Professional Documents
Culture Documents
Introductory page
Executive summary
Industry analysis- SWOT, internal and external
environment
Description of the venture
Production plan
Market plan
Risk assessment
Financial plan
Appendix
COMPANY INFORMATION
NATURE OF BUSINESS:
Manufacturers of all kinds of detecting devices for security
and surveillance. Camera, CCTV, metal detectors, x-ray
machines
VISION:
Is to become 'a world-class innovative engineering
enterprise committed to enhancing stakeholder value'.
MISSION:
“The purpose of Metalax is to honourably serve the
needs of the community by providing products and
services of superior quality and technology to our
customers; to do this so as to earn an adequate profit
which is required for the total enterprise to grow; and by
so doing provide the opportunity for our employees and
shareholders to achieve their reasonable personal
objectives.”
Address : Opp. Goa Flour Mill, Devsuvaddo, Chicalim,
City : Panji
State : Goa
Country : India
Phone : 91-832-2541467
Fax : 91-832-2541214
Mobile : +919422059636
ORGANISATIONAL STRUCTURE
DIRECTOR: MR Galib.
X-Ray System
Pulse induction
SOURCES OF FINANCE
Walk through and hand held metal detectors are the two
principal devices used for metal detection. Last year sales of
walk through and hand held metal detectors totalled about Rs
25000000. Walk through accounted for 60% of the total
market value while hand held metal detectors made up the
remaining 40%. So it is evident that there is a great scope for
development in this field in India and there is a lot of potential
yet to be tapped in India.
INTRODUCTION
In current scenario, where the travellers travel via airplanes and trains,
the airports and railway stations pose a great threat to the security and
convenience of the travellers, who are always under the gun point of
terrorist attacks or other anti-social activities. Public places and areas for
entertainment such as malls, theatre, hospitals, schools etc also fall
under the category of being the prime targets for terrorist activities.
Under such conditions, the industry for security devices has been on a
steady rise in India, for the past many years. The demand for devices
such as CC-Cameras, Metal Detectors, Fire and Gas Detection devices
etc has been increasing at a fast pace, contributing to the need for more
technologically advanced and efficient security devices.
This inconvenience has been overlooked for many years and till today
no devices has been formed to reduce such inconvenience keeping the
safety aspects in mind. From the point of view of security officials, there
is a need for metal detectors which are light weight and are capable of
relatively easy disassembly, transportation, and re-assembly for use at a
different location.
Previous scenario:
As indicated above, walkthrough metal detectors are quite old and well
known in the art. Obviously, at this point in our country's history, the
importance of metal detectors has perhaps never been greater. While
such metal detectors have been known and used for many years in
facilities such as airports and government buildings, use of walkthrough
metal detectors has recently been expanded to a wide variety of public
facilities, including, for example, office buildings and public schools.
Present:
Now, along with the magnetic field metal detectors, which are also
foldable and easy to carry, we will be adding another dimension to it in
the form of x-ray machine attached to the metal detector.
When a person passes through the metal detector, the sensors will
sense all the harmful and harmless metal accessories worn and carried
by the passenger and the tv will show the various accessories carried by
the passenger, without him actually removing it and passing it through
another machine, causing inconvenience and time.
INDUSTRY
ANALYSIS
SWOT
STRENGTHS
This is one of its kind walkthrough metal detectors, which also has an x-
ray machine providing convenience, ease to the travellers and also the
security at the airport and various agencies.
• Saves time
• Convenience enhancer
• Ease of use
• Intensity
• Size
• Purpose
• No competition- as it is an innovative product, new of its kind, no
company today is providing such a product, so currently, it is the
strength that the our company would enjoy.
WEAKNESS
OPPORTUNITIES
The importance of metal detectors in today's society is growing. With
this growth one can only speculate that there will be great advances in
metal detector technology within the coming years. Simply put as the
demand for metal detectors grows the technology will also grow.
Metal detectors for security and industry have also made some
exceptional advances and will continue to in the coming years.
Technologies will be developed to not only detect metals, but also
identify them with a visual outline of the metals detected. These
advances will make our lives much safer and more secure.
• Demand for metal detectors and CCTV is on the rise as the Indian
Government upgrades security measures and technologies and
expands safety coverage areas in response to both global and
domestic requirements.
THREAT
ENVIRONMENT SCANNING
ECONOMIC ENVIRONMENT
Inflation-
Will affect maintenance cost, fuel, labour cost, personnel handling, T&D.
SOCIAL ENVIRONMENT
• Terror control
• Public security
• Efficiency
TECHNOLOGICAL ENVIRONMENT
LEGAL ENIVRONMENT-
• Comply with the Indian and Goa government regulation, policy and
regulations.
• Acquire the ISO standards and quality marks and control from the
issuing agency.
(i) The existing industrial estates will be further improved and land
allotment process will be expedited by simplifying the procedures. The
Government has substantially reduced the stamp duty payable by the
industrial units.
(a) It is also proposed to increase the FSI (Floor Space Index) in
industrial estates and non-urban areas for the benefit of the industries.
(c) The existing Industrial Estates have already been notified and kept
outside the purview of local authorities.
GOVERNMENT INSTITUTIONS
INCENTIVES:
A. EMPLOYMENT SUBSIDY:
E. CERTIFICATION/PATENTING INCENTIVE:
G. MEDICLAIM FACILITIES:
Source: sciencelinks.jp
At present the metal detectors and the X-ray machines function on two
different platforms at the airports. The travellers first pass through the
U-shaped metal detectors for any metal devices and later their
belonging such as shoes, watch, mobile phones, laptop, spectacles etc
are scrutinized for any sharp or harmful equipments or devices through
the x- ray machines.
Metalex combines the functioning of both the metal detectors and the x-
ray machines as it checks the travellers for any metal devices and other
belongings at the same time, saving a lot of time, cost and efforts.
The sampling circuit sends the tiny, weak signals that it monitors to
a device call an integrator.
While the above process is going on , the X-ray feature of the device
also works simultaneously.
While the colors used to signify "inorganic" and "metal" may vary
between manufacturers, all X-ray systems use shades of orange to
represent "organic." This is because most explosives are organic.
Machine operators are trained to look for suspicious items -- and not just
obviously suspicious items like guns or knives, but also anything that
could be a component of an improvised explosive device (IED).
Key benefits of the Innovation:
Saves cost
PRODUCTION
PLAN
Production Plan
Production Quality:
Amplifying rate
Electricity consumption ability
Durability
Reliability
Long working life
The in house & out house manufacturing unit has all the tools and
machines to facilitate the different production processes easily. Capable
of satisfying the bulk requirements of clients, our unit is fitted with best
production machines that can work for long hours. For a hindrance-free
and uninterrupted production, the machines are constantly upgraded
and maintained at regular intervals.
The co. has an in house R&D Lab and excellent Calibration Lab. All our
facilities conform to NPL/ISO standard and have NABL traceability.
Our team
Raw material
• Steel
• Ferro-Alloys
• Bras
• Mica
• Aluminium
• Zinc
• Copper
• Copper-Nickel
• Nickel
• Silica
Suppliers:
The co. has an efficient and a wide spread distribution and suppliers
network in Goa and near by states that provide the co. with the
necessary raw parts and material to be processed. Some of such
suppliers are:
Location:
Opposite Goa Flour Mill, Devsuvaddo, Chicalim,
Goa,
Goa, India, 403 711.
23473024
Website: http://www.supersafety.in
Soy.,Chintamani Nagar.
Others are:
Product Testing
MARKET OVERVIEW
Based on their distributors clusters, the market of detection and sensing
devices are largely classified into three basic segments that are 1) metal
detectors, 2) CCTV, and 3) fire and gas detection devices.
1) Metal Detectors: Walk through and hand held metal detectors are
the two principal devices used for metal detection. Last year sales of
walk through and hand held metal detectors totaled about $25 Million
(Baht 1000 Million). Walk through accounted for 60% of the total market
value while hand held metal detectors made up the remaining 40%.
Government Institutions are the largest group of buyers with sales in this
sector as high as 60% of the overall market. Sales made to airports is
70% of government purchase, while all other government offices makes
up the other 30% of the market. Sales to commercial institutions make
up the remaining 40% of the overall sales of CCTV systems in India.
Commercial buildings including commercial banks, shopping complexes,
residential buildings, manufacturing plants and warehouses,
3) Fire and Gas Detection Devices: Gas detectors, with their higher
unit price, make up the largest portion of the fire protection system. The
market is estimated to be worth about $500,000 (Baht 20 million), and
accounted for about 40% of the $1.25 Million market of the overall fire
protection systems.
Major buyers are plants in high hazard and special risk industries such
as petrochemical, oil refinery gas. Gas detection devices are sold as
part of the overall system. The complete system includes gas detection
equipment, flame, smoke and heat detectors, plant sirens and explosion
proof electrical fittings amongst many others
Companies in the business normally offer the devices along with system
design, engineering, supply of equipment, installation, testing and
commissioning. For example, one of the leading safety companies for
the high hazard industries offers comprehensive lines of products that
include: ultraviolet and infrared (IR/IR and UV/IR) flame detection,
smoke, thermal and linear heat detection, aspirating smoke detection
systems, conventional and addressable control systems with interactive
connection capabilities to central control and monitoring facilities, carbon
dioxide (CO2) and water mist extinguishing systems.
MARKET TRENDS
The increasing security threat to lives and property has brought about a
major increase in demand for sensing and detection devices. Upgrades
of security measures and relevant technology, particularly detection
devices at international airports and seaports, are a direct result of
the global calls for preventive measures against possible terrorist
threats. Thus, marked growth of the detection devices market in recent
years following 9-11 has been a result of the Government’s increase in
investment for security standards that meet with global requirements.
For the same reason, industry experts expect the market for metal
detection devices to expand further at a projected rate of 30-40%
over the next few years. Purchase of detection devices are expected
to come from both the Government and private sectors. The
Government is expected to invest further for better security and
preventive measures at additional premises deemed as potential hi-
threat areas.
Unlike metal detectors and CCTV, demand growth in the gas and fire
detection devices market tends to correspond more with economic
growth and expansion of relevant industries. In addition, routine
replacements of existing gas and fire detection devices at industries also
make up a substantial amount of sales in this market. Hence, demand
growth in this segment is relatively stable. Local experts estimated
growth in this market segment to average at 10% per year for the next
few years.
Metal detectors for security and industry have also made some
exceptional advances and will continue to in the coming years.
Technologies will be developed to not only detect metals, but also
identify them with a visual outline of the metals detected. These
advances will make our lives much safer and more secure.
It also has an x-ray machine, which can detect and differentiate between
harmful metal devices and harmless ones, as and when a person
passes through the detector. This save the travelers the time and
provides ease and comfort, as they dont have to remove anything from
their pockets and clothes.
PRICE:
The metal detector is a highly advanced machine, comprising of an x-ray
machine also, and hence has been made with a lot of R&D and testing,
using world-class technology.
This is one of its kind in the world, with no other company providing with
such an innovative product, hence it has been priced at Rs 1.5 crore.
PLACE:
The company would be set-up in Goa, where the production would be
done. From Goa, the metal detectors would be transported to various
airports of the country through a safe and reliable transport system.
MARKET ENTRY
For metal detectors market, a sole distributorship is a common
arrangement. Because reliability and quality are primary features
sought after by the market, brand recognition and distributor’s quality are
essential elements.
Metal detection require a certain level of continuity over the project life
and accountability on the system and products performance.
PROMOTION:
PEOPLE:
We would roughly employ 100 employees in the Goa plant, to look after
the operations and R&D.
PHYSICAL EVIDENCE:
A state of an art technology and infrastructure would be made in Goa,
which would be highly securitised.
Since the employees need to work with chemicals and radiations, a lot
of safety measures would be taken in the plant.
PROCESS :
In Goa, the R&D would take place and the walk-through metal detectors
having an x-ray would be manufactured.
SEGMENTATION:
• Saves time
• Convenience enhancer
• Ease of use
TARGET MARKET:
It would be sold at all domestic and international airports of the country
End Users
In addition to Government organizations and embassies, end users
of sensing and detection devices encompass a large number of
diversified groups of organizations deemed to be under security threat
either to lives or property. They include banks and financial
institutions, gold bullion/mint corporations, high security printing
businesses, hotels, educational institutions, gem and diamond
cutting enterprises, high rise office buildings, oil refineries and
petrochemical plants, large manufacturing plants, entertainment
venues and condominiums, etc. Regardless of their diversified
nature, end users can largely be classified into two groups; the
government, requiring a formal bidding in their purchase and private
sector requiring no formal bidding process.
Selling procedure
Selling through a bidding process in most cases involves a longer time
and more people in the decision making process. Potential suppliers for
projects are required to work on the process since the beginning when
actual users of the subjected device prepare their requirements
proposal, and where the desired specifications are stated which in turn
the criteria of qualified supplier are. Once becoming qualified, these
suppliers need to follow up on the project till the time the budget
becomes available and eventually the purchasing committee makes the
decision to award the contract. Because most bidding projects are of
high monetary value where most people involved have certain degree of
influence, success in the bidding process requires more than having a
product with the right feature / quality at the most competitive price.
Right strategy and relationship are needed. In general, having a local
representative is key to these essential competitive elements, and hence
it is recommended if not required that U.S. exporter(s) of detection
devices have a capable local representative.
MARKET ACCESS
MARKET SIZE-
• Demand for metal detectors and CCTV is on the rise as the Indian
Government upgrades security measures and technologies and
expands safety coverage areas in response to both global and
domestic requirements.
IMPORT MARKET
U.S. makes have about 70-80% share of the CCTV market, 30-
40% of the metal detection market, and close to half of the fire
and gas detection devices for industries.
Similarly, European makes, principally Italian ones, dominate the
metal detection market with 30-40% share, while U.K. ones are in
the fire and gas detection devices. Makes from Taiwan, Korea
and China are popular in the lower end market segment, most
prominently the CCTV market, accounting for about 20%.
COMPETITION:
U.S. makes together with European ones are leaders in the high-
end segment of the detection and sensing devices market because
of their technology and product quality. Their prime target market is
composed of Government organizations, hi-threat public areas,
embassies, large corporations, large manufacturing operations, of which
cost of failure to prevent loss /damage of and/or to protect the intended
property is formidable. As a result, reliability and capability of U.S.
and European products are their prime competitive advantages.
We will patent the technology, so that no one else can copy our
technology. Hence till the time the patent rights last, we will have
no completion.
RISK ASSESSMENT
RISK OF NOT ACHIEVING THE PROJECTED PROFITS AND
SALES REVENUE AS PROJECTED
SOURCES OF FINCANCE
LAND - 30 CRORE
RESERVE - 15 CRORE
The venture capitalists, will be getting a 25% return on the profits earned
by the company upto 7 years, after which it has the following options to
exit-
Insurance 15000000
TQM 15000000
Depreciation-
Land @ 5% 15000000
150000000 150000000
Balance Sheet as on Year 1
Libilities Assests
Capital 100000000 Plant / Machinery 350000000
(Less) Net loss 79000000 (less) Depr @ 10% 35000000
21000000 315000000
(Add) Int @ 6% 6000000 Land 300000000
27000000 (less) Depr @ 5% 15000000
Bank loan 400000000 285000000
Reserves 150000000 Factory 150000000
Bank overdraft 150000000 (less) Depr @ 10% 15000000
B/P 200000000 135000000
Creditors 240000000 Patents 200000000
O/S Expenses 170000000 B/R 150000000
Pre paid expenses 52000000
cash in hand 200000000
1337000000 1337000000
In the 2nd year the target will be extended up to 10 states i.e., we will sell
20 machine, then the sales revenue will be Rs. 300000000.
Land @ 5%
Factory @ 10%
Machinery @ 10%
Since it is a new business, people know very less about it, the company
will not earn much profit in the first year because there are no clientele in
this year. We will establish ourselves in the initial year that will cost a lot
to the company. Therefore it is projected that the company will suffer
from losses in the first year. The projected loss for the 1 st year is Rs.
79000000
The projected profits for the second year are Rs. 66500000. In this year
the business will establish itself, the goods will be manufactured on the
basis of order received. We expect to get quite a few orders that will
generate profit for us.
In the third year, since our targets will be higher, therefore we expect
higher profits of the business. The profit for the third year is expected to
reach up to Rs. 211730000.
APPENDIX