BUSINESS IDEA

BUSINESS PLANPRESENTED BY-GROUP:3

ATUL KUMAR KARN ---------------------------- Q1703A19DEEPIKA BHAGAT ------------------------------ Q1703A13DEEPKAMAL KAUR ----------------------------- Q1703A11MANDEEP SINGH ------------------------------ Q1704A14PRIYANKA GUPTA ------------------------------ Q1703A06RAMANJEET KAUR ---------------------- ------- Q1703A14

CONTENTSBUSINESS PLAN (GENERAL INFORMATION)FEASIBILITY ANALYSISMARKETING PLAN OPERATIONS PLANHR PLANFINANCIAL PLANSUMMARY

OBJECTIVESSales revenue should be 200 crores for the first year. Establish long term relationships with suppliers of tyres andseat makers. Breakeven within two years of business. Net profit margin should be 10% in first year and increase it to 14% in second year achieving operational efficiencyMISSIONTo build a solar car, to benefit the mankind and environment with long term sustainability, transforming the way this world moves with innovation.VISIONTo be numero uno solar car company, keeping customers and environmental sustainability up front

OUR BUSINESS IDEA SOLAR WALKING CAR

SOLAR WALKING CAR

PRODUCT NAME: SUNSHINE

TAGLINE: Move freely and move free, Its Sunshines promise

SOLAR ENERGY AND OUR IDEADeveloping a solar energy driven carSolar walking cars combine technology typically used in the aerospace, bicycle, alternative energyandautomotiveindustries. Solar cars are powered by the sun's energy. In fact, 51% of sunlight actually enters the Earth's atmosphere. PRODUCT SUMMARYSuntech solar private limited will be selling two versions of solar walking car with top speed of 40KMPH (A)and 50KMPS (B). The price will be 1 lac for A version and 1.3 lac for B version. Product DescriptionSolar car includes the following components along with repective cost: Solar Array and Power trackers : 40000 Batteries : 6000Motor & Controller : 5000Chassis, Seats and other components : 15000Tires, Brakesand Hubs :10000

PROPOSED DESIGN

LOGO AND SYMBOL

SUNSHINE represents the product name and act as symbol.

The middle circle represents the sun.

The orange and yellow colour of the sun represents the sun rays. FEASIBILITY ANALYSIS

WHAT MAKES OUR SOLAR CAR FEASIBLEFinancial analysis (Profitable Business????)1000 WATTS = 1.341 horsepowerSolar panel cost per watt is around $1 without subsidycost is roughly 50000 INR of solar panel alone for 1000 watt (1.341)International Manufacturers of solar panel Shanghai Tongjian Shike Solar Energy Co., Ltd. ($0.80-1.20 per watt)Jiaxing Feiya Lighting Electrical Co., Ltd. ($1.20-1.50 per watt)

Continued..Other equipments..Electrical grid (15000 INR)Battery (5000)Tyres, seats,body (30000)BUSINESS PLAN(GENERAL INFORMATION) FUNCTIONAL AREA REPORTSThere are four essential elements required to test whether or not a potential business idea is feasible:Marketing OperationsHRFinanceMARKETING PLANMarket research will involveWhat is the product and/or service that is the basis for the business?Who is the customer likely to be?What is the benefit of your product/service to the customer?How will the benefit be delivered?

CONTENTSProduct FeaturesSTP of MarketMarket ReasearchSWOT analysisCompetitive AnalysisMarketing tools and strategy

PRODUCT FEATURESShape and designCostingWeight capacity KEY ADVANTAGESNo running costNo registration requiredReduced license requirementsEnvironment friendlyUsing alternative source of energyNo pollution certificate and insurance liability

SEGMENTATION,TARGETING,POSITIONING SEGMENTATIONGeographic segmentationWeatherLocationDemographic segmentation Income based(middle class)Behavioral segmentation

TARGETINGTarget customer: Middle class Differentiated targeting Target-market: rural and semi-urban customers. POSITIONING Small House hold carSubstitute SWOT ANALYSISStrengthsEco friendlyNo running costGreen projectWeaknesses Cloudy days (can be overcome by electrical additions)Top speed 30-50 kms/h (two versions)Max run 30-40 kms after one chargingOpportunitiesFirst moverHigh demand for eco friendly projectsSubsidized solar panelsThreatEasily imitable.

MAIN COMPETITORS IN SOLAR CAR INDUSTRYThey are not exactly the competitors because they are developing racing and high speed solar cars. But we are targeting on the solar walking car which is quite different from them:SUNRAYCERALPHA CENTAURIAURORA ONGOING SOLAR PROJECTSBUSINESS STRATEGYBLUE OCEAN STRATEGYA NEW PRODUCT IN EXISTING MARKETDRIVEN BY INNOVATION AND PRODUCT LEADERSHIP

MEDIA TO BE USEDNEWSPAPER ADVERTISEMENTBUSINESS MAGAZINESTV ADRADIO ADMARKETING TOOLS LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR:

PRE-LAUNCH: ROAD SHOWLAUNCH: TEST DRIVEPOST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES

MARKETING MEDIUM:

The Hindu, Times of IndiaCNBC AWAAZ,STAR NEWS.

HR AND OPERATIONS PLAN OF A SOLAR WALKING CAR SUNSHINE Operations planMarket research is prerequisiteA hypothetical data is assumed (cant spend money in real )Operational plan will be based upon this research for demand of such products in the marketPilot testing will be done with not full setup for meeting the demandDemand is assumed to be 2000 cars in first month based on research. PlantSmaller setup10 acre land near Jalandhar areaCost will be around 5 croresSuppliers are available here ( A similar company speedways is operating here)Assembly line, flooring, building and other infrastructure will add around 8 crore ( based upon speedways experience) LEGAL AND ENVIRONMENTAL FEASIBILITYA manufacturing unit for solar car is legally possible

Rather, Indian government will support a environmental friendly venture

Company will get itself registered as private limited company, raising funds from venture capitalist and owners or directors fund

LEGAL CONSTRAINTSNo direct legal constraints can be thereWill be a private limited company under company act 1939Board of directors will include founder members Setting up a private limited companyProcedure and mechanicsINCORPORATION OF COMPANY

Step 1 : Application For DIN

The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006.

We need to file eForm DIN-1 in order to obtain DIN. Step 2 : Acquire/ Register DSCAcquire DSC -A licensed Certifying Authority (CA) issues the digital signature. Register DSC -Role check for Indian companies is to be implemented in the MCA application. Role check can be performed only after the signatories have registered their Digital signature certificates (DSC) with MCA.Step 3 : New User RegistrationTo file an eForm or to avail any paid service on MCA portal, we are first required to register ourselves as a user in the relevant user category, such as registered and business user.Step 4 : Incorporate a Company Apply for the name of the company[ Suntech autos Pvt. Ltd.] to be registered by filing Form1A for the same.

DOCUMENT REQUIRED:

Form 1 : Application or declaration for incorporation of a companyForm 32 : Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/ or undertaking to take and pay for qualification shares.Once the form has been approved by the concerned official of the Ministry, you will receive an email regarding the same and the status of the form will get changed to Approved.

ROC OFFICE:PUNJAB, CHANDIGARH & HIMACHAL PRADESH

Dr. RAJ SINGH CORPORATE BHAWAN,PLOT NO.4 B,SECTOR 27 B,MADHYA MARG,CHANDIGARH - 160019PHONE: 0172-2639415,2639416 FAX: 0172-2639416roc.chandigarh@mca.gov.in Other legal compliance: Validity period of the Name approved:With effect from 24th July, 2011,the approved name is valid for a period of 60 days from the date of approval.If,the proposed company is not incorporated within such period,the name shall be lapsed and will be available for other applicants.

Minimum number of directors required to form a company:-Minimum no. of directors for Private Limited Company: TwoMinimum Paid-up Capital at the time of registration :-For Private Limited Company: Rs.1,00,000/-

Fees

Other Important aspectsBanker to the firm (for credit period and short term loan advancements)Layout will include a assembly lineIt will include various component to be mounted All these component will form the part of engineersSkilled workers and supervisor will work at this functional part Board of directors

Raman GrewalExecutive directorPSR : 10%

Deepika BhagatChief operating officer (COO)PSR : 10%

Priyanka GuptaMarketing HeadPSR : 10%DeepkamalSachdevaHR directorPSR : 10%Mandeep BhullarManaging director and CFOPSR : 10%Atul Kumar KarnChief executive officer (CEO)PSR : 10%

BOD continued.Private company: ownership lies with BODFund raising : venture capitalist, loans advanced by directors, loans from banksPSR = profit sharing ratio60% with owners35% with venture capitalist

COMPONENTS INCLUDE 1. Solar Array and Power trackers2. Batteries3. Motor & Controller4. Instrumentation5. Steering and suspension6. Brakes7. Tires and Hubs1. Controller. 2. fans 3. power cable4. AC motor 5. DC power cable

1: The controller inverts DC to AC, monitors motor performance, and delivers smooth power from the batteries to the motor. 2: Twin fans cool the controller. 3: The main cable delivering power from the controller to the motor. 4: The 40 kw, three phase, AC electric motor. 5: The black and orange cables bring DC power from the batteries to the controller. 6: A standard 12 volt battery runs the accessories and safety systems. 7: A standard fuse box. 8: The electric heater control unit.

46Cost of production per carS.NOCOMPONENTCOST( in INR)1 Solar Array and Power trackers200002 Batteries60003Motor & Controller100004Instrumentation (chassis)200005Steering and suspension100006Brakes , Tires and Hubs60007Other components4000MOTORS AND CONTROLLERSChoosing a motor depend on how much power it has. Controllers usually drive a particular motor. We will use the brushless motors because these will increase the efficiency of motor upto94-99 percent. STEERING AND SUSPENSIONFront wheel steering as it tends to be more stable and safer. In order to make proper suspension it will be soft enough to protect the car and solar array from unnecessary jolts and firm enough to provide a stable rideDESIGN DIMENSIONSFollowing are the design dimensions we set for SUNSHINE:Position Length (LTR) or Height from the groundEntire frame 5.8 mWheels 25 cm diameter, 10 cm thicknessDriver cabin height 90 cmFull height 1.48mTail length 3.4mHR planWill require a full fledge human resource even during initial setupOrganizational hierarchy is given on next slide

ORGANIZATIONAL CHARTJOB DESCRIPTIONJOB TITLEQUALIFICATIONKEY SKILLS REQUIREDEXPERIENCE REQUIREDSALARY OFFEREDCEO/ PRESIDENTMBA executiveLeadership, Team building, project management, communication skills10-15 yearsRs. 1,00,000VICE PRESIDENTMBA executiveManagement skills in requisites, leadership, communication skills8-10 years80,000EXECUTIVE DIRECTORMBA executiveManagement of HR deptt, Quality and Operations5-8 years65,000JOB TITLEQUALIFICATIONKEY SKILLS REQUIREDEXPERIENCE REQUIREDSALARY OFFEREDFACTORY GMMBATraining, Selecting, Motivating plant supervisory4-5 years50,000PRODUCTION DIRECTORMBA (operations)

Practical knowledge of working with production team4-5 years

50,000SALES DIRECTORMBA (marketing)Efficient management of sales team, purchasing & accounts deptt4-5 years

50,000LEAVE POLICYEarned leave: 18 per year (for permanent employee)Casual leave: 12 per year (@1 per month) Sick or medical leave: Temporary employee : 10 days (can extend upto two weeksPermanent employee : 15-18 days ( max 3 weeks in continuum) Financial PLAN INITIAL INVESTMENTStart-upRequirementsStart-up ExpensesLegal$5,000Insurance$10,000Rent$5,000Computer$10,000Other$100Total Start-up Expenses$30,100Start-up AssetsCash Required$200,000Start-up Inventory$30,000Other Current Assets$10,000Long-term Assets$2,000,000Total Assets$2,240,000Total Requirements$2,270,100

Sales forecastSales ForecastFY 2013FY 2014FY 2015FY 2016FY 2017Unit SalesVersion A2,0002,9005,0006,5007,000Version B1,5002,2003,0003,5004,000Total Unit Sales3,5005,1008,00010,00011,000Unit PricesFY 2013FY 2014FY 2015FY 2016FY 2017Version A$2,000.00$2,000.00$2,000.00$2,000.00$2,000.00Version B$2,600.00$2,600.00$2,000.00$2,000.00$2,000.00SalesVersion A$4,000,000$5,800,000$10,000,000$13,000,000$14,000,000Version B$3,900,000$5,720,000$6,000,000$7,000,000$8,000,000Total Sales$7,900,000$11,520,000$16,000,000$20,000,000$22,000,000Direct Unit CostsFY 2013FY 2014FY 2015FY 2016FY 2017Version A$1,300.00$1,300.00$1,300.00$1,300.00$1,300.00Version B$1,560.00$1,560.00$1,200.00$1,200.00$1,200.00Direct Cost of SalesVersion A$2,600,000$3,770,000$6,500,000$8,450,000$9,100,000Version B$2,340,000$3,432,000$3,600,000$4,200,000$4,800,000Subtotal Direct Cost of Sales$4,940,000$7,202,000$10,100,000$12,650,000$13,900,000Yearly Sales

Key financial Indicators

Break Even AnalysisBreak-even AnalysisMonthly Units Break-even32Monthly Revenue Break-even$72,506Assumptions:Average Per-Unit Revenue$2,257.14Average Per-Unit Variable Cost$1,411.43Estimated Monthly Fixed Cost$27,167BE continued

Pro Forma Profit and LossFY 2013FY 2014FY 2015FY 2016FY 2017Sales$7,900,000$11,520,000$16,000,000$20,000,000$22,000,000Direct Costs of Goods$4,940,000$7,202,000$10,100,000$12,650,000$13,900,000Production Payroll$115,000$128,000$141,000$152,000$154,000Other Costs of Goods$20,000$22,000$23,000$25,000$30,000------------------------------------------------------------Cost of Goods Sold$5,075,000$7,352,000$10,264,000$12,827,000$14,084,000Gross Margin$2,825,000$4,168,000$5,736,000$7,173,000$7,916,000Gross Margin %35.76%36.18%35.85%35.87%35.98%Operating ExpensesSales and Marketing ExpensesSales and Marketing Payroll$130,000$160,000$180,000$195,000$210,000Advertising/Promotion$20,000$22,000$25,000$28,000$30,000Other Sales and Marketing Expenses$30,000$35,000$37,000$40,000$45,000------------------------------------------------------------Total Sales and Marketing Expenses$180,000$217,000$242,000$263,000$285,000Sales and Marketing %2.28%1.88%1.51%1.32%1.30%General and Administrative ExpensesGeneral and Administrative Payroll$100,000$120,000$130,000$140,000$150,000Marketing/Promotion$3,000$3,200$3,600$3,700$4,000Depreciation$5,000$6,000$7,000$8,000$9,000Rent$25,000$30,000$35,000$40,000$45,000Other General and Administrative Expenses$7,000$7,500$8,000$9,000$10,000------------------------------------------------------------Total General and Administrative Expenses$140,000$166,700$183,600$200,700$218,000General and Administrative %1.77%1.45%1.15%1.00%0.99%Other Expenses:Other Payroll$0$0$0$0$0Consultants$5,000$6,000$7,000$8,000$9,000Other Expenses$1,000$1,200$1,500$1,700$1,800------------------------------------------------------------Total Other Expenses$6,000$7,200$8,500$9,700$10,800Other %0.08%0.06%0.05%0.05%0.05%------------------------------------------------------------Total Operating Expenses$326,000$390,900$434,100$473,400$513,800Profit Before Interest and Taxes$2,499,000$3,777,100$5,301,900$6,699,600$7,402,200EBITDA$2,504,000$3,783,100$5,308,900$6,707,600$7,411,200Interest Expense$221,510$221,510$221,510$221,510$221,510Taxes Incurred$683,247$1,066,677$1,524,117$1,943,427$2,154,207Net Profit$1,594,243$2,488,913$3,556,273$4,534,663$5,026,483Net Profit/Sales20.18%21.61%22.23%22.67%22.85%Profit Yearly

Gross Margin Yearly

Projected Cash FlowPro Forma Cash FlowFY 2013FY 2014FY 2015FY 2016FY 2017Cash ReceivedCash from OperationsCash Sales$5,925,000$8,640,000$12,000,000$15,000,000$16,500,000Cash from Receivables$1,651,319$2,731,681$3,816,444$4,836,111$5,418,056Subtotal Cash from Operations$7,576,319$11,371,681$15,816,444$19,836,111$21,918,056Additional Cash ReceivedSubtotal Cash Received$7,576,319$11,371,681$15,816,444$19,836,111$21,918,056ExpendituresFY 2013FY 2014FY 2015FY 2016FY 2017Expenditures from OperationsCash Spending$345,000$408,000$451,000$487,000$514,000Bill Payments$5,907,654$8,591,202$11,916,404$14,937,998$16,442,714Subtotal Spent on Operations$6,252,654$8,999,202$12,367,404$15,424,998$16,956,714Subtotal Cash Spent$6,252,654$8,999,202$12,367,404$15,424,998$16,956,714Net Cash Flow$1,323,665$2,372,478$3,449,041$4,411,113$4,961,342Cash Balance$1,523,665$3,896,144$7,345,184$11,756,297$16,717,639Projected BalancePro Forma Balance SheetFY 2013FY 2014FY 2015FY 2016FY 2017AssetsCurrent AssetsCash$1,523,665$3,896,144$7,345,184$11,756,297$16,717,639Accounts Receivable$323,681$472,000$655,556$819,444$901,389Inventory$411,667$600,167$841,667$1,052,083$1,157,292Other Current Assets$10,000$10,000$10,000$10,000$10,000Total Current Assets$2,269,012$4,978,310$8,852,407$13,637,825$18,786,320Long-term AssetsLong-term Assets$2,000,000$2,000,000$2,000,000$2,000,000$2,000,000Accumulated Depreciation$5,000$11,000$18,000$26,000$35,000Total Long-term Assets$1,995,000$1,989,000$1,982,000$1,974,000$1,965,000Total Assets$4,264,012$6,967,310$10,834,407$15,611,825$20,751,320Liabilities and CapitalFY 2013FY 2014FY 2015FY 2016FY 2017Current LiabilitiesAccounts Payable$479,769$694,154$1,004,978$1,247,733$1,360,745Current Borrowing$100,000$100,000$100,000$100,000$100,000Other Current Liabilities$5,000$5,000$5,000$5,000$5,000Subtotal Current Liabilities$584,769$799,154$1,109,978$1,352,733$1,465,745Long-term Liabilities$2,115,100$2,115,100$2,115,100$2,115,100$2,115,100Total Liabilities$2,699,869$2,914,254$3,225,078$3,467,833$3,580,845Paid-in Capital$0$0$0$0$0Retained Earnings($30,100)$1,564,143$4,053,056$7,609,329$12,143,992Earnings$1,594,243$2,488,913$3,556,273$4,534,663$5,026,483Total Capital$1,564,143$4,053,056$7,609,329$12,143,992$17,170,475Total Liabilities and Capital$4,264,012$6,967,310$10,834,407$15,611,825$20,751,320Net Worth$1,564,143$4,053,056$7,609,329$12,143,992$17,170,475Pro Forma Balance SheetFY 2013FY 2014FY 2015FY 2016FY 2017AssetsCurrent AssetsCash$1,523,665$3,896,144$7,345,184$11,756,297$16,717,639Accounts Receivable$323,681$472,000$655,556$819,444$901,389Inventory$411,667$600,167$841,667$1,052,083$1,157,292Other Current Assets$10,000$10,000$10,000$10,000$10,000Total Current Assets$2,269,012$4,978,310$8,852,407$13,637,825$18,786,320Long-term AssetsLong-term Assets$2,000,000$2,000,000$2,000,000$2,000,000$2,000,000Accumulated Depreciation$5,000$11,000$18,000$26,000$35,000Total Long-term Assets$1,995,000$1,989,000$1,982,000$1,974,000$1,965,000Total Assets$4,264,012$6,967,310$10,834,407$15,611,825$20,751,320Liabilities and CapitalFY 2013FY 2014FY 2015FY 2016FY 2017Current LiabilitiesAccounts Payable$479,769$694,154$1,004,978$1,247,733$1,360,745Current Borrowing$100,000$100,000$100,000$100,000$100,000Other Current Liabilities$5,000$5,000$5,000$5,000$5,000Subtotal Current Liabilities$584,769$799,154$1,109,978$1,352,733$1,465,745Long-term Liabilities$2,115,100$2,115,100$2,115,100$2,115,100$2,115,100Total Liabilities$2,699,869$2,914,254$3,225,078$3,467,833$3,580,845Paid-in Capital$0$0$0$0$0Retained Earnings($30,100)$1,564,143$4,053,056$7,609,329$12,143,992Earnings$1,594,243$2,488,913$3,556,273$4,534,663$5,026,483Total Capital$1,564,143$4,053,056$7,609,329$12,143,992$17,170,475Total Liabilities and Capital$4,264,012$6,967,310$10,834,407$15,611,825$20,751,320Net Worth$1,564,143$4,053,056$7,609,329$12,143,992$17,170,475ValuationInvestment AnalysisStartFY 2013FY 2014FY 2015FY 2016FY 2017Ending Valuation$0$0$0$0$0$17,591,000Combination as Income Stream$0$0$0$0$0$17,591,000Percent Equity Acquired35%Net Present Value (NPV)$9,929,661AssumptionsDiscount Rate10.00%Valuation Earnings Multiple1010101010Valuation Sales Multiple22222Calculated Earnings-based Valuation$15,940,000$24,890,000$35,560,000$45,350,000$50,260,000Calculated Sales-based Valuation$15,800,000$23,040,000$32,000,000$40,000,000$44,000,000Calculated Average Valuation$15,870,000$23,965,000$33,780,000$42,675,000$47,130,000Justation or Payback periodPaybackProjected Payback CalculationInvestmentFY 2013FY 2014FY 2015FY 2016FY 2017Investment$500,000Cash Returns by Year$100,000$100,000$100,000$100,000$100,000Combination as Income Stream($500,000)$100,000$100,000$100,000$100,000$100,000Cumulative Net Cash Flow to Investors($500,000)($400,000)($300,000)($200,000)($100,000)$0Payback Period5 yearsPayback cont

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