1.

Executive Summary
1.1 Introduction
Gambang Jaya Steel Industries Sdn Bhd (GJSISB) is one of the leading pipe manufacturer in
Malaysia. GJSISB produces black steel pipes, hollow sections, tubes, plates and sheets. Auxiliary
services such as coil slitting and plate shearing are also available. At GJSISB, we are committed
to provide our customers with quality products and excellent manufacturing support to ensure
long-term business relationship.
1.2 The Company
GJSISB will be a limited liability partnership registered in Gambang, Pahang for taxes purposes.
The company has a limited number of private investors and does not plan to go public. The
company has it main offices at Gambang. Our products are manufactured to internationally
accepted standards such as American Society of Testing and Materials (ASTM), British Standard
(BS) and Japanese Industry Standard (JIS), including the prestigious MS ISO 9001, Quality
Management System Certified. Besides manufacturing, GJSISB trading division also carries a
full range of steel products such as steel sheet piles, universal beams and columns, angle bars and
other structural steel accessories; necessary to meet the needs of the construction industry.
1.3 The Services
GJSISB is committed to provide quality products and excellent manufacturing support. Our
emphasis is on quality excellence starting right from the purchasing of raw materials to delivery.
Our products are manufactured to internationally accepted standards such as ASTM, BS and JIS,
including the prestigious MS ISO 9001 Quality Management System certified. The quality
system ensures every stage of production adheres to the highest quality standard, which include
the following tests: Visual Inspection
Dimensional Inspection
Tensile Test
Bend Test
Flattening Test
1

 Hydrostatic Pressure Test

Nondestructive Test (Eddy Current Test)

1.4 The Market

The steel industry in Malaysia can be categorically subdivided into two main segments, namely
the long products and the flat products. Long products include billets, bars, wire rods, sections,
nails, wire mesh, bolts, nuts, etc. which are predominantly used in the construction industry. On
the other hand, flat products are products consumed mostly by the manufacturing, construction
and oil & gas sectors like hot-rolled plates and sheets, cold-rolled coils, tubes, pipes, and boiler.
Global steel demand is rising on the back of accelerated infrastructure activity in China, Russia
and India, housing boom in the US and white goods resurgence in Europe. In the US, the demand
is led by the booming housing industry while the auto industry is showing signs of a recovery. In
India, China and Asean countries like Vietnam and Thailand, the demand is led by capital
investment activities in infrastructure while strong internal demand is seen in countries like
Russia and Eastern Europe.

2. Objectives
The three year goals for Gambang Jaya Steel Industries Sdn Bhd (GJSISB) are the following:

Achieve break-even by year two.

Establish long-term contracts with at least four clients.

Establish a minimum of a 95% customer satisfaction rate to establish long term

relationships with our clients and create word of mouth marketing.

2.1 Mission
It is the mission of GJSISB to provide innovative approaches to metal engineering services and
to build effective long term relations with our clients with excellent services delivered in a timely
and cost effective manner.
2.2 Keys to Success
GJSISBs keys to long-term survival and profitability are as follows:

Create long term contracts that demand constant monitoring or on-call services.

Keeping close contact with clients and establishing a well-functioning long term
relationship with them to generate repeat business and obtain a top notch reputation.

Establish a comprehensive service experience for our clients that includes, plant, and
laboratory work, in-house design, analysis, and follow up monitoring of Plant-hazards.

3. Company Summary
GJSISB will be a limited liability partnership registered in Kuantan, Pahang for taxes purposes.
Its founder is Siti Mariyam, a Chemical engineer from materials department with Zuhaima,
Nurul Hafizah has brought together a highly respected group of manufacturing, engineers
specialist who, combined have a total of 35 years of experience in this industry.
The company has a limited number of private investors and does not plan to go public. The
company has it main offices at Pahang. Gambang jaya steel industries Sdn Bhd (GJSISB) is
committed to provide quality products and excellent manufacturing support. Our emphasis is on
quality excellence starting right from the purchasing of raw materials to delivery.
Our products are manufactured to internationally accepted standards such as ASTM, BS and JIS,
including the prestigious MS ISO 9001 Quality Management System certified. The quality
system ensures every stage of production adheres to the highest quality standard, which include
the following tests such as Visual Inspection, Dimensional Inspection, Tensile Test, Bend Test,
Flattening Test, Hydrostatic Pressure Test and Nondestructive Test (Eddy Current Test).

3.1 Company Ownership

The company will have a number outside private investors who will own 27% of the companys
shares. The rest will be owned by senior management including Mr. Chin (25%), Ms. Amirah
Faezah (20%), Mr. Kiran (20%), and Mr. Kasim Selamat (8%). All other financing will come
from loans.

3.2 Start-up Summary

Start-up assets required are shown below. This includes expenses and cash needed to
support s operations until revenues reach an acceptable level. Most of the companys
liabilities will come from outside private investors and management investment,
however, we have obtained current borrowing from Bank, The principal to be paid off in
two years. A long term loan of through will bank will be paid off in ten years.

Start-up Requirements
Start-up Expenses
Legal
Insurances
Utilities
Rent
Accounting and bookkeeping fees
Expensed equipments
Advertising
Other
Total Start-up Expenses
Start-up Assets
Cash Required
Other Current Assets

$1000
$2000
$200
$4000
$2000
$8000
$6500
$8000
$31,700
$104,800
$3500
5

Long-Term Assets
Total Assets
Total Requirements
Start-up Funding
Start-up Expense to Fund
Start-up Assets to Fund
Total Funding Required
Assets
Non-cash Asset from Start-up
Cash Requirements from Start-up
Additional Cash raised
Cash balance on Starting Date
Total Assets
Liabilities and Capital
Liabilities
Current Borrowing
Long-Term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities
Capital

$25000
$133,300
$164,00

Mr. Chin
Ms. Amirah Faezah
Mr. Kiran
Mr. Kasim Selamat

$25,000
$20,000
$20,000
$8000
$27,000
$0
$100,000
($30,700 )
$69,300

Others
Additional Investment Requirement
Total Planned Investment
Loss at start-up (start-up Expenses)
Total Capital

$30,700
$133,300
$164,000
$28,500
$104,800
$0
$104,800
$133,300
$16,000
$45,000
$3,000
$0
$64,000

3.3 Services
Our products are manufactured to internationally accepted standards such as ASTM, BS and JIS,
including the prestigious MS ISO 9001 Quality Management System certified. The quality
system ensures every stage of production adheres to the highest quality standard, which include
the following tests: Visual Inspection
Dimensional Inspection
Tensile Test
Bend Test
6

 Flattening Test
Hydrostatic Pressure Test
Nondestructive Test (Eddy Current Test)

4. Market Analysis Summary

Global steel prices still hovering at such dizzying heights, supported by strong global demand
and escalating cost of raw materials, the prospects for the local steel industry are looking bright.
For the longs segment, the possible upward revision of government-controlled ceiling prices for
steel bars and billets will boost the short-term margins of steel millers while local producers of
flats will benefit from the current global shortage as a result of Chinas thirst. The removal of
anti-dumping and safeguard measures by large steel-consuming nations may also provide an
opportunity for local exporters to expand their markets and relieve their reliance on domestic
consumption. All in all, the current dynamics of the global steel industry offers tremendous
opportunities in the medium term and local steel players are well positioned to reap the potential
benefits. The caveat to this positive outlook is the world economic growth, which as we explain
above, is peaking.

4.1 Market Segmentation

There are various water companies and organizations within Pahang that GJSISB will be
concentrating on. These include:

The services sector encompasses broad and diverse activities such as transport;
telecommunications;.

Local and state governments

Real estate companies.

Business and professional services;

tilities;

hotels and tourism;

5.0 Strategy and Implementation Summary

GJSISB business strategy is to enter into a limit geographical area where it can leverage its
staffs existing collective reputation into long term contracts centered on employee service and
cost effectiveness. We believe that we can service this limited market and have better packages at
more reasonable cost than existing competitors of equal size.
5.1 Marketing Strategy
In order to attract clients, GJSISB will begin to contact promising organizations and offer free
consultations, and an initial contract at reduced prices. These promotions will allow us to begin
to make our reputation. In addition, Ms. Siti Mariyam and Ms. Zuhaima will be travelling where
we will have booths to advertise our services. Finally we will be setting up cold calls to potential
clients and have half- and full-page advertisements in various publications that address our
clients needs.

6.0 Management Summary

The company will have three officers including our president, Ms.Siti Mariyam. Our head
operations will be Ms. Zuhaima. Finances and general admin will be handled by Ms. Nurul
Hafizah. The company plans to hire additional consultants, design support and administrative
personnel as we begin to get large number of contracts.
6.1 Personnel
GJSISBs management brings to the company strong capabilities in creative flair, research, and a
unique combination of skills drawn from other businesses.
Key personnel
Ms.Siti Mariyam Syafika is a graduate of the University Malaysia Pahang where she obtained
her chemical engineering degree in 2000. Since then, Ms.Siti Mariyam has had extensive
experience in site specific municipal, commercial and industrial projects. This includes
experience in budgeting, project oversight, resolving engineering issues, etc. In 2001, she
obtained a graduate degree in water engineering from MIT. Ms.Siti Mariyam spent the last four
years as the engineering chemical department head with Zuhaima and Hafizah. Ms. Zuhaima is a
graduate of the University Malaysia Pahang where she obtained her chemical engineering degree
in 2000. Since then, Ms. Zuhaima also had extensive experience in site specific municipal,
commercial and industrial projects and others.

7.0 Financial Plan

Our financial plan anticipates one year of negative profits as we gain sales volume. We have
budgeted enough investment to cover these losses and have an additional credit line is available
if sales do not much predictions.

10

7.1 Important Assumptions

We are assuming approximately 75% sales on credit and average interest rates of 10% these are
considered to be conservative in case our predictions are erroneous.

7.2 Break-Even Analysis

Our Break-even Analysis is based on the assumptions that our gross margin is 100%. In other
words, we will have insignificant direct cost of sales. Since each project will be of different
scope, length and complexity, it is difficult to assign and average per unit revenue figure.
However, it is conservatively believed that during the first three years, average profitability per
month per segment will be about $8,000. This is because we will be dealing with smaller
companies at first that have smaller projects. We expect that about three projects per month will
guarantee a break-even point.

11

12