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MachinesHUB.com
a product of Essflex Pte Ltd, Singapore
1
Who we are:
Global B2B Online Marketplace for
Heavy Machinery
2
Strictly Private & Confidential
What’s the problem that we are
looking to solve ?
The Asian heavy machinery market is highly fragmented with numerous
physical traders, producers and consumers, who are not well connected
with each other. This results in:
 Lack of adequate market access and information
 Hard to differentiate between genuine and fake players
 Hard to determine the right price due to insufficient market bids
 Owners: Expensive working capital locked in the form of idle machine
inventory
 Buyers: unwanted project delays / revenue losses due to delay in
procuring right equipment at the right price
Strictly Private & Confidential
3
Our solution
MachinesHUB.com is a comprehensive online platform built to
solve the stated problem by:
 Connecting buyers, sellers and traders with each other across
geographies
 Providing global visibility to machinery available for sale/lease
 Allowing transactions on both new and old equipment under
major categories such as construction, industrial, transport,
farming, power, etc.
 Providing a support network of Trade Partners including
logistics companies, freight forwarders, 3rd party inspection
services, banks & financing companies, insurers, lawyers, etc. to
facilitate client transactions
4
Strictly Private & Confidential
Target markets
Phase 1: ASEAN, India, China, Middle East
Phase 2: Africa, Australia
Phase 3: US, Europe and rest of the world
Target number of paid listings:
10,000 over next 10 years
5
Strictly Private & Confidential
Our existing partners
Sellers
Global Machinery &
Tunnelling Resources (Asia)
- Singapore
Infra Engineers India
Tangsons Hunan Trading –
China
Buyers
Infra Engineers India
Dansha International
Logistics & Trading
(Singapore)
Tiong Woon Corporation
Trade Partners
PAC Districentre – Singapore
UTC Logistics – Singapore
T
6
Strictly Private & Confidential
How do we plan to grow user
traffic on MachinesHUB.com?
 Social media marketing using popular channels such as Facebook,
LinkedIn, etc.
 Search Engine Optimization techniques + web analytics
 Newsletters and blogging related to Heavy Machinery industry
 Lead generation through cold calling (having dedicated staff for this)
 Collaboration with import/export agents and other trade partners
and existing suppliers
 Regional marketing campaigns using channels such as trade fairs
(e.g.. Construction Machinery Fair in Saudi Arabia, Mar 2015)
7
Strictly Private & Confidential
Competitors How our solution is better
Marketbook.in Only covers construction equipment
Equipmenttraderonline All equipment on sale, does not allow leasing
www.aetc.co.kr Coverage restricted to Korea
www.gmdu.net General trader portal
www.jpn.sg
Own distribution and supply, while we offer a
network of logistics partners to choose from
Competitive landscape 8
Strictly Private & Confidential
E. Parthiban (a.k.a. Parthi)
CEO, Director of Essflex
… a visionary, technology
guru and an entrepreneur, he
has over 20 years of
experience in the field of
engineering, design and
heavy machinerySenthil (a.k.a Sam)
COO
… a go-getter and
experienced negotiator, he
has over 15 years of
experience in trading of
heavy machinery
Dinesh Gupta (a.k.a. Dan)
Finance Director
…the master strategist and
financial planner behind the
project, he has over 10 years
of experience working in the
banking industry
9MachinesHUB Dream Team
Wilson Chin
Advisor & Mentor
… a visionary and an
entrepreneur, he has over 40
years of experience in
machinery trading and also
owns a coal mine in
Indonesia
Manoharan Nedumaran
(a.k.a. Nedu)
Advisor & Mentor
… a thorough-bred business
man with over 25 years of
experience in heavy
machinery; also works as
general manager at TWC
Cranes Singapore
Strictly Private & Confidential
10Financial Projections – P&L
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
In SGD million
Revenue Opex EBITDA
We are targeting to achieve a steady net income of close to SGD 5mm on a
turnover of close to SGD 9 mm by end of 10 years
Strictly Private & Confidential
Our 3-fold Revenue Model to
achieve our targeted growth
Equipment
Listings
A fixed monthly fee
payable by
customers, who want
to list their equipment
for sale or lease
We are targeting
about 2500 listings by
end of this year and
to triple this number
by end of 5 years
Trade Partner
Listings
A fixed monthly fee
payable by Trade
Partners such as
logistics companies,
etc. for listing them
on MachinesHUB and
giving them referrals
on our buyers/sellers
Product
Sales
Refers to development
and selling of
customized equipment
under MachinesHUB
brand to cater to a
specific need in a
market and sell it
online over
MachinesHUB to other
markets.
For this, the company
will invest in strategic
R&D infrastructure and
personnel to be hired
from top notch
institutes of the world
11
Strictly Private & Confidential
12Financial Projections - Cashflows
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
In SGD million
CFO CFI CFF
A mix of debt and private equity investments to be raised to take care of the capex
outlay and lack of operating cashflows in the initial phase
Strictly Private & Confidential
Funding Requirement
 How Much ?
 SGD 2,000,000 of private equity
 Proposed form of funding ?
 Private equity for a stake of [TBD]
 Lock-in of minimum 3 years
 Expected IRR of 25% p.a.
 Purpose ?
 Marketing – both online and offline
 Overseas expansion - offices and staff
 Setting up of a strategic R&D center to fuel the Product Sales revenue
 Take out of SGD250,00 of debt
13
Strictly Private & Confidential
Date Immediate Milestones
15th Feb, 2015
Identify key staff (finance, marketing) and deploy
them
15th March, 2015
Sign-up at least one key strategic partner in
Singapore, India, China and UAE
31st March, 2015
Raise funding of at least 50% of target debt
funding
30th June, 2015
At least 500 paid listings by middle of the year
Complete remaining debt financing
31st Jan, 2016 Private Equity Funding
Key Milestones 14
Strictly Private & Confidential

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MachinesHUB investment proposal (Feb2015)

  • 1. MachinesHUB.com a product of Essflex Pte Ltd, Singapore 1
  • 2. Who we are: Global B2B Online Marketplace for Heavy Machinery 2 Strictly Private & Confidential
  • 3. What’s the problem that we are looking to solve ? The Asian heavy machinery market is highly fragmented with numerous physical traders, producers and consumers, who are not well connected with each other. This results in:  Lack of adequate market access and information  Hard to differentiate between genuine and fake players  Hard to determine the right price due to insufficient market bids  Owners: Expensive working capital locked in the form of idle machine inventory  Buyers: unwanted project delays / revenue losses due to delay in procuring right equipment at the right price Strictly Private & Confidential 3
  • 4. Our solution MachinesHUB.com is a comprehensive online platform built to solve the stated problem by:  Connecting buyers, sellers and traders with each other across geographies  Providing global visibility to machinery available for sale/lease  Allowing transactions on both new and old equipment under major categories such as construction, industrial, transport, farming, power, etc.  Providing a support network of Trade Partners including logistics companies, freight forwarders, 3rd party inspection services, banks & financing companies, insurers, lawyers, etc. to facilitate client transactions 4 Strictly Private & Confidential
  • 5. Target markets Phase 1: ASEAN, India, China, Middle East Phase 2: Africa, Australia Phase 3: US, Europe and rest of the world Target number of paid listings: 10,000 over next 10 years 5 Strictly Private & Confidential
  • 6. Our existing partners Sellers Global Machinery & Tunnelling Resources (Asia) - Singapore Infra Engineers India Tangsons Hunan Trading – China Buyers Infra Engineers India Dansha International Logistics & Trading (Singapore) Tiong Woon Corporation Trade Partners PAC Districentre – Singapore UTC Logistics – Singapore T 6 Strictly Private & Confidential
  • 7. How do we plan to grow user traffic on MachinesHUB.com?  Social media marketing using popular channels such as Facebook, LinkedIn, etc.  Search Engine Optimization techniques + web analytics  Newsletters and blogging related to Heavy Machinery industry  Lead generation through cold calling (having dedicated staff for this)  Collaboration with import/export agents and other trade partners and existing suppliers  Regional marketing campaigns using channels such as trade fairs (e.g.. Construction Machinery Fair in Saudi Arabia, Mar 2015) 7 Strictly Private & Confidential
  • 8. Competitors How our solution is better Marketbook.in Only covers construction equipment Equipmenttraderonline All equipment on sale, does not allow leasing www.aetc.co.kr Coverage restricted to Korea www.gmdu.net General trader portal www.jpn.sg Own distribution and supply, while we offer a network of logistics partners to choose from Competitive landscape 8 Strictly Private & Confidential
  • 9. E. Parthiban (a.k.a. Parthi) CEO, Director of Essflex … a visionary, technology guru and an entrepreneur, he has over 20 years of experience in the field of engineering, design and heavy machinerySenthil (a.k.a Sam) COO … a go-getter and experienced negotiator, he has over 15 years of experience in trading of heavy machinery Dinesh Gupta (a.k.a. Dan) Finance Director …the master strategist and financial planner behind the project, he has over 10 years of experience working in the banking industry 9MachinesHUB Dream Team Wilson Chin Advisor & Mentor … a visionary and an entrepreneur, he has over 40 years of experience in machinery trading and also owns a coal mine in Indonesia Manoharan Nedumaran (a.k.a. Nedu) Advisor & Mentor … a thorough-bred business man with over 25 years of experience in heavy machinery; also works as general manager at TWC Cranes Singapore Strictly Private & Confidential
  • 10. 10Financial Projections – P&L -2.00 0.00 2.00 4.00 6.00 8.00 10.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 In SGD million Revenue Opex EBITDA We are targeting to achieve a steady net income of close to SGD 5mm on a turnover of close to SGD 9 mm by end of 10 years Strictly Private & Confidential
  • 11. Our 3-fold Revenue Model to achieve our targeted growth Equipment Listings A fixed monthly fee payable by customers, who want to list their equipment for sale or lease We are targeting about 2500 listings by end of this year and to triple this number by end of 5 years Trade Partner Listings A fixed monthly fee payable by Trade Partners such as logistics companies, etc. for listing them on MachinesHUB and giving them referrals on our buyers/sellers Product Sales Refers to development and selling of customized equipment under MachinesHUB brand to cater to a specific need in a market and sell it online over MachinesHUB to other markets. For this, the company will invest in strategic R&D infrastructure and personnel to be hired from top notch institutes of the world 11 Strictly Private & Confidential
  • 12. 12Financial Projections - Cashflows -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 In SGD million CFO CFI CFF A mix of debt and private equity investments to be raised to take care of the capex outlay and lack of operating cashflows in the initial phase Strictly Private & Confidential
  • 13. Funding Requirement  How Much ?  SGD 2,000,000 of private equity  Proposed form of funding ?  Private equity for a stake of [TBD]  Lock-in of minimum 3 years  Expected IRR of 25% p.a.  Purpose ?  Marketing – both online and offline  Overseas expansion - offices and staff  Setting up of a strategic R&D center to fuel the Product Sales revenue  Take out of SGD250,00 of debt 13 Strictly Private & Confidential
  • 14. Date Immediate Milestones 15th Feb, 2015 Identify key staff (finance, marketing) and deploy them 15th March, 2015 Sign-up at least one key strategic partner in Singapore, India, China and UAE 31st March, 2015 Raise funding of at least 50% of target debt funding 30th June, 2015 At least 500 paid listings by middle of the year Complete remaining debt financing 31st Jan, 2016 Private Equity Funding Key Milestones 14 Strictly Private & Confidential