BUSINESS PLAN
PRESENTED BY-GROUP:3ATUL KUMAR KARN --- Q1703A19 DEEPIKA BHAGAT --- Q1703A13 DEEPKAMAL KAUR --- Q1703A11 MANDEEP SINGH --- Q1704A14 PRIYANKA GUPTA --- Q1703A06 RAMANJEET KAUR --- --- Q1703A14
CONTENTS
BUSINESS PLAN (GENERAL INFORMATION)
FEASIBILITY ANALYSIS
MARKETING PLAN
OPERATIONS PLAN
HR PLAN
SUMMARY
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Sales Gross Margin Net ProfitOBJECTIVES
Sales revenue should be 200 crores for the first year.
Establish long term relationships with suppliers of
tyres and seat 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 efficiency
MISSION
“To build a solar car, to benefit the mankind and
environment with long term sustainability,
transforming the way this world moves with innovation.
VISION
To be numero uno solar car company, keeping
OUR BUSINESS IDEA
SOLAR WALKING CAR
PRODUCT NAME: SUNSHINE
TAGLINE:
SOLAR ENERGY AND OUR
IDEA
Developing a solar energy driven car
Solar walking cars combine technology typically
used in the aerospace, bicycle, alternative
energy and automotive industries.
Solar cars are powered by the sun's energy. In fact,
51% of sunlight actually enters the Earth's atmosphere.
PRODUCT SUMMARY
Suntech 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 Description
Solar car includes the following components along with
repective cost:
Solar Array and Power trackers : 40000 Batteries : 6000
Motor & Controller : 5000
Chassis, Seats and other components : 15000 Tires, Brakes and Hubs : 10000
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.
WHAT MAKES OUR SOLAR
CAR FEASIBLE
Financial analysis (Profitable Business????)
1000 WATTS = 1.341 horsepower
Solar panel cost per watt is around $1 without
subsidy
cost 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.
Continued…..
Other equipments..
Electrical grid (15000 INR)
Battery (5000)
BUSINESS PLAN(GENERAL
INFORMATION)
FUNCTIONAL AREA REPORTS
There are four essential elements required to test whether or not a potential business idea is feasible:
Marketing Operations
HR
Market research will involve
What 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?
CONTENTS
Product Features STP of Market Market Reasearch SWOT analysis Competitive AnalysisPRODUCT FEATURES
Shape and design Costing Weight capacity KEY ADVANTAGES No running cost No registration required
Reduced license requirements Environment friendly
Using alternative source of energy
SEGMENTATION,TARGETING,POSITIONING SEGMENTATION Geographic segmentation • Weather • Location Demographic segmentation
• Income based(middle class)
Behavioral segmentation
TARGETING
Target customer: Middle class
Differentiated targeting
Target-market: rural and
semi-urban customers.
POSITIONING
Small House hold car
SWOT ANALYSIS
Strengths Eco friendly No running cost Green project Weaknesses Cloudy days (can be overcome by electrical additions)
Top speed 30-50 kms/h (two versions)
Max run 30-40 kms after one charging
Opportunities
First mover
High demand for eco friendly projects
Subsidized solar panels
Threat
MAIN COMPETITORS IN
SOLAR CAR INDUSTRY
They 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:
SUNRAYCER
ALPHA CENTAURI
AURORA
BUSINESS STRATEGY
BLUE OCEAN STRATEGY
A NEW PRODUCT IN EXISTING MARKET
MEDIA TO BE USED
NEWSPAPER ADVERTISEMENT
BUSINESS MAGAZINES
TV AD
MARKETING TOOLS
LAUNCHING A NEW BUSINESS OF SOLAR WALKING CAR:PRE-LAUNCH: ROAD SHOW LAUNCH: TEST DRIVE
POST-LAUNCH: TV ADS,RADIO ADS,SOCIAL NETWORKING SITES
MARKETING MEDIUM:
The Hindu, Times of India CNBC AWAAZ,STAR NEWS.
HR AND OPERATIONS PLAN
OF A SOLAR WALKING CAR
“SUNSHINE”
Operations plan
Market research is prerequisite
A hypothetical data is assumed (can’t spend
money in real )
Operational plan will be based upon this
research for demand of such products in the
market
Pilot testing will be done with not full setup for
meeting the demand
Demand is assumed to be 2000 cars in first
Plant
Smaller setup
10 acre land near Jalandhar area
Cost will be around 5 crores
Suppliers 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
FEASIBILITY
A 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 owner’s or director’s fund
LEGAL CONSTRAINTS
No direct legal constraints can be there
Will be a private limited company under company act
1939
Setting up a private limited company Procedure and mechanics
INCORPORATION 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
Step 2 : Acquire/ Register DSC
Acquire 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 Registration
To 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
DOCUMENT REQUIRED:
Form 1 : Application or declaration for incorporation
of a company
Form 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 - 160019
PHONE: 0172-2639415,2639416 FAX: 0172-2639416
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: Two
Minimum Paid-up Capital at the time of
registration :-
Other Important aspects
Banker to the firm (for credit period and short
term loan advancements)
Layout will include a assembly line
It will include various component to be
mounted
All these component will form the part of
engineers
Skilled workers and supervisor will work at this
Board of directors
Raman Grewal Executive director PSR : 10% Deepika Bhagat Chief operatin g officer (COO) PSR : 10% Priyanka Gupta Marketing Head PSR : 10% Deepkamal Sachdeva HR director PSR : 10% Mandeep Bhullar Managing director and CFO PSR : 10% Atul Kumar Karn Chief executive officer (CEO) PSR : 10%BOD continued….
Private company: ownership lies with BOD
Fund raising : venture capitalist, loans
advanced by directors, loans from banks
PSR = profit sharing ratio
60% with owners
COMPONENTS INCLUDE
1
. Solar Array and Power trackers 2. Batteries
3. Motor & Controller 4. Instrumentation
5. Steering and suspension 6. Brakes
1. Controller. 2. fans 3. power cable 4. AC motor 5. DC power cable
Cost of production per car
S.NO COMPONENT COST( in INR)
1 Solar Array and Power trackers 20000
2 Batteries 6000
3 Motor & Controller 10000
4 Instrumentation (chassis) 20000
5 Steering and suspension 10000
6 Brakes , Tires and Hubs 6000
MOTORS AND
CONTROLLERS
Choosing 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
SUSPENSION
Front 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 ride
DESIGN DIMENSIONS
Following are the design dimensions we set for
“SUNSHINE”:
Position Length (LTR) or Height from the ground Entire frame 5.8 m
Wheels 25 cm diameter, 10 cm thickness Driver cabin height 90 cm
Full height 1.48m Tail length 3.4m
HR plan
Will require a full fledge human resource even
during initial setup
ORGANIZATIONAL CHART
CEO & PRESIDENT VICE PRESIDENT EXECUTIVE DIRECTOR FACTORY GM R&D CENTER PRODUCTION DIRECTOR OPERATIONS TEAM QUALITY ASSURANCE TEAM PRODUCTION TEAM MAINTAINENCE TEAM SALES DIRECTORSALES DEPTT PURCHASING DEPTT
ACCOUNTS DEPTT
JOB DESCRIPTION
JOB TITLE QUALIFICATI ON KEY SKILLS REQUIRED EXPERIENC E REQUIRED SALARY OFFERED CEO/ PRESIDENT
MBA executive Leadership, Team building, project management, communicatio n skills 10-15 years Rs. 1,00,000 VICE PRESIDENT
MBA executive Management skills in requisites, leadership, communicatio n skills 8-10 years 80,000 EXECUTIVE DIRECTOR
MBA executive Management of HR deptt, Quality and Operations
JOB TITLE QUALIFICATI ON KEY SKILLS REQUIRED EXPERIENC E REQUIRED SALARY OFFERED FACTORY GM MBA Training, Selecting, Motivating plant supervisory 4-5 years 50,000 PRODUCTIO N DIRECTOR MBA (operations) Practical knowledge of working with production team 4-5 years 50,000 SALES DIRECTOR MBA (marketing) Efficient managemen t of sales team, purchasing & accounts deptt 4-5 years 50,000
LEAVE POLICY
Earned 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 weeks
Permanent employee : 15-18 days ( max 3
FINANCIAL PLAN
INITIAL INVESTMENT
Start-up Requirements Start-up Expenses Legal $5,000 Insurance $10,000 Rent $5,000 Computer $10,000 Other $100Total Start-up Expenses $30,100
Start-up Assets
Cash Required $200,000
Start-up Inventory $30,000
Other Current Assets $10,000
Long-term Assets $2,000,000
Total Assets $2,240,000
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000
Sales forecast
Sales Forecast FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Unit Sales Version A 2,000 2,900 5,000 6,500 7,000 Version B 1,500 2,200 3,000 3,500 4,000Total Unit Sales 3,500 5,100 8,000 10,000 11,000
Unit Prices FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Version A $2,000.00 $2,000.00 $2,000.00 $2,000.00 $2,000.00 Version B $2,600.00 $2,600.00 $2,000.00 $2,000.00 $2,000.00 Sales Version A $4,000,00 0 $5,800,00 0 $10,000,0 00 $13,000,0 00 $14,000,0 00 Version B $3,900,00 0 $5,720,00 0 $6,000,00 0 $7,000,00 0 $8,000,00 0 Total Sales $7,900,00 0 $11,520,0 00 $16,000,0 00 $20,000,0 00 $22,000,0 00
Direct Unit Costs FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Version A $1,300.00 $1,300.00 $1,300.00 $1,300.00 $1,300.00
Version B $1,560.00 $1,560.00 $1,200.00 $1,200.00 $1,200.00
Direct Cost of Sales
Version A $2,600,00 0 $3,770,00 0 $6,500,00 0 $8,450,00 0 $9,100,00 0 Version B $2,340,00 0 $3,432,00 0 $3,600,00 0 $4,200,00 0 $4,800,00 0
Subtotal Direct Cost of Sales $4,940,00 0 $7,202,00 0 $10,100,0 00 $12,650,0 00 $13,900,0 00
Yearly Sales
$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Version A Version BKey financial Indicators
0.0 0.5 1.0 1.5 2.0 2.5 3.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Break Even Analysis
Break-even Analysis
Monthly Units Break-even 32
Monthly Revenue Break-even $72,506
Assumptions:
Average Per-Unit Revenue $2,257.14
Average Per-Unit Variable Cost $1,411.43
BE continued…
($30,000) ($25,000) ($20,000) ($15,000) ($10,000) ($5,000) $0 $5,000 $10,000 $15,000 $20,000 0 10 20 30 40 50Monthly break-ev en point
Pro Forma Profit and Loss
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Sales $7,900,000 $11,520,000 $16,000,000 $20,000,000 $22,000,000
Direct Costs of Goods $4,940,000 $7,202,000 $10,100,000 $12,650,000 $13,900,000
Production Payroll $115,000 $128,000 $141,000 $152,000 $154,000
Other 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 $14,084,000
Gross Margin $2,825,000 $4,168,000 $5,736,000 $7,173,000 $7,916,000 Gross Margin % 35.76% 36.18% 35.85% 35.87% 35.98% Operating Expenses
Sales and Marketing Expenses
Sales and Marketing Payroll $130,000 $160,000 $180,000 $195,000 $210,000
Advertising/Promotion $20,000 $22,000 $25,000 $28,000 $30,000
Other 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 $285,000
Sales and Marketing % 2.28% 1.88% 1.51% 1.32% 1.30%
General and Administrative Expenses
General and Administrative Payroll $100,000 $120,000 $130,000 $140,000 $150,000
Marketing/Promotion $3,000 $3,200 $3,600 $3,700 $4,000
Depreciation $5,000 $6,000 $7,000 $8,000 $9,000
Rent $25,000 $30,000 $35,000 $40,000 $45,000
Other 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 $218,000
General and Administrative % 1.77% 1.45% 1.15% 1.00% 0.99%
Other Expenses: Other Payroll $0 $0 $0 $0 $0 Consultants $5,000 $6,000 $7,000 $8,000 $9,000 Other Expenses $1,000 $1,200 $1,500 $1,700 $1,800 --- --- --- --- ---
Total Other Expenses $6,000 $7,200 $8,500 $9,700 $10,800
Other % 0.08% 0.06% 0.05% 0.05% 0.05%
--- --- --- --- ---
Total Operating Expenses $326,000 $390,900 $434,100 $473,400 $513,800
Profit Before Interest and Taxes $2,499,000 $3,777,100 $5,301,900 $6,699,600 $7,402,200
EBITDA $2,504,000 $3,783,100 $5,308,900 $6,707,600 $7,411,200 Interest Expense $221,510 $221,510 $221,510 $221,510 $221,510 Taxes Incurred $683,247 $1,066,677 $1,524,117 $1,943,427 $2,154,207 Net Profit $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483 Net Profit/Sales 20.18% 21.61% 22.23% 22.67% 22.85%
Profit Yearly
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Gross Margin Yearly
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Projected Cash Flow
Pro Forma Cash Flow
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Cash Received
Cash from Operations
Cash Sales $5,925,000 $8,640,000 $12,000,000 $15,000,000 $16,500,000
Cash from Receivables $1,651,319 $2,731,681 $3,816,444 $4,836,111 $5,418,056
Subtotal Cash from Operations $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056
Additional Cash Received
Subtotal Cash Received $7,576,319 $11,371,681 $15,816,444 $19,836,111 $21,918,056
Expenditures FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Expenditures from Operations
Cash Spending $345,000 $408,000 $451,000 $487,000 $514,000
Bill Payments $5,907,654 $8,591,202 $11,916,404 $14,937,998 $16,442,714
Subtotal Spent on Operations $6,252,654 $8,999,202 $12,367,404 $15,424,998 $16,956,714
Subtotal Cash Spent $6,252,654 $8,999,202 $12,367,404 $15,424,998 $16,956,714
Net Cash Flow $1,323,665 $2,372,478 $3,449,041 $4,411,113 $4,961,342
Projected Balance
Pro Forma Balance Sheet
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Assets Current Assets Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639 Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389 Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320
Long-term Assets
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000
Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000
Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320
Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Current Liabilities
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745
Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100 Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845 Paid-in Capital $0 $0 $0 $0 $0 Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992 Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483 Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320
Pro Forma Balance Sheet FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Assets Current Assets Cash $1,523,665 $3,896,144 $7,345,184 $11,756,297 $16,717,639 Accounts Receivable $323,681 $472,000 $655,556 $819,444 $901,389 Inventory $411,667 $600,167 $841,667 $1,052,083 $1,157,292
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $2,269,012 $4,978,310 $8,852,407 $13,637,825 $18,786,320
Long-term Assets
Long-term Assets $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Accumulated Depreciation $5,000 $11,000 $18,000 $26,000 $35,000
Total Long-term Assets $1,995,000 $1,989,000 $1,982,000 $1,974,000 $1,965,000
Total Assets $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320
Liabilities and Capital FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Current Liabilities
Accounts Payable $479,769 $694,154 $1,004,978 $1,247,733 $1,360,745
Current Borrowing $100,000 $100,000 $100,000 $100,000 $100,000
Other Current Liabilities $5,000 $5,000 $5,000 $5,000 $5,000
Subtotal Current Liabilities $584,769 $799,154 $1,109,978 $1,352,733 $1,465,745
Long-term Liabilities $2,115,100 $2,115,100 $2,115,100 $2,115,100 $2,115,100 Total Liabilities $2,699,869 $2,914,254 $3,225,078 $3,467,833 $3,580,845 Paid-in Capital $0 $0 $0 $0 $0 Retained Earnings ($30,100) $1,564,143 $4,053,056 $7,609,329 $12,143,992 Earnings $1,594,243 $2,488,913 $3,556,273 $4,534,663 $5,026,483 Total Capital $1,564,143 $4,053,056 $7,609,329 $12,143,992 $17,170,475
Total Liabilities and Capital $4,264,012 $6,967,310 $10,834,407 $15,611,825 $20,751,320
Valuation
Investment Analysis Start FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Ending Valuation $0 $0 $0 $0 $0 $17,591,000 Combination as Income Stream $0 $0 $0 $0 $0 $17,591,000Percent Equity Acquired 35%
Net Present Value (NPV) $9,929,661
Assumptions
Discount Rate 10.00%
Valuation Earnings Multiple 10 10 10 10 10
Valuation Sales Multiple 2 2 2 2 2
Calculated Earnings-based Valuation $15,940,000 $24,890,000 $35,560,000 $45,350,000 $50,260,000 Calculated Sales-based Valuation $15,800,000 $23,040,000 $32,000,000 $40,000,000 $44,000,000
