Business Plan - BHEEMA EV Truck

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.

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


environment improvement and cleaner energy. Cutting down emission and wastage on access

power can contribute to a better production, this is been set as the vision of this organization in

providing its research technology to overcome the entire hurdle in the current developing

world. Some of the key development this organization is looking at is New Energy extraction,

Aviation and Space, and Commercial Home and Office energy supply.

Market Analysis (Malaysia):

The trucking industry is a well saturated market, as for the year in production we can see that

demand for trucks and heavy vehicle is still there as it’s needed to accommodate the every

growing industry. Based on the Malaysia Automotive Association, the commercial vehicle

production is as stated on the below chart.

Commercial Vehicle Production (MALAYSIA) 2012-2014

(Trucks, Prime Movers, Pick-up, Panel Vans, Bus & Others)

Year Production/Units

2012 59,999 2013 57,515 2014 51,296

Source: © 2008 Malaysian Automotive Association. All rights reserved.

Indication shows a slight slowdown based from year 2012 to year 2014 a difference of 8703

units, which indicates one it could be the prices of the trucks produced these days could be a

factor. To boost this production, an alternative is needed. This is where the manufacturing of

electric vehicles comes in place. What that is loss in production can be a booster when such

new range trucks are introduce.

Our range of trucks is mainly focused on the heavy area as hauling, lifting, and transporting. In

these sectors consumption of petrol, diesel, maintenance is pretty much high. By bringing this

Green E powered trucks, we can ensure to reduce the operation and maintenance cost by half

fraction.

In a recent article, the quoted issue on motorme.my on 03 march 2015

“Truck driver shortage, the over usage of non-compliant trucks and the absence of a

common CIQ (customs, immigration and quarantine) transit center are some of the biggest

challenges faced by the logistics industry in Malaysia.”


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.


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.


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


Figure 3: Expected Truck Market Growth Year 2024 by Country

Figure 4: Expected Truck Market Growth Year 2024 by Country


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.


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.


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)

Business Plan - BHEEMA EV Truck

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