VSM
Transcript: VSM Pte. Ltd. Manimala Subramanian Ng Rui Wei Ong Sye Im JV with local government Shareholders (govt. provide the land for free) Give priority to government linked companies MOU with government to impose restriction on new entrants 3rd largest – 8% (after Indonesia 80% and Thailand – 10%) Malaysia produces 375 tonnes/ RM1.5 billion Current production is insufficient ( Demand > Supply) Problems must be solved : Location, pollution, systematic, attracting investors etc. Convert problem into opportunity Govt. plan - 2015 – 100,000 SBH /RM 5 billion Do a feasibility study Build eco-friendly and community friendly SBH Away from commercial and residential area Proven track record (other existing SBH) Foreign investors – ROI and low risk Demand increase – higher purchasing power Bird nest product highly valuable Market Segmentation Expenses Expected moderate 3-5% increase in the cost of production each year. Same internal design of the BH will be used to maintain the quality. BH design will change on the occasion of a better research finding. Different area of land price differently. (Criteria will be set prior to land purchase to make sure BH prices will be adjusted at normal rate) Designed area of BH unit might different to adjust on the availability of land. Construction work will be sub-contracted to other builder company with our own specs and design, as well as supervision. Executive Summary - Solution Executive Summary – Sustainability The initial market – local investors The second market – investors from Hong Kong, China, Taiwan, Macau, etc. 1st year – investors through personal contact Foreigners are allowed Buy buildings worth more than RM250K Establish a company with 49% Malaysian equity ( 30% Bumiputera) 2 year payback period for 4 million investment For individual investor investing 400-500 K, receive payback from profit of harvesting on year 4 or 5. Business Cycle Payback Period One – stop centre for SBH Inviting foreign investors to invest Existing swiftlet eco park None in Perlis, Kedah, Melaka and Kelantan Melaka is strategic – relaxed rules – geographically strategic, surrounded by seas and river The Sources of fund Swiftlet Bird House (SBH) is our product Current set up – residential and commercial area Complain about noise and waste pollution Attracting investors Government rules and regulations Short supply of Bird nests – reduced skill worker Increase in market demand Environment problem Executive Summary – Differentiation Executive Summary - Problem Market Strategy Initial Public Offering (IPO) – Listed on the Malaysian Stock Exchange Bought over by those who are industry who needs raw material such as Eu Yan Sang, Brands etc. Sell out to major investor who is already involved in the SBH Product: SBH (built to encourage the swiftlets to build their nests) Place : Umbai, Melaka (no swiftlets eco park yet, Govt. investor friendly) Price : RM400K per unit based on land costs and building costs ( 200K) Promotion: One- stop centre To appoint an agent in HK,China,Taiwan well ahead to promote the SBH. Locally, VSM will promote via webpage, brochures, personal contacts and advertisements. Exit Strategy About Swiftlets and Bird Nests 4 million from the investor (give priority to state owned company) 15% share allocated to state government 40% share for investor Utilized the profit over the year for following project Sales of SBH during construction-collect fund Swiftlets (Aerodramus Fuciphagus) On average, swiftlets have three broods per year and usually lay two eggs per brood To protect the bird their numbers continue to decline,probably a result of illegal trade Birdnests has nutritional properties – for health and beauty Not threatening – don’t carry Avian Flu Found mainly in SEA Market Analysis Construction Assumption Location Swiftlet Industrial Park : Swiftlet Bird House (SBH) Venture Operational – facility, employee salary, agreement, travelling cost Marketing – bird farming association(seminar), business association , overseas market(expo), personal contact. Construction cost – cover by capital, cost of land minimize through government involvement Business Cycle Location