Dear Mr D.

K Guru,
Work Proposal:
Batam Operations:
Thank you for the opportunity in considering our services for PT
Leopad. Further to our discussion and your plans for Batam
business we have the following input for your kind consideration
and approval before we start on this new venture. Below is a brief
write out of our idea of company operation and costing for your
consideration.
Corrosion Protection and supporting business activities in Batam
can be categorized into 2 divisions:
1. Scaffolding, Insulation, Trading & Out of country manpower
supply
2. Blasting and Painting

Scaffolding, Insulation, Trading & Out of country manpower

supply:
All works that will be done by PT Leopad other than that listed in
Blasting and Painting. We will oversee all scaffolding/insulation/etc
activities and also market these services to the Batam yards. We
will generate the tenders for PT Leopad to bid on and endeavor to
get the project feedback of client on pricing. For this a 10% is
required from the net profits.
Blasting & Painting :
The blasting and painting works will cover the following:
1.
2.
3.
4.
5.
6.

Surface Preparation
Application of paint
Thermal Spray
Hydro-jetting
Fire Proofing
Man power supply for the above works

Currently part of the activities are being done by PT Vinnex

Coatindo which is owned by myself. PT Vinnex Coatindo is
prepared to have the existing businesses with Vinnex customers
transferred as business of PT Leopad namely Blasting/ Painting/
TSA/ Hydro-jetting/ Man Power supply.
Scope of our work will involve managing the project with regards
to securing the project and managing the project with labor/
Supervision, Quality Controls, Inspection Services and liaising with
the yard/ client. PT Leopad will provide all equipment necessary
including all material, consumables, etc. and fund the project.
For this we are proposing a 60% share from the net profits for
these trades.
Sales Projection 2015 done for PT Vinnex Coatindo :
Fire Proofing Sales

- $500K with 30% net profits

TSA Sales

- $300K with 30% net profits

Blasting Painting

- $900K with 10% net profits

Projection of sales is rather conservative and has been planned

for PT Vinnex Coatindo with focus only on stable clients with good
GP for a start. This will be marketed under PT Leopad after
agreement of the term.

Set Up & Operational Cost:

As a start-up for PT Leopad, below are the expenses to be
incurred:
1. One Time Cost:
a) Car
- $15,000
b) Office Equipment & Furnitures
- $6,000
c) Laptop
- $1,200
$22.200
2. Monthly Expenses:
a) Office Rental (With warehousing) - $2500.00 (Only When
project starts)

b) Office utilities
- $200.00
c) Petrol (2 cars)
- $500.00
d) Accommodation & Utilities (2 Pax)
- $1200.00
e) Entertainment
- $500.00
f) Misc (Maintenance, Donations,) - $300.00
$6200.00/mth
3. Staff Salaries:
a) Office Clerk (Admin & Accounts) - $1000.00
b) Project Manager (Mr Mani)
- $3000.00
c) Country Manager
- $6000.00
$10,000.00

PT Leopad shall also be given the priority to supply labor or a

team for Blasting & Painting or Fire Proofing before assigning
external contractors wherever possible.
All sourcing of equipment and manpower done by PT Leopad for
Holding company shall be charged as cost plus 20% depending on
profitability of end user.
Management of PT Leopad will strictly follow all Indonesian laws
and regulations both in field work and office administration.
Any other issues not being addressed is to be discussed.
Hope the above is agreeable to you and pls let us know should
you have any concerns on the terms specified.
Thank you
Regards,
G.Prakash