Draft Business Development

Plan of
New Company
 Table of Contents
1. Executive Summary.......................................................................................................................3
2. Company Summary.......................................................................................................................4
a. Legal Entity and Ownership.......................................................................................................4
b. Facilities and Key Asset..............................................................................................................4
3. Services..........................................................................................................................................5
a. Service Description....................................................................................................................5
b. Strength of Service.....................................................................................................................7
4. Competitive advantage..................................................................................................................7
5. Situation Analysis...........................................................................................................................7
a. Market Summary.......................................................................................................................7
b. SWOT Analysis.........................................................................................................................14
c. Competition.............................................................................................................................14
6. Market Strategy...........................................................................................................................16
a. Target Market..........................................................................................................................16
b. Unique selling point (USP).......................................................................................................16
c. Competitor Analysis.................................................................................................................16
d. Marketing Mix.........................................................................................................................16
7. Financing Plan..............................................................................................................................17
a. Initial Set-up Cost.....................................................................................................................17
b. Operating Cost (Monthly)........................................................................................................17
c. Specific Project Cost................................................................................................................17
d. Revenue for next three years..................................................................................................17
8. Conclusion...................................................................................................................................18

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1. Executive Summary

HG Power Transmission SDN BHD (HGPT) is a leading Malaysia-based

Engineering, Procurement & Construction (“EPC”) company with a long and proven
track record in providing turnkey solutions for EHV transmission lines in Malaysia and
overseas up to 500kV.
ETCBL GLOBAL is a renowned Bangladesh based engineering support provider,
established to provide design services for new and existing overhead transmission
lines and substations from 33kV to 500kV. ETCBL GLOBAL offers complete design
engineering and related management services as a joint venture partner or
subcontractor for any overhead transmission line projects either at pre-feasibility
/feasibility/tender stage and/or during execution, in Bangladesh and other countries.
Having understood the transmission development plan and expansion plan of power
grid of Malaysia, Philippine & Nepal (MPN Region) and being aware of the design
opportunity in this region, HGPT and ETCBL GLOBAL have come to an agreement to
collaborate with each other and form a new company in Malaysia as a subsidiary of
HGPT.

This report analyses the business scope in the MPN region, company
summary, financial plan & revenue for the next three years of the new
company. The report also depicts SWOT analysis of the new company, current
market competition, detailed marketing strategy like competitor analysis,
market research and marketing mix which will ultimately help the newly
formed company to achieve its goal.

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2. Company Summary

a. Legal Entity and Ownership

It will be a limited liability private company and ownership structure will be as
following:
 HG Power Transmission and its Directors-51%
 ETCBL GLOBAL and its Directors-49%
Initial paid-up capital for this company is 10,000.00RM. [Need to discuss &
confirm with HGPT]
b. Facilities and Key Asset

 Office: An office will be setup at Kuala Lumpur for engineering,

maintaining relationship with clients and others business works. Initially
new company can use office space of HGPT to reduce the cost.

 Management Summary: Two (2) employees/directors from HGPT and

two (2) employees/directors from ETCBL GLOBAL will be assigned for the
management of this new company.

o KL based Operation: Out of four (4), three (3)

employees/directors will be primarily responsible for technical
matters like communicating with the clients regarding all technical
queries and arrange the design and other related services
accordingly. And rest one (1) employees/directors will be
responsible for accounting and legal matters of the new company.
Directors will also be responsible for marketing and building
relationship with the clients and also commercial negotiation.

o Value center Operation: Engineers of ETCBL GLOBAL in Dhaka

will operate as Value center operation who will be working in
Bangladesh to provide the bulk engineering support to the new
company.

 Software
1. PLS CADD
2. PLS POLE
3. PLS Tower
4. AutoCAD
5. Microsoft Office Suite

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3. Services

A skilled approach to power transmission line design and planning can maximize
asset performance, save time and money, improve safety, and minimize
community concerns and impacts.

This company will help the clients to meet their goals with an innovative,
multidisciplined team of civil, structural, and electrical engineers and technicians
that has been recognized for transmission line siting and engineering; standards
development; transmission structure foundation design and research; reliability-
based transmission design and assessment; and failure analysis.

a. Service Description

i. Transmission Line Design

 Assist HPGT’s EPC wing in the tender submissions (including

realization of the precise BOM within +/-10% margin).
 33kV to 500kV overhead transmission line design both in tender
stage and in execution stage
 Line design of existing/proposed transmission line in PLS CADD.
 Sag Tension calculation
 Design and detailing of high voltage support structure (tower/
pole with PLS Tower/ PLS Pole) including method 4 Non-Linear
Analysis in PLS-CADD
 Design of foundation of transmission line structures.
 Existing line retrofitting & uprating
 Construction specification and site inspection.
 Assist in selection/ procurement/ evaluation/ technical
specification of steel material, insulator, conductor, OPGW and
hardware fittings.
 Complete design management solution (liaison with utility
design team for approvals, and with different suppliers for
appropriate supply and maintaining supply chain for ensuring
smooth coordination between design and construction stages).
 One stop solution for supplying towers, poles, insulator,
conductor & hardware fittings.

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ii. Substation Design
 Gas Insulated/Air Insulated/ Conventional indoor/outdoor
substations from 11kV up to 500kV
 Electrical portion of Thermal power plants (Oil/coal/gas fired),
Electrical B.O.P packages.
 Electrical, Controls, Automation, HVAC & Firefighting systems of
Steel, Minerals, Coal, Materials Handling, Mining, Building works
and misc.
 Substation Automation, SCADA, and telecommunication systems
for large substations.

iii. Power System Analysis

 Load Flow Analysis.
 Short Circuit and Fault Analysis
 Protective Device Co-ordination Study.
 Arc Flash Study
 Harmonic Analysis
 Dynamic and Transient Analysis
 Frequency Response Study
 Earthing Study

iv. Training: Capacity building of utility engineers in the following

aspects-
 Overhead Transmission and Distribution Line Design Using PLS
Suite (PLS CADD, PLS Tower, PLS Pole)
 Transmission Line Foundation Design
 Procurement
 Project Management
 Contract management

v. Asset Management:
 Annual maintenance contract.
 Vegetation management
 3D modelling of existing network

vi. Work as Owner’s Engineer at EPC level

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 vii. Renewable Energy
 Inverter station design
 Feasibility study of proposed projects
 Project Management
b. Strength of Service

Engineering capability will be the key factors to distinguish and draw attention
to our service. Strengths of the new company will be-
 Exceptional quality
 Unparallel customer service
 Very competitive price
The above-mentioned strengths will ensure new company’s ability to deliver
beyond normal practice in Malaysia and other targeted regions. It will also
fulfil the client’s expectation through saving time as well as money.

4. Competitive advantage

Low cost young energetic engineering team and strong presence of HGPT in
this region, will help this new company to differentiate itself from its
competitors. Personal network of the directors of the new company will also
help in this regard.

5. Situation Analysis

a. Market Summary

Malaysian Prospects
In Malaysia, the National Grid is operated by 3 utilities-
1. Tenaga Nasional Berhad (TNB)
2. Sabah Electricity Sdn Bhd (SESB)
3. Sarawak Energy Berhad (SEB)

In Peninsular Malaysia, the 20,950-circuit km high-voltage network comprises

500kV, 275kV, 132kV, 33kV and 11kV TL, which are operated by Tenaga
Nasional Berhad (TNB). While in Sabah and Sarawak, the network comprises
275kV, 132kV and 33kV TL. Power generation in the National Grid is done by

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licensed independent power producers (IPPs) and Tenaga Nasional Berhad
(TNB)—Malaysia’s largest energy utility—which also generates, transmits,
manages and distributes electricity along the grid. In Sabah and Sarawak,
Sabah Energy Sdn Bhd (SESB) and Sarawak Electricity Supply Corporation
(SESCO) respectively generate, transmit and distribute electricity in their
respective State Grids.
To ensure delivery of power to customer reliably and continuously, the three
utilities have invested significantly in transmission & distribution projects.
For example- Sarawak Energy has RM300million annual budget to reinforce
and strengthen the transmission & distribution system as well as RM50million
annual budget to maintain the substation and overhead line including
vegetation management.

So, there is a huge prospect in annual maintenance & vegetation

management contracts in Malaysia.

Malaysia is also a hub of ASEAN Power Grid (APG). APG has an aspirational
target to shift to exiting generation system to renewable energy from 11% to
17% by 2030 in the ASEAN energy mix.

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In addition to APG, Sabah Electricity has also plan to shift to renewable
energy.

So, there is huge prospect in renewable energy in Malaysia in terms of

complex engineering and supply.
Also, Sabah Electricity has approved a 10-year plan (2018-2027)
concentrating on improving the transmission network and exploring new
generation (including RE) in the medium- and long-term plan.

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So, there is a huge prospect in power industry in Malaysia market.

Philippines Prospects
National Grid Corporation of the Philippines (NGCP) is the transmission service
provider in Philippines. NGCP’s transmission system network consists of 500
kV, 350 kV HVDC, 230 kV, 138 kV, 115 kV and 69 kV high voltage lines and
cables. As the sole transmission service provider, NGCP plays a vital role in
the safe and reliable transmission of electricity in response to system
requirements and market demands. It continues to improve the reliability,
adequacy, security and stability of the grid in the three major regions of the
Philippines, namely: Luzon, the Visayas and Mindanao.

As of June 2017, a total of 34,007 MVA substation capacities and 20,849

circuit-km are accounted in the transmission assets being managed by NGCP.
Table 3.1 shows the summary of existing facilities.

Power demand for the country is expected to grow at an AACGR of 5.60% for
the period 2021-2030 and 5.75% for 2031-2040.

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Proposed Transmission Projects up to 2025
a. 69kV TL: 194km (Approx.)
b. 138kV TL: 615.3km (Approx.)
c. 230kV TL: 778.7km (Approx.)
d. 500kV TL: 545.5km (Approx.)
e. 69kV SS: 9Nos (Approx.)
f. 138kV SS: 36Nos (Approx.)
g. 230kV SS: 38Nos (Approx.)
h. 500kV SS: 15Nos (Approx.)

** Source Transmission Development Plan (TDP) 2016-2040

So, Philippine power industry is a big market and currently undergoing

development phase. So, we have a huge design services opportunity if we
can penetrate the market properly.

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Nepal Prospects

About 63% of the population of Nepal had access to electricity in 2010 which
has increased to 90% in 2020. Nepal is planning to achieve 100 percent
access to electricity by 2023 and reliable and efficient electricity for all by
2030. Where the demand has been rapidly increasing, the quality and
reliability of electricity supply do not meet the requirement. Nepal Electricity
Authority (NEA) is working on both meeting the electricity demand and
improving the quality and reliability of electricity supply. The current
challenges to meet electricity demand and improve quality and reliability of
supplied electricity are the construction of new transmission infrastructure
and upgradation of existing infrastructures. Further, meeting electricity
demand through expansion of transmission infrastructures and enhancing
quality and reliable electric supply can be helpful to exploit full potential
benefit of the investment made in electricity sector which will play valuable
role in poverty alleviation, industrialization of nation and improvement of
quality of life of the people.

Nepal has the following planned projects in pipeline-

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Summary of Proposed Transmission Projects up to 2025
a. 132kV TL: 1630 circuit km (Approx.)
b. 220kV TL: 370 circuit km (Approx.)
c. 400kV TL: 3050 circuit km (Approx.)
d. 132kV SS: 31 Nos (Approx.)
e. 220kV SS: 10Nos (Approx.)
f. 400kV SS: 10Nos (Approx.)

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b. SWOT Analysis
 Strengths
i. Optimize design of Tower, Sub-station, Foundation & Plan and
Profile.
ii. Global Customer
iii. Software expertise
iv. Young skilled engineers working in back-end with comparatively
lower cost.
v. Understanding of emerging technology
vi. Understanding of target market
vii. Competitive pricing
viii. Utilization of existing business network of HGPT.
ix. Personal network of directors

 Weaknesses
i. New player in this region.
ii. Lack of leverage with new relationship

 Opportunities
i. Bring advance engineering technology in this region.
ii. Capacity building of engineers.
iii. Developing a new reputation/brand.

 Threats
i. Impact of new legislation.
ii. Market demand fluctuation
iii. Technology developed by competitors.

c. Competition

1. Transmission line design company currently operating in Malaysia

SL Competitor Name Services
No.
1 Trenergy Infrastructure Providing services for new overhead transmission
Sdn Bhd lines design, systems installations, new foundation
design & installation for overhead transmission line
towers.
2 Huls Transmission Sdn Providing services for new overhead transmission
Bhd lines design, systems installations, new foundation
design & installation for overhead transmission line
towers.

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3 Larico Infrastructure Sdn
Bhd
4 Maintenance Engineering
Sdn Bhd
 Undertaking of EPC & LTE Contracts for the
Power Industry including the construction of
power transmission lines (overhead and
underground) and sub stations up to 500KV. 
 Maintenance services for transmission lines,
substations and power stations. 
 EPC Contracting. 
 Design, Engineering and Consultancy
Services. 
 Design and Supply of Transmission and
Telecommunication Towers and Accessories. 
 Supply of Heavy Machinery, Tools and
Equipment for Oil & Gas, Power and
Infrastructure industries.
 Preliminary and field surveys, detailed
surveys and mapping of underground utilities
 Soil investigation and soil testing for
stabilization works
 Line route plotting
 Rentice clearing and tower pegging
 Electrical and civil engineering design which
include system protection, earthing,
structural, tower and foundation designs
 Earthworks, soft and hard landscape works
and soil stabilization works
 Piling and foundation works
 Erection of towers, steel structures and
equipment
 Conductor stringing and tensioning
 Optical ground wire (OPGW) splicing and
jointing
 Selection, procurement and supply of
materials, equipment and machineries
 Overall project management and supervision
 Maintenance and repairs

2. EPC’s who have own design team

SL Competitor Name Services
No.
1 L&T Construction Engineering, Procurement &
Construction (EPC)
2 KEC International Engineering, Procurement &
Construction (EPC)
3 Shanghai Electric Power T&D Engineering, Procurement &
Engineering Co., Ltd (SPTDE) Construction (EPC)

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6. Market Strategy
a. Target Market
SL Country
1 Malaysia
2 Philippines
3 Nepal
Utility
Tenaga Nasional Berhad (TNB)
Sabah Electricity Sdn Bhd (SESB)
Sarawak Energy Berhad (SEB)
National Grid Corporation of the Philippines (NGCP)
Nepal Electricity Authority (NEA)

b. Unique selling point (USP)

Our USP:

 Low cost service compared to exiting rate in Malaysia market.

c. Competitor Analysis
Strength of Competitor:

 Existing good relationship with the Utilities and EPCs

 Local company benefits
 Huge marketing resource
 Experience in Malaysia market

Weakness of competitor:

 Higher price
 Shortage of skilled manpower

d. Marketing Mix
New company will require a meticulously designed marketing plan to ensure
penetration and business success. Marketing plan will include an initial marketing
campaign to introduce the company.

i. Price: New company will offer very competitive price maintaining good quality so
that it can beat the existing competitor.
ii. Promotion:
 We can provide bundle offer (design supply & construction through HGPT) with
our existing services to the local and international contractors so that they are
attracted to take our service.
 Initially provide free technical advice to local and international contractor to
establish good relationship with them.
 Arrange seminar, engineering events.
 Distribute various marketing materials like pens, diary, brochures, other gifts with
company logo.
 Offer various training course to local and international EPCs.
 Collaboration/Joint Venture with existing service providers

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7. Financing Plan
a. Initial Set-up Cost
SL No. Type of Cost Amount (RM)
1 Legal Fee
2 Registration Fee
3 License fee
4 1x PLS CADD
5 1x PLS Tower
6 1x PLS Pole
7 1x Printer
8 4x Laptop
9 4x Director/Executive Desk
Total

b. Operating Cost (Monthly)

SL No. Type of Cost Amount (RM)

1 800 sq ft office space
2 HGPT Directors/ Employee (2 Nos.)
3 ETCBL Global Directors/ Employee (2 Nos.)
4 Certification Cost
5 Audit fee
6 Printing & Stationary Cost
7 Entertainment Cost
8 Transportation Cost
9 Insurance Cost
10 Marketing & Promotion cost
11 Internet
Total
*Note: We have identified the above heads for initial setup & monthly operation cost. It will
be discussed in the next meeting to finalize the above costing.

c. Specific Project Cost

After getting work order though the new company, we will take quotation from ETCBL
Global to subcontract this work in Bangladesh.

d. Revenue for next three years

SL Revenue at 1st Revenue at 2nd Revenue at 3rd
Year Year Year
1

*Note: It will be discussed in the next meeting to finalize next 3 years revenue and
projection.

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8. Risk Identification & Mitigation

9. Conclusion

HGPT is operating in this region for so many years and has already established their name in
the power and energy sector. On the other hand, ETCBL Global has young experienced and
skilled engineers with lower service cost. Moreover, MD of ETCBL Global Mr. Ahsan is
actively involved in this region and delivering projects to different Malaysian utilities. He can
give references through his vast network in this region.

Considering the above, it can be said that this newly formed company can establish a strong
footprint in this region in short time.

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