The Company:
RMSS/CMS is a U.S.
corporation based in Georgia, founded in 2003. RMSS Holdings, Inc., doing
business under Cleanwater Management Services (CMS) is a wastewater
management and service company. Using proprietary technology and
equipment called the ECO2
brand, CMS contracts with customers to manage and service their
wastewater streams.
CMS’s income is almost
entirely derived from the service fees which are based on the
customer’s wastewater flow rate. Fees are charged on a per-gallon
rate of the product (clean water) produced, which is then collected
for reuse by the customer.
For the customer, CMS’s
service is a “hands off” solution for their wastewater disposal
needs. As a result customers do not pay for expendable supplies or
maintenance – saving a tremendous amount of capital. CMS
manufactures or assembles treatment equipment exclusively for its
own use only and does not sell its proprietary equipment packages to
third parties.
The marketing method
chosen by CMS is a Licensing/Franchise model in which all licensees
are closely connected, using the same name and method of providing
service. The only exception is a name change accounting for
location, for example - CMS Georgia, CMS Texas etc. This Licensing
concept serves as a secondary source of capital as well as an
effective method of rapid expansion and worldwide name recognition.
Due to this unique
business model, CMS has a very broad base of possible clientele
which consists of every possible wastewater source that can benefit
from the use of CMS technology. This includes everything from
domestic treatment facilities to industrial plants.
RMSS/CMS has differentiated
itself by giving the customer an option that has rarely been
available to them in the past…an opportunity to have an experienced
and knowledgeable third party service company take over their
wastewater management without having to purchase capital equipment,
maintain that equipment or be burdened by reporting to regulatory
agencies. CMS provides all of these functions as part of its
services so the customer’s focus remains on conserving this valuable
resource rather than focusing on its disposal. Customers of CMS will
see immediate cost savings in water, sewer, heating cost (process
water), chemical additives, and undesirable waste water surcharges.
Currently RMSS/CMS has six
(4) employees, and one (1) Licensed location to service the US market.
For the past two(2) years, CMS has been in the
development stages and, therefore, has no revenues from sales of its
services. $950,000 has been invested into the company since 2004 and
through 2011 during the development stages.
The Market and Industry:
The Company participates in the rapidly
growing worldwide wastewater service industry, which is expected to
grow from nearly $15 billion today to approximately $38 billion in
the next 20 years, according to a recent Environmental Protection
Agency (EPA) survey. Water purity and water conservation have never
been more important and virtually every company in every industry is
affected. Water quality rules are becoming more and more stringent,
complex and costly. And although waste remains a top priority to
most companies, there is an increasing need for the obtainment of
purer water for company processes. Some industries, such as
pharmaceuticals, require water of nearly absolute purity. Advanced
wastewater treatments have become a global focus as the world’s
water quality measurably deteriorates. There is also a strong need
for upgrading and retrofitting old facilities, whose outdated
equipment often do more harm than good to the environment. This
particular municipal sector offers the greatest potential for market
expansion due to the large volume of water it treats. RMSS/CMS
estimates that they can capture a 3% portion of the total global
market over the next five (5) years.
In the global market, CMS is aware of four (4)
major competitors that are the top players in the field. These four
companies focus on providing products and services to industrial
users. There are many other companies that target the industrial,
municipal, commercial and residential segments of the market.
The most successful marketing and distribution
procedures within the water treatment industry have recently focused
on a business model which integrates chemical products and services.
“Real growth is coming from providing more services (like
outsourcing of water treatment) rather than selling more pounds of
chemicals.” Barry Friedfeld of Kline & Company, Inc was quoted in
Shnell Publishing, May 2003. RMSS/CMS proudly offers this business
model by truly offering a “hands-off” solution to the end consumer.
The CMS business model is one in which the
customer turns over the management of their wastewater and pays only
for the clean water generated from that waste. The model also
includes the licensing to others that will offer this service in
assigned territories worldwide. These licensees will all use the
same equipment, supplied by CMS and method of service. The
competitive advantage is the fact that CMS can provide service at a
lower cost than its competitors because of the technology and method
of manufacturing used by CMS.
The advantages of the CMS system are:
·
Mobile System Design
·
Low capital and operating costs
·
Extremely compact for its high flow capacity
·
Remote monitoring and control features
·
Flexibility in treating waste from a wide variety of
applications
·
Automatically adjusts for peak flows and
contaminate loads
·
Electrolytic pre-treatment
Technology
·
Continuous use of regenerated
components
The pricing of service
includes the cost of equipment, the length of
contracts are typically 60 months.
Business Model/
Strategy:
Regarding new markets, RMSS/CMS has recently
explored the emergency drinking water supply market, a market niche
with significant potential in the short and long term. This market
puts CMS in line for government contracts where clean drinking water
is needed on a global scale.
Product and Services:
Wastewater management and service is the only product offered by CMS
at this time. The product is Clean Water, whether referring to
industrial or residential use. The system is branded ECO2.
Core Clients:
Domestic Wastewater
Treatment
Initial Target
Clients:
Carpet Industries
Poultry Industry
Drum and Container
Recyclers
Laundry Services
Landfills
Food Processors
Drink Manufacturers
Facilities and
Employees:
RMSS/CMS has six (4)
full time employees and one (1) office/manufacturing facility. The
space is currently leased for five year and is sufficient for projected growth.
Websites:
Management:
The core management team
of RMSS/CMS includes several executives with successful backgrounds
in wastewater service and experience with start-up operations in
various industries. It also includes professionals with diverse
business development, project management and human resources
backgrounds to ensure a well-rounded management team.
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