COMPANY PROFILE

Name

Exergy Enterprise

SSM Registration

MA0155173-U

Date of Incorporation

11/11/11

Board of Director

: : : : : : :

FU FANG XIONG HENG SEOK TEIK MAZIZI BIN MOHAMED AMIRULLAH BIN AMRAN TEO CHUN EARN NURUL NADIA BINTI ABDULLAH HALIMATON BASMATU BINTI ALI

Head Office

No 41 Jalan TU 27, Taman TasikUtama, Ayer Keroh 54540 Melaka

Bank

Maybank, Ayer Keroh Melaka 1012-5414-2122

Contact Us

(Tel Office) +606 6667777 (Email) customer@exergy.com

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Project Profile

Tittle: Waterwheel at Melaka River

OBJECTIVE

1. 2. 3.

To develop the new design of waterwheel at Melaka River . To design the waterwheel to be more eco-friendly by using green technology. To increase the green awareness among the public.

AIM

1.

As the substitution of existing design and increase the number of tourist to visit Malaysia, Melaka to be exact.

2. 3.

To reduce the CO2 emission and electricity consumption by using renewable energy As a part of the program Green Technology City

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Product and specifications

Since government already invest about RM 1.76 million to the Malacca Waterwheel, it a bit too much to change it into new design of waterwheel. Therefore by using the old design Malacca Waterwheel is the best way to save that citizens money from being wasted. For the conceptual design, new feature is being added into the Malacca Waterwheel. That includes the Green technology, Harvesting energy, Colorful LED, and also small waterwheel with LED at the center of it. Based on proposal, there are three designs that have been highlighted, each design have their one specialty. Main concept of this project is the equipment that will be used to rotate the Malacca Waterwheel. Previous design is using motor to rotate the waterwheel, but this equipment does not meet the objective that has been stated that is to use the green technology. Therefore, the motor has been replaced by the solenoid application to rotate the waterwheel once more. For the first design (figure 1), it comes with LED based on spider web design. And for second design (figure 2), it comes with small waterwheel that is attach with the LED at the center. For the last design that is the third design, it is the combination of first design and the second design. After go through the discussion, the third design was selected for this project.

Figure 1 first design

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Figure 2 second design

Figure 3 third design

Working principle

The huge waterwheel will be equipped with a solenoid, firstly the solenoid will be functioning when it is connected with the electricity. From the figure 4, it is a illustration of solenoid that will be placed in the waterwheel. The four bars that will be wrapped by coil that will connect with the supplier, the bar will be act like a magnet when there is electricity moving in it. The outer bar is a magnet that opposite with the pole of the solenoid, when the opposite pole meet each other, a repel effect will be produce and it will keep rotating.

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Figure 4 solenoid application

The rotational movement of waterwheel will create kinetic energy. Instead of abandon this energy, it will be useful if the energy being converted into the electrical energy, this method usually known as harvesting energy. A generator will be installed at the waterwheel as a converter of mechanical energy to the electrical energy and the he electrical energy will be stored into the battery. The energy will be supplied into the spider web LED to light it up during night. The small waterwheel is using PVC as their material because it has capability to stand in climate change. Since PVC have a light weight, it will be rotate when there are ripple effect cause by the movement of cruise. The small waterwheel will be installed along with the LED and also a dynamo. The dynamo have the same principle as the generator, but only convert small capacity of electricity and this energy also will be stored in the same battery as generator.

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Detail drawing

Figure 5 Top view

Figure 6 Side View

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Figure 7 Front View

Figure 8 Behind View

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A. Base B. Wood water

C

wheel C. Magnet (red, and blue) D. Main Shaft

A B

Figure 9 Isometric View

E. Electric Generator F. Combination Solenoid with magnet. (both Side)

Figure 10 Isometric behind view

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Market analysis There are thirty respondent have taken part in the survey session. For market analysis, survey that have been made is divided into three sections, that is section A that cover on personal information, section B cover on experience with the Malacca Waterwheel and lastly section C that cover on improvement for this project. These are the questions that have been asking in the survey: SECTION A Q1. Gander Q2. Age Q3. Marital status Q4. Nationality Q5. Hometown Q6. Race Q7. Occupation Q8. Income level

SECTION B Q9. Have you ever visit the Melaka waterwheel? Q10. Publication that you prefer Q11. Are you aware about eco-friendly technology? Q12. Did you ever heard Green Technology City? Q13. What did you aspect from the waterwheel? Q14. Did you satisfy with the scenery along the Malacca River? Q15. Is the waterwheel deck is safety enough for tourist?

SECTION C Q16. Since our project objective is to produce a green product, so we exchange the motor (current supply) with the solenoid application to rotate the waterwheel. Did you agree with that?

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Q17. While the waterwheel moving, it will generate electricity. so we will reused the energy to light up the LED that we will install along the Malacca River. Did you agree with that? Q18. We will install the small waterwheel with the colourful LED to make the scenery more beautiful. Material that we used to produce the small waterwheel PVC since it can stand in the climate change. Since it have light weight, it can easily rotate without using any supply. Did you agree with that?

Q1
43% 57% male female

Figure 11 Gander

From section A, figure 11 have shown the percentage of gender survey, fifty seven percent from thirty respondents are male, and others are from female. Figure 12 have shown the percentage of age of respondent, twenty four respondents are from eighteen to thirty years old group and in thirty one to fifty years old group are from six respondents.

Q2
51 years old and above 31 - 50 years old 18 - 30 years old 1 - 17 years old 0 0 5 10 15 20 25 30 0 6 24

Figure 12 Age
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From figure 13, it show the marital status of respondent, eighty three percent of respondent are still single, and others have been married.

Q3
17% Single Married 83%

Figure 13 Marital status

Q4
Other Permanent Residents Foreigner Malaysian 0 5 10 15 20 25 0 0 0 30 30 35

Figure 14 Nationality

From figure 14, since the survey was conducted trough internet and distribute to facebook, so that we can see all of respondents are from Malaysia. Figure 15 have shown distribution of respondent hometown, each of six respondents are from Johor and Kelantan, three respondents are from Melaka and Perak, two respondents from Selangor and Sarawak, N. Sembilan, Kedah, P.Pinang, and Pahang have one respond and no respondents from Perlis and Sabah.

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Q5
7 6 5 4 3 2 1 0 3 2 1 1 1 0 1 3 2 0 4 6 6

Figure 15 Hometown From figure 16, most of respondent are Malay, seven percent are from Indian and three percent from Chinese. Figure 17 have shown eighty percent of respondents are from students group, thirteen percent are from privet sector and seven percent are from government sector.

Q6
3% 7% 0% Malay Chinese Indian 90% Others 80% 0% 7%

Q7
Government sector Private sector Students Other 13%

Figure 16 Race

Figure 17 Occupation

For last question in section A have shown in figure 18, this figure have showed twenty one respondents are in group RM 0 999 for their income level, six respondent are sit in group
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RM 1,000 2,999 for income level, one respondent is in group RM 3,000 4,999, and lastly for group RM 5,000 and above have two respondent is sit in this group.

Q8
RM 5,000 and above RM 3,000 - 4,999 RM 1,000 - 2,999 RM 0 - 999 0 5 10 15 20 1 6 21 25 2

Figure 18 Income level

Competitor analysis

Q9

40% 60%

YES NO

Figure 19 visit the Melaka waterwheel

Form section B question, it will be shown in the figure 19 until figure 25. From figure 19, it has shown forty percent of respondent have never went to the Malacca waterwheel. Most of the respondents are students, so that maybe factor of money or time that influence their decision to come to Malacca. From figure 20 has shown that, many respondents agreed to
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publish about the Malacca waterwheel trough internet such as by using facebook, twitter and webpage. This is because many respondents came from age around eighteen to thirty years old, so that their time is much focus on internet surfing then others publication.

Q10
advertisement on television road show internet such as Facebook, Twitter and webpage 0 5 10 15 20 8 9 26 25 30

Figure 20 Publication

Q11
13% YES NO 87% 13%

Q12

YES NO 87%

Figure 21 eco-friendly technology awareness

Figure 22 Green Technology awareness

From figure 21 and figure 22, there are thirteen percent of people that still do not know what is the eco-friendly technology and green technology. This project, will include the ecofriendly technology and green technology so that many people will aware about this technology, how can this technology effect the environment and the beneficial that we can get from the technology.

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Q13
17% functioning as replica 83% 20%

Q14

YES NO 80%

Figure 23 expectation of waterwheel

Figure 24 satisfaction of scenery

From the figure 23, eighty three percent of respondent want to see the Malacca waterwheel is functioning. Regarding of the scenery of the Malacca river, there are twenty percent of respondents still not satisfy with the scenery, this is based on figure 24. So that this project will improve this matter with adding more color around the river.

Q15
3%

Q16

43% 57%

YES NO 97%

YES NO

Figure 25 safety

Figure 26 replacing the motor

From figure 25, forty percent of respondent agreed that Malacca Waterwheel is doesnt have enough safety around it. From the observation, there are certain part is doesnt have any fence at the water bank, it will become the potential place to occur accident around there.

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Q17
3% 3%

Q18

YES NO 97% 97%

YES NO

Figure 27 reused electricity

Figure 28 install small waterwheel

For section C, ninety seven percent of respondents are agreed to replacing the motor (the original equipment to rotate the waterwheel) with the solenoid application, this is based on figure 26. Based on figure 27, the idea to reuse the electricity has been accepted by ninety seven percent of respondent. Lastly is on figure 28, ninety seven percent of respondents have agreed when we want to install the small waterwheel along the river. For the conclusion, most of the respondent had accepted the new concept that will be applied in the Malacca waterwheel, and all of the safety and other satisfactory will be improve to give the best service.

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Strategy and Implementation of strategy

MARKETING PLAN

We are building customer satisfaction through quality, service and value which coincides with our motto Save Energy for Your Life.

1. Market Strategy

The customer is the nucleus of our business and the customer needs are our focal point. Our goal is to build long term customer relationships by providing our services that create value for them. We want to create loyalty to retain the loyal customers and then they will recommend our services to other company because they understand the benefits they are getting from it and they cannot get elsewhere.

2. Promotion

To accomplish our sales goals, we will have various promotions and it carries out in stages. We will promote our products in medium as listed below:

3. Leaflets

Before our business starts we will be giving out information about our business via leaflets. There will be information about our outlet location and short notes on the services that we offer. It will be distributed at the targeted area riverside. Since this is one of the cheapest ways of promotion, we will distribute leaflets to the government agency.

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4. Prizes

We give the promotion price. This type of promotion will be carry out every year in month of August or December which coincide with the Cuti-cuti Malaysia Carnival all around Malaysia.

Advertising

We advertise to make sure local authorities in Malaysia know the existing of our company. The advertising media we chose are newspapers and web.

1. Website

In the hectic world nowadays, internet becomes very important, and in Malaysia the internet becomes main source of the information.The old days, peoples sees newspaper and post the advertisement in it, now the choice bet to differ. Our company has a website that will become our platform to share our expertise and our water wheel product. With just one click, the whole world will becomes exposed to the ads.

2. Newspaper

The newspapers have good local market coverage. The local authorities always read the newspaper. The newspaper we have chosen to advertise our services are The Star and Utusan and Kosmo.

3. E-mail

Almost all of local authorities in Malaysia own e-mail address. Therefore, we will deliver the e-mails to all local authorities regarding our activities and update them our latest news. This will help to promote our services indirectly.

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4. Celebrities

Our company will invite the local celebrities such as Farid Kamil to give his best review about the water wheel and suggest the people and the authority to choose our product.

Celebrities is public figure and the main attraction of Malaysia. We belive this will helps to spread the word about our water wheel.

OPERATIONAL PLAN

Nowadays our country is more advances with new and more technology. Since 10 to 15 years ago our lifestyles also change especially in term technology. The old adage prevention is better than cure is a greatest word that make peoples nowadays change their energy source. Because of this, we make a decision to make a good waterwheel. The main point to local authorities in Malaysia will buy our product is:

1. They want to give the knowledge

The local authorities in Malaysia want to give the citizen knowledge about the new source technology in used in Malaysia.

2. They want great environment

Our waterwheel also serve the citizen with a great environment in term of clean, great decoration and interesting arrangement.

3. They want safety

We also provide safety condition in our waterwheel. This is because we always maintain our waterwheel and the preventive maintenance is also conducted to increase efficiency and the peoples satisfaction.

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ASSESSMENT OF RISK

1. CRITICAL RISK SEGMENT

To build-up our business is properly progress we must know the category of risks that our business has to face. The main risks that we always consider are that our business is a new concept, and it is fresh idea based on the old mentality of Malaysians about technology source. These are the following risks are cautiously considered and take note seriously by knowing that it can affect our business venture.

2. SALES PROJECTION ARE NOT ACHIEVE

The projected sales revenue can be calculated a few different ways. Of course we can use competitive data, or historical data for existing products. However, one way we estimate with a new product in a new category is to determine the expected width of distribution for each product and then estimate the minimum number of turns per month.

The most important thing for our services is known and familiar with all the group of our customer is that the customer awareness. We must be prepared for all the probability that could be happened if our services possibly cannot get a good respond from our target customer.

In certain reasons or possibilities that our company is not going to meet the expected development and targeted profit for the each month of its operation. Backup plan have been made to make sure that problem can be resolve:

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i.

Bring in more promotion about our product and services with television commercial, radio and etc, among the consumer purposely to cultivate their mind to realize how important to using waterwheel to get new source of energy.

ii.

Organize the speech to the government agency about how important for using waterwheel and give the advantages for using waterwheel.

iii.

We also give a discount and promotion price to make sure that they will be always dealing with us.

iv.

Doing survey to costumer and ask them about our weakness and done effort to reduce our weakness.

3. MARKET PROJECTIONS ARE WRONG

Wrong market projection among our customer can be a risk to our company. To make sure that our vision is achieved clarification and justification to who, where, when and how to market out product and services is implemented. These are the how it will be done.

i. ii. iii.

Make sure who is the target market, the customer who want to use our services. Make a survey about the customer who are our target customer. Make a research analysis that our venture can focus to the customer.

4. COMPETITIVE RISK

In the challenging business climate of today, executives must continuously find new ways to add value to their firms. Some firms are succeeding in ventures that previously were not possible by using sophisticated risk management techniques in strategic ways.

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Considering there are substitutes for our product in the market which means that our company going to face competitive challenge among the product in the market. To solve this problem is to think of a few competitive advantages.

4.1 COST ADVANTAGE

i.

We also have an initiative to bring out an idea to manufacture the part of waterwheel by ourselves so we can avoid to buy the part from the other company . This actually can reduce our cost purchasing.

4.2 OWN ADVANTAGE

i.

We make analysis between our shop and our competitors, what is our product advantage comparing to them. In this case cost is does not a matter.

ii.

From our research, in the market, the price of waterwheel are expensive. For that reason we have take the advantage to cut the price a little bit lower compare to the market selling.

iii.

We will have more varieties of products to meet each customers requirement or needs.

iv.

We also will educate people through speech or talk local authorities to create the awareness of how important to use waterwheel, so can create deep impression for local authorities to know our company.

v.

We will have patent for our waterwheel, so not one can create or copy our products.

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5. MARKETING RISK

The risk in term of marketing for our business is that we cannot convince the customers to accept our offer. For that purpose we should take a risk that our product probably cannot get a good acceptance from our customers.

6. LOCATION

i.

The selection location for our early stage is very significant for our further progressing of our business.

ii.

The risk that we might be face is maybe we have choose the wrong place and then the development of our business is cannot be implemented.

iii.

In order to make sure that our location is right and profitable to our business we have make an analysis and research about the place.

7. FINANCIAL RISK

i.

For our business the risk for financial is that to get our source of capital. The capital that we need is in term of operating cost, human capital and many more. Mostly we depend on the private investor and the bank loan to obtain our capital. Considering that they are the biggest stakeholders for the development and the a. marketing of our business.

ii.

Financial risk is essentially any risk associated with any form of financing.

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FINANCIAL ASSUMPTIONS (RETURN OF INVESMENT)

Return on investment (ROI) is a performance measure used to evaluate the efficiency of our investment or to compare the efficiency of a number of different investments. It is one way of considering profits in relation to capital invested.

Investment in water wheel project = RM1,847,500.00 Net profit = Selling price investment = RM 2,300,000.00 - RM1,847,500.00 = RM 452 500

return on investment (%) = Net profit / Investment 100

= RM 452 500.00 / RM1, 847,500.00 100 = 24.4 %

MONTHS TO REACH POSITIVE CASH FLOW BY MAINTENANCE PROFIT

There are only 5 months (from April until August) of the first year for our business plan to reach positive cash flow by profit of water wheel maintenance every month.

Investment for maintenance every month = RM 5000.00 Buyer to pay for maintenance to our company = RM 8999.00

Net profit = RM3999.00 for every month.

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Product promotion: Through internet such as Facebook, Twitter and webpage. Road show. Advertisement on television.

Targeted consumer: Malacca government. Singapore government. Tourism organization.

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SUMMARY

The waterwheel at Malacca is not functioning for few years. Therefore government has invested about RM 1.76 million in order to repair and improve the waterwheel. There are 3 designs with different features that have been generated by our designer. However, the third design was selected as the best design to replace the current waterwheel. A solenoid that connected to electricity is attached at the center of the third waterwheel. There are four bars placed on the outer circle with opposite pole to the solenoid. The different pole will pushes waterwheel to rotate continuously. Spider web shape LED has been used to light up the waterwheel during night time. Besides that, a survey was conducted towards thirty respondents which the survey is divided into section A, B and C. In the section A, it is basically about the personal detail of the respondent, section B is about the respondents experience on the waterwheel and section C is about the respondents opinion on the new waterwheel design. Based on the marketing survey that has been done in the stated sections, most of the respondent has accepted our new design of waterwheel. On the other hand, marketing plan has been done based on market strategy, promotion, leaflets and prizes. The purpose of marketing plan is to attach customer satisfaction through our quality product, service and value which is coincides with our motto Save Energy for Your Life. Other than that, our new product has been advertised via website, newspaper, E-mail, and celebrities to get people intention. Although the third design of waterwheel is perfect, but there is still some risk would be assessed such as critical risk segment, sales projection not achieved, wrong market projection, risk from competitive, marketing risk, risk of wrong location, and financial risk. However, the return of investment was calculated which we expect that the total investment will be returned within 5 years. The net profit for the new design of waterwheel is about RM 3999.00 per month. Malacca government, Singapore government and any other tourism organizations is our targeted consumer.

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APPENDIX

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