PSG COLLEGE OF TECHNOLOGY

OVERVIEW

PRODUCT

MARKET ANALYSIS

THE PEGASUS POSEIDON

MANUFACTURING PROGRAMME

MONETARY PROGRAMME THE FIN-PLAN

PROMOTION PROGRAMME
THE PRO-PLAN

THE MAN-PLAN

MARKET ANALYSIS
MARKET DEMOGRAPHIC MARKET STRUCTURE

MARKET DEMOGRAPHIC
Average Age:

29.6

Average Annual Income:

`10 lakhs

RACING WINDOW: WEEKENDS Motorsport

30
Projected Viewership
*in millions per month

14
Autocross

MARKET DEMOGRAPHIC
THE MARKET

TOTAL CUSTOMERS 25000 BUSINESS CUSTOMERS 500

MARKET STRUCTURE

OLIGOPOLY

COMPETITION LG SPORTS (CHETTIPALAYAM) JAYAM AUTOMOTIVES (SINGANALLORE)

THE PEGASUS POSEIDON

THE PRODUCT SPECIFICATIONS THE PEGASUS ADVANTAGE THE TEMPTING OFFERS THE MEGA GARAGE

POSEIDON

THE CHASSIS
LIGHTWEIGHT CHASSIS
450 KG

POWER TO WEIGHT RATIO 0 TO 60 IN 3.2 SECONDS

GFRP

55 : 45

THE SUSPENSION
FRONT REAR

INBOARD

NON PARALLEL

UNEQUAL A ARM

58 MM TRAVEL

PUSHROD ACTUATED

IN PEGASUS WE TRUST
STEEL IMPACT ATTENUATOR

SAFETY RELIABILITY
GRPF FIREWALL

QUALITY

100% RELIABLE

E-REGISTER FOR COMPLAINTS

24 X 7 TELEPHONE SERVICE

ONLINE PORTAL

A LASTING RELATIONSHIP

VIDEO AND AUDIO TUTORIALS

MAINTENANCE

FORUM FOR ACTIVE DISCUSSION

REPAIR
TUNING GUIDES

THE ONLINE PORTAL

www.psgpegasusracing.com

THE MEGA GARAGE

2 INSPECTIONS / YEAR RECOMMENDED

TOOL KIT

SERVICE MANUAL HANDBOOK

IN-FACTORY REPAIR SERVICES

ON SOLID GROUND CAREFUL ANALYSIS

THE MAN-PLAN
PRODUCTION PHILOSOPHY & CONCEPT PLANTS & TRACKS THE SUPPLIERS THE ORGANIZATION THE PLAN

I think the environment has become more competitive. That has made Indian industry more concerned with a) its customers, b) the quality of its products, and c) its brand image in the marketplace.

QUALITY
COST EFFECTIVENESS

RISK
MINIMIZATION

OUR PHILOSOPHY

CSR

FRUGAL ENGINEERING

GLOBALIZATION

PRODUCTION CONCEPT
HOLISTIC DESIGN PHILOSOPHY BATCH PRODUCTION CONCURRENT ENGINEERING MODULAR DESIGNS

5S

JUST IN TIME

IN LINE SEQUENCING

FUNCTIONAL ORGANIZATION

PLANT LOCATIONS
MANUFACTURING: CHETTIPALAYAM, COIMBATORE 1,00,000 sq. ft

SKILLED LABOUR LAND AVAILABILITY LOW FACTOR COST SUPPLIER COMFORT ASSEMBLY: ORAGADAM, CHENNAI 20,000 sq. ft
CHEAP SHIPPING COSTS CHEAP LABOUR SOUND INFRASTRUCTURE

THE TRACK ADVANTAGE

KARI MOTOR SPEEDWAY, COIMBATORE

THE SUPPLIERS
THE

DHANAM AUTO STORES NSN ENGINEERING TIRUMAL TOOLS AND HARDWARES BALAJI TOOLS
ASSURANCE

DHARMARAJ HARDWARES PIONEER WELDING HOUSE

ADITYA AUTO STORES

ORGANIZATIONAL STRUCTURE
CHAIRMAN

CFO

CEO

PRODUCTION MANAGER

MARKETING MANAGER

R&D MANAGER

THE MANPOWER
Sales & Marketing Research & Development

Administration

Production

Chairman - 1

Manager - 1

Manager - 1

Manager - 1

Staff - 2 (CEO & CFO)

Staff - 4

Staff - 10

Staff - 2

Total : 22

PRODUCTION PLAN
Engine, Transmission, Roll Cage, Suspension Brakes, Radiator, Tanks, Electronics, Quality Assessment and Control

5 people
8 hour days 5 day weeks

3 people
20 cars / week 80 cars / month

2 people
960 cars / year

THE FIN-PLAN
COST ESTIMATION PRICING START-UP COST (ESTIMATED) SALES PROJECTION AND BREAK EVEN POINT (PROJECTED) NET PRESENT VALUE (PROJECTED) RETURN ON INVESTMENT (PROJECTED)

COST ESTIMATION
PRODUCTION PLAN TARGET: 4 CARS / DAY COST ESTIMATE PER YEAR PLANT MACHINERY WAREHOUSE MACHINERY CALCULATIONS MACHINERY WELDING MC DRILLING MC CUTTING MC GRINDING HAND DRILL PNEUMATIC WRENCH ALIGNMENT MEASURING MEASURING INSTRUMENTS GENERAL TOOLSET BODY FAB EQUIP TESTING EQUIP Total QUANTITY 4 4 4 4 4 4 1 2 4 1 1 COST/QUANTITY (` x 1000) 25 22 7 4.5 3 7.5 12 3 5 50 200 TOTAL COST (` lakhs) 100 88 28 18 12 30 12 6 20 50 200 564 IN LAKH RUPEES TOTAL 10 5.64 5 21. 64 lakh rupees

COST ESTIMATION
PRODUCTION PLAN TARGET: 4 CARS / DAY COST ESTIMATE PER YEAR PLANT MACHINERY WAREHOUSE MACHINERY CALCULATIONS MACHINERY WELDING MC DRILLING MC CUTTING MC GRINDING HAND DRILL PNEUMATIC WRENCH ALIGNMENT MEASURING MEASURING INSTRUMENTS GENERAL TOOLSET BODY FAB EQUIP TESTING EQUIP Total QUANTITY 4 4 4 4 4 4 1 2 4 1 1 COST/QUANTITY (` x 1000) 25 22 7 4.5 3 7.5 12 3 5 50 200 TOTAL COST (` lakhs) 100 88 28 18 12 30 12 6 20 50 200 564 IN LAKH RUPEES TOTAL 10 5.64 5 21. 64 lakh rupees

PRICING
COSTS INCURRED OF PROTOYPE - OEM PARTS - PARTS MANUFACTURED OUTSIDE - CASTING TOTAL COST OF VEHICLE VALUED AT (`) 3,68,970.16 20,000 15,000 15,000 4,08,970.16

PRICING
COSTS INCURRED OF PROTOYPE - OEM PARTS - PARTS MANUFACTURED OUTSIDE - CASTING TOTAL COST OF VEHICLE

20% SAVINGS VALUED AT (`) 3,68,970.16 20,000 15,000 15,000 4,08,970.16

PRICING
COSTS INCURRED OF PROTOYPE - OEM PARTS - PARTS MANUFACTURED OUTSIDE - CASTING TOTAL MANUFACTURING COST PLANT AND WAREHOUSE VALUED AT (`) 1,50,000 20,000 15,000 15,000 1,00,000 15,000

LABOUR
SALES AND ADVERTISING LOGISTICS DEALER SHARE TOTAL COST SUGGESTED PRICE PROFIT -ROYALTIES NET PROFIT

15,000
10,500 5,000 5,500 1,51,000 1,99,999 48,999 10,000

38,999

PRICING
COSTS INCURRED OF PROTOYPE - OEM PARTS - PARTS MANUFACTURED OUTSIDE - CASTING TOTAL MANUFACTURING COST PLANT AND WAREHOUSE VALUED AT (`) 1,50,000 20,000 15,000 15,000 1,00,000 15,000

LABOUR
SALES AND ADVERTISING LOGISTICS DEALER SHARE TOTAL COST SUGGESTED PRICE PROFIT -ROYALTIES NET PROFIT

26% PROFIT

15,000
10,500 5,000 5,500 1,51,000 1,99,999 48,999 10,000

38,999

START-UP COST (ESTIMATED )

COSTS INCURRED PLANT, MACHINERY, WAREHOUSE MANUFACTURING COST (3 months) 2 WEEKS STOCK LABOUR AND FEES(3 months) SALES AND ADVERTISING LOGISTICS (3 months) DEALER SHARE (3 months) ROYALTY MISCELLANEOUS / CONTINGENCY ESTIMATED START-UP CAPITAL VALUED AT (`) 21,64,000 2,40,00,000 40,00,000 54,00,000 (36,00,000 + 18,00,000) 1,00,80,000 12,00,000 13,20,000 10,00,000 5,00,000 4,96,64,000

SALES PROJECTION & BREAK-EVEN POINT

SALES PROJECTIONS
900
800 700

MONTH

CARS SOLD

1
2 3 4 5
CARS SOLD

21
40 108 179 252

CARS SOLD

600 500 400 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12

6
7 8 9 10 11 12

327
407 480 560 620 700 780

MONTH

SALES PROJECTION & BREAK-EVEN POINT

SALES PROJECTIONS
900
800 700

MONTH

CARS SOLD

1
2 3 4 5
CARS SOLD

21
40 108 179 252

CARS SOLD

600 500 400 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12

6
7 8 9 10 11 12 BREAKEVEN POINT

327
407 480 560 620 700 780

MONTH

NPV (PROJECTED)
NET PRESENT VALUE (`) DISCOUNT RATE 10 LIFE OF PROJECT 10 (SAY) INITIAL COST -4,96,64,000 CASH FLOW 1 21,405,218 CASH FLOW 2 30,419,220 CASH FLOW 3 30,419,220 CASH FLOW 4 30,419,220 CASH FLOW 5 30,419,220 CASH FLOW 6 30,419,220 CASH FLOW 7 30,419,220 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 % YEARS

CASH FLOW 8 30,419,220

CASH FLOW 9 30,419,220 CASH FLOW 10 30,419,220 NET PRESENT VALUE

YEAR 8
YEAR 9 YEAR 10

`129,054,391.32

PV OF EXPECTED CASH FLOWS

`178,718,391.32

ROI (PROJECTED)
RETURN ON INVESTMENT ORIGINAL INVESTMENT (`) RETURNED VALUE AFTER 10 YEARS (`) GAIN ON INVESTMENT (`) ROI (%) SIMPLE ANNUALIZED ROI (%) 4,96,64,000 29,51,78,198 245,514,198 494.4 49.4

Even at a returned value of 50% the estimated one (`14,75,89,099), the projected annual ROI is 19.7%

THE PRO-PLAN
ADVERTISING SALES PROMOTION PLANS FOR THE FUTURE

SPORTS CHANNELS

SPORTS MAGAZINES

ADVERTISING

RACING CLUBS AND FAIRGROUNDS

WEBSITES DEVOTED TO CARS

FREE ACCESSORIES

FREE INSURANCE

SALES PROMOTION

FREE SERVICE

DEALER INCENTIVES

DIVERSIFICATION

RAMP-UP PRODUCTION

PLANS FOR THE FUTURE

RACING ACADEMIES

THE PEGASUS RANGE OF ACCESSORIES

If everyone is moving forward together, then success takes care of itself.

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