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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. To develop the new design of waterwheel at Melaka River .

2. To design the waterwheel to be more eco-friendly by using green technology.

3. 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. To reduce the CO2 emission and electricity consumption by using renewable energy

3. 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Therefore, the motor has been replaced by the solenoid application to rotate the waterwheel once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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Figure 9 Isometric View

Figure 10 Isometric behind view

A

B

C

D

A. Base

B. Wood water

wheel

C. Magnet (red,

and blue)

D. Main Shaft

F E. Electric

Generator

F. Combination

Solenoid with

magnet. (both

Side)

E

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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?

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.

Figure 12 Age

57%

43%

Q1

male

female

0

24

6

0

1 - 17 years old

18 - 30 years old

31 - 50 years old

51 years old and above

0 5 10 15 20 25 30

Q2

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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.

Figure 13 Marital status

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.

83%

17%

Q3

Single

Married

30

0

0

0

0 5 10 15 20 25 30 35

Malaysian

Foreigner

Permanent Residents

Other

Q4

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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.

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

6

3

1 2

3

1 1 0

6

4

1 2

0 0

1

2

3

4

5

6

7

Q5

90%

3% 7% 0%

Q6

Malay

Chinese

Indian

Others

7%

13%

80%

0%

Q7 Government sector

Private sector

Students

Other

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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.

Figure 18 Income level

Competitor analysis

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

21

6

1

2

RM 0 - 999

RM 1,000 - 2,999

RM 3,000 - 4,999

RM 5,000 and above

0 5 10 15 20 25

Q8

60%

40%

Q9

YES

NO

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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.

Figure 20 Publication

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 eco-

friendly 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.

26

9

8

0 5 10 15 20 25 30

internet such as Facebook, Twitter and webpage

road show

advertisement on television

Q10

87%

13%

Q11

YES

NO

87%

13%

Q12

YES

NO

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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.

Figure 25 safety

Figure 26 replacing the motor

From figure 25, forty percent of respondent agreed that Malacca Waterwheel is doesn’t

have enough safety around it. From the observation, there are certain part is doesn’t have any

fence at the water bank, it will become the potential place to occur accident around there.

83%

17%

Q13

functioning

as replica 80%

20%

Q14

YES

NO

57%

43%

Q15

YES

NO

97%

3%

Q16

YES

NO

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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.

97%

3%

Q17

YES

NO

97%

3%

Q18

YES

NO

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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

people’s 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. Make sure who is the target market, the customer who want to use our services.

ii. Make a survey about the customer who are our target customer.

iii. 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 respondent’s 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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