edp rough draft
TRANSCRIPT
EXECUTIVE SUMMARY
Introduction
This project is based on the automobile sector. We are manufacturing a modern rickshaw
called Loper. The name of our company is Frission. This rickshaw is a totally new concept
along with new technological features in it like radio, comfortable seats, lights, battery, and
electrical working engine. We have come up with this idea of a modern rickshaw to change
the mindset of the people from the term rickshaw. We are trying to create a distinctive and a
different approach to this kind of vehicle, so that people stop thinking before approaching any
kind of commercial vehicle like this and they don’t feel that travelling on this type of vehicle
is against their status.
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Karan Kothari
Male, 19 years
91-72598-03618
ACADEMIC BACKGROUND
B.B.M (Pursu
ing)
2013 Christ University Christ University, Bangalore 2.83
Class XII
2010 I.S.C Sanskriti the Gurukul,Guwahati 80%
Class X
2007 C.B.S.E Maharishi Vidya Mandir,Guwahati 70%
CERTIFICATIONS
Certificate course - “Basics of Business Management” conducted by Christ University – 10-11 securing grade A- Certificate course - “Public Speaking” conducted by Christ University – 10-11 securing grade B+ Certificate for “National Cadet Corps (NCC)” from Government Of India. Certificate of Intra Departmental Fest “Blossoms” in Quiz conducted by Christ University. Certificate of Participation in “Zeal Workshop” Programme by Christ University.
POSITIONS OF RESPONSIBILITY
AIESEC in Bangalore 2010-Present
Responsibili
ties
Outgoing Exchange Department
Class Captain Sanskriti The Gurukul
Responsibili
ties
Discipline maintainance during the classes and organizing class level activities
House Captain Maharishi Vidya Mandir
Organising activities and leading the House in various activities through Planning.
EXTRA CURRICULAR ACHIEVEMENTS
Secured 4th place in Marketing Fest, “Vistas 2011” organised by Christ University. Participated in Extempore Event in the University Fest- Blossoms 2011. Secured 3rd place in Human Resource Fest, “Thrive 2010” organized by Christ University. Secured 2nd place in Regional Painting Competition.
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Currently Participating in a National Fest Cognito 2012. Currently Preparing a Business Plan on an Electric Rickshaw.
OTHER ACHIEVEMENTS
Received Scholarship From ISC Board for scoring Highest marks in Hindi in North-East. Certificate in “Tally ERP9” course.HOBBIES/AREAS OF INTEREST
Sports like Swimming, etc Singing and also listening to music. Travelling. ADDITIONAL INFORMATION
Worked in an NGO named “SANDHYA KIRAN” for 25 hours that works towards the welfare of old people. Familiar with four different languages i.e. Hindi, English, Bengali and Assamese. Prepared a Industry Review “Project on Banking Industry” Working knowledge of Microsoft Word, Power Point, Excel and Tally ERP9.PERSONAL PROFILE
Father’s Name – Mr. Sanjay Jain Kothari Mother’s Name – Mrs. Sarita Kothari Address - # 44/1,Flat no.2, 1st Floor,18th Main,2nd Cross,Thaverekere,Bangalore-560029
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Binit Bhura
Phone: +919591246246 #279, Ground Floor, 11th A Main,Email: [email protected] 4th Block, Koramangala,
Date of Birth: 28th Aug ’91 Bangalore - 560034
Objective:
To work with an organisation that can provide me a platform to enhance my knowledge about the various financial aspects of a business. The aim is to apply all the leanings from over the years, gain some valuable experience and ultimately become a more competent person.
Academic Qualification:
Year Degree/Class Institution, CityGPA / %age
2013 Bachelor of Business Management Christ University, Bangalore 3.38*2010 Class XII Delhi Public School, Guwahati 87.8%
2008 Class XGuru Nanak National High School, Guwahati
78.8%
*Grade Point Average for 3 semesters
Achievements:
Reached the semi-final rounds in the Finance event during the intra-deanery college fest Thrive 2010.
Awarded a certificate of merit for securing 100% marks in Accountancy in the AISSCE 2010 exams.
Received ‘Anundoram Borooah Award Certificate’ for excellent academic performance by securing First Division with Star marks in High School Leaving Certificate Examination, 2008.
Awarded certificate for distinctive performance in the Nationwide Interactive Science Olympiad 2007.
Won the third prize in the intra-school quiz competition in 2007.
Positions of Responsibilities:
Was nominated as the school captain for a few years and was the single point of contact for all issues related to my class.
Extra Curricular Activities:
Have been playing keyboard for the last 5 years and have completed the Senior Diploma from Bangiya Sangeet Parishad.
Have participated in a number of quiz competitions like Blossoms, Horlics Wiz Kids, BQC. Have participated in a number of finance related University Fests like Vistas 2010, Thrive
2010 and Vistas 2011. Have completed a certificate program in Public Speaking from Christ University.
Computer Skills:
Working knowledge of Microsoft Word, PowerPoint and Excel.
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Company Profile
The name of our Company is FRISSON LTD., which is a partnership firm owned by Karan
Kothari and Binit Bhura. The name has been derived from a French word which means thrill,
not because of our speed, but because of the service, the interiors and the facilities provided
by our Vehicle will thrill our customers. We are launching only one vehicle as of now that is
LOPER and will launch more as per the requirements in the future. Our company is basically
focusing on the needs of the common people of India and trying to provide them luxury at a
minimum cost. We are taking into consideration every factor such as income level, parking
problem, natural resource depletion and road condition for the product.
Creating customer delight is the expression which finds routes in the company’s vision.
Taking forward this spirit the company is committed to serve many more customers
throughout numerous ways in times to come.
Our headquarters are in Gujarat. We have tied-up with many companies such as MRF,
Minda, Intex, Philips, Kenwood etc. from which we will be purchasing goods and will be
assembling in our own plant which is in Gujarat.
Core Values
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
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Mission And Vision Statement
Vision
“Commitment towards providing customer satisfaction at a minimum amount with greater
technological facilities.”
Mission
“To become an expertise in fulfilling its customers’ needs and aspirations for mobility,
styling and quality.”
Industry Profile
The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India's passenger car and commercial vehicle manufacturing industry is
the seventh largest in the world, with an annual production of more than 3.7 million units in
2010. According to recent reports, India is set to overtake Brazil to become the sixth largest
passenger vehicle producer in the world, growing 16-18 per cent to sell around three million
units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter
of passenger cars, behind Japan, South Korea, and Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the
second fastest growing automobile market in the world. According to the Society of Indian
Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by
2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in
car volumes with approximately 611 million vehicles on the nation's roads.
The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster near Chennai is the biggest with 35% of the revenue
share. The western hub near Maharashtra is 33% of the market. The northern cluster is
primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the
India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW
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having an assembly plant on the outskirts. Chennai accounts for 60% of the country's
automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the
country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor
near Pune, Maharashtra is the western cluster with companies like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Frisson Motors, Mercedes Benz, Land
Rover, Fiat and Force Motors having assembly plants in the
area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster.
Another emerging cluster is in the state of Gujarat with manufacturing facility of General
Motors in Halol and further planned for Frisson Nano at Sanand. Ford, Maruti Suzuki
and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan
Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive
manufacturing regions around the country.
The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5
million each year. The dominant products of the industry are two wheelers with a market
share of over 75% and passenger cars with a market share of about 16%. Commercial
vehicles and three wheelers share about 9% of the market between them. About 91% of the
vehicles sold are used by households and only about 9% for commercial purposes. The
industry has a turnover of more than USD $35 billion and provides direct and indirect
employment to over 13 million people.
The supply chain is similar to the supply chain of the automotive industry in Europe and
America.
Interestingly, the level of trade exports in this sector in India has been medium and imports
have been low. However, this is rapidly changing and both exports and imports are
increasing. The demand determinants of the industry are factors like affordability, product
innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high
and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the
advantages of this sector in India are yet to be leveraged.
With a high cost of developing production facilities, limited accessibility to new technology,
and increasing competition, the barriers to enter the Indian Automotive sector are high. On
the other hand, India has a well-developed tax structure. The power to levy taxes and duties is
distributed among the three tiers of Government. The cost structure of the industry is fairly
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traditional, but the profitability of motor vehicle manufacturers has been rising over the past
five years. Major players, like Frisson Motors and Maruti Suzuki have material cost of about
80% but are recording profits after tax of about 6% to 11%.
The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has
been high. System-suppliers of integrated components and sub-systems have become the
order of the day. However, further investment in new technologies will help the industry be
more competitive. Over the past few years, the industry has been volatile. Currently, India's
increasing per capita disposable income which is expected to rise by 106% by 2015 and
growth in exports is playing a major role in the rise and competitiveness of the industry.
Frisson Motors is leading the commercial vehicle segment with a market share of about
64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of
46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their
footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing
26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying
about 58% of the three wheeler market.
Consumers are very important of the survival of the Motor Vehicle manufacturing industry.
In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of
cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a
cost pressure on manufacturers and cost is getting transferred to the end consumer. The price
of oil and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility, and
capital efficiency. Having quality manpower, infrastructure improvements, and raw material
availability also play a major role. Access to latest and most efficient technology and
techniques will bring competitive advantage to the major players. Utilising manufacturing
plants to optimum level and understanding implications from the government policies are the
essentials in the Automotive Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive
industry. The Indian government should facilitate infrastructure creation, create favourable
and predictable business environment, attract investment and promote research and
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development. The role of Industry will primarily be in designing and manufacturing products
of world-class quality establishing cost competitiveness and improving productivity in labour
and in capital. With a combined effort, the Indian Automotive industry will emerge as the
destination of choice in the world for design and manufacturing of automobiles.
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in
very small numbers.
Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was
established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A
utility vehicles under license from Willys. The company soon branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors.
Following the independence, in 1947, the Government of India and the private
sector launched efforts to create an automotive component manufacturing industry to supply
to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s
due to nationalisation and the license raj which hampered the Indian private sector. After
1970, the automotive industry started to grow, but the growth was mainly driven by tractors,
commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers
entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number
of foreign firms initiated joint ventures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for
building motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture small cars. Following the
economic liberalisation in 1991 and the gradual weakening of the license raj, a number of
Indian and multi-national car companies launched operations. Since then, automotive
component and automobile manufacturing growth has accelerated to meet domestic and
export demands.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Frisson Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international operations.
India's robust economic growth led to the further expansion of its domestic automobile
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market which has attracted significant India-specific investment by multinational automobile
manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000
units and has since grown rapidly to a record monthly high of 182,992 units in October
2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with
only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in
Switzerland for example) this progression is unlikely to stop in the coming decade.
Congestion of Indian roads, more than market demand, will likely be the limiting factor.
SIAM is the apex industry body representing all the vehicle manufacturers, home-grown and
international, in India.
The automobile manufacturing sector is characterised by a high cyclical growth patterns, high
fixed cost and break-even point levels, and an excessive number of participants. Barriers to
entry into automobile manufacturing activity are formidable. Some of the barriers that need to
be overcome by a new entrant include: the cost of developing high volume production
facilities to benefit from economies of scale; and the ability to gain access to technology of
major operators, as the present incumbents include some of the largest multinationals that
have considerable claims to new technology. The relative large size of domestic market,
together with high competition, has already seen significant rationalisation of this industry.
The level of volatility is medium.
Over the past few years, the Motor Vehicle Manufacturing industry has become more
volatile. This has been the result of fluctuations in metal prices and fuel prices, as well as
changes in legislation and assistance packages. India's increasing per capita disposable
income and growth in exports is playing a major role in the rise and the competitiveness of
the industry. As per the BRIC report India's per capita disposable income from current year
will rise by 106% in 2015¹. This increase in the spending power has been a forefront of the
economic development. According to the Economic Times of India, economic liberalization
– allowing unrestricted Foreign Direct Investment (FDI) and removing foreign currency
neutralisation and export obligations – has been also been one of the key to India's
automotive volatility.
The sales of various different types of vehicles are given below:
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Type of Vehicle2004-2005
2005-2006 2006-2007 2007-2008 2008-2009
Passenger Vehicles 1,061,572 1,143,076 1,379,979 1,549,882 1,551,880
Commercial Vehicles 318,430 351,041 467,765 490,494 384,122
Three Wheelers 307,862 359,920 403,910 364,781 349,719
Two Wheelers 6,209,765 7,052,391 7,872,334 7,249,278 7,437,670
Total 7,897,629 8,906,428 10,123,988 9,654,435 9,723,391
The major electric car manufacturers in India are:
Ajanta Group
Mahindra
Hero Electric
Reva
Tara International
Frisson
About The Product
Our Product’s name is LOPER which means runner in Dutch, because our vehicle will not
only run on the roads of India but also in the minds of the people of India once we launch our
product.
Loper is the extension of old Rickshaw’s. It will be a three-wheeler vehicle with one rider
and 2 people along with one small seat for children keeping in mind about the Indian
Families. The seats will be a better one and more comfortable along with a cover to provide
protection to the driver and the consumers from rain and other natural activities. It will also
have three shock-absorbers one each on the front wheel and the other two wheels at the back
considering the jerks on the Indian roads. The vehicle will have two batteries at the back side
below the back seat which will accelerate the vehicle and will also have pedals incase the
batteries are not charged. It will also have space below the back seat to carry luggage. It will
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have Better brake powers along with a new handle and horn. The tyres will be tubeless. Loper
will also have better foot-rest and not a tilted one as earlier Rickshaw’s had.
The main facilities that will be provided to consumers will be a covered cabin along with a
music system and a radio, quality speakers with auxiliary wires, proper lighting facilities
inside the cabin. It will also have a cell phone charger, lighter and a walkie-talkie, to talk with
the driver. Keeping in mind about the consumers that they don’t get bored if they are
travelling alone and can enjoy their time sitting in the vehicle and can feel the way that they
didn’t even imagine till that point of time. Customer Satisfaction is our main motive, so this
is how we will be providing our customer the best satisfaction they can ever get anywhere.
About Medium Scale Industry
The role of micro, small and medium enterprises (MSMEs) in the economic and social
development of the country is well known. It is the nursery for entrepreneurship, often driven
by the individual creativity and innovation, with a significant contribution in the country’s
GDP, manufacturing output, exports and employment generation. MSMEs contribute 8 per
cent of the country’s GDP, 45 per cent of the manufactured output and 40 per cent of our
exports. The labour and capital ratio in MSMEs and the overall growth in the MSMEs is
much higher than in the larger industries. MSMEs are better dispersed. In view of these
factors, MSMEs are important for achieving national objectives of growth with equity and
inclusion.
As per the quick estimates of 4th All-India Census of MSMEs, the number of enterprises is
estimated to be about 26 million and these provide employment to an estimated 60 million
persons. Of the 26 million MSMEs, only 1.5 million are in the registered segment while the
remaining 24.5 million (94%) are in the unregistered segment.
MSMEs in the country manufacture over 6,000 products. Some of the major subsectors in
terms of manufacturing output are food products (18.97%), textiles and readymade garments
(14.05%), basic metal (8.81%), chemical and chemical products (7.55%), metal products
(7.52%), machinery and equipments (6.35%), transport equipments (4.5%), rubber and plastic
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products (3.9%), furniture (2.62%), paper and paper products (2.03%) and leather and leather
products (1.98%).
In view of the MSME sector’s role in the economic and social development of the country,
the Government has emphasized on its growth and development. It has taken various
measures/initiatives from time to time which have facilitated the sector’s ubiquitous growth.
Some of the recent measures include enactment of the Micro, Small and Medium Enterprises
Development Act, 2006, amendments to the Khadi and Village Industries Commission Act,
announcement of a Package for Promotion of Micro and Small Enterprises (MSEs),
launching of new/innovative schemes under National Manufacturing Competitiveness
Programme Report of The Task Force on MSME (NMCP), launching of Prime Minister’s
Employment Generation Programme (PMEGP) to generate employment opportunities, etc.
Promotion of sub-contracting has been one of the important ingredients of the policy
envisaged for the development of MSMEs in the country. Several measures have been taken
by the Government towards this endeavour such as ancilliarisation, vendor development
programmes, buyer-seller meets, etc. This has resulted in a significant number of micro and
small enterprises operating under some system of sub-contracting with large enterprises. Such
arrangements has not only helped in providing marketing linkages but has also resulted in
technological linkages through provision of product specification and design. However, in
view of the dependent relationship of such enterprises with the large enterprise, they also face
several problems. Some of the major problems include: (i) Considerable delays in payments;
(ii) Uncertainty – in case of rejection, the small firms end up with practically no option but to
dispose off their products; (iii) Linkages such as financial and supply of raw material are
seldom provided by the buyer enterprises; and (iv) Buyer enterprises are not bothered to
ensure that such enterprises operate with minimum working conditions or comply with
various regulations related to their working.
In the present globalised regime, there is an increasing pressure on industries to reduce costs
to withstand the domestic as well as international competition. Sub-contracting offers
significant scope for cost reduction and may lead to higher incidence of sub-contracting
among micro and small enterprises. It is, therefore, important to address the constraints faced
by the enterprises operating under such arrangements. While the MSMED Act, 2006
provides for more rigorous provisions to counter the problems of delayed payments to the
MSEs, the sense of insecurity of contract prevents them from taking legal action for recovery
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of dues. The MSE Facilitation Councils constituted in the States have to become more active
to help MSEs in quick resolution of disputes relating to delayed payments. Further, the
MSMEs need to be supported through appropriate programmes/schemes with focus on skill
development and technology upgradation for improving the quality of their products so that
rate of rejection is minimized. Also, there is a need to provide enabling legal environment by
suitably amending the labour and urban zoning laws that is conducive to setting up of new
enterprises as well as functioning of existing enterprises.
Purpose Of Selecting
We the partners of Frisson Ltd. have selected this Industry because it is one of the most
growing industries in the world, and has shown an excellent growth in the past few years.
Indian automotive industry is one of the largest in the world and one of the fastest growing
globally. India’s passenger car and commercial vehicle manufacturing industry is the 7th
largest in the world. As of 2010, India is home to 40 million passenger vehicles.
Current Indian population as of 2011 is 1.21 billion (2011 statistics) out of which about
62.8% of the population cannot afford for their own vehicles, so to fill this gap between the
consumers and the producers, we are creating a vehicle called LOPER which will be the
common man’s vehicle . We are not like Frisson Nano, that we will be providing cars at
around rupees 1 lakh but it is basically a commercial vehicle which will provide the
consumers a better way to travel in the city for their day to day activities considering the
income problem, parking problem etc. in mind. This is basically a commercial vehicle which
is a modification of Rickshaws used in 80’s and 90’s to refresh or reload the mind of the
people from that term Rickshaw. People find it cheap or against their status to travel in
Rickshaw’s now a days, so to remove this feeling from the minds of the people, we got this
idea which is the extension of old Rickshaw’s with modern technology and facilities.
Another Reason to launch this product is that the roads in India which are not at all suitable
for costly vehicles. Keeping in mind the main problems of the common people in India we
have launched this vehicle which can also be called as modern Rickshaw. Basically to
provide a sense of belongingness to the people of India keeping in mind about their time
value as well, we are getting this with better facilities and faster speed.
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The name of our Company “Frisson Ltd.” has been derived from a French word which means
thrill, not because of our speed, but because of the service, the interiors, the facilities
provided by our vehicle will thrill our customers.
Our Product’s name is “Loper” which means runner in Dutch, because our vehicle will not
only run on the roads of India but also in the minds of the people of India once we launch our
product. Looking at the facilities provided by our vehicle, our product will be running on the
minds of the people all the time.
Also keeping in mind about the depletion of natural resources, we have made this vehicle
petrol and diesel free. We will be using the technology of power, i.e; electricity. Loper will
have batteries which will be rechargeable.
Appropriate Investment
INITIAL INVESTMENT
PARTICULARS DETAILS AMOUNT (Rupees)
Land And Building Security Deposit 30,00,000Plant And Machinery 10,00,000Eqipments 5,50,000Patents And Copyrights 8,16,000Website 8,000Telephone With Wi-fi 4,000Furniture 35,000Computer Rupees 20,000 * 10 2,00,000Generator 6,00,000Fire Extinguisher 8,000Preliminary Expenses 25,000Working Capital 97,54,000 TOTAL 1,60,00,000
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SWOT Analysis
“SWOT” is an acronym for the internal strengths and weaknesses of a firm and the
environment opportunities and threats faced by that firm. The technique is based on the
assumption that an effective strategy derives from a sound “Fit” between a firms internal
resources (strengths and weaknesses) and its external situation (opportunities and threats). A
good fit maximises a firms strengths and opportunities and minimises its weaknesses and
threats. Accurately applied this simple assumption has powerful implication for the design of
a successful strategy.
STRENGTHS
Environment friendly
Economic to ride
Government subsidies
High customer satisfaction
Easy to park
Cost efficient
Common man’s vehicle
Green sustainable city image (tourism
and city marketing)
(Local) politicians and stakeholders
favouring e-mobility
WEAKNESSES
Competition from gasoline vehicles
Small Size
Low consumer awareness
Low top speed
Safety concerns
OPPORTUNITIES
Huge untapped Electronic Vehicle
market
Growing Demand of green
technologies
Rising Fuel costs
Growing Road congestions in urban
cities
Positive attitude towards electronic
vehicles and batteries
THREATS
Competitors in Market of Electronic
Vehicles
Stringent safety requirements
anticipated
Availability of hybrid vehicles
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Feasibility Of Frission Loper
Geographic Characteristics
Geographic indicators assess the evaluated cities’ general characteristics prior to rickshaw
sharing. These encompass measures that describe the cities' environmental/topographical
contexts as well as the “background” travel behaviour of their residents.
Market Study
A market study for the electric rickshaw share market would be a helpful tool for achieving a
financially sustainable system. Conducted through focus groups and direct contact (phone or
e-mail) surveys, the market study should look predominately at pricing and usage patterns
since fee structure and deposit amounts vary across all successful rickshaw share programs.
Therefore, it is imperative that a clear understanding of the specific economics of rickshaw
share in Bangalore is established.
The market study would ideally collect information about the general public interest in using
a rickshaw share system, how often they would use it, and how much they would pay. This
information could help set the fee structure for the system such as the rates for daily, weekly,
and yearly passes. It is important to note that the City need only conduct a market study if a
non-profit/public operator is strongly preferred. As mentioned in the outline of the Request
for Proposals, private bidders would be expected to conduct a market study analysis if the
RFP process is undertaken.
Market Feasibility
The one important factor when a customer sees a product is to check about its features.
“Loper” provides the basic market approach to the customers where their desired types of
features are assembled and are delivered to the customers. “Loper” is aiming to spread its
products around 18 cities in India and 15 countries around the world wherein effective after
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sales services are also provided so that consumer goes home happy and satisfied rather than
sad and dejected.
Product Feasibility
“Loper” decides the price of the vehicle looking at the various costs of converting the raw
material into finished products. For this it needs to take care of three important factors:-
Actual price of a finished product
Price being sold by the competitors
Profits which is made by selling these product
Technical Feasibility
“Loper” receives several quarries and suggestions of the customers and designs the rickshaw
according to the customer privilege and satisfaction. Some of the technical factors like the
required horse power of the battery, designs which suits best for urban as well as the rural
roads, , speed of the rickshaw, backup of the battery, etc
Some of the other features which also support the feasibility of the rickshaw are
Mode Share
One of the most important indicators for assessing the travel character of any particular city is
mode share, which is the proportion of total daily person-trips captured by the various
available travel modes? In General terms, most European cities—due largely to their denser
historic patterns of development— Exhibit higher mode shares for non-car-based travel
modes (such as walking and transit) when compared with their American counterparts. The
differences between older (Comparatively) large American cities such as Philadelphia and the
cited European examples are much less sharp than the national/continental averages.
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Cycling Infrastructure
A safe, interconnected bicycle circulation network is a critical supporting element to any
rickshaw share system. As such, it is useful to compare the extent of Philadelphia's existing
bicycle network with those of the evaluated “successful” European rickshaw share cities.
“Cycling infrastructure” refers to any
Combination of bicycle lanes, multi-use paths, bicycle boulevards, etc. that together provide a
safe bicycling environment for both experienced and novice riders. Figure 2-12 indicates the
extent of such infrastructure in the selected cities, in terms of both total length and, more
importantly, as a percentage of total city street-length.
Weather
The extremes of weather affect bicycling more so than any other practical mode of
transportation, on both a short-term (day-by-day) basis and longer-term trends. Extreme heat,
extreme cold, and heavy rainfall are the top weather phenomena leading to decreased
numbers of cycling trips. As such, a comparison of temperature and rainfall in the evaluated
cities is warranted.
Topography
Like weather, topography has an impact on the willingness of people to use bicycles,
although in this case it is often limited to certain trip patterns rather than affecting system
usage as a whole. This is apparent in the evaluated European rickshaw share cities, which
regularly exhibit shortages of bicycles at stations at the
Tops of hills or steep gradients—suggesting that many users are riding downhill but not back
upwards.
The three European examples all have unique topographical characteristics but do not differ
greatly from Bangalore: Lyon has two hills on the outskirts of a relatively flat city center;
Paris has one large hill and a few smaller hills spread throughout the city; and, Barcelona sits
in a “bowl” with the beach and city
Page | 19
Center situated close to sea level. Rickshaw share usage in these cities have shown that while
the topography has certainly contributed to occasionally empty stations on the tops of hills, it
has not had a negative overall effect on the programs' success. It does, however, pose an
operational issue for redistribution of bicycles.
Bicycle Culture
Generally, cities in Spain and France—as compared with, for instance, the Netherlands and
Denmark— are not historically revered for a strong “background” bicycle culture, as
exhibited by the modest presence of bicycles in their pre-rickshaw share mode-share
characteristics (see Figure 2-11). On the contrary,
Typical issues of bicycle theft, storage, and maintenance had been common barriers to
owning a bicycle, partially explaining the emergence of a “latent” bicycle demand when their
respective rickshaw share programs eliminated these as obstructions to widespread bicycle
use.
In short, it does not appear that any particular “baseline” of bicycle usage is needed to set the
stage for a successful rickshaw share program.
The Present And Future Scenario
The Automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India's passenger car and commercial vehicle manufacturing industry is
the seventh largest in the world, with an annual production of more than 3.7 million units in
2010. According to recent reports, India is set to overtake Brazil to become the sixth largest
passenger vehicle producer in the world, growing 16-18 per cent to sell around three million
units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter
of passenger cars, behind Japan, South Korea, and Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the
second fastest growing automobile market in the world. According to the Society of Indian
Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by
Page | 20
2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in
car volumes with approximately 611 million vehicles on the nation's roads.
The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5
million each year. The dominant products of the industry are two wheelers with a market
share of over 75% and passenger cars with a market share of about 16%. Commercial
vehicles and three wheelers share about 9% of the market between them. About 91% of the
vehicles sold are used by households and only about 9% for commercial purposes. The
industry has a turnover of more than USD $35 billion and provides direct and indirect
employment to over 13 million people.
The supply chain is similar to the supply chain of the automotive industry in Europe and
America.
Interestingly, the level of trade exports in this sector in India has been medium and imports
have been low. However, this is rapidly changing and both exports and imports are
increasing. The demand determinants of the industry are factors like affordability, product
innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high
and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the
advantages of this sector in India are yet to be leveraged.
With a high cost of developing production facilities, limited accessibility to new technology,
and increasing competition, the barriers to enter the Indian Automotive sector are high. On
the other hand, India has a well-developed tax structure. The power to levy taxes and duties is
distributed among the three tiers of Government. The cost structure of the industry is fairly
traditional, but the profitability of motor vehicle manufacturers has been rising over the past
five years. Major players, like Frisson Motors and Maruti Suzuki have material cost of about
80% but are recording profits after tax of about 6% to 11%.
The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has
been high. System-suppliers of integrated components and sub-systems have become the
order of the day. However, further investment in new technologies will help the industry be
more competitive. Over the past few years, the industry has been volatile. Currently, India's
Page | 21
increasing per capita disposable income which is expected to rise by 106% by 2015 and
growth in exports is playing a major role in the rise and competitiveness of the industry.
Frisson Motors is leading the commercial vehicle segment with a market share of about
64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of
46%. Hyundai Motor India and Mahindra and Mahindra are focusing expanding their
footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing
26% of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying
about 58% of the three wheeler market.
Consumers are very important of the survival of the Motor Vehicle manufacturing industry.
In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of
cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a
cost pressure on manufacturers and cost is getting transferred to the end consumer. The price
of oil and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility, and
capital efficiency. Having quality manpower, infrastructure improvements, and raw material
availability also play a major role. Access to latest and most efficient technology and
techniques will bring competitive advantage to the major players. Utilising manufacturing
plants to optimum level and understanding implications from the government policies are the
essentials in the Automotive Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive
industry. The Indian government should facilitate infrastructure creation, create favourable
and predictable business environment, attract investment and promote research and
development. The role of Industry will primarily be in designing and manufacturing products
of world-class quality establishing cost competitiveness and improving productivity in labour
and in capital. With a combined effort, the Indian Automotive industry will emerge as the
destination of choice in the world for design and manufacturing of automobiles.
Page | 22
Competitors
The major electric vehicle manufacturers in India are:
Ajanta Group
Mahindra
Hero Electric
Reva
Tara International
Frisson
Page | 23
Questionnaire, Data Analysis And Interpretation
Table 1.1
Age Group
Group Number of people
18-24 78
25-34 24
35-44 17
45 – 54 4
55-64 0
65 or above 1
Figure 1.1
18-24 25-34 35-44 45-54 55-64 65 or above0
10
20
30
40
50
60
70
80
90
Number of people
Number of people
This basically talks about the age range of the consumer in the market. From the survey we
can interpret that the maximum consumers we have for our product is from age range of 18-
24.
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Table 1.2
Gender
Male 77
Female 47
Figure 1.2
Gender
MaleFemale
This basically talks about the gender of the consumer in the market. From the survey we can
interpret that the maximum consumers we have for our product are males than women.
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Table 1.3
Educational Qualification
Secondary Education 18
Diploma or Higher Diploma 62
Bachelors Degree 34
Masters Degree 8
Ph. D 1
Other 1
Figure 1.3
Secondary Education
Diploma or Higher Diploma
Bachelors Degree
Masters Degree
Ph. D
Other
0 10 20 30 40 50 60 70
Educational Qualification
Number of people
This basically talks about the educational qualification of the consumer in the market. From
the survey we can interpret that the maximum consumers we have for our product havedone
their Diploma or Higher Diploma than any other Degrees.
Page | 26
Table 1.4
Total Annual Income
Less than 80000 45
80000-150000 60
150000-200000 15
200000 and above 4
Figure 1.4
Less than 80000 80000-150000 150000-200000 200000 and above
0
10
20
30
40
50
60
Number of people
This basically talks about the annual income of the consumer in the market. From the survey
we can interpret that the maximum consumers we have for our product have an annual
income between 80000-150000.
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Table 1.5
Average travelling per day
Less than 20 85
21 – 45 8
46-60 9
More than 61 22
Figure 1.5
Less than 20
21 – 45
46-60
More than 61
0 10 20 30 40 50 60 70 80 90
Kilometers
Kilometers
This basically talks about the kilometres travelled by the consumers in the market. From the
survey we can interpret that the maximum consumers travel around less than 20km per day
which is very much suitable with our product.
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Table 1.6
Own a vehicle or not
Yes 48
No 76
Figure 1.6
Own a vehicle or not
YesNo
This basically talks about personal vehicles owned by the consumers in the market. From the
survey we can interpret that the maximum consumers in the market does not have their own
vehicle.
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Table 1.7
Use of vehicle
General everyday use 54
Recreation 17
Commercial 14
Commuting 4
Other 35
Figure 1.7
General ev-eryday use
Recreation Commercial Commuting Other0
10
20
30
40
50
60
Use of vehicle
Series 1
This basically talks about use of the product by the consumer in the market. From the survey
we can interpret that the maximum consumers we have for our product needs vehicle for their
general everyday use.
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Table 1.8
Do you drive
Urban (always meet up traffic lights) 48
Highway 23
Mountain Road 5
All of the above 47
Figure 1.8
Urban (always meet up traffic lights)
Highway Mountain Road All of the above0
10
20
30
40
50
60
Series 1
Series 1
This basically talks about the roads travelled by the consumer in the market. From the survey
we can interpret that the maximum consumers we have for our product travel in urban roads
and meet up traffic lights and need mileage for their vehicle , which we will be providing
through our product.
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Table 1.9
Can electric car reduce pollution
Agree 108
Disagree 16
Figure 1.9
Can electric car reduce pollution
AgreeDisagree
This basically talks about the opinion of the consumer in the market. From the survey we can
interpret that the maximum consumers agrees that electric car can reduce pollution and are
supporting our concept.
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Table 1.10
Limitation of electric car in India
The technical of car 24
The policy of government 14
The equipment of electric car 14
Others 2
Figure 1.10
The technical of car
The policy of government
The equipment of electric car
Others0
5
10
15
20
25
Series3
This basically talks about the technical part of the product in the market. From the survey we
can interpret that the maximum consumers think that the technical part of the car may have
some problem rather than other issues.
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Table 1.11
Should Government invest in electric industry development
Agree 95
Disagree 29
Figure 1.11
Number of people
AgreeDisagree
This basically talks about the governmental steps for the electric industry in the market. From
the survey we can interpret that the maximum consumers think that government should take
steps to increase the feasibility of this industry as it will save natural resources for the future
and our environment.
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Table 1.12
Objective to buy electric car
Speed 43
Price 60
Eco-awarness 43
Save money for refill 59
Others 11
Figure 1.12
Speed Price Eco-awarness Save money for refill
0
10
20
30
40
50
60
70
Number of people
This basically talks about the objective to buy the product the minds consumer. From the
survey we can interpret that the maximum consumers we have for our product is because of
the price which is comparatively lower than hybrid vehicles
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Table 1.13
Problem in electric car
Speed 26
Price 24
Time of Research 39
Life of battery 30
Others 5
Figure 1.13
Speed Price Time of Research Life of battery0
5
10
15
20
25
30
35
40
Number of people
This basically talks about the main problems of electric car in the market. From the survey
we can interpret that the maximum consumers have problem with the time of research taken
by electric cars.
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Interpretation
From the above survey , we have come up to the conclusion that people are willing to accept
our idea of electric Rickshaw’s and the product that we are offering to the market is feasible
as they are agreeing along with us technologically as well provided by the product.
The income level of the people is also very suitable and is matching with the range of our
product.
The people of our country are waiting for government to put some effort in this kind of
technology.
As people of India are obsessed with mileage , we are providing a good mileage with
minimum charging of our battery and the road condition are also supporting our vehicle.
Worst Case Scenario
The worst case scenario with our product can be-
Safety Measures - the safety measures in our product is not hi-fi as a normal car because the
speed of our vehicle is limited and we will be providing a basic safety measures to our veicle
and since accidents are sudden and not known to us, so we cant predict with what type of
accident is a particular vehicle going to meet and cannot provide safety measures as being
provided by costly vehicles, and also our product is a cost effective one which we have
already mentioned that it is common man’s vehicle , so to provide the vehicle at a medium
and affordable range , we cannot build up the product with more costly safety measures
Electrical Issues - The electric charging can be another problem in future, only if the
government stops giving out subsidies on this public need. Because our vehicle is 70% based
on electrical charging and if the electric charges go high in future which will not be
affordable by common man, then this can create a worst scenario for our product in future.
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Competitors - When more competitors entering market selling a more effective product than
our at a lower cost can have a great effect on our product, if our competitors provide more
technological features than our product at a lower price this will hamper our target market
and will lead to lower selling of our product.
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MARKETING
I the present highly competitive economy, which can be called a buyer’s market, it is the
customer who wields full power. He can make a wreck a company. The customer who was
considered the king is now treated almost like God. Companies have to fully customer
oriented to succeed in the present competitive scenario and should “Think customer”, “Live
for customer”, “Smell customer”, and build customer relationship.
The basic objective of marketing is to attract new customers by promising and offering
superior value and to retain and grow current customer by delivering satisfaction.
Marketing is defined as a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and value with
others.
Marketing Mix
The marketing mix is the set of controllable, tactical, marketing tool that the firm blends to
produce the response it wants in the target market. The marketing mix consist of the variables
product, price, place, promotion; well known as the 4 P’s of marketing.
Product : Product stands for the goods and services offered by a company to the
target market to satisfy needs and wants. A product is the most important mix out of
the whole marketing mix because product is something that is the most important to
the market. Without the product, one cannot market its company.
Our product is a Mordern Rickshaw called Loper. The name of our Company is
Frission. This Rickshaw is a totally new concept along with new technological
features in it like radio, comfortable seats, lights, battery, electrically working engine.
To change the mindset of the people from the term Rickshaw, we have come up with
this idea, to create distinctive and a different approach to this kind of vehicle, so that
people stop thinking before approaching any kind of commercial vehicle like this and
they don’t feel that travelling on this type of vehicle is against their status. We provide
Page | 39
on road services for the breakdown of our customer’s vehicle and also pick-up and
drop service for servicing.
A product should always contain quality, design, features, brand name and services
which is being provided by our product and our company.
Price : Price refers to the monetary value that the consumers have to pay to buy the
product or service. The price of our product ranges from 25000 – 35000 depending on
the type of features required by the consumers.
We will also be providing special discounts and offers on various Indian occasions
like merchandise of our company, scratch cards, free servicing, free accessories etc.
and other offers depending on the time and situation.
We also provide credit facilities along with some special allowances to our dealers.
A pricing strategy should always have discounts, allowances, payment periods, credit
terms which is being provided by our product and our company.
Place : Place stand for physical distribution activities through which the product
moves from the factory to the customer.
Our manufacturing plant is in Gujarat. The channel of our distribution is from our
manufacturing plant to the dealers through transport companies who will be
specialised in carrying this type of vehicle. We will also be charging some small
amount of security deposit from the transportation partners who will be carrying our
vehicles. The dealers will have their own warehouses for unloading of vehicles. The
dealers will then be selling the product to the customers.
Our dealers are located in Gujarat, Karnataka, Madhya Pradesh, Maharashtra, New
Delhi, Orissa, Assam, Punjab, Uttar Pradesh, West Bengal and Tamil Nadu.
A place mix should have a proper channel of distribution, proper locations for the
distribution of goods, inventory for stock and good transportation facilities which are
being provided by us.
Promotion : Promotion refers to the activities of personal selling, advertising and
communicating product benefits and attributes to target customers to persuade them to
purchase. A proper promotional strategy is very much necessary for a product because
this helps the most in increasing the sales of a product. Promotion can be done in
various ways viz. by television, newspapers, radio, public relations etc.
Page | 40
A company should always follow a good marketing strategy considering every fact
like competitors, the consumers, the government policies and political forces.
We are planning to advertise our product in various national and regional newspapers,
television and radio channels. We have also our company print ads which will be
advertised via banners, phamplets, brochures, hoardings, posters etc. We also have a
department called public relations which will help our company to gain more
customers in the initial stage.
A promotion mix should always contain advertising, sales promotion, public relations
etc. which is being provided by us.
Advertisement Copy
Page | 41
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Porter's 5 Forces Model Of The LOPER Car
Page | 43
There is continuing interest in the study of the forces that impact on an organisation,
particularly those that can be harnessed to provide competitive advantage. The ideas and
models which emerged during the period from 1979 to the mid-1980s were based on the idea
that competitive advantage came from the ability to earn a return on investment that was
better than the average for the industry sector. As Porter's 5 Forces analysis deals with factors
outside an industry that influence the nature of competition within it, the forces inside the
industry (microenvironment) that influence the way in which firms compete, and so the
industry’s likely profitability is conducted in Porter’s five forces model.
Barriers To Entry
Page | 44
Time and cost of entry – Time is most essential thing while launching a product in
any market. The launch of the LOPER is quite viable as the demand of the small car is
on the rise in the market. By the cost of the entry we mean the initial capital required
to set up a new firm is very high, it makes the chances of the chances of new entrants
are very less.
Knowledge and Technology - Ideas and Knowledge that provides competitive
advantage over others when patented, preventing others from using it and thus creates
barrier to entry. The FRISSON motors have great knowledge / experience in the
automobile industry and has renowned technological advantage because of the recent
acquisition and mergers.
Product Differentiation and Cost Advantage – The new product has to be different
and attractive to be accepted by the customers. Attractiveness can be measured in the
terms of the features, price etc. At this level the price of the LOPER car was one thing
that is attracting customers. And above all this the image, trust the name FRISSON
carries with it.
Government Policy and Expected Retaliation - Although government's job is to
preserve free competitive market, it restricts competition through regulations and
restrictions. The government tried to promote the FRISSON Motors to start a plant by
providing land and tax rebates. But the unexpected retaliation by the local people
surface in the setting up of the plant which costed the company a lot.
Access to Distribution Channels – When a new product a launched a well developed
distribution is must for its success. The FRISSON motors had an advantage of well
established distribution channel across the world.
Buyers
Page | 45
Switching Costs - If switching to another product is simple and cheap the customers
does not think much before doing it. In case of LOPER car the switching cost from
bike to car is too high. Thus increasing the demand of the car many fold.
Number of customers/ Volume of sales - If there are few buyers then they are able
to dictate the terms. They pull down the cost by Bargaining. The bargaining power of
buyer is high as there are lot of choice available to the buyer and the service do not
vary from one manufacturer to the other. They force the manufactures to improve the
quality. All this can be clearly seen in the case of LOPER car the price tag at which it
has been offered or the quality of the LOPER car no compromises has been done at
any front.
Brand Image - The brand image of the FRISSON and the segment in which the
LOPER has been the most attractive thing in the entire package.
Suppliers
Number and Size of Suppliers – A company to manufacture its products requires
raw material, labor etc. If there are few suppliers providing material essential to make
a product then they can set the price high to capture more profit. Powerful suppliers
can squeeze industry profitability to great extend. In case of LOPER the supplier are
limited and the size of the suppliers are big enough to bring about the controlling
power in the price of the car. The LOPER car has more than 128 suppliers in all and
the major portion of the building cost of the car is the parts supplied by the suppliers.
Unique Service / Product - Suppliers’ products have few substitutes. Supplier
industry is dominated by a few firms. The some parts of the LOPER car are obtain
from the supplier who them are big enough and limited substitutes are available
against them. So the entire production line depends upon them only.
Page | 46
Ability to substitute - Suppliers’ products have high switching costs. In many case
even when substitute are available its not that easy to opt for substitute as the next
product in the assembly line depends upon it. If the change in the any part is brought
about the long list of depended parts also have to be changed , which in most cases is
not feasible to do.
Substitutes
Price band - The threat that consumer will switch to a substitute product if there has
been an increase in price of the product or there has been a decrease in price of the
substitute product. If the price of the LOPER car will increase the main expected
customers ie the one switching from bike to car will not move to car and will remain
in the bike only. Thus the price is kept checked in this manner.
Substitute’s performance - The performance of the substitute sector will also play a
important role in the success of the LOPER car. If the price of the Bike segment
increases or the price band of the small segment fall, it will have effect on the quantity
required in the market. It’s just on the price but also the features and the other services
associated or it may be the status symbol story. The success of the electric car
segment with player like REVA can also affect the demand of the LOPER.
Buyer’s willingness – Products with improving price/performance tradeoffs relative
to present industry products. It will determine the willingness of the buyer to but the
LOPER car. The willingness of the customers to go forward try the new product in the
market ie ‘LOPER’. They might be willing to go for the test products like Maruti 800,
Santro etc.
Page | 47
Competitive Rivalry
Number and Diversity of Competitor - This describes the competition between the
existing firms in an industry. the current scenario, the small car market in India is very
competitive with players like Maruti Suzuki, Frisson Motors, Hyundai etc. which was
pretty much dominated by Maruti. But with launch of Loper the 1 lakh car the whole
momentum of the market has shifted. Now to be competitive in market other
companies have to either slash rates of their existing model or have to go back to the
drawing board and build again.
Price Competition - Advertising battles may increase total industry demand, but may
be costly to smaller competitors. Products with similar function limit the prices firms
can charge. Price competition often leaves the entire industry worse off. LOPER is
the only player so it has the price freedom but as the Maruti and Honda are also
planning to launch the car in the same segment the price competition will start.
Exit Barriers – Even if the product fails in the market its not that easy for the
company to exit the market just like that because of the heavy investment it has made
in the initial stage. If the LOPER fails or falls flat the FRISSON motors will not be in
a state to slow done the product even when LOPER production line can be used by the
other products after few modification as for LOPER only the new product line were
setup and huge cost were incurred.
Product Quality - Increasing consumer warranties or service is very common these days.
To maintain low cost, companies consistently has to make manufacturing improvements
to keep the business competitive. This requires additional capital expenditure which tends
to eat up company's earning. On the other hand if no one else can provide products/
services the way you do you have a monopoly. LOPER enjoys the monopoly are there are
no competitors in this segment.
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Product Line
Our Product’s name is LOPER which means runner in Dutch, because our vehicle will not
only run on the roads of India but also in the minds of the people of India once we launch our
product.
Loper is the extension of old Rickshaw’s. It will be a three-wheeler vehicle with one rider
and 2 people along with one small seat for children keeping in mind about the Indian
Families. The seats will be a better one and more comfortable along with a cover to provide
protection to the driver and the consumers from rain and other natural activities. It will also
have three shock-absorbers one each on the front wheel and the other two wheels at the back
considering the jerks on the Indian roads. The vehicle will have two batteries at the back side
below the back seat which will accelerate the vehicle and will also have pedals incase the
batteries are not charged. It will also have space below the back seat to carry luggage. It will
have Better brake powers along with a new handle and horn. The tyres will be tubeless. Loper
will also have better foot-rest and not a tilted one as earlier Rickshaw’s had.
The main facilities that will be provided to consumers will be a covered cabin along with a
music system and a radio, quality speakers with auxiliary wires, proper lighting facilities
inside the cabin. It will also have a cell phone charger, lighter and a walkie-talkie, to talk with
the driver. Keeping in mind about the consumers that they don’t get bored if they are
travelling alone and can enjoy their time sitting in the vehicle and can feel the way that they
didn’t even imagine till that point of time. Customer Satisfaction is our main motive, so this
is how we will be providing our customer the best satisfaction they can ever get anywhere.
Unique Selling Proposition
“Innovation for GREEN, Innovation for ALL.”
Page | 49
Target Market
Target marketing is the process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter. A company should target segments in which it can
generate greater customer value, profitability and sustain it over time.
As our Product is for the common man, so our target market will be people who are middle
class or lower middle class, because this is the market that are not able to afford their own
vehicle and have a difficulty in travelling from one place to another in and around the city for
their day to day activities.
So basically we will be going to divide out target market on the basis of two main
segmentations:
1. Geographic
We will be dividing our market on the basis of geography, our main target market is
India. India can be divided on different states. So we will be launching our product on
states which are having plain landscapes , so that it will be easier to travel on that type
of roads for the customers and will be comfortable for the driver as well to ride the
particular vehicle on that landscapes.
Main states and cities where we will be launching our product will Gujarat,
Karnataka, Madhya Pradesh, Maharashtra, New Delhi, Orissa, Assam, Punjab, Uttar
Pradesh, West Bengal and Tamil Nadu.
2. Demographic
We will be also dividing our market on the basis of income factor of the people,
people who generally cannot afford their own vehicle and are also interested in
comfortable journey , so for them this vehicle is the best option they can get in the
market.
Page | 50
3. Psychological
We will be also divinding on the mind set of the Indian people , who are generally
very money oriented , and they don’t want to raise their expenses by wasting on such
products or services which are not that useful for them on a regular and general basis,
so keeping in kmind about this money psychological factor, we are dividing our
market.
Positioning
This means how we are going to position our product in the mind of the customers comparing
with our competitors in the market.
We are going to position our product in the mind of the customers in a very different way,
this product will be positioned in the mind of the consumer as a low range product comparing
with it our competitors product , because the quality of product we have in this range , no
other player in the market is providing , so this will be the main catch of our product, that
quality with the best price you can get in the market.The product we are providing is a long
term investment of the consumer in a short range of price.
Page | 51
HUMAN RESOURCES
Page | 52
Karan Kothari (Partner)
Binit Bhura (Partner)
Joseph Mathew (Head Manager)
Sales & Marketing (Rajesh Rai)
Customer Services (Shruti
Panchkali)
Human Resources (Puja Karlo)
Purchasing (Amitabh Ghosh)
Production (Raghav Mehta)
R & D (Akul Singh)
Finance (Soni Kothari)
Distribution (Jeorge John Paul)
The two partners are Karan Kothari and Binit Bhura. The organisation structure consists of
the two partners under whom there is the head manager of the organisation. Under the head
manager are the Sales & Marketing, Information Technology, Customer Services, Human
Resources, Purchasing, Production, R & D, Finance and Distribution managers. Under each
of the manager there are employees.
Table 1.1
Number of employees per department
Department Number of employees
Sales & Marketing 6
Customer Services 6
Human Resources 2
Purchasing 6
Production 44
R & D 3
Finance 4
Distribution 8
TOTAL 79
Table 1.2
Salary of an employee per month
Department Salary Per Month (Rupees)
Sales & Marketing 18000
Customer Services 18000
Human Resources 20000
Purchasing 16000
Production 12000
R & D 25000
Finance 22000
Distribution 18000
Page | 53
Working Hours
Working hours: According to sec.54 of Factories Act, 1948 an adult worker is not required to
work more than 9 hour and sec.51 prohibits working for more than 48 hours a week.
Working during night: Sec.66 Factories Act, 1948, prohibits working women from 7PM to 6
AM. However the State Government may, by notification exempt any establishment subject
to the condition that the establishment provides facilities of transportation and security to
such women employees.
Leave policy
In Karnataka, Factories Act, 1948, Karnataka Industrial Establishments (National and
Festival Holidays) Act, 1963, and The Karnataka Shops and Commercials Establishments
Act, 1961 governs the leave Holiday, leave policy and work hours of the company. Similar
legislations have been enacted in other States of India.
The above statutes categorize the leaves and Holidays as follows:
National Holidays: national holidays are declared compulsorily and the companies do not
have flexibility in timing them. Such as Republic Day (Jan 26), Independence Day (Aug 15),
and Mahatma Gandhi’s birthday (Oct 2). (Sec.3 of Karnataka Industrial Establishments
(National and Festival Holidays) Act, 1963)
Festival Holidays: companies have the flexibility to choose from a list of about 52 festivals
available in the Schedule to The Karnataka Industrial, Establishments (National and Festival
Holidays) Act, 1963. Five festival holidays in each calendar year have to be declared in
addition to the National Holidays.
The other holidays are decided by the management in consultation with the
employees/Union. Normally there will be compulsory Holiday on May.1st (Labor Day) and
November 1st (Karnataka Rajyotsava)
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General Elections: In case of general elections to the Lok Sabha and Vidhana Sabha and in
case of any by election, a holiday needs to be declared to all employees on polling day.
(Sec.3A of Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963)
Weekly Holidays: An establishment/company required to remain closed for at least one day
of the week (Sec3 of The Weekly Holidays Act, 1942).
Information Technology Establishments; Information Technology enabling services or
establishments; & Bio-Technology and Research Centers in addition to certain other
establishments are exempt from the provisions of Weekly Holidays.Sec.3(2)(q),(r), and (s) of
The Karnataka Shops and Commercials Establishments Act, 1961
Other Leaves
Casual Leave: Many of the companies in India provides 6-12 casual leaves per Year
and we cannot avail more than 3 leaves consequently.
Sick Leave: Companies provide 6 to 12 Sick Leaves. Employees who avail sick leave
for more than 3 consequent days, requires submitting doctor’s certificate.
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FINANCIALS
INITIAL INVESTMENT
PARTICULARS DETAILS AMOUNT (Rupees)
Land And Building Security Deposit 30,00,000Plant And Machinery 10,00,000Eqipments 5,50,000Patents And Copyrights 8,16,000Website 8,000Telephone With Wi-fi 4,000Furniture 35,000Computer Rupees 20,000 * 10 2,00,000Generator 6,00,000Fire Extinguisher 8,000Preliminary Expenses 25,000Working Capital 97,54,000 TOTAL 1,60,00,000
SOURCES OF FUNDS
PARTICULARS AMOUNT ( Rupees) Investment By Karan Kothari 80,00,000Investment By Binit Bhura 80,00,000 TOTAL 1,60,00,000
RAW MATERIALS BREAK-UP FOR ONE UNIT
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PARTICULARS AMOUNT (Rupees)
Tyres 2,000Seats 400Music System 1,400Iron Rod 3,500Aluminium Sheets 2,000Shock-Absorber 700Engine 7,500Battery 1,200Breaks 200Sponge 100Cloth 200Light 150Mobile Charging Point 150Wires 100Plastic Glass 250Walkie-Talkie 400Pedal 200Chain 300Handle 150Rear-View Mirror 50Alloy Wheels 900Lock 15Grip 40Other Miscellaneous Expenses 95 TOTAL 22,000
CASH FLOW STATEMENT
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PARTICULARSAMOUNT (Rupees)
YEAR 1 YEAR 2 YEAR 3 Cash Balance B/D 1,26,01,490 1,91,55,754 Add: Receipts Sales 10,80,00,000 12,96,00,000 16,20,00,000Investment By Karan Kothari 80,00,000 Investment By Binit Bhura 80,00,000 TOTAL RECEIPTS 12,40,00,000 14,22,01,490 18,11,55,754 Less: Payments Cash Purchases 5,28,00,000 6,07,20,000 7,28,64,000Diesel 12,00,000 76,03,200 16,56,000Wages 63,36,000 14,40,000 87,43,680Salaries 92,64,000 1,06,53,600 1,22,51,640Rent 36,00,000 39,60,000 43,56,000Insurance 1,00,000 1,10,000 1,25,000Marketing Expenses 72,00,000 75,00,000 70,00,000Stationery 60,000 60,000 65,000Telephone Bill 36,000 36,000 40,000Carriage Outwards 1,92,00,000 2,53,44,000 3,49,20,000Repairs And Maintenance 50,000 55,000 58,000Audit Fees 10,000 12,000 15,000Electricity 3,60,000 4,00,000 4,50,000Warehouse Rent 12,00,000 13,20,000 15,00,000Water 2,40,000 2,72,000 3,12,800Miscellaneous Expenses 6,00,000 6,20,000 6,50,000Bonus To Workers 1,80,000 2,05,000 1,80,000Partners' Salaries 12,00,000 13,80,000 16,56,000Tax 15,16,510 13,54,936 44,45,343Land And Building 30,00,000 Plant And Machinery 10,00,000 Equipments 5,50,000 Patents And Copyrights 8,16,000 Website 8,000 Telephone 4,000 Furniture 35,000 Computer 2,00,000 Generator 6,00,000 Fire Extinguisher 8,000 Preliminary Expenses 25,000 TOTAL PAYMENTS 11,13,98,510 12,30,45,736 15,12,88,463
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CASH BALANCE 1,26,01,490 1,91,55,754 2,98,67,291
DEPRECIATION ACCOUNT
PARTICULARSAMOUNT (Rupees)
YEAR 1 YEAR 2 YEAR 3 Plant And Machinery (15%) 1,50,000 1,27,500 1,08,375Equipments (15%) 82,500 70,125 59,606Patents And Copyrights (25%) 2,04,000 1,53,000 1,14,750Furniture (10%) 3,500 3,150 2,835Computer (60%) 1,20,000 48,000 19,200Generator (15%) 90,000 76,500 65,025Fire Extinguisher (15%) 1,200 1,020 867 TOTAL 6,51,200 4,79,295 3,70,658
TRADING AND PROFIT AND LOSS ACCOUNT
AT THE END OF 1ST YEAR PARTICULARS AMOUNT PARTICULARS Amount
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(Rupees) (Rupees) Opening Stock Nil Sales 10,80,00,000Purchases 5,28,00,000 Closing Stock 22,00,000Wages 63,36,000 Diesel 12,00,000 GROSS PROFIT C/D 4,98,64,000 TOTAL 11,02,00,000 TOTAL 11,02,00,000
Salaries 92,64,000GROSS PROFIT B/D 4,98,64,000
Rent 36,00,000 Insurance 1,00,000 Marketing Expenses 72,00,000 Stationery 60,000 Telephone 36,000 Carriage Outwards 1,92,00,000 Repairs And Maintenance 50,000 Audit Fees 10,000 Electricity 3,60,000 Warehouse Rent 12,00,000 Water 2,40,000 Bonus To Workers 6,00,000 Miscellaneous Expenses 1,80,000 Partners' Salaries 12,00,000 Reserves 10,00,000 Depreciation 6,51,200 Preliminary Expenses Written Off 5,000 Income Tax 14,72,340 Education Cess 44,170 NET PROFIT 33,91,290 TOTAL 4,98,64,000 TOTAL 4,98,64,000
TRADING AND PROFIT AND LOSS ACCOUNT
AT THE END OF 2ND YEAR PARTICULARS AMOUNT PARTICULARS Amount
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(Rupees) (Rupees) Opening Stock 22,00,000 Sales 12,96,00,000Purchases 6,07,20,000 Closing Stock 27,00,000Wages 76,03,200 Diesel 14,40,000 GROSS PROFIT C/D 6,03,36,800 TOTAL 13,23,00,000 TOTAL 13,23,00,000
Salaries 1,06,53,600GROSS PROFIT B/D 6,03,36,800
Rent 39,60,000 Insurance 1,10,000 Marketing Expenses 75,00,000 Stationery 60,000 Telephone 36,000 Carriage Outwards 2,53,44,000 Repairs And Maintenance 55,000 Audit Fees 12,000 Electricity 4,00,000 Warehouse Rent 13,20,000 Water 2,72,000 Bonus To Workers 6,20,000 Miscellaneous Expenses 2,05,000 Partners' Salaries 13,80,000 Reserves 9,00,000 Depreciation 4,79,295 Preliminary Expenses Written Off 5,000 Income Tax 13,15,472 Education Cess 39,464 NET PROFIT 56,69,969 TOTAL 6,03,36,800 TOTAL 6,03,36,800
TRADING AND PROFIT AND LOSS ACCOUNT
AT THE END OF 3RD YEAR PARTICULARS AMOUNT PARTICULARS Amount
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(Rupees) (Rupees) Opening Stock 27,00,000 Sales 16,20,00,000Purchases 7,28,64,000 Closing Stock 31,05,000Wages 87,43,680 Diesel 16,56,000 GROSS PROFIT C/D 7,91,41,320 TOTAL 16,51,05,000 TOTAL 16,51,05,000
Salaries 1,22,51,640GROSS PROFIT B/D 7,91,41,320
Rent 43,56,000 Insurance 1,25,000 Marketing Expenses 70,00,000 Stationery 65,000 Telephone 40,000 Carriage Outwards 3,49,20,000 Repairs And Maintenance 58,000 Audit Fees 15,000 Electricity 4,50,000 Warehouse Rent 15,00,000 Water 3,12,800 Bonus To Workers 6,50,000 Miscellaneous Expenses 1,80,000 Partners' Salaries 16,56,000 Reserves 8,00,000 Depreciation 3,70,658 Preliminary Expenses Written Off 5,000 Income Tax 43,15,867 Education Cess 1,29,476 NET PROFIT 99,40,879 TOTAL 7,91,41,320 TOTAL 7,91,41,320
BALANCE SHEETAT THE END OF 1ST YEAR
LIABILITIES AMOUNT ASSETS AMOUNT
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(Rupees) (Rupees) Investment By Karan Kothari 80,00,000 Land And Building 30,00,000
Add: Profit 16,95,645Plant And Machinery 8,50,000
Investment By Binit Bhura 80,00,000 Furniture 31,500Add: Profit 16,95,645 Equipments 4,67,500Reserves 10,00,000 Website 8,000
Telephone With Wi-fi 4,000
Computer 80,000 Generator 5,10,000 Fire Extinguisher 6,800 Closing Stock 22,00,000 Cash Balance 1,26,01,490
Patents And Copyrights 6,12,000
Preliminary Expenses 20,000
TOTAL 2,03,91,290 TOTAL 2,03,91,290
BALANCE SHEETAT THE END OF 2ND YEAR
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LIABILITIESAMOUNT (Rupees) ASSETS
AMOUNT (Rupees)
Investment By Karan Kothari 96,95,645 Land And Building 30,00,000
Add: Profit 28,34,984.50Plant And Machinery 7,22,500
Investment By Binit Bhura 96,95,645 Furniture 28,350Add: Profit 28,34,984.50 Equipments 3,97,375Reserves 19,00,000 Website 8,000
Sundry Creditors Telephone With Wi-fi 4,000
Computer 32,000 Generator 4,33,500 Fire Extinguisher 5,780 Closing Stock 27,00,000 Cash Balance 1,91,55,754
Patents And Copyrights 4,59,000
Preliminary Expenses 15,000
TOTAL 2,69,61,259 TOTAL 2,69,61,259
BALANCE SHEETAT THE END OF 3RD YEAR
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LIABILITIESAMOUNT (Rupees) ASSETS
AMOUNT (Rupees)
Investment By Karan Kothari 1,25,30,629.50 Land And Building 30,00,000
Add: Profit 49,70,439.50Plant And Machinery 6,14,125
Investment By Binit Bhura 1,25,30,629.50 Furniture 25,515Add: Profit 49,70,439.50 Equipments 3,37,769Reserves 27,00,000 Website 8,000
Telephone With Wi-fi 4,000
Computer 12,800 Generator 3,68,475 Fire Extinguisher 4,913 Closing Stock 31,05,000 Cash Balance 2,98,67,291
Patents And Copyrights 3,44,250
Preliminary Expenses 10,000
TOTAL 3,77,02,138.00 TOTAL 3,77,02,138
BREAK-EVEN ANALYSIS
Break-Even Point = Fixed Cost / (Sales – Variable Cost)
= 49,00,000 / (10,80,00,000 – 9,04,36,710)
= 0.27 Years
PAY-BACK PERIOD
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Pay-Back Period = Cash Outlay Of The Project / Annual Cash Inflow
= 1,60,00,000 / 40,47,490
= 3.95 Years
PRODUCTION AND OPERATION
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Layout Design
ANNEXTURE
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Questionnaire
1. What is your age range?
a. 18 - 24
b. 25 - 34
c. 35 - 44
d. 45 - 54
e. 55 - 64
f. 65 or above
2. What is your gender?
a. Male
b. Female
3. What is your highest level of education?
a. Secondary Education
b. Diploma or Higher Diploma
c. Bachelors Degree
d. Masters Degree
e. Ph. D
f. Other
4. What is your total annual income?
a. Less than Rupees 80000
b. Rupees 80000 – 150000
c. Rupees 150000 – 200000
d. Rupees 200000 and above
5. How many kilometres do you travel per day on an average?
a. Less than 20
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b. 21 – 45
c. 46 – 60
d. More than 61
6. Do you own a vehicle?
a. Yes
b. No
7. What would be your primary use of the vehicle?
a. General everyday use
b. Recreation
c. Commercial
d. Commuting
e. Other
8. Where do you primarily drive?
a. Urban (always meet up traffic lights)
b. Highway
c. Mountain Road
d. All of the above
9. Do you agree the electric car can reduce the pollution?
a. Agree
b. Disagree
10. Do you think electric car can be popular using in India?
a. Yes (skip question 11)
b. No (answer question 11)
11. If no, which way is not enough?
a. The technical of car
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b. The policy of government
c. The equipment of electric car
d. Others
12. Do you agree that the government should spend more to develop electric industry?
a. Agree
b. Disagree
13. Do you agree that the government should launch more policy to support electric cars
development?
a. Agree
b. Disagree
14. Will you support the government to replace traditional gasoline – power vehicle by
electric vehicle in the future?
a. Yes (answer question 15)
b. No (skip question 15)
15. If Yes, It will happen in …( years )?
a. 1 - 5
b. 5 - 10
c. 11 - 15
d. 15 – 20
16. Which one will you buy?
a. Electric Car
b. Hybrid Car
17. What is your objective to buy electric car?
a. Speed
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b. Price
c. Eco-Awareness
d. Save Money for Refill
e. Others
18. What is your objective to buy hybrid car?
a. Speed
b. Price
c. Eco-Awareness
d. Save Money for Refill
e. Others
19. What is the main problem of electric car?
a. Speed
b. Price
c. Time of Recharge
d. Life of Battery
e. Others
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