ESVC CHAMPIONSHIP 2015

BUSINESS PLAN

TEAM NAME : ‘AADTIYAVAT’

TEAM NUMBER : 24

COLLEGE NAME : JMIT

CITY : Radaur, Yamunanagar, Haryana

 PREFACE

I am deeply gratified by the enthusiastic response shown by all the team members of my team.I feel thoroughly satisfied in presenting the
business plan in multicolour.

This business plan has been prepared to meet the requirement to set up a small scale industry. The contents have been covered in adequate depth
done by the deep research in market and it analysis throughout the country.

Although the basic structure of this business plan is maintained, both small and large that make it up to date as per the latest rate of the market

All the works and research has been deeply carried out by the market analysis in Haryana, Delhi, Pune and others parts of the country by the
team members. The rate of workers and employees has been decided according to the current rate at the particular place.

The rate of machines and tools has been decided according to the wholesale rate of the particular company.

I hope that this business plan would be beneficial to set up a small scale industry.

SHRESTH MITTAL

(Team Captain)

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 CONTENTS

TOPICS PAGE

INFRASTRUCTURE REQUIRED 4

CELLS AND DEPARTMENT 6

PRODUCTION PLANS 8

COST REPORT 14

FUTURE COMPETITORS 16

INITIAL INVESTMENT 17

SALES AND MARKETTING STRATEGIES 22

FUTURE EXTENSION PLAN 27

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INFRASTRUCTURE

Infrastructure is the basic physical and organizational structure needed for the operation of a company or enterprise. Or in other words, it is the
base of a company. That’s why a good infrastructure is required. Infrastructure includes naming of the company to employee management.

1. We will name the company as the name of our team i.e. Aadtiyavat
2. We will set up factory in Faridabad we will get land at a price of Rs 25,00,000 in Industrial Area of Faridabad as Rate of land under
HSIIDC is fixed . For Installation of cells & depts. ,electricity, water supply etc. will cost around 6,00,000 INR & machineries will cost
3,67,496.00 INR
3. Company should be registered in zonal National Small Industries Co-operation (NSIC). According to new regulations, SIC registers
new/fresh micro and small industries under Single Point Registration Scheme (SPRC) for cost INR 5000.00. It is valid for 2 years.
4. Quality is the first thing which customers prefer. An ISO certification will be cost effective means to demonstrate to customers that
quality assurance is of paramount importance to our company. ISO 9001 certificate will cost around 10,000.00 INR and this certification
is valid for 3 years only.
5. Tax Identification No. & Employee Identification No. is to be obtained from Revenue Department.
6. To ensure secure future and protection of the company against fire and other perils, we will go for company insurance with a trusted
insurance company.
7. Finance, R&D, Sales, Manufacturing etc. cells and departments will to be formed and employees will be recruited suitably.

Therefore, the whole set of works will cost around 15 lakh rupees.

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 naming of installation of cells
insurance
company & deptt

obtain tax and

factory setup employee
identification no.s

NSIC registration ISO certification

Fig : factory model

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CELLS AND DEPARTMENT
The basic structure of cells and departments of our company is governed by board of directors. Managing Director will lead the company.
Different departments of the company will be governed by their respective officer. For the ease and smooth functioning of company different
manager has been appointed who will be responsible for their respective department such as Company Secretary, Commercial Manager, Work
Manager, Development Manager, Personnel Manager, Sales Manager.

The Organisation Chart below shows the officers under whom they will be working.

PRODUCTION MANAGEMENT:-

 This department will contain work analysis, planning, scheduling, routing, production of different parts and number of parts to be
manufactured. This department will be handled by works superintendent.
DISTRIBUTION MANAGEMENT:-

 This department will deals with the distributers andretailers. The purchase manager will handle this department.
FINANCIAL MANAGEMENT:-

 This section will contain the economic forecasting, costing, accounting, budgetary control, insurance and actuarial work. The chief
accountant will manage this department.
MAINTENANCE MANAGEMENT:-

 This cell will include upkeep of building, equipment, estate work, proper working of the machines and tools etc.This department will
bedeled by the maintenance Superintendent.

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PURCHASE MANAGEMENT:-

 This section include works as tendering, buying, contract work, store keeping, store and stock control and will be handled by purchase
and store officer.
TRANSPORT MANAGEMENT:-

 This cell is responsible for transporting of go-karts and other raw material by railways, roadways, airways and shipping etc. on estimated
time and will manage by dispatch officer.
PERSONNEL MANAGEMENT:-

 The employee selection, training, promotions, discharge, industrial relations, safety, health and welfare services, etc. will introduce in
this section. This section will deal by employment and training officer and welfare officer.
OFFICE MANAGEMENT:-

 It includes planning and control of offices, keeping, records etc.Office Manager will handle this section.
MARKETING MANAGEMENT:-

 This department will contain import of raw materials, genuine parts and export of finally made go-karts. This department will also deal
with the marketing strategies to launch the product in market. The department will deal by sales officer.
PUBLICITY & ADVERTISEMENT:-

 This section includes the publicity and advertisement of go-karts by media, net, television, public awareness, etc. and will handle by
publicity officer.

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PRODUCTION PLANS
The production plan contains all the raw material to be purchased and some material to be imported for the manufacture of our solar vehicle. It
also contains the tools required for the manufacturing of our go-kart.

There would be three models to be made namely JD-A segment & JD-B segment based on the choices of the people.

RAW MATERIALS
 Seamless hollow pipes (circular)
 Aluminiumsheets
 Washers and nuts
 Tires (slick)
 Hub
 Solar panels
 Brake wire
 Disc plate
 Push rod
 Tie rod
 Steering column rod
 King pin
 Steering wheel
 Bearings

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IMPORTED MATERIALS
 Axle pipe
 Fire wall
 Battery
 Switches
 Relay
 Tail lamp
 Head lamp
 Horn
 Seat
 Seat belt
 Motors
 Batteries

TOOLS REQUIRED
 Spanner
 Ratchet set
 Hex wrenches
 Needle nose pliers
 Adjustable wrenches
 Rubber mallet

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WORKERS IN VARIOUS DEPARTMENTS

DEPARTMENT DESIGNATION NO OF EMPLOYEES

Office Senior Officer 1
Office Junior Officer 1
Office Receptionist 1
Sales Senior Sales Officer 1
Sales Junior Sales Officer 1
Finance Senior Finance Officer 1
Finance Junior Finance Officer 1
R &D Development Officer 1
R &D Design Officer 1

PROCESSES :-
1. Batch production:
Since as per customer requirements to fulfil their needs and choices, we are going for batch production.

WORKING TIME/DAY:-

The production work will be covered in one shift in 8 hours.

Starting time 9:00

Finishing time 5:30
Lunch time 45 minutes
Tea Break 15 minutes

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 i. Process
 Our primary target is to collect funds for the setup of our industry.
 Our team members will invest money.
 Fees to state paperwork & money required to form the business (vary by state to state).
 Apply for tax identification.
 Find out possible competition in our field and marketing.
 Create budget (include startup cost), salaries for workers and employers, operation cost, marketing cost.
 Calculate labor cost by determining salaries (temporary hire or a contractor )
 Material tooling.
 Facility provided for labor,
 Choosing a business location (including brand image, competition, local labour market and plan for future growth, proximity to suppliers,
safety, hidden cost, taxes and government economic incentives).
 Getting a business licenses

ii. Human Resource

It is utmost necessary to have good human resource which is responsible for the growth and development of the company in long run.
Choosing of workers and employees will depend upon following factors.

a. Education and knowledge

b. Salaries for workers ( depend upon state, working capacity & overall product manufacture by worker in one month by each worker
in other words competition between workers )
c. Facility provide.
d. Work shifting
e. Should have experience in automobile sector

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iii. Daily production
Daily production depends upon following factors

a. Demand of product in our market

b. Working capacity of workers
c. Experience of workers
d. Capacity of machines
e. Money investment

Location of factory or building

We will consider following factor while locating our factory:
a. Availability of raw material
b. In which capital we are going to locate our factory
c. Transportation cost
d. Availability of market and possible competition in our field
e. Power availability
f. Labor cost (skilled and unskilled)
g. Communication

Land requirement
we are going for a small industry so by calculating the land requirement. We found that the current value of land is very high and if we
go for construction of the building then we need to consider factory, office, canteen, power house, control room, store room, run way
(test track), parking area, first aid clinic
reception construction . So construction will cost a huge sum. Therefore we will go for land cum closed factory lease .

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 2. Monthly Production Plan
Our monthly target production is 200 solar vehicle. In case, if our factory can’t meet target, then loss will be compensated in next
months.

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COST REPORT
COST REPORT OF: SK-P1 MODEL = SINGLE SEAT, SK-P2 MODEL=AUTOMATIC+DOUBLE SEAT, ARE SHOWN IN
TABULATIONS RESPECTIVELY.

SL NO MATERIAL UNITS UNIT COST TOTAL COST

1 Engine 1 10000 10000
2 Centrifugal Clutch 1 3500 3500
3 Slick Tyres 4 1750 7000
4 Fuel Tank 1 250 250
5 Catch Can 1 25 25
6 Seat 1 300 300
7 Seat belt 1 300 300
8 Brake Assembly 1 4000 4000
9 Bearings 2 25 50
10 Plumber Block 2 100 200
11 Bigger Sprocket 1 210 210
12 Fire Extinguisher 1 240 240
13 Battery 1 300 300
14 Muffler 1 1000 1000
15 Brake Light 1 75 75
16 Air Filter 1 300 300
17 Aluminium Sheet 900
18 Asbestos Rope 20
19 M.S Plate 400
20 Fasteners 400
21 Paint 500
TOTAL COST 30,000 INR

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SL MATERIAL UNITS COST/UNIT COST
NO
1 Engine 1 10000 10000
2 Slick Tyres 4 1750 7000
3 Fuel Tank 1 250 250
4 Catch Can 1 25 25
5 Double Seat 1 450 450
6 Seat belt 2 300 600
7 Brake Assembly 1 4000 4000
8 Bearings 2 25 50
9 Plumber Block 2 150 300
10 Centrifugal Clutch 1 3500 3500
11 Bigger Sprocket 1 210 210
12 Fire Extinguisher 1 400 400
13 Battery 1 600 600
14 Muffler 1 1000 1000
15 Brake Light 1 75 75
16 Air Filter 1 300 300
17 Aluminum Sheet 900
19 M.S Plate 600
21 Fasteners 400
22 Paint 500

TOTAL COST 31,160 INR

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FUTURE COMPETITORS

ADVANCED AUTO •PUNE, MAHARASTTRA

CONCEPTS
KARTECH •BENGALURU, KARNATAKA
ENGINEERING
UNITED MARKETING
•TIRUNVELI, TAMIL NADU
SPORTS EMPORIUM
DIRT KARTS -D.R.R •LUDHIYANA, PUNJAB
ENGINEERS

FLORA ENGINEERING •NEW DELHI

EASTERN DEKARBAST •GUWAHATI, ASSAM

GO GOA -BY KERALA

AYURVEDA SALA •AHMEDABAD

BHAVNA INDUSTRIES •RAJKOT

LA SOVERIGN
BICYCLES •LUDHIYANA

MY URBAN GAMES •MUMBAI

PLAY TIME SYSTEMS •JODHPUR

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INITIAL INVESTMENT

1. TOTAL INVESTMENT IN INFRASTRUCTURE AND LAND=20,00,000.00 INR.

2. TOTAL INVESTMENT IN MATERIALS: It is the cost for production of first 50 solar vehicle of which 20 solar vehicles are JD-A
segment and30 are JD-B segment.
a. We are going to purchase some of the materials in whole-sale to reduce the expenses. The estimated cost of the materials required
for 50 karts ( i.e to meet monthly requirement) are given below:

SL NO MATERIAL USED ESTIMATED COST

1 ALUMINIUM SHEET 30000.00
2 M.S PLATE 10000.00
3 SEAMLESS TUBE 150000.00
4 FASTENERS 70000.00
5 PAINT 20000.00

TOTAL COST 280000.00

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 b. Provision will be made for urgency i.ewe will stock spare parts/material for 10 solar vehiclesand the estimated cost report of the
spare or extra units are tabulated below:

SL PARTS SPARE UNIT COST ESTIMATED COST

NO UNITS
1 UPRIGHT 10 250.00 2500.00
2 CATCH CAN 10 25.00 250.00
3 BEARINGS 40 500.00 20000.00
4 BRAKE LIGHT 20 50.00 1000.00
5 BRAKE 10 2500.00 25000.00
ASSEMBLY
6 SEAT BELT 10 200.00 2000.00
7 BATTERY 10 300.00 3000.00
8 SPROCKET 1O 21O.00 1900.00
9 WIRING SET 1 1200 1200.00
TOTAL PROVISION MADE (MONTHLY) 57850.00INR

NET INVESTMENT IN MATERIAL= 280000+57850= 3,37,850 INR

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 3. FINANCE EXPENSE (EMPLOYEES + WORKERS)

DEPARTM DESIGNATIO SALARY/EM Total no. Of TOTAL SALARY

ENT N PLOYEE employees
Office Senior Engg. 25000 3 75000
Office Junior Engg. 15000 3 45000
Office Receptionist 8000 1 8000
Sales Sales Officer 12000 2 24000
Finance Finance Officer 20000 1 20000
H.R Development 25000 1 25000
Officer
TOTAL EXPENSES IN EMPLOYEES 1,97,000 INR

(B) We are setting up two work stations at a time

SL DEPARTMENT SALARY/WORKERS NO OF TOTAL

NO WORKERS SALARY
1 Cold Working Cutting 4 8000 18 48000
process shop Shearing 2
Bending 4
Welding 2
Drilling 2
Grinding 2
2 Assembling Rear 2 8000 12 96000
Wheels
Front wheel 2
Engine 2
installation

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 Steering 2
installation
Bumper 2
lights &
accessories
Seat 2
instalation
3 Painting 4 5000 2 20000
4 Quality Checking 2 8000 16000
5 Power House 5000 1 5000
6 Cleaning & 2500 4 10000
Maintain
7 Security 4000 4 16000
2,11,000
TOTAL EXPENSE IN WORKERS INR

NET EXPENSE IN FINANCE = 2,11,000= INR

TOTAL INITIAL INVESMENT=2000000+337850+197000+211000

=9,45,850 INR

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AMOUNT

INFRASTRUCTURE AND LAND

MACHINERY
WORKERS SALARY
OFFICERS SALARY

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SALES AND MARKETING STRATEGIES

1. Advertisement
 Advertisement of our go-kart will be done through internet, television, newspaper, magazine, special campaigning, auto expo and show
our solar vehicle during national level racing.

2. Warranty* ( six months )

 We are providing six month manufacturing warranty for welding breakage & one year extended warranty for other defects such as
wiring, brake, handling defects.

3. One year health insurance

 We are providing one year insurance to provide financial protection against physical damage and or bodily injury or protection against
theft through ICICI bank licensed by the IRDA

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 4. Driving kit (helmet & gloves)
 Driving kit such as helmet and gloves are provided free of cost for driver safety on every purchase of go-kart.

5. Free test driving

 Free test driving is provided for checkout the performance of our go-kart.

6. Maximum safety for driver & more comfort

 The primary motto of our vehicle is to provide maximum safety and comfort for drivers for easy & simple driving. The front duct master
seat belt, side duct, roll hoop are additional safety features of JD model.

7. Choice based solar vehicles

 We are providing two different model of JD series based on the choices of engine, and human comfort.
SK-P1 SK-P2

 400watt solar panels  500 solar panels

 single seated,  double seated,
 750watt motor  1000watt motor
 MRP 84000/-  MRP 99000/-

8. Free Service
 We are providing free service for one year in minor damage.

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9. Other additional feature
 Low maintenance cost
 Parts can easily available in market
 Technically sound design for better stability
 Including new innovation
 Low center of gravity for fast and safe turning
 Festive-bonanza on Deewali and Pongal

10.Business Promotion
We will conduct seminars and workshop for students to improve our market and business

 Conference promotion
 Trade show display
 Telemarketing and direct mail campaigns
 Event sponsorship
 Capability document

11. Sales promotion

 On the basis of monthly sales, sellers and distributors will be gifted with exciting gift hampers. The one with highest sales throughout the
year will win a holiday package.

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*Terms and conditions:

Loss of or damage to the vehicle to the vehicle insured

a. By fire explosion self ignition or lightning

b. By burglary house braking

c. By riot and strike

d. By earthquake

e. By flood typhoon hurricane storm tempest inundation cyclone hailstorm frost

f. By accident external means

g. By malicious act

h. By terrorist activity

i. By landslides rockslides

The company shall not be liable to make any payment in respect of

a. Consequential loss, depreciation wear and tear mechanical or electrical breakdown , failure breakage
b. Damage to tires and the tubes unless the vehicle is damaged at the same time in which case the liability of the company shall be limited
to 50% of the cost of replacement.
c. Any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the
insured is under the influence of intoxicating liquor or drugs.

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Social media

Customer can connect with us on social media

http://www.Aadtiyavat.com

Facebook :-http://www.facebook.com/Aadtiyavat

Twitter:- http://www.twitter.com/Aadtiyavat

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FUTURE EXPANSION PLANS

In the second commercial year i.e. April ’16 to March ’17 , we will
NEW
increase the unit production from yearly 4000-4200 units at an
RECRUITMENTS average of 300 units per month . To meet the expected production
new workers will be recruited.

DEPARTMENT NO OF SALARY/ TOTAL

WORKERS WORKER SALARY
Manufacturing 2 8000 .00 16000.00
Assembling 2 8000.00 16000.00
Painting 1 8000.00 8000.00

PRODUCTION

INCREASE From the above table it is observed that recruitment of new

workers will increase the expense by 40,000 INR monthly, hence
4, 80, 000 INR or 14 % annually.

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 We Indians everyday experience price hike in every items
whether its food stuffs or its petrol. And as our new recruitment
plan will increase the expenses of the company by 14%, to
Introduce compensate this expense we will increase the MRP of each
new model.
models
SL NO MODEL 1ST YR MRP 2ND YR MRP
1 SK-P1 84,000 INR 89,499 INR
2 SK-P2 99,000 INR 1,21,999 INR

Our production plan for the 2nd commercial year includes

production of 150 SK-P1, 150 SK-P2 models monthly with an
increment of 5 units production of each model. Hence annual
production increment is 180 units.

Considering
We 100 plan
have a future % sales, let’s see two
to introduce the annual sales turnover
new models our company.
increment-
We will launch our new model JD-C segment which will be a mini
model run on battery power whose targeted customers are small
MODELS MONTHLY MONTHLY ANNUAL ANNUAL
children. SALES TURNOVER SALES TURNOVER
(UNITS) (INR) (UNITS) (INR)
We also have200
SK-P1 a dream to launch another model
9525690 2400 SK-P4 run by solar
114308280
energy.
SK-P2 134 6350460 1600 76205520

This will give an annual sales turnover increment of INR i.e. 31%
over 1st year sales turnover 4,40,40,000
28 INR
BACKUP PLAN

A backup plan or PLAN-B refers to a procedure to be followed in case the original plan fails. The primary objective of a backup plan is to
minimize the losses incurred due to failure of the original plan. It is expected to be fail-proof and possessing all essential traits necessary for
successful business.

In case of sudden steep decline in sales of the

STEP-1 product, manufacturing process should be halted to
completely stop production and necessary effort
should be made to promote sale of the already
manufactured units.

The initial investment on infrastructure should

STEP-2 not go in waste and the same machinery and
equipment without any major modification should
be employed to manufacture desired units.

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