PLANT AND MACHINERY APPRIASAL
BUSINESS PLAN
AN ABRIDGED BUSINESS PLAN DETAILING STRATEGY FOR MACHINERY EVALUATION AND APPRAISAL AS
A PRODUCT LINE FOR BENEL ENERGY NIGERIA LIMITED.
PREPARED BY
MOGEKWU CHINYE KELVIN
REVIEWED BY
OCHUKO ERIVWO
CEO, BENEL ENERGY NIGERIA LIMITED.
6B OLAJIDE GEORGE STREET OFF ROAD 12 LEKKEI PHASE 1 LAGOS NIGERIA
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AGENDA
• MD Opening remark
• Review of existing Business plan.
• Strategic business development
• Proposal firm up
• Budget
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DISCLAIMER
Please note that Benel Energy Nigeria Limited has put up this business plan to focus on
“Plant and Machinery Appraisal/Evaluation” and not “Plant and Machinery Valuation”
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WHAT IS PLANT AND MACHINERY APPRAISAL
• Plant and machinery appraisal is the process of estimating the worth of a plant or
machinery undertaken by expert valuers.
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RESOURCE BREAK DOWN STRUCTURE(MAN
POWER)
CEO
ECS
MGR
HSE
M/E
MGR
Ins/Aud
it
Consultant
evaluator
FT
Officer
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BUSINESS OBJECTIVES
• To review accurate technical expertise in Machinery and equipment appraisal.
• Detailed competitive analysis of the Machinery and equipment appraisal market in
Nigeria.
• Adequate equipment and machinery spares costing and technical know how.
• Proper Market data following industry expert commitment to accuracy in appraisal.
• Benel energy Machinery and Equipment appraisal unique service offers client current
status of equipment including life cycle.
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VALUE PROPOSITION
• Benel energy plant and machinery evaluation product line intends to give its prospective
client a Be-spoke service which will involve a plant and machinery evaluation.Benel
energy so far in Nigeria is the only company that possesses a CMEA certification from
NEBB institute which makes us the only company in Nigeria to undertake technical
evaluation for plant and machinery.Which gives us to "Coast to Coast" edge over all
other valuers in the world.
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CURRENT STATUS OF BUSINESS
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START UP PLAN
• Firm up business plan
• Build a business development team/ focus groups.
• Firm up team members engagement contracts.
• Peer group meetings to hold every Tuesday 11am ( Including Virtual)
• Firm up action tracker to fuel start up with appropriate traffic lights.
• Collate list of companies engaged in services stated in Eco system.
• Firm up proposal (Generic/Specific)
• Engage prospective client via a strategic business development.
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POTENTIAL CHALLENGES IN PLANT AND
MACHINERY EVALUATION.
 Existing competition especially in the lagos business environment.
 Already in-fighting between Nigeria Institute of Estate surveyors and valuers and Nigeria
society of engineers on technical competence of evaluating plant and machinery.
 Absence of license to operate and run an equipment and machinery evaluation company
in Nigeria.
 Heavy financial implication for plant and machinery evaluation product line as a pilot run.
 Absence of data to broaden business intelligence analysis for start up in Lagos state.
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MITIGATION
• Benel energy will set up a peer/focus group to develop a risk register and firm up of the
business plan as stated in the milestone.
• The focus group will do a through analysis of a “Make or Buy” decision to produce a decision
to obtain a valuer's license in Nigeria or hire a an already qualified valuers under NIEVS who
will be on call out engagement with Benel energy to firm up already processed documents.
• A check list of necessary documentation will be opened during the take of stage of the
business and assigned the necessary traffic lights and closed out accordingly.
• Benel energy also wishes to adopt the vertical integration business model in which a
designated member of staff of Benel energy will go through a training process in other to
acquire the required license. (This is still tied to the “Make or Buy” Decision).
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MARKETING PLAN
• As part of our marketing strategy, we have delineated the machinery and equipment
evaluation market space in Nigeria and produced a suitable interactive ecosystem which
will be a suitable habitat for all stake holders involved. The habitat includes the following:
 Finance institutions
 Consumers(Energy companies,machinery power plant et all)
 Asset management companies
 Competitors
 Government agencies
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THE PLANT AND MACHINERY BUSINESS ECOSYSTEM
CONSUMERS
These are the organisms that need evaluation in
other to obtain facilities.
FINANCE COMPANIES
The consumers are at the mercy of the finance
companies in other to obtain facility which is
achievable with the help of a professional
evaluation
COMPETITORS
Now the evaluation business seems like a blue
ocean because there are two major key players
which will be an easy sail pending other external
influences
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THE OPPORTUNITY
 Benel energy has a track record of handling similar business in the time past which deals with
equipment inspection and appraisal.
 Benel energy plant and machinery appraisal team alone has a combined 50 years experience.
 The business space of plant and machinery evaluation has not been exploited up to 35% in
the Nigerian economy.
 Benel energy will bring a new outlook to the business which will achieve excellence and edge
out its competitors.
 Machinery and equipment appraisal could birth a new product line for the company
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TARGET CUSTOMERS
FINANCE INSTITUTIONS
ENERGY
MARITIME
HEAVY INDUSTRIES
 Refinery
 Ships
 Agro Processing plants
 Commercial banks
 Bottling companies
 Credit union
 Asphalt manufacturing
 Asset management
companies
 Drilling Rigs(Drill ships et
all)
 Tank farm
 Flow stations
 Yatch
 Fishing and ecology
 Petrochemical plants
 Ports
 FPSO/FSO
 Cargo bay.
 Mineral mining
 Fabrication
 Industrial banks
 Insurance
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COMPETITIVE ANALYSIS
S/N
CONSIDERATIONS
1
Area of Operation
2
International Presence
3
Number of registered Valuers
4
Marketing strategy
5
Social Media Presence
6
PAUL OSAJI AND CO
BODE ADEDEJI &CO
OYOM
ASSOCIATES
Benel Energy
Lagos,Abuja,Asaba and Portharcourt
Lagos
Abuja
Lagos,warri&Portharcourt
NO
NO
NO
Canada
4
15
6
NIL
Multi- level marketing
Traditional(word of
mouth/Referral
Traditional(word of
mouth/Referral
Algorithm/TAS
Partial
Partial
Partial
Strong
CMEA registered
NO
NO
NO
YES
7
ASA registered
YES
NO
NO
TBV
8
NIEVS Registered
YES
YES
YES
NO
9
AMCON Vendor
YES
YES
YES
NO
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BUSINESS RISK & MITIGATION
S/N
BUSINESS RISK
MITIGATION
1
Risk of vendor registration acceptance from client
company
Study the market prior to take off.
2
Late deployment of budget from Benel energy finance
Business plan needs to be studied by focus groups
and then draw up a detailed financial analysis.
3
Unavailability of risk register
Risk register to be drawn up after endorsement of
business plan in other to counter any upcoming
risk.
4
Enterprise environmental factors(Including change in
government policies)
During financial planning draw up funds for
management contingencies and risk.
5
Setting up a detailed focus/peer group
Contingencies such as collocation and virtual team
will be put in place firm up a formidable team)
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SWOT ANALYSIS
STRENGHT
•
•
•
•
•
Benel energy industry recognition
CEO COREN Certification
BER Evaluation manger has Equipment Audit skills and a PMI
certified project management professional (PMP)
Readily available team of experts to serve as focus group.
CMEA certification
OPPORTUNITY
•
Benel energy technical proficiency will win the confidence
of energy dependent clients.
WEAKNESS
•
•
•
Technical complexity in setting up focus groups
Presence of competitors with already running license.
Take off time to break into market.
THREATS
•
•
Acquisition of NIEVS license in other to seal appraisal
documentation.
Already existing competitors.
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BUSINESS MODEL CANVAS
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START UP COST
S/N
ITEM
QTY /Personnel
COST ($)
1
Business plan
1
2500
2
Salaries
TBD
3
Staff training
2
6000
4
Transport (Air fares et all)
TBA
2000
5
Phone/Internet
2
600
6
Laptops/Tablets
2
2000
7
complementary cards
1
200
Total
13,300
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CONCLUSION
Prior to take off business, a further review of business plan will occur in other to firm up
financial strategy and develop a detailed risk register which will give the take off a smooth
ride.
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