The document contains a business plan for RammPal Engineering Sdn Bhd to produce the BHEEMA EV electric truck. It discusses the market opportunity for electric trucks, competitors like Smith Electric Vehicles, and provides analysis of the truck market in Malaysia and other regions. It outlines the company's strengths and weaknesses, and presents future plans to assemble 60 trucks per month initially and expand production.
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1. BUSINESS PLAN
The documents content the business plan for the BHEEMA
EV Electric Truck by RammPal Engineering Sdn Bhd.
Marketed solely by Emission Zero Technology. All
information contain inside is private and confidential.
2. 1
PRIVATE & CONFIDENTIAL
Executive Summary
The idea is to create a new generation of trucks to reduce the pollution and emission which is
endangering the planet right now. This new age truck is specifically designed with all the
problems statements which has been studied and to eliminate the use of conventional diesel
and petrol engine in the masses. It would be impossible, but this would slowly encourage
people to venture into electric vehicles which are at a fast growing phase. The company behind
this project would be RammPal Engineering Sdn Bhd, backed by experienced marine engineer
with 25 years of experience and a managed by a well knowledge CEO who is a Physic lecturer by
profession. This is the revolution of change, and it begins with this truck.
The ultimate aim of this truck is to penetrate into the heavy industry sector.
1) Agriculture/Farming
2) Construction
3) Shipping
4) Logistics
5) Military/Civil/Medical Transportation
6) Mining
Set to be efficient in service of deliverance, quality, energy and cost efficient when it comes
to consumption and services.
RammPal Engineering Sdn Bhd
RamPall Engineering, A company that is tied with R&D in most cases, fully into developing new
mechanism to improve the current mobility and infrastructure. The key focuses are always into
area of renewable energy, harvesting emerging from waste, extracting minerals and energy
from gases and water waste and much more. Green technology evolution is a good component
to boost this company to its goal as most of its inventions are those which are promoting green
4. 3
PRIVATE & CONFIDENTIAL
Such issue can be eliminated by producing self-sustaining and driverless trucks (closed
environment) with a dedicated command center to ensure work is ongoing without depending
on truck drivers. As such in operation cost, one can save a lot in terms on one time
implementation.
Competitor Study
In the area of developing trucks, one profound name which is making the change would be
Smith Electric Vehicles in Kansas City, Missouri, United States. Founded in 1920 and 80 years of
experience selling and servicing electric vehicles in the United Kingdom, Smith Electric makes
changes in bringing out medium trucks, buses from 11 tons to 4 tons in weight capacity. The
customer range from the ever famous partner with global leaders across multiple industries:
food & beverage, utility, telecommunications, retail, grocery, parcel and postal delivery, school
transportation, military and government. Our customers include many of the world’s largest
fleet operators, including PepsiCo’s Frito-Lay division, Staples, TNT, Sainsbury’s, Coca-Cola, DHL,
FedEx and the U.S. Military. Smith Electric is one of the developed manufacturers of electric
trucks to be commercialized.
5. 4
PRIVATE & CONFIDENTIAL
Global Market Analysis:
The growth of heavy vehicle such as this is in demand in countries such as Brazil, India,
Indonesia, Thailand, China and much more. In our local industries, we are able to capture GLC
companies to ensure they are promoting green energy and also reducing carbon footprint and
emission. The marketing options are wide as we can see, to be in ASEAN and MID EAST and
EUROPE. We are very confident in competing our truck again any conventional trucks or
upcoming electric trucks, as from the version perspective we are well ready to compete.
Figure 1: Statistic on East Asia EV Sales. Year 2012- 2014 Source: IDTechEx
From the given statistic, focusing on the heavy industrial EV is a small sector and it can be
penetrated, at the same time involvement of the vehicles are increasing by year. 56% of the
value of sales of electric vehicles is and will remain in East Asia and cars only account for about
half of the value of the electric vehicle business worldwide. It is therefore important to look at
the big picture and, in particular, the latest ten year forecasts for EV activity in East Asia.
Uniquely this report provides that information. Entirely researched in 2010 and regularly
updated, the report draws many valuable conclusions including some that are summarized
below.
6. 5
PRIVATE & CONFIDENTIAL
China buys over 90% of the e-bikes in the world and Japan buys the most hybrid cars. Indeed the
bestselling electric car in the world, the Toyota Prius, sells in Japan at twice the volume taken by the
whole of the USA. All this will have changed by 2022 because China will have installed adequate
charging infrastructure for pure electric and plug in hybrid cars by then and they will be more
affordable. In 2022, sales of electric cars in China will have a much larger market value than the huge
and growing sales of e-bikes in China.
It is fortunate that the takeoff in sales of electric cars is delayed in China by lack of
infrastructure and shortage of affordable electric cars with acceptable range. If Chinese people
purchased a large number of plug in electric cars over the next five years it would significantly
increase global warming because today, most of the power stations in China are inefficient and
coalfired.
Figure 2: Development of Truck Sales by Year 2024 by Region
7. 6
PRIVATE & CONFIDENTIAL
Figure 3: Expected Truck Market Growth Year 2024 by Country
Figure 4: Expected Truck Market Growth Year 2024 by Country
8. 7
PRIVATE & CONFIDENTIAL
Market Analysis & Reports (reports courtesy of Deloitte) - Summary
Statistics from Road Transport Department shows that a total of 6,261 units of tipper/dumper
were sold in 2012.
One of the key player in the market is Sinotruk Sdn Bhd, who have their own assembling plant
and selling about 400 units per year (Based on their annual return and price per unit of
RM218,796.10 (without cargo bay) and turnover of around RM 103 million.
Another competitor, Automotive Corporation (M) Sdn Bhd, is selling the truck for
RM253,000(Conventional).
The only compatible truck is available is USA for about RM380,000(Excluding Tax),
manufactured by Smith Electric Vehicles of Kansas City,
Approx. 19,374 (Year 2015 March) commercial vehicle registered in Malaysia (This includes
Trucks, Prime Movers, Pick-up, Panel Vans, Bus)
Approx. 12,104(Year 2015 March) commercial vehicles being produced and assembled in
Malaysia. This includes Trucks, Prime Movers, Pick-up, Panel Vans, Bus)
Strengths
Design Methodology
Assembly Approach (Modular Design & Fixture )
Payload to Gross Vehicle Weight Ratio(GVWR) Ratio
Suspension System( Independent Suspension)
Eco-Friendly Propulsion Philosophy
Drive by Wire system.
Suspension systems available now are either rudimentary units or minor
improvements of such systems.
And better systems are complex and far too expensive to be adopted by fleet users.
Vehicle structures are also made as a single highly rigid unit.
9. 8
PRIVATE & CONFIDENTIAL
Weaknesses
Relatively new in market and it could be hard to penetrate and establish in the market
Few innovative designs are yet to be tested in the actual environment
The Opportunity
Estimated price of the Transporter is around RM350,000. Our price is competitive as our
product offers many features which are not offered by the current players.
We are planning to sell 240 units in 2016 and 1,440 units from the year 2017, which represent
around 23% of the total market demand in Malaysia only.
Threats
The possible influx of new competitors offering cheaper price
Possible restriction on import to certain countries due to protective acts
ROI’s
The long term return on investment is about 10.4% p.a.
The investor is expected break even by January 2021.
Additional Info
Green energy advancement and utilization is the key element in the current market
trend , countries like Brazil , UAE, India , China is expected to grow tremendously in the
coming year hence our opportunity to tap this untouched market is very lucrative.
The approval to use any product which is environmentally friendly is always accepted;
hence our product is always on the plus point.
10. 9
PRIVATE & CONFIDENTIAL
Future Plans
For a start, we plan to assemble 60 units per month, 3 units per day or 8 hours to
assemble a single unit.
This rate is expected to increase further when the workers get used to the assembling
processes.
On top of that, we have plans to migrate into semi automation or full automation, which
will increase the production rate up to 4 units every shift, thus quadrupling the revenue,
i.e 2,880 units per year.
However, this may need additional investment in future.
There are also plans to expand the business into other regions, especially those
undergoing rapid growth, such as Middle East, Africa and Latin America.
Gallery (Illustration)