BUSINESS PLAN

2023-2027

OCPI Sdn Bhd (1248447-D)

No 27, Jalan Apollo U5/187, Seksyen U5, 40150 Shah Alam, Selangor
Page 0 of 19
Contents
1. OCPI Business Plan.........................................................................................................................2
2. Fabrication of Pneumatic TestPacs................................................................................................2
a. Price Differentiation...............................................................................................................2
b. Price Advantage Over Haskel.................................................................................................4
3. Nitrogen Filling Plant.....................................................................................................................6
Uses of Nitrogen/ Market Demand...................................................................................................6
Components......................................................................................................................................6
a. Nitrogen Generator?..............................................................................................................6
b. Compressor/ Booster.............................................................................................................7
c. Nitrogen 18-Cylinder Rack.....................................................................................................8
4. Profit & Loss Statement...............................................................................................................11
5. Cash Flow.....................................................................................................................................12
6. Sales Breakdown..........................................................................................................................13
7. Expenses......................................................................................................................................15
8. Manpower Plan...........................................................................................................................16

Page 1 of 19
 a. OCPI Business Plan
OCPI is a dealer for Haskel in Malaysia (see attachment). Haskel is a company in USA, a wholly own
company under the giant Ingersoll Rand group. Haskel specialises in manufacturing low to very high-
pressure pumps, powered by either air, electricity and hydrogen

As a dealer in Malaysia, OCPI sells Haskel’s pumps and parts to its customer, mainly to the oil & gas
industry. Although, the business provides a steady revenue, it could not break-out to the big leagues.
OCPI has the access to technical know-how from Haskel, principally out of Singapore. Hence, OCPI
intends to widen its product base and get into manufacturing and fabrication of Haskel’s packaged
solutions. Haskel provides for its dealers fabricated products using Haskel’s pumps as its core. Haskel
allow fabricated solutions to be exported overseas.

Capital is the main challenge. OCPI need to secure funding. It is the intention of this business plan to
outline and explain OCPI’s future plan. Listed below are the two areas of OCPI future endeavours

b. Fabrication of Pneumatic TestPacs

Haskel’s testpac is used extensively in the oil and gas industry due to it being pneumatic powered,
allowing it to be used risk-free in fire hazard areas. In fact, Haskel pneumatic pump is the
recommended choice for companies like Petronas.

Pneumatic testpacs with chart recorders is an essential testing equipment to check and verify the
strength of industrial hoses, in compliance with the O&G industry standards. Another major use is
checking for valve leaks.

The price for testpacs with chart recorders from Haskel is about RM89,299. The cost to make a local
unit is RM54,850. If OCPI sells it for RM73,000, with a GP margin of RM34,449. The opportunity is to
fabricate the structures that hold the core pump, ASFD-60, or other pumps according to customers’
requirements (see list of possible pumps in Table 3

c. Price Differentiation
Price from Haskel RM 89,299
Price OCPI Local Fabrication RM 54,850
Difference RM 34,449

Price From Haskel

Lead
Time,
Item No Brand Item Description weeks Qty Unit Sell Disc % Total Sell
          RM   RM
TEST PAC 300
J24319- COMPLETE WITH
Haskel 15 1 89,299 0% 89,299
ASFD-60 CHART RECORDER

Page 2 of 19
 Local Fabrication

Unit Price Total Price

Item Description Qty Unit (Budget) (Budget)
Instruments
Haskel Liquid Pump ASFD-60, Max
1 Working Pressure : 30000 psi 1 nos 22,000.00 22,000.00
Wika Air Drive Inlet Pressure Gauge,
2 Max pressure : 250 psi 1 lgths 500.00 500.00
Wika Outlet Pressure Gauge, max
3 pressure: 30,000psi 1 nos 2,000.00 2,000.00
4 Valve, Parker 2 pair 500.00 1,000.00
Filter regulator c/w gauge 1/2" NPT,
5 Parker 1 nos 750.00 750.00
6 Pressure Chart Recorder, 15K psi 1 nos 5,000.00 5,000.00
7 High Pressure Hose, 15K psi 1 nos 500.00 500.00
Total 31,750.00
Fittings
Bull nose connector 316SS with 304SS
1 BSP nut, 3/8" BSPT 1 nos - -

2 Other fittings 316SS, Butech 1 package 3000.00 3,000.00

Total 3,000.00
Manifold & Structure

Manifold & Skid Structure, include

1 fabricate water container 1 package 6,000.00 6,000.00

2 Name Tag 316SS 1 package 150.00 150.00

Total 6,150.00
OTHERS

1 Electricity, water, paper etc 1 package 200.00 200.00

2 Delivery and transportation 1 trips 2,000.00 2,000.00
3 Third Party Inspection & Testing 1 lot 1,500.00 1,500.00

Total 3,700.00

4 Documentation 1 package 250.00 250.00

5 Contingency 1 lot 10,000.00
Total OCPI cost 54,850.00

Table 1: BOM Local Testpac with Haskel ASFD-60 liquid pump

Page 3 of 19
 d. Price Advantage Over Haskel

OCPI Cost RM54,850

Haskel Cost Price RM89,300
Difference RM34,550

Targetted GP% 25%

OCPI Sales Price 75,000
Haskel Sales Price 108,000
OCPI Price Advantage over Haskel 33,000
30.5%

Table 2: Pumps that could be used

Page 4 of 19
Page 5 of 19
 e. Nitrogen Filling Plant

Uses of Nitrogen/ Market Demand

Oxygen is a harmful substance and removal of dissolved oxygen (DO) from water is an essential step
carried out in power plants in order to prevent corrosion in boilers and pipes, improve heat transfer
and enhance plant efficiency. This operation is not only adopted in the power industry but is also
necessary in the semiconductor, pharmaceutical, biotechnology and food industries, which also have
stringent requirements for DO levels in water. It is thus indispensable to remove DO from water
prior to its use in many industries.

In 1965, the consumption of nitrogen fertilizers stood at some 46.3 million metric tons. By 2019, this
amount had increased to over 190 million tons. In that latter year, nitrogen fertilizers accounted for
more than 56 percent of the total global consumption, whereas phosphate and potash fertilizers
held shares of 24 and 19 percent, respectively

We are not able to estimate the demand for nitrogen gas in Malaysia or the number of nitrogen
plants available, but field observation suggest a huge potential

Components
Nitrogen cylinder filling plants include:

i. nitrogen generator,
ii. feed air dryer,
iii. feed air compressor,
iv. nitrogen compressor,
v. cylinder evacuation pump, and
vi. cylinder filling rack.

Nitrogen cylinder filling plants delivers nitrogen at up to 2,200 psig (15,169 kPa or 151.6 barg) to a
high-pressure manifold capable of filling up to 10 cylinders at a time

Local fab
OEM Nitrogen
Nitrogen Haskel Compressor / Cylinder
Generator Booster Racks

a. Nitrogen Generator?
Small flow nitrogen generators generally start at $3000 and go up to $20,000. Mid flow nitrogen
generators range between $20,000 and $100,000. Large flow nitrogen generators are $100,000 and
above. Nitrogen generator price varies depending on options required.

Page 6 of 19
 Figure 1: Type of Nitrogen Generators

b. Compressor/ Booster
Haskel supplies an integrated nitrogen compressor complete with feed air dryer, air compressor and
nitrogen booster

Page 7 of 19
Figure 2: Haskel Nitrogen Booster Compressor System

Model J24366

Our Nitrogen Compressor Systems feature an electric-driven 5,000 psi nitrogen booster compressor
(model H5417B) which feeds two Haskel air-driven gas boosters (model AGD-152) in parallel, all
mounted on a carbon steel base frame. The compressor is covered in noise reduction panelling to
optimize working conditions

The system will compress nitrogen gas from a boil-off supply (100 to 145 psig) to give a final outlet
working pressure as high as 15,000 psi. At 11,000 psi, the outlet flow-rate is 40 scfm based on an air
drive pressure of 90 psig and volume up to 140 scfm. At 15,000 psi, the outlet flow rate reduces to
28 scfm with 90 psig air drive.
High-pressure nitrogen from a Haskel Nitrogen Booster Compressor simultaneously feeds the test
outlet via a bypass circuit and pre-charges the Haskel air-driven booster circuit. When the outlet
pressure reaches 4,800 psi, Haskel’s AGD-152 gas boosters are switched on automatically and the
pressure increases up to the final test pressure controlled by the outlet air pilot switch setting.

c. Nitrogen 18-Cylinder Rack

Item Description Vendor Material Qty Unit Total

cost cost
Instruments (RM) (RM)
Gas cylinder 50 liter, 300 bar,Ø229 x H1550 Worth. 34CrMo4 18 2,100 37,800
Pressure regulator, pcv ,1/2" NPT (F) Tescom 316 SS 2 1,800 3,600
Pressure gauge (0 - 10 barg)1/2" NPT (M) Wika 316 SS 2 480 960
Gauge valve (block & bleed)1/2" NPT (F) Swagelok 316 SS 2 1,500 3,000

Page 8 of 19
Shut-off ball valve1/2" OD Swagelok 316 SS 8 800 6,400
Check valve1/2" OD Swagelok 316 SS 1 320 320
PRV Proportional c/w spring kit1/2" Swagelok 316 SS 1 650 650
Sub-Total 52,730

Fittings
Flexible hose c/w camlock coupling 316 SS - 2,500 -
Flexible hose/connectors 316 SS 18 500 9,000
Tube fittings Sandvik 316 SS 2 5,000 10,000
Tube 1/2"OD Sandvik 316 SS 2 1,500 3,000
Tube-to-tube connector Swagelok 316 SS 2 200 400
Sub-Total 22,400

Structure
Skid structure & pipe manifold S275JR 3 2,500 6,250
Earthing boss S275JR 2 150 300
Sub-Total 6,550

Accessories
Stud bolt c/w nut and washer 3 200 600
Hose reel - 6,000 -
Wire rope & sling 2 400 800
Weighing arrangement - 11,000 -
Name Plate & Tag No. 3 160 400
Sub-Total 1,800

Manpower
Structure work 3 5,000 15,000
WQT/WPS 1 6,000 6,000
Hydrotest - 2,000 2,000
Full-water test 1 800
NDT 1 1,200 1,200
Blasting & painting 2 2,000 4,000
Tools & consumable 1 1,500 1,500
Delivery - 7,800 -
Sub-Total 29,700

Total 196,660
GP% 25%
Total 262,213

Engineer 3 4,000 12,000

Operating cost 1 4,000 4,000
Electricity, water, etc. 1 1,000 1,000
Packing 1 1,000 1,000
Documentation 1 2,000 2,000
Contingency 2 5,000 10,000

Admin Fee 3% 7,866

Page 9 of 19
Grand Total 300,080

Target Profit 103,420

Profit Margin% 34.5%
Sales Price 301,000

d. Profit & Loss Statement

Total   2022 2023 2024 2025
Total Revenue   75,000 1,176,000 2,415,010 2,555,435
Total Cost   52,500 849,655 1,722,282 1,798,393
Total Gross Profit   22,500 326,345 692,728 757,042
GP %   30% 28% 29% 30%
           
Expenses   2022 2023 2024 2025
Fixed Overhead   - 262,800 366,780 440,040
Rent     48,000 48,000 48,000
Salary     214,800 318,780 392,040
Variable Overheads   2,250 47,280 84,570 88,904
Power and Utilities     12,000 12,120 12,241
Advertisement & Promotion   2,250 35,280 72,450 76,663
Total Expenses   2,250 310,080 451,350 528,944
           
Net Profit   20,250 16,265 241,378 228,098
           
Depreciation          
Description   2022 2023 2024 2025
Lorry 1 ton     10,000 10,000 10,000
Van Toyota     9,286 9,286 9,286
Special Tools   5,968 5,968 5,968 5,968
Capital Equipment     69,340 69,340 69,340
Facilities     34,670 34,670 34,670
Total   5,968 129,264 129,264 129,264
           
Profit After Depreciation   14,282 - 112,999 112,115 98,834

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Page 11 of 19
 e. Cash Flow

Cashflow   2022 2023 2024 2025 2026 2027

Bank Loan   4,000,000 3,915,411 2,284,476 1,286,844 1,374,517 560,537

Sales Receivables     75,000 1,176,000 2,415,010 2,555,435 3,897,566

Expenses & Capex   - 84,589 - 1,705,935 - 2,173,632 - 2,327,337 - 3,369,415 - 3,563,707

Expenses   - 2,250 - 310,080 - 451,350 - 528,944 - 661,671 - 766,040

COS   - 52,500 - 849,655 - 1,722,282 - 1,798,393 - 2,707,745 - 2,797,668

Capex   - 29,839 - 546,200 - - - -

               

CashFlow   3,915,411 2,284,476 1,286,844 1,374,517 560,537 894,395

f. Sales Breakdown
OEM Nitrogen Generator   2022 2023 2024 2025 2026 2027
No of Units     1 2 2 3 3
Sales Price/ Unit     300 315 330 347 364
Revenue     ,000 300 ,000 630 ,750 661 1,041,
,288 1,093,
,652
Cost     ,000 250 ,000 500 ,500 500 863 750 956 750
,000 ,000 ,000 ,000 ,000
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GP%     17% 21% 24% 28% 31%
Gross Profit     50 130 161 291 343
       
,000  
,000  
,500  
,863  
,956
Haskel Compressor/Booster   2022 2023 2024 2025 2026 2027
Sales Price/ Unit     500 515 530 546 562
Unit     1
,000 2
,000 2
,450 3
,364 3
,754
Revenue     500 1,030, 1,060, 1,639, 1,688,
Cost     ,000 350 000 721 900 742 1,147,
091 1,181,
263
GP%     30%
,000 30%
,000 30%
,630 30%
363 30%
784
Gross Profit     150 309 318 491 506
       
,000  
,000  
,270  
,727  
,479
Nitrogen 18-Cylinder Racks   2022 2023 2024 2025 2026 2027
Sales Price/ Unit     301 302 304 305 307
Unit     1
,000 2
,505 2
,018 3
,538 3
,065
Revenue     301 605 608 916 921
Cost     ,000 197 ,010 396 ,035 398 ,613 600 ,196 603
GP%     35%
,155 35%
,282 35%
,263 35%
,381 35%
,383
Gross Profit     103 208 209 316 317
       
,845  
,728  
,772  
,231  
,813
Total-Nitrogen Filling Plant   2022 2023 2024 2025 2026 2027
Revenue     1,101, 2,265, 2,330, 3,597, 3,703,
Cost     000 797 1,617,
010 1,640,
435 2,497,
566 2,535,
415
GP%     28%
,155 29%
282 30%
893 31%
745 32%
168
Gross Profit     303 647 689 1,099, 1,168,
       
,845  
,728  
,542  
821  
247
Power Testpacs   2022 2023 2024 2025 2026 2027
Average Sales Price/ Unit   75 75 75 75, 75 75
Unit   1
,000 1
,000 2
,000 3
000 4
,000 5
,000
Revenue   75 75 150 225 300 375
Cost   ,000 52 ,000 52 ,000 105 ,000 157 ,000 210 ,000 262
GP%   30%
,500 30%
,500 30%
,000 30%
,500 30%
,000 30%
,500

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Gross Profit   22 22 45 67, 90 112
,500 ,500 ,000 500 ,000 ,500
Total   2022 2023 2024 2025 2026 2027
Total Revenue   75 1,176, 2,415, 2,555, 3,897, 4,078,
Total Cost   ,000 52 000 849 1,722,
010 1,798,
435 2,707,
566 2,797,
415
Total Gross Profit   ,500 22 ,655 326 282 692 393 757 1,189,
745 1,280,
668
GP %   30%
,500 28%
,345 29%
,728 30%
,042 31%
821 31%
747

Page 14 of 19
Page 15 of 19
 g. Expenses

Expenses   2022 2023 2024 2025 2026 2027

Fixed Overhead   262,8 366,7 440,0 532,3

- 00 80 40 80 631,200

Rent     48,0 48,0 48,0 48,0

00 00 00 00 48,000

Salary     214,8 318,7 392,0 484,3

00 80 40 80 583,200

Variable Overheads   2,2 47,2 84,5 88,9 129,2

50 80 70 04 91 134,840

Power and Utilities     12,0 12,1 12,2 12,3

00 20 41 64 12,487

Advertisement & Promotion   2,2 35,2 72,4 76,6 116,9

50 80 50 63 27 122,352

Total Expenses   2,2 310,0 451,3 528,9 661,6

50 80 50 44 71 766,040

               

Net Profit   20,2 16,2 241,3 228,0 528,1

50 65 78 98 50 514,707

               

Depreciation              

Page 16 of 19
Description   2022 2023 2024 2025 2026 2027

Lorry 1 ton     10,0 10,0 10,0 10,0

00 00 00 00 10,000

Van Toyota     9,2 9,2 9,2 9,2

86 86 86 86 9,286

Special Tools   5,9 5,9 5,9 5,9 5,9

68 68 68 68 68 5,968

Capital Equipment     69,3 69,3 69,3 69,3

40 40 40 40 69,340

Facilities     34,6 34,6 34,6 34,6

70 70 70 70 34,670

Total   5,9 129,2 129,2 129,2 129,2

68 64 64 64 64 129,264

               

Profit After Depreciation   14,2 - 112,1 98,8 398,8

82 112,999 15 34 87 385,444

               

Manpower Plan   2022 2023 2024 2025 2026 2027

General Manager     1 1 1 1 1

Marketing Manager     1 1 1 1 1

Executive     1 1 1 1 1

Support     1 2 2 2 2

Page 17 of 19
General Workers     3 6 9 12 15

               

Salary @5% Increment yearly              

General Manager 5,000   60,0 63,0 52,8 55,2

00 00 00 00 57,600

Marketing Manager 3,000   36,0 37,8 39,6 41,4

00 00 00 00 43,200

Executive 2,500   30,0 31,5 33,0 34,5

00 00 00 00 36,000

Support 2,000   24,0 50,4 52,8 55,2

00 00 00 00 57,600

General Workers 1,800   64,8 136,0 213,8 298,0

00 80 40 80 388,800

Total     214,8 318,7 392,0 484,3

00 80 40 80 583,200

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