Ceramic hand former

COMPANY NAME

Executive Summary

This company is a manufacturer of ceramic hand former with one location in

Rawang,Selangor.It is a start up manufacturing firm.Along with a significant level of
its own capital,it hopes to initially make a successful effort to secure start up
financing to begin operations.

We are looking to conduct operations at its location to meet an ever-growing level of

demand for ceramic formers.The company’s initial product offering will include the
ceramic hand former product for the time being.The product is expected to be very
popular among the medical lines. Strong contact relationships and referral networks
among company owners are expected to allow for a rapid entry into this market.

Revenue Estimation
1200000
1040000
1000000

800000 800000 800000

800000

600000

400000
260000
200000 200000 200000
200000

0
1st Month 3rd Month 6th Month 9th Month

Sales Net Profit

Summary
The selling price per unit of the ceramic formers is priced at RM 20.The cost to build a
ceramic former is expected to be at RM 15.The net profit per ceramic former is at RM
5.Therefore if 40000 ceramic hand formers are produced in a month,Rm800000 of sales will
be generated leading to RM200,000 in net profit.
Machinery Estimation Costs

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

11)

12)

13)
(Start up Requirements)

Start up Expenses

Legal fee RM30,000

Factory Rent (3 months advance) RM 45,000

Factory Rent (RM15000 per month for a total of 6 months) RM 90,000

Advertising RM 15,000

Insurance RM 10,000

Research and Development -

Office setup RM 50,000

Others(salary of employees for 6 months) RM 300,000

Utilities(Electricity,water,gas bills) 6 months* RM 132,000

Total Start-up Expenses (estimated) RM 672,000

Start-up Assets

Cash Required RM 100,000

Start-up Inventory RM 300,000

Other Current Assets(material stocks) RM100,000

Long-term Assets(Machine) RM1,200,000

Total Assets RM 1,700,000

Total Requirements RM 2,372,000

Planned Investment

Investor 1 RM448,000

Investor 2 RM448,000

Investor 3 RM448,000

Additional Investment Requirement RM 0

Total Planned Investment RM 1,344,000

Loss at Start-up (Start-up Expenses) (RM 672,000)

Total Capital RM672,000

Total Capital and Liabilities RM 1,700,000

Total Funding RM 2,372,000

Products
We will manufacture ceramic hand formers for all phases of medical needs.Primary
focus will be placed on manufacturing processes to ensure the highest quality, a high
level of product features, and the most efficient manufacturing process possible.

Market Analysis Summary

The global industrial gloves market was valued at $6.9 billion in 2019, and is projected to
reach $14.8 billion by 2027, growing at a CAGR of 10.4% from 2020 to 2027.This indicates
that the demand for ceramic hand formers will indirectly increase as well. The most
rapidly growing sub-segment of the gloves segment is the small companies. These
firms have relatively low entry/exit barriers to the market. However, these companies
are not seen as a potentially large market for us since they have such low market
capitalization.

Market Analysis

Potential Customers Growth cagr

Mecial lines 15% 25,000 28,750 33,063 38,022 43,725 15.00%

Mid-Sized gloves companies 10% 5,000 5,500 6,050 6,655 7,321 10.00%

Small gloves companies 3% 5,000 5,150 5,305 5,464 5,628 3.00%

Total 12.81% 35,000 39,400 44,418 50,141 56,674 12.81%

 Market Analysis

Medical need Mid size company Small sized company

Target Market Segment Strategy

We primarily focus on its target market, medical needs, through direct selling via its various
relationship and referral networks. In addition, a significant amount of investment will be
made in advertising to promote product awareness. Direct selling is far more effective in
closing sales as well as in terms of sales and marketing costs.

We will also use the tool of product demonstrations at its site to close sales. Potential clients’
travel costs to our site for product demonstrations is covered by us. Product demonstrations
are a critical step in the sales process. This is the opportunity to prove the capabilities of our
products, educate the potential client, and establish a relationship.

Market Needs

The volume of hand formers has been steadily increasing since the 2000s. Demand for heavy
gloves has been steadily increasing as new entrants come into the market and current
participants grow their operations.
Pro Forma Profit and Loss

Sales $

Direct Cost of Sales

Other $0 $0 $0

Total Cost of Sales

Gross Margin

Gross Margin %

Expenses

Payroll

Sales and Marketing and Other

Expenses

Depreciation 300,000 300,000 300,000

Utilities

Payroll Taxes $0 $0 $0

Other $0 $0 $0
Total Operating Expenses

Profit Before Interest and Taxes

EBITDA

Interest Expense

Taxes Incurred

Net Profit

Net Profit/Sales 5.76% 7.41% 9.36%

Profit yearly
3500000

3000000

2500000

2000000

1500000

1000000

500000

0
Profit 1st year Profit 2nd year profit 3rd year