Professional Documents
Culture Documents
1. Contents
1. Contents .......................................................................................................................................... 1
2. Executive Summary ......................................................................................................................... 3
3. Company Background ..................................................................................................................... 4
3.1 Personnel ................................................................................................................................ 4
3.2 Business History ...................................................................................................................... 4
3.3 Business Objectives ................................................................................................................. 4
3.4 Company Structure ................................................................................................................. 4
3.5 Corporate Environmental and Social Responsibility ............................................................... 5
4. Launch Market Selection ................................................................................................................ 5
5. Customer Profiling .......................................................................................................................... 6
5.1 Determine Size of Target Market for 3 Years ......................................................................... 6
5.2 Socio-Economic Analysis ......................................................................................................... 8
5.3 Determine Long Term Target Market ..................................................................................... 8
6. Product Development ..................................................................................................................... 9
6.1 Product Requirements ............................................................................................................ 9
6.2 Preliminary Design ................................................................................................................ 10
6.3 Bill of Materials (BOM).......................................................................................................... 12
6.4 Product Warranty ................................................................................................................. 13
6.5 Product Pricing and Market Positioning ............................................................................... 13
6.6 Competitor Offerings ............................................................................................................ 13
7. Brand ............................................................................................................................................. 13
8. LCA and Sustainability Assessment ............................................................................................... 15
8.1 LCA Goal ................................................................................................................................ 15
8.2 LCA Scope .............................................................................................................................. 16
8.3 LCA Data ................................................................................................................................ 17
8.4 Results ................................................................................................................................... 17
8.4.1 vs Kerosene Lamps ........................................................................................................ 19
8.4.2 vs 16kVA Generator ...................................................................................................... 19
8.4.3 vs Grid Production......................................................................................................... 20
9. Manufacturing & Scale-Up Planning ............................................................................................. 20
9.1 Manufacturing Strategy ........................................................................................................ 20
9.2 Supplier Identification........................................................................................................... 20
10. Financial Planning & Strategy ................................................................................................... 22
10.1 Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis ....................................... 22
10.2 Manpower Loading ............................................................................................................... 23
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10.3 Financial Predictions ............................................................................................................. 24
10.3.1 Capital Expenditure ........................................................................................................... 24
10.3.2 Cash Flow .......................................................................................................................... 25
10.4 Investment Value for Money Metrics and Exit Strategies .................................................... 26
11. References ...................................................................................................................................... 28
11. LCA Datasets ............................................................................................................................. 30
11.1 Breakdown of Battery Components ..................................................................................... 30
11.2 Grid Emissions per Country................................................................................................... 30
11.3 Process Energies ................................................................................................................... 30
11.4 Transport Energies ................................................................................................................ 31
11.5 Full LCA .................................................................................................................................. 31
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2. Executive Summary
myPower is an innovative start-up wanting to bring clean electricity into homes across the developing
world.
myPower Global Holdings Limited is seeking £1.6m worth of Series A funding from green investors
sharing myPower’s sustainable goals, in return for 35% of company shares with no dividends to be
issued in future.
myPower is a series of devices sold as a package, which can be attached to any adult bicycle, charging
a battery by adding resistance to the rear wheel. This pack can then be docked into a stationary unit
at home, providing two 3-pin plugs allowing the powering of lights, phones, a TV or any other low-
medium load devices.
The chosen launch market is Zimbabwe. Here, myPower will not sell to individuals, but instead will sell
to EcoNet Wireless, a $3bn company with significant presence in the country. Here, EcoNet will lease
the units to individual users who will pay £9 per month via EcoCash, EcoNet’s mobile payment
platform.
myPower will start making profit in Year 3. If myPower were not to expand into other markets, it is
predicted the company will have an EBITA of £11m in Year 6. Similarly, this transfers into £8.1m Net
Present Value (NPV) 0% assuming an Exit in Year 6, or £3.9m NPV 9%. This equates to 6.11 Profit
Index Ratio (PIR) 0% or 3.47 PIR 9%.
Environmental and social responsibility are at the heart of myPower’s operations. The device itself
removes families’ reliance on fossil fuels for lighting and electricity generation, and requires only being
transported to an individual once, rather than the vast quantities of Kerosene and Diesel transported
across the African continent daily. In addition, it brings the developmental opportunities of access to
electricity for millions of individuals, lifting families out of the dark.
This document outlines some of the key information regarding myPower’s strategy and the promise
of investing in myPower Global Holdings Ltd, as well as the Life Cycle Assessment (LCA) conducted in-
house by myPower.
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3. Company Background
3.1 Personnel
myPower is comprised of five employees with a wide range of complimentary experience, both in and
outside the business world. CVs of each individual can be found at the back of this document. The
roles of each member of staff can be found below:
Now, between December 2019 and June 2020, myPower Limited is actively looking for ‘Series A’
funding as per the issuing of new shares.
• myPower Ltd raise £1.6m in Series A funding by June 2020, with investors who are committed
to myPower’s business, environmental and social mission.
• Enable myPower to complete R&D and fund the loss-making first two year’s operation prior
to making profit.
• Collectively decide, as a group of investors, myPower’s expansion and investment strategy for
future markets.
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myPower Global Holdings Ltd myPower Global Holdings Ltd deals with the innovative ideas,
London product development and global business opportunities presented
to the company.
myPower Global Holdings Ltd will be located in the heart of London,
with a lean operation and 7-employee office at WeWork - 30
Churchill Place in Canary Wharf.
myPower Zimbabwe Ltd myPower Zimbabwe Ltd acts as a semi-autonomous business unit.
Harare This includes managing liaison with local lease partners (Econet
and corporate customers), authorities, carrying out repairs and
marketing.
This model can be replicated and adapted to future expansion
markets.
It also poses potential tax-minimisation opportunities.
myPower will be adapting our offices and facilities to operate with renewable and energy, utilising
local suppliers and companies to ensure this in Zimbabwe. Here, One Stop Solar, a local supplier of
solar panels and battery systems, are already installing these at our soon-to-be leased Zimbabwean
facility, to operate on 100% renewable energy.
Meanwhile, myPower will be utilising 100% renewable energy through the WeWork London premises
to be moved into in May 2020. Furthermore, myPower Global Holdings Ltd (mPGH) have partnered
with ClimateCare to offset all carbon emissions calculated at year end, ensuring mPGH is a net-zero
organisation.
A crucial company partnership is with the Belgian-based Umicore, who will recycle 97% of the battery
cell materials at their new Chengdu facility set to open in 2022. This is in addition to myPower’s work
to minimise emissions and impact throughout the supply chain.
Zimbabwe is unable to produce sufficient energy for the general population, typically giving available
energy to industry, hospitals and government buildings, leading to daily power cuts of up to 10 hours
in the capital of Harare. With the national grid not being supplied enough capital to expand its reach
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and purely focusing its efforts on keeping large industries afloat, many townships, villages and rural
areas are being left in the dark.
The country’s power problem comes from its inadequate state of power production infrastructure.
Zimbabwe has always imported the bulk of its electrical needs from neighbouring countries such as
Zambia, the Democratic Republic of Congo and a whole host of other Southern African nations, but
due to the hyperinflation of the Zimbabwean dollar in 2007-2008, it has been increasingly difficult to
source electricity. Paired with the fact that over recent years, the region has been plagued by droughts,
leaving the main hydroelectric generator plant along the Zambezi River with an insufficient and
uncertain water supply.
5. Customer Profiling
5.1 Determine Size of Target Market for 3 Years
To ensure the commercial success of myPower, it is paramount that the launch market has an
appropriate demographic to meet the unique selling proposition (USP) of myPower and vice-versa. As
such, determining the size and demographic of the target market through quantitative and qualitative
methods is essential to build the business case in the launch market.
As indicated in section 4, Zimbabwe was strategically chosen as the launch market for myPower, due
to the strength of mobile virtual currency (EcoCash), relatively highly-educated population, available
sales network, yet low income and lack of access to electricity. Despite a population of approximately
14.4 million, myPower intends to carry out a strategic and staged ‘soft-launch’ process, in order to
prove out the technical, commercial and logistical offering prior to greater market penetration.
As such, in the launch year, it is assumed myPower will only service customers within a ~30km radius
of the company’s domestic headquarters in Harare. The reasoning for this is twofold: allowing easy
service and repair of myPower units as necessary and enabling close collaborations between myPower
and Econet’s trial local sales agents within the area. This enables the service and sales model to be
closely controlled and refined prior to wider roll-out. For the launch year, myPower will work with
three non-franchise Econet stores, and one Econet agent within a 30km radius of central Harare. This
incorporates the poorer city of Chitungwiza, neighbouring Harare.
To assess the available target market during the launch year, it was assumed that the core
demographic of customers are those with an income defined between ‘poverty’ and ‘extreme poverty’
by the UN. This is based around preliminary quantitative analysis of expected target lease price of the
myPower unit, and as such the customers who will benefit most from myPower, whilst still being in
the financial position to pay the finance plan with Econet.
Table 2: 2017 Poverty Analysis - Source: (Poverty Report 2017, 2017)
Sum: 606,689
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It is assumed that the above target market is a constituent of the 59.6% (Zimbabwe Energy Situation,
2019) of people without access to electricity, given that the average monthly expenditure of those
who do have access to electricity is $94 per month, greater than the individual income poverty line
indicated by the government.
From the target market, it is assumed that myPower will be rolled out to ~1% of the target region
(7,000 individuals), impacting 28,000 people assuming a household size of 4 (Household Size and
Composition Around the World 2017, 2017)served by the four outlets previously described. It is
assumed that the distribution of leases would be as follows:
Table 3: Provisional unit allocation
In the second year, a more widespread launch would be carried out, primarily though further roll out
across agents. This would expand beyond the Harare metropolitan area, including the three
neighbouring provinces.
Table 4: Second year expansion to neighbouring provinces analysis
Sum: 2,221,674
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It is assumed that within the second year, 2.5% of the aforementioned target population will be
converted into leasing customers. This equates to 55,541 converted customers.
For Year 3, going nationwide, total population is 16,530,000. 60.6% of this population is below the
upper poverty line and 21.6% is also below the Food Poverty Line. This means that our target market,
when going nationwide, is 39% of the population: 6.5 million. Assuming 3% of these customers are
converted, this equates to 195,000 customers. For years 4 and 5, it is assumed 5% then 6.5% of the
market are captured, equating to 325,000 units and 422,500 units respectively. This is due to market
maturation, increased marketing presence, while a need to develop a healthy balance sheet for both
myPower and Econet, with the latter party accruing debt to pay the capital expenditure of the
myPower units.
From this £43 per a month of expenditure, the monthly subscription fee of £8.76 Charged by Econet
equates to 18% of the expenditure of housing, water, electricity, gas and other fuel sources and 6% of
total monthly household expenditure assuming that one unit is used between the household.
Despite the current economic climate, 50% of the current population own a smart phone, with LTE,
3G and 2G contributing to around 90% of the country’s internet connections. The region is extremely
well connected. The penetration of the smartphone is rising steadily, helped by the fact that most
banking in the country, due to the financial crisis, is being carried out via online means such as EcoCash,
which was launched by Econet.
Partnering with a company such as Econet would be crucial in the creation of local distribution
network using local their multitude of outlets and vendors with the monthly payment plans for the
units powered by EcoCash.
Zimbabwe’s largest GDP contributors are Agriculture, Forestry and Fishing, making up 14%, and the
mining industry making up 9.5% as of 2016. These industries share the common practise of working
away from developed areas and having large workforces living in nearby rural villages. Many of these
agricultural and mining industries are owned and operated by multinational companies who employ
a local workforce due to cheap labour costs. Companies offering the myPower unit to employers such
as the Zimbabwe Parks and Wildlife Management Authority and Anglo American mining group secure
myPower with a large client base and a safe, transparent means of acquiring payment and diversifies
myPower’s client base.
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A key expansion market for myPower is Kenya, where mobile payments are similarly prevalent to
Zimbabwe, with M-Pesa being the leading platform. With a similar level of retail network, M-Pesa
would be a like-for-like model as which will have been rolled out with Econet Wireless in Zimbabwe.
Asia is the second largest undeveloped continent. Most lower income families on the continent use
bicycles as a main form of transport for journeys to schools and workplaces. Many rural areas in Asia
face the same lack of infrastructure as the southern African region. The motorcycle/scooter is also a
popular choice of transportation, and a redesign of the configuration and design specification could
allow motorbikes to utilise the system, however this may impact on myPower’s green credentials.
The extreme sports and recreational cycling markets are a large potential client base. With riders
travelling large distances and undertaking multi-day trips across national parks and untamed
wilderness, the modern biking enthusiast needs a readily available source of power.
6. Product Development
6.1 Product Requirements
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6.2 Preliminary Design
Figure 4: myPower High-Efficiency Generator, awaiting the switch to a higher power generator. Computer Aided Design
The myPower unit consists of three main components that can be easily attached to any bicycle. The
high-efficiency generator and inverter unit takes between 15% and 30% of propulsive effort from the
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rear wheel and converts this into electrical energy. This electrical energy is stored in the 24V 20Ah
lithium-ion battery. The resistance from the generator can be increased or decreased with the control
panel placed towards the front of the bike. The greater the resistance, the greater the energy
harvested. In addition, the unit features a Type-A USB port for charging on-the-go.
With typical use, and considering inefficiencies and losses, just an eight-mile journey (1 hour of cycling)
can give enough energy to charge approximately eight smart phones, a 10W LED lamp for 3hrs, or a
15inch LED TV for up to 2hrs.
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In addition to the aforementioned three components, each myPower is issued with a dock. This dock
steps the voltage up from the 24V supplied by the battery, to 230V as used by most household
appliances. If a household was to lease any additional units, the dock will become an optional extra.
Component Cost
Battery unit £57.56
3 Stage selector £4.38
Generator £42.83
Battery dock £32.32
Assembly cost £3.05
Logistics £7.03
Total per unit £147.16
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6.4 Product Warranty
myPower have worked in partnership with Lishen to model the anticipated duty cycle and thus lifetime
of the myPower battery units.
Each battery unit is expected to last 6-8 years, given anticipated duty cycles and ambient conditions
experienced by the packs. As such, a warranty is provided by myPower to Econet (or the corporate
customer in such occasional cases), ensuring 5 years of operation with 70% of original battery capacity.
If the available capacity drops below this threshold within the warranty period, myPower will replace
the battery units free-of-charge (FOC). In the case of Econet, this in turn means Econet have an
additional unit in their fleet, compensating for the fact that Econet will have issued a new unit to the
end user who will have exchanged their faulty battery unit.
Part of the sales agreement between myPower and the customer is such that the customer is
compelled to return any unit whose life drops below 70% original capacity. This ensures myPower are
in the position to responsibly recycle all waste/EOL units.
For the other components within the myPower system (mode selector, generator, dock), myPower
offers an eight-year warranty. The units and spare parts associated with warranty queries has been
factored into myPower’s anticipated costs.
As discussed in section 5.2, the top-down pricing strategy was generated based off socio-economic
analysis while also utilising a feasible BOM and generating a healthy financial offering for all parties.
There have been stationary-bike dyno systems introduced in limited numbers to certain trial markets,
however these have the disadvantage of being stationary (i.e. productivity is lost), expensive and as
such often induce the creation of local energy barterers who work without regulation and sell energy
that they will generated at still-extortionate prices to members of the community in unsafe lead-acid
battery systems.
In a way domestic solar panels and the national grid are also competitors, both of which have a high
a barrier to entry between installation or grid connection and with massive mistrust in the government,
corporations and banks in the country, signing an agreement with any of them is not desirable by
many communities. This was identified by the UN as one of the leading reasons for lack of electricity
across Africa. With my Power there is no upfront cost due to the leasing scheme being introduced:
users simply pay £9 a month and away they go with a plug and play system that makes them
completely independent.
7. Brand
myPower has developed strong brand from the ground up in house. This is based around three core
brand values.
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This is reflected in the logo and slogan seen below:
Marketing campaigns and branded content look to further reflect these values, through use of
iconography and infographics to communicate concepts, such as that seen below.
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8. LCA and Sustainability Assessment
Sustainability is a core part of myPower’s vision and values, and as such we are looking for investors
who share this vision and want to join us on our mission to change lives while reducing global
emissions. As a result, myPower have conducted an in-depth assessment into the product’s
sustainability credentials, looking at well-to-wheel environmental impact, with the outcomes of this
being used to strategically mitigate emissions throughout the supply chain.
While there are no direct competitors in the market taking advantage of the system used in the
myPower product, there are typical scenarios associated with Africa's rural power generation that can
be used as a comparison to the myPower unit to show how the myPower unit benefits its users and
the environment.
● A Diesel generator: Using a 16-kVA generator would be commonplace for a small homestead
of four to six households. Only the diesel used during the lifetime of the myPower unit will be
considered. The LCA shall not be comparing the materials used to manufacture the generator
or the required maintenance intervals. The LCA shall only consider the diesel used to power
an individual home in the same power consumption as outlined for the myPower unit. As such
this could be seen as a best case for the generator and a worst case for the myPower.
● A Kerosene lamp: As discussed in section 5.2, many African homes rely solely on kerosene
lamps for lighting. While this will not be exactly comparable to the versatility of the myPower
unit due to only usable light being emitted from the kerosene lamp, it is a case that should be
considered due to this being the only viable solution currently available to some households.
Therefore, it shall be compared to the energy generated by the myPower unit to power an
LED of equivalent brightness.
● The Zimbabwean national grid: While the grid is an unreliable source of power. In the LCA it
shall be compared to the myPower unit with the assumption that the amount of energy
obtained by the battery pack during the 8 years will be compared to the same amount of
energy from the coal and hydroelectric supplied-national grid in Zimbabwe.
The LCA report will be available to the public. Departments within myPower will utilise the LCA to
analyse the lifecycle of the unit, allowing necessary adjustments to procedures, transportation and
manufacturing, to aid in myPower’s dedication to be a carbon neutral company. The constant
monitoring and updating of the LCA will allow for the company to continually move forward and evolve
its processes.
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8.2 LCA Scope
myPower created the scope by mapping out the flow of components as assessed within the LCA. This can be seen in Figure 8 below.
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Materials and Assembly
As seen in the figure above, where possible, myPower has captured first-hand data from its supply
chain, down to “Tier 2” suppliers. This is classed as the ‘foreground’ of the study. For Tier 3 suppliers
such as connector manufacturers or suppliers of raw materials such as plastic pellets or minerals,
myPower has used data from reputable databases such as:
The assembly processes used in assembling the finished product in our factory in Nantong, China, will
be analysed and outlined. The energy associated with hand assembly has also been included in the
LCA.
In the LCA itself, components where only “raw material” values are listed and no “process” values are
listed indicates that myPower has taken lumped CO2 and energy values from the manufacturer
encompassing both raw materials and processes. As such, these are classed as ‘background’
components.
Transportation
The transport phase from individual component manufacturers has been considered, with further
transport from our Chinese manufacturing plant to our Zimbabwean headquarters.
Once the unit is given back to myPower, the transport phase for the battery unit travelling to Umicore
China and other components to the South African recycling facility are included.
Use
Due to the nature of the myPower unit, during the use phase, the unit will not use any energy other
than that of the cyclist, and the unit itself will not give off any emissions. The energy used by the
consumer is the energy made by the consumer, creating an assumed net zero use phase.
To accommodate for repairs and battery replacements of the unit, we have used a scalar percentage
value within our fleet of units to accommodate for the weighted likelihood of each component
needing to be replaced. These contingencies for each component are then added to each phase (Raw
Materials, Manufacturing Processes, Transport, End of Life) of the lifecycle according to the weighting
between each of these phases.
Recycling
Due to the complex nature of battery recycling, the battery unit will be shipped back to China in order
to be recycled in the most efficient way. The recycling of other components will be conducted in South
Africa due to Zimbabwe’s lack of recycling infrastructure. This LCA will look at how much energy is
given back from this recycling.
8.4 Results
The output of the LCA, showing impact per phase of lifecycle can be seen below.
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Life Cycle - myPower Unit Generation 1
600 60
500 50
400 40
Energy (MJ)
CO2 (kg)
300 30
200 20
100 10
0 0
-100 -10
-200 -20
Raw Materials Manufacturing Transport End of Life
Processes
Energy (MJ) CO2 (kg)
The net CO2 produced by a myPower during its lifetime is 49.68 kg. The net energy (assuming zero
‘use’ phase) produced is 645.60 MJ. Given a user cycling 1 hour per day, for 8 years, and assuming a
worst case of 25% losses in the transformer, 134kWh of energy will be outputted from the myPower
system in its life. As such, on average myPower creates 370 gCO2/kWh energy outputted. However,
this also highlights how the more a myPower is used, the ‘cleaner’ its energy becomes.
As explained in detail below, the results indicate the positive environmental impact of myPower
relative to other energy sources. Namely:
Figure 11 The environmental impact of myPower versus Kerosene lamp, Diesel generator and the Zimbabwean grid.
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8.4.1 vs Kerosene Lamps
Kerosene lamps used across the third world for lighting consume an estimated 77 billion litres annually
and a single lamp used for 4 hours a day emits around 100kgs of CO2 a year (CNN, 2012). A standard
kerosene lamp has the luminous efficiency 0.35 lm/W, in comparison to a 1.8W LED lantern, which
has a luminous efficiency of 67 lm/W (Machala, M, 2011, Stanford University). The average Kerosene
lamp is able to have a light output of around 76 lumens, while the 1.8W LED lantern is able to have an
output of 120 lm.
Table 7: Comparison of lighting efficiency of LED vs Kerosene Lamps
The above information shows the inefficiencies of some of the components that could be replaced
with the use of a simple battery powered system. With the power grid infrastructure in Zimbabwe,
the majority of the country is plunged into darkness, a huge reliance of kerosene and liquid fuel lamps
has been formed in rural parts across the region. If these light sources were replaced with a more
efficient LED system powered by a sustainable and renewable source of energy, the carbon footprint
of each household would be drastically diminished, while also removing other issues such as toxic
particulates and the logistical impact associated with the use of single-use fossil fuels.
According to literature a hurricane kerosene lamp releases 2.5kg of CO2 for every litre of kerosene
burned (Lighting Africa, 2010, pg.14).
As such, the functional unit of this comparison can be based around one month of use of a light
(assuming use of a light for 5 hours per day). However, more representative comparisons can also be
made if the functional unit references the amount of light generated by each system (in Lux or Lumens).
The research and appropriate calculations for the CO2 footprint of the two investigated off-grid lighting
solutions show a substantial difference between the two. For an average of 5 hours per day, for 30
days per month of lighting using a single light source, a standard hurricane kerosene lamp is expected
to release about 1.15kg of CO2 while the 1-Watt LED (powered by a myPower) is approximately
0.055kg. These drastic reductions can be seen below:
Table 8 Comparison between myPower LED and Kerosene Lamp
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8.4.3 vs Grid Production
Zimbabwe’s grid relies largely on coal, as well as a varying percentage of hydroelectric. As of 2011
this resulted in an assumed 603 gCO2/kWh of energy produced. As such, myPower results in a 39%
reduction in CO2 output given an average usage cycle.
The assembled four major components will be shipped from China, to the closet port to Harare,
located in Beira, Mozambique. From Mozambique, they will be trucked to Harare.
All manufacturers adhere to ISO 9001, which is defined as the international standard that specifies
requirements for a quality management system (QMS). Organizations use the standard to
demonstrate the ability to consistently provide products and services that meet customer and
regulatory requirements.
TianJin Lishen Battery Joint-Stock CO., LTD. will be our worldwide supplier of Lithium-ion battery cells,
with decades of experience from the cell level all the way to system integration. They offer a high
quality product with a low cost price tag. Despite operating at a competitive price point, Lishen
operate with sustainability and social responsibility as a core value in their work. Lishen also commits
not to use conflict mineral, and as such does not accept primary mineral materials from DR Congo and
neighbouring conflict countries. In addition, they work to strengthen supply chain management, and
formulate relevant management rules and regulations to confirm the source of products containing
tantalum, tin, gold, tungsten, ensuring that the metal does not come from conflict mining areas.
Qidong Xinsheng Power Tools Co., Ltd. in Shenzhen, China was selected to manufacture the armature
for our generator as well as assembling the housing and rotor, with the manufacturer offering
extremely competitive prices with the ability to set up a production line specifically for myPower
within their factory.
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FOW Mould, in Taizhou, China was chosen for their pricing, 40 years of experience and their tolerance
guarantee. The company is also able to produce more than 8000 units a month, as such giving us
headroom and stability on future manufacture requirements.
PCB Way, in Shenzen, China was chosen due to their 15 years’ experience in the industry and having
the ability to manufacture more than enough units for myPower’s needs for the next 10 years.
Teaming up with Umicore Cobalt & Specialty Materials, a world pioneer in Lithium-ion cell recycling,
are able to recycle up to 97% of the metals used within the cell. The correct disposal of dangerous
waste material like end-of-life Li-ion and NiMH batteries can be complex and at times worrisome. That
is why Umicore works hard to provide comprehensive peace of mind solutions to OEM’s and battery
collectors around the globe.
Within the purchase agreement, myPower units that capacity falls below 70% (6-8 years of regular
use) will be taken back by myPower and recycled at Umicore’s forthcoming Chengdu facility in China.
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10. Financial Planning & Strategy
10.1 Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis
Relatively cheap
alternative to other energy
sources.
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10.2 Manpower Loading
Year One Year Two Year Three Year Four Year Five
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total Headcount 0 0 5 5 7 9 9 12 14 14 15 17 19 20 21 22 23 23 24 24
# of Employees 0 0 5 5 7 8 8 11 13 13 14 16 17 18 19 20 21 21 22 22
CTO - UK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
COO - UK 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Ops/Finance Managers - UK/Global 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Ops/Finance Coordinators - UK/Global 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2 2
Local MD - ZW 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Local Technicians - ZW 0 0 1 1 1 2 3 3 3 4 4 4 4 5 5 5 6 6
Local Relationship Managers - ZW 0 0 0 1 1 2 3 3 4 5 6 6 7 7 8 8 8 8
# of Contractors 0 0 0 0 0 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
Marketing Executive - ZW 0 0 0 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
Year One Year Two Year Three Year Four Year Five
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Manpower Total cost £- £- £ 51,250 £ 51,250 £ 70,750 £ 85,600 £ 85,833 £ 115,832 £ 135,601 £ 135,890 £ 145,950 £ 165,784 £ 177,893 £ 188,529 £ 198,693 £ 208,889 £ 219,118 £ 219,634 £ 229,937 £ 230,533
Employee Type Yearly Salary (£/year)
£- £- £ 38,750 £ 38,750 £ 54,250 £ 65,100 £ 65,333 £ 88,832 £ 104,601 £ 104,890 £ 112,950 £ 128,784 £ 136,893 £ 145,029 £ 153,193 £ 161,389 £ 169,618 £ 170,134 £ 178,437 £ 179,033
CTO - UK £ 31,000 £ - £- £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750
COO - UK £ 32,000 £ - £- £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750
Ops/Finance
Managers -
UK/Global £ 30,000 £ - £- £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250 £ 23,250
Ops/Finance
Coordinators -
UK/Global £ 29,000 £ - £- £ - £ - £ - £ - £ - £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 15,500 £ 15,500 £ 15,500 £ 15,500 £ 15,500 £ 15,500 £ 15,500
Local MD - ZW £ 80,000 £ - £- £ - £ - £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750 £ 7,750
Local Technicians -
ZW £ 10,000 £ - £- £ - £ - £ 7,750 £ 7,750 £ 7,750 £ 15,500 £ 23,250 £ 23,250 £ 23,250 £ 31,000 £ 31,000 £ 31,000 £ 31,000 £ 38,750 £ 38,750 £ 38,750 £ 46,500 £ 46,500
Local Relationship
Managers - ZW £ 14,000 £ - £- £ - £ - £ - £ 7,750 £ 7,750 £ 15,500 £ 23,250 £ 23,250 £ 31,000 £ 38,750 £ 46,500 £ 46,500 £ 54,250 £ 54,250 £ 62,000 £ 62,000 £ 62,000 £ 62,000
NEGOTIATION
SALARY - UK 0.05 £ 1,938 £ 2,083 £ 2,239 £ 2,407 £ 2,587 £ 2,782 £ 2,990 £ 3,214 £ 3,455 £ 3,715 £ 3,993 £ 4,293 £ 4,615 £ 4,961 £ 5,333
NEGOTIATION
SALARY - ZW 0.05 £ 1,163 £ 1,250 £ 1,343 £ 1,444 £ 1,552 £ 1,669 £ 1,794 £ 1,929 £ 2,073 £ 2,229 £ 2,396 £ 2,576 £ 2,769 £ 2,976 £ 3,200
23
10.3 Financial Predictions
10.3.1 Capital Expenditure
The above demonstrates the required capital investments required across all business operations both
globally and within the local market. Due to the lean and largely outsourced nature of myPower’s
operations, this help minimise up-front capital investments. This is reflected in the relatively
insignificant capital figures seen above.
24
10.3.2 Cash Flow
25
Figure 14: myPower Cash Flows forecast
Following the Series A funding round in mid-Year 1 (2020), cash will be expended on final R&D while
myPower Zimbabwe Ltd is also established. In Year 2, artificially-limited sales numbers will exist for
loss-making devices, hence the continued losses at Y2 year end.
Year 3 sees expanded sales, and of units sold at full price. This is reflected in the profit-making Year 3,
with then a continued growth in sales across Zimbabwe reflected in the following years. However,
these forecasts assume no expansion into further markets. As such, with the buy-in of investors,
myPower are looking for long-term backers who will enable myPower to reinvest profits in expansion
with the target of further markets entered from Year 5.
Figure 15: Investment Value for Money Metrics and Exit Strategies Illustration
26
With the initial investment of £1.6 million for 35% of the company, after the 6th year, an earning of
£8.1 million assuming 0% discount rate. These financial figures assume no expansion beyond
Zimbabwe, thus not considering future markets.
The next immediate markets planed for myPower is to be Kenya, with its large use of mobile payment
systems. Asia is also a promising investment, with large populous unable to be reached by the
electrical grid. There are also possible markets within the recreational cycling community within the
first world. This is further discussed in section 5.3.
Due to financial, environmental and social promise of such product and expansion, myPower is looking
for long term investors who will support us through the expansion and help develop myPower’s global
transformational offering and associated strategy.
27
11. References
Household Size and Composition Around the World 2017. (2017). Retrieved from United Nations.
(2017). Poverty Report 2017. Zimbabwe National Statistics Agency. Retrieved 11 15, 2019, from
http://www.zimstat.co.zw/sites/default/files/img/publications/Prices/Poverty_Report_2017.pdf
Zimbabwe Energy Situation. (2019, 08 27). Retrieved 11 15, 2019, from Energypedia:
https://energypedia.info/wiki/Zimbabwe_Energy_Situation
Y, Olofsson. M, Romare. (2013). Life cycle assessment of lithium-ion batteries for plug-in hybrid
buses. Chalmers university.
Household Size and Composition Around the World 2017. (2017). Retrieved from United Nations.
P. Blimpo, M. and Postepska, A. (2017). Why is Household Electricity Uptake Low in Sub-Saharan
Africa? [online] Editorialexpress.com. [online]:
https://editorialexpress.com/cgibin/conference/download.cgi?db_name=CSAE2018&pape
r_id=768 [Accessed 6 Oct. 2019].
Helman, C. (2013). How Much Electricity Do Your Gadgets Really Use? [online] Forbes.com. [online]:
https://www.forbes.com/sites/christopherhelman/2013/09/07/how-much-energy-does-your-
iphone-and-other-devices-use-and-what-to-do-about-it/#53e0c53e2f70 [Accessed 4 Oct. 2019].
Bensch, G., Peters, J. and Sievert, M. (2019). The lighting transition in rural Africa. From kerosene to
battery-powered LED and the emerging disposal problem. [online]:
https://reader.elsevier.com/reader/sd/pii/S0973082616310444?token=37E24FD3DCB0902E1C2CBD
5C49659E47CF665657F55031A6B5EBA0D41FE2AF439C5BA05AB8B431C2C50858558EDEA25
[Accessed 5 Oct. 2019].
Caruso, B. (2017). Women still carry most of the worlds water. The conversation. [online]:
https://theconversation.com/women-still-carry-most-of-the-worlds-water-81054 [Accessed 6 Oct.
2019].
28
GSM Association. (2013). The incredible growth of EcoCash Zimbabwe: A chat with Econet Services
CEO Darlington Mandivenga. [online]:
https://www.gsma.com/mobilefordevelopment/country/zimbabwe/the-incredible-growth-of-
ecocash-zimbabwe-a-chat-with-econet-services-ceo-darlington-mandivenga/ [Accessed 3 Oct. 2019].
Mills, E., Berkeley, L. (2003) Technical and Economic Performance Analysis of Kerosene Lamps and
Alternative Approaches to illumination in Developing Countries. National Laboratory June 28, P10-12
29
11. LCA Datasets
11.1 Breakdown of Battery Components
Processes MJ/kg
Copper Extrusion Foil Rolling 1.64
Thin Foil/Sheet Stamping 0.34
Wire Trimming (assumed) 0.2
Deburring (assumed) 0.05
Glue application 0.018
Injection Moulding 18.3
Stamp & Turn (assumed) 1.72
Plating 2.3
Bending 0.8
Assembly (Mechanical Fastener) 0.18
Adhesive hot curing 9.8
Welding 2.4
Soldering 1.3
Co-Precipitation and Calcination 34.3
Cell Assembly 4
30
11.4 Transport Energies
CO2/kg.km MJ/kg.km
LGV 0.000158 0.0022
HGV 0.000059 0.00082
Ship 0.000013 0.00018
31
BoM Raw material: Process 1: Process 2: Transport 1: Process 3: Transport 2: Assembly Plant to CN Port Transport 3: China to Mozambique
TOTALS 4.637594635 513.866 21.925 197.144 29.547 1.9216 0.219 29545 4.1461 0.1939 3.31 0.9948 1000 3.8028 0.2736 14600 12.1876
Assembly: Component: Qty: Mass per single unit (kg): Mass for total units (kg) Energy (MJ/kg) Total Energy (MJ) CO2 (kg/kg) Total CO2 (kg) %Wastage Energy (MJ) %local ren %grid CO2 %Wastage Energy (MJ) %local %grid CO2 Distance Energy (MJ) CO2 (kg) %Wastage Energy %local %grid CO2 Distance (km) Energy (MJ) CO2 (kg) Distance (km) Energy (MJ)
Main Body ASSY 0.9042 0.1394034
Battery Pack 1 0.500 0.500 30.1700 1.6333 13.690 36% 64% 1.35075 1.5673 36.00% 64% 0.15464 1000 0.41 0.0295 1.00% 0.7474 0.00% 100.00% 0.115224
Cells 28 0.014 0.390 53.7 21.3619 3.1 1.2332 2% 13.645 36% 64% 1.34626 0% 1.5600 36.00% 64% 0.15392
Inner Casing (PLA) 1 0.070 0.070 76.6 5.4692 2.8 0.1999 2% 0.004 36% 64% 0.00035
Cell Spacer Foam 24 0.000 0.010 85.05 0.9526 3.95 0.0442 12% 0.004 36% 64% 0.00059
Wires and Terminals 1 0.010 0.010 99.5 1.0050 7.465 0.0754 1% 0.002 36% 64% 0.00000
Copper Bus Bar 1 0.020 0.020 62.7 1.3814 3.655 0.0805 2% 0.036 36% 64% 0.00357 8% 0.0073 36.00% 64% 0.00072
BMS PCB 0.071 1 0.073 0.073 7.6306 0.5827 0.014 36% 64% 0.001342 500 0.02991 0.00215 1.00% 0.10904 0.00% 100.00% 0.016810
Ag 1 0.001 0.001 1470 1.4994 100 0.1020 2%
PROCESSES
<-----------
BULKED
Cu 1 0.015 0.015 58 0.9189 3.68 0.0583 6%
Epoxy Resin 1 0.026 0.026 155 4.2244 10.7 0.2916 4%
Ink 1 0.002 0.002 132 0.3270 6.7 0.0166 1%
Glass Fibre 1 0.028 0.028 22 0.6609 3.8 0.1141 6%
Female USB Port 1 0.023 0.023 90 2.0700 3.39 0.0780 100% 1420 0.0267812 0.00192694 0.00% 0.00414 0.00% 100.00% 0.000638
Full Main Body Casing 1 0.209 0.209 20.8166 1.3460 3.939 100% 0.607330 0.0108 100% 0.00166 1500 0.25707 0.0184965 0.00% 0.03762 0.00% 100.00% 0.005800
RHS Injection Moulded ABS 1 0.099 0.099 96.7 9.8605 6.44 0.6376 2% 1.866 0% 100% 0.287683 1% 0.0051 0.00% 100% 0.00079
LHS Injection Moulded ABS 1 0.110 0.110 96.7 10.9561 6.44 0.7084 2% 2.073 0% 100% 0.319648 1% 0.0057 0.00% 100% 0.00087
JST 4.2mm Female Connector 1 0.006 0.006 90 0.5400 3.39 0.0203 1420 0.0069864 0.00050268 0.00% 0.00108 0.00% 100.00% 0.000167
10ml Waterproof Sealant 1 0.008 0.008 115 0.9777 5.46 0.0426 1420 0.00908232 0.000653484 9% 0.000153036 0% 100% 0.000024
Brand ONE-WRAP 3 0.006 0.018 45 0.8586 0.89 0.0160 1420 0.0209592 0.00150804 6.00% 0.00034344 0% 100% 0.000053
20mm Tapping Screw 4 0.004 0.014 0.5335 0.0343 0% 100% 0.003967 0.0004 0.00% 100% 0.00006 5 0.00005904 0.000004248 0.00% 0.002592 0.00% 100.00% 0.000400
Steel 4 0.004 0.014 33.8 0.5056 2.18 0.0326 6% 0.026 0% 100% 0.003967
Zinc 4 0.000 0.000 46 0.0070 3.58 0.0005 5% 0.0003 0.00% 100% 0.00004
Surface Treater 4 0.000 0.000 283 0.0210 16 0.0012 3% 0.0001 0.00% 100% 0.00002
10mm Tapping Screw 4 0.003 0.010 0.3853 0.0248 100% 0.002865 0.0003 0.00% 100% 0.00004 5 0.00004264 0.000003068 0.00% 0.001872 0.00% 100.00% 0.000289
Steel 4 0.003 0.010 33.8 0.3652 2.18 0.0236 6% 0.019 0% 100% 0.002865
Zinc 4 0.000 0.000 46 0.0050 3.58 0.0004 5% 0.0002 0.00% 100% 0.00003
Surface Treater 4 0.000 0.000 283 0.0152 16 0.0009 3% 0.0001 0.00% 100% 0.00001
Handle Bar 0.09 0.015
Three position switch 1 0.023 0.023 130 2.9510 5.32 0.1208 1420 0.02643188 0.001901806 0.00% 0.004086 0.00% 100.00% 0.000630
PLA Casing 1 0.040 0.040 76.6 3.1717 2.8 0.1160 2% 0.758 0% 100% 0.116839 1% 0.0021 0.00% 100% 0.00032 1500 0.049446 0.0035577 0.00% 0.007236 0.00% 100.00% 0.001116
Wire to battery pack 2 0.115 0.230 99.5 23.5716 7.465 1.7685 1420 0.267812 0.0192694 3% 0.042642 0% 100% 0.006574
10mm Iron Flat Head Self Tapping Screw 3 0.003 0.008 0.2890 0.0186 100% 5 0.00003198 0.000002301 0.00% 0.001404 0.00% 100.00% 0.000216
Steel 3 0.003 0.008 33.8 0.2739 2.18 0.0177 6% 0.014 0% 100% 0.002149
Zinc 3 0.000 0.000 46 0.0038 3.58 0.0003 5% 0.0001 0.00% 100% 0.00002
Surface Treater 3 0.000 0.000 283 0.0114 16 0.0006 3% 0.0001 0.00% 100% 0.00001
JST 4.2mm Male Connector 1 0.020 0.020 90 1.8000 3.39 0.0678 1420 0.023288 0.0016756 0.00% 0.0036 0.00% 100.00% 0.000555
PLA Mounting Bracket 1 0.200 0.200 55.3 11.0600 2.8 0.5600 100% 0.000000 1500 0.246 0.0177 0.00% 0.036 0.00% 100.00% 0.005550
12 6.227692949 0.42609199 1100 3.732110361 0.268529892 560 0.2296 0.01652 14600 1.314 0.0949 90 0.0369 0.002655
48 2.56 -2.112 -0.2001
22.9 1.04 -3.759 -0.1232
13 0.273119756 0.010386602
18 4.51107063 0.355220345
34 1.29 -6.207 -0.5099
34 1.29 -6.897 -0.5665
13 0.001048632 0.002709548
18 0.177653764 0.007783467
50 0.43995132 0.00876402
10 0.053658588 0.003836843
8.94 0.702 -0.351 -0.0209
10 0.038753424 0.002771053
8.94 0.702 -0.253 -0.0151
5 0.149075894 0.00613329
5 0.087057442 0.008296177 20.7 1.04 -2.247 -0.0708
12 2.86584048 0.214527348
10 0.029044072 0.001860198
8.94 0.702 -0.190 -0.0113
13 0.23749544 0.009031828
4 0.45368 0.023108
5 13.17479175 1.385780515
6 3.965107248 0.145812838
5 2.81740032 0.052312824 60.5 4.76 -8.424 -0.5843
10 1.6495968 0.02027964
10 0.056216235 0.003605496
8.94 0.702 -0.365 -0.0217
15 0.2740332 0.01042134
25 24.096996 1.581992675
20.7 1.04 -53.664 -1.6896
20.7 1.04 -13.416 -0.4224
10 2.47250134 0.147886595
14.3 1 -10.164 -0.5628
8.94 0.702 -4.723 -0.2808
15 0.1185077 0.005654656
15 0.477932112 0.028953721
10 0.020291818 0.001383369
0 0 0
0 0 0 19.8 1.02 -2.860 -0.0080
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