150/20,000

200/45,000

100/30,000

100/20,000

Advertising

Marketing Strategy

Exhibitions

Yellow pages

NewspapersSocial Networking Site

Youtube

SWOT Analysis

StrengthsFaster

Construction

Eco friendly

Easy Mobility

Cheaper

Thermal Insulation

WeaknessUnawareness

ThreatsEconomic Crisis

New Entrants

Opportunities

Govt. green bldg.

regulation

Proximity & Trade

relationsSWOT

Organizational Structure

Management

Green Wall LLC

Mohd. FaizalSponser - Real estate

ShameemFinance

SuchismitaProduction

DharaOperations

PriyankaMarketing

Technical StaffIndustrial Engineer - 1Mechanical Engineer – 1Technicians – 5Labours - 10

Admin. StaffReceptionist – 1Data Entry Personnel – 1Accountant – 1

Description Budgeted (in mn)A) Plant & Machinery

i) EVG Machineries 7.10

ii) Pre-Cast Machineries 0.60

iii) Utility Equipments 0.60

iv) Mixing System 0.30

v) Batch Plant 0.30

vi) Electricals & Instrumentation 1.50

Sub-Total (A) 10.40

B) Buildings

i) Structural Shed 0.80

ii) Plant Constructions 2.30

iii) Office Building 1.00

Sub-Total (B) 4.10

C) Furniture, Computer and Software 0.50

Sub-Total (C) 0.50

Total (A+B+C) 15.00

Project Cost

Particulars Year 2011 (in mn)Sales & Other income 17.38

(-) Cost of Sales 13.10

Gross Profit 4.28

Gross profit percent with sales 25%

Expenses:

Administrative expenses:

Salary & wages 0.474

Other Expenses 0.396

Interest & Bank Charges 0.32

Lease rent 0.50

Depreciation 1.25

Total Expenses 2.94

Net Profit 1.34

Cash Profit 2.59

Profit and loss statement

Assets (in mn) Liabilities (in mn)

Non-Current Assets: Capital:

Property & Equipments: 15 Shameem 2.28

(-)Depreciation: 1.25 Suchismita 2.28

13.75 Dhara 2.28

Long-term Investment 1.00 Priyanka 2.28

Non-Current Assets 0.50 Faizal 2.28 11.41

Current Assets: Profit:

Inventory: 2.00 Shameem 0.27

A/c Receivables: 4.00 Suchismita 0.27

Cash/Bank: 6.00 Dhara 0.27

Other Current Assets (Advance Payment): 0.50 Priyanka 0.27

Prepaid Expenses (Insurance expenses): 1.00 13.50 Faizal 0.27 1.34

Long Term loan: 10.00

Current Liabilities:

Borrowings: 2.31

Trade Payable: 2.00

Provision for Expenses:

Lease rent: 0.50

Electricity Bill: 0.096

Staff Salary: 0.474

Taxes: 0.20

Interest Payment: 0.32

Telephone Bill: 0.10 6.00

28.75 28.75

Balance Sheet (in mn)

(in mn)

Sales: 17.38

(-) Variable Cost 13.10

Contribution: 4.28

(-)Fixed Cost: 2.22

Profit 2.06

BEP = (Fixed Cost X 100)/Contribution BEP = (2.22 * 100)/4.28

= 51.86%

Breakeven Point

Current Ratio

(Current Assets/ Current Liabilities)

13.50/6.00 = 2.25

Liquid Ratio(Liquid Assets/ Current Liabilities)

6/3.73 = 1.61

Debt Service Coverage Ratio(PAT + Dep. +Interest + Lease rent/ Installment* + interest+ Lease rent)

(1.34 + 1.25 + 0.50)/(1.25 + 0.32+ 0.50)

=3.09/2.07 = 1.49

*Installment we are considering 1.25 because the loan of 10mn which we are suppose to pay in 8 annual installments.

Ratio Analysis

Debt Equity Ratio(Long term liability/ Share holder’s fund)

= 10 / 17.40 = 0.57

Gross Profit Margin to Net sales

(Gross Profit * 100/ Net Sales)

= (4.28 * 100)/ 17.38

= 25%

Ratio Analysis (cont.)

Industry Risk: Moderate

Risk

Stable political systems

Market friendly economic policies

Proximity to neighboring emirates.

Currency Risk: Moderate

Country Risk: LowUAE is an investment grade A2 rated (low risk) country

Future Plans• Our own transport system• Business expansion to India• Green Building

Thank you