BUSINESS PLAN

Net
MacNet
Launches

i-book
“i-book” is a net book produced by CetNet Pvt Ltd which have following features:
 Free net connection.
 Free maintenance and insurance cover.
 Detachable solar panel & battery unit which reduces dependence on electricity.
 Polythene covers on keyboard which avoids dust & liquid entering into it.
 Flash memory as hard disc which improves performance and reduces
maintenance.
 Customization of the product via online tool.
 Delivery team within company which reduces the lead time.

Vision
“To become global top 50 IT company by 2025”
Mission Statement

To become the major Electronic company and helps every people to make best use of
technology there by improving their living condition which expedite the GDP growth
of our nation.

Punch Line :
“Every thing in a click.”

The Team
Executive Board Name
Chairman & CEO Ramadorai(Former CEO of TCS)
Director(Finance & System) Pramodh George
Director(HR) Bhavana Mohan
Director(Marketing & Sales) Aluru Sasank
Non Executive Board
CFO V. Balakrishnan(Former CFO Infosys)
Independent Directors C.Achuthan(Former SEBI Director)
Independent Directors T.N Manoharan(ICAI member)
Independent Directors Deepak Parek(Former Chairman,HDFC)
Departments
Sl No. Department Name
1 Operations & Strategy
2 HR Department
3 Finance & Auditing
4 Software Development & Training
5 Customer Service
6 R&D
7 Marketing
8 Sales
9 IMS
10 Corporate Services
11 Security Staff
12 Drivers
13 Office Cleaning Team
14 Hardware Assembling
15 Generator operator Cum Electrician
16 Auditor
17 Lawyer
18 Executive Board of Directors
19 Non Executive Board of Directors
 Salary Details

No of
employee No of Total
s employee Expense
during s for the
first during compan
Department Name 3 months 1st year CTC Calculation y
Operations & Strategy 1 3 9.00 9+2*6.75= 22.5
HR Department 1 5 9.00 9+4*6.75= 36
Finance & Auditing 1 3 9.00 9+2*6.75= 22.5
5*5+10*3.
Software Development & Training 5 15 5.00 75= 62.5
Customer Service 0 10 1.53 1.150*10= 11.5
70+5*5.25
R&D 10 15 7.00 = 101.25
Marketing 10 10 7.00 7*10= 70
Sales 0 30 4.00 3*30= 90
IMS 1 4 4.00 4+3*3= 13
3.6+3*1.35
Corporate Services 2 5 1.80 = 7.65
Security Staff 2 5 1.20 2.4+3*.9= 5.1
Drivers 2 5 1.00 2+0.75*3= 4.25
Office Cleaning Team 2 5 1.00 2+0.75*3= 4.25
Hardware Assembling 5 20 4.00 20+3*20= 80
Generator operator Cum Electrician 0 4 2.00 4*2= 8
Lawyer 1 1 6.00 6= 6
Auditor 1 1 6.00 6= 6
Executive Board of Directors
38.0
CEO & Chairman 1 1 0 38.00 38
10.0
Director (Finance & System) 1 1 0 10 10
Director (HR) 1 1 8.00 8 8
Director(Marketing & Sales) 1 1 8.00 8 8
CFO (Non Executive) 1 1 25.5 25.50 25.50
 0
Independent Directors
20.0
C.Achuthan 1 1 0 20.00 20.00
20.0
T.N Manoharan 1 1 0 20.00 20.00
20.0
Deepak Parek 1 1 0 20.00 20.00
Total Salary 700.00

Market Summary

In Past Demand was for Desktop computer. Then Laptop was very expensive. Now
laptop Sales is growing at faster rate compared to the Desktop Sales. But Laptop Prices
is still expensive compared to the desktop. We could see a similar trend in internet
usage too. In the beginning people were using dial up connection, later they moved to
broad connection now it is high speed broadband connection. It is found that 167 Crore
(25%) people in world is using internet .By knowing the fact that most of the people
uses computer for using internet different vendors come with the notebooks which are
cheap compared to laptop. But net connection is still expensive and is not available to
the common people in India. As a solution to this we launched our notebook called “i-
Book” manufactured by CetNet Company.

"i-book" is a net book produced by CetNet Company which includes

a free net connection (512 kbps) as long as you are using it. There will be Solar panel
along with an additional battery which is placed on the top of the monitor such that
solar panel lies on the top of the monitor .This unit is detachable unit so that it can be
placed outside where ever convenient and can be charged. Also the Key board will be
covered by special polythene cover so that dust as well as water will not go inside the
keyboard. There is provision to use flash memory which is good in performance .Since
flash memory is static it is having low maintenance. We plan to launch our products on
tie up with educational institutions all over Kerala and Tamilnadu .Major advantage of
this plan is you could make best use of the internet as long as you are studying base
model costing 13596/-. Later installments will diminish. No need to pay any extra
amount for internet.

Parents can also relax since there is no chance for cyber crime or
misuse as users have access only to educational & other useful sites. Also there is
provision for providing access if user specifically wants to use a restricted site.
Maintenance of "i-book" is fully taken care by the company. There will be upgrading
of "i-book" by company if required(like introduction of WIMAX).There is also the
option for customizing "i-book" over the internet as per your requirements & also to
track your product before delivery.

We (Pramodh, ,Bhavana & Sasank) will take 67 lakhs each for starting the business
and discuss with various bank for availing Entrepreneurship loan work 8 Crore rupees.
Then we invite various well experienced members to the company board. Company
will be initially set up in a rented office space in Spencer Plaza, Chennai for 1 year. HR
will hire the followings employees after the Board Meeting.

No of
Sl No. Department Name Employees
1 Software Engineers 5
2 Marketing managers 10
3 R&D 5
4 IMS 1
5 Corporate Services 2
6 Security staff 2
7 Drivers 2
8 House keeping Team 2
9 Hardware Assembling Team 5
10 Auditor 1
11 Lawyer 1
Total 36

Solar Panel will be developed by R&D Department using the Lab

facilities in IIT Chennai with the help of the Students who are doing M.S as well as
PhD. Ten Students of M.S & PhD who are willing to sign a bond for 2 years will be
hired by the company. Company employees along with IIT students will start working
on 1st November 2009. They develop Solar Panel, Battery & Battery. It will be
assembled. Then it will be thoroughly tested. If found satisfied company will apply for
the patent. Solar panel is expected to be ready by December 1st week. Then technical &
marketing team will meet ISP’s and set tie up with them for getting broad band
connection. Now we meet government officials to get subsidized internet rate since it
is for educational purpose and for the rural development. Mean time software
development team develop company website, online application for payroll as well as
online tool for customizing the product. Networking Engineer will set up the required
machines for the company employees.

Then we will conduct Board meeting to discuss the future plans. After which
the HR recruits the rest of the required people. Now company purchases 5 Maruti
Omni cars. Marketing and sales team start visiting various campus in Chennai, Salem,
Coimbatore, Trichy, Kochi, Trivandrum ,Kollam ,Calicut & Trichur .Later it will be
spread into other parts of India and world. Company will be collecting raw material
from Chennai itself. It will contact various suppliers for getting the raw materials. It
will give advertisement in Hindu, Economic times as well as leading Malayalam and
Tamil news papers for a cost of 1 Crore in the editions of the above mentioned cities.
From January 1st 2010 Company starts its production initially with order received via
online tool for customization.

In the second year Company will purchase 25 cent land in

Chennai outskirts and build its own development centre which together will cost 3.5
Crore. Also it will build a delivery office in Cochin where it invest 1Crore.Now
company will launch IPO in the market.1 Crore shares for face value of 25 rupees.
Now it will buy 25 acres of land in NH209 in Coimbatore and apply for SEZ.There it
will start its recycling unit. It will hire 25 more experienced hardware engineers for the
Recycling unit and R&D unit. It will start producing solar lamps too with automatic
 switching using light sensor specially prepared for street lights. This is in order to
diversify the risk.

Business Concept

Key technology used is solid state technology which is used in flash

memory, Software Technology for Developing the web application and Technology
developed by R&D for utilization of solar energy. It also develops battery and charging
unit. Strategies used are low cost notebook with high speed net connection, Recycling
unit in order to minimize the cost and maximize the utilization. Better security features
like covering the keyboard with cover. Better performance by using the flash memory.
Low cost by utilizing free softwares.Speedy & Safe delivery of the product by
company’s own sales and delivery unit instead of depending on other courier services.

SWOT Analysis

1. Strength

Customization of product is possible. Product demand is in sharp increase. The

research and development wing of the company is very strong and efficient. We have a
well experienced team of executive and non executive members.

2. Weakness

We have tie ups with internet service providers and financial institution which
might be a threat for the sound functioning of the company in the long run. We will
minimize this by relying on more ISP providers.

3. Opportunities
Laptop/notebook Manufactures usually supply their product via courier services which
may result in delay which reduces customer delight. In our company we have done the
forward vertical integration. Also customers are usually not satisfied because of the
low battery life. We have added solar panel in order to rectify this. Usually keyboards
get damaged due to dust as well as liquids. This will not happen since there is
polythene cover on the key board. High performance and low maintenance flash
memory hard disc also boost customer satisfaction

4. Threats

We do not have Prior experience in this sector. It’s a new company so competing with
established companies is difficult. mainly depending on Indian market, less
geographical spread.

Competition

There is heavy competition in this field from HP, Dell, Lenovo, Acer, Sony etc. But
there is huge opportunity also. Last year 1.8 million laptops were sold while almost 7
million desktops were sold in India and it is found that Laptop market is growing in a
faster pace compared to the desktops. Now net books are absorbing the market share of
laptops. And many companies are entering into notebook market.

Goals & Objectives

Five Year goals

CetNet will be supplying computers to IT companies, Banks, Railways, ISP’s etc apart
from the educational sector. It will also be providing various software solutions in
various industries. It will also launch various products utilizing solar energy.

Objectives
More than 50% of people will enjoy the right uses of internet in India. It will have a
market share of more than 25% in India. It will have a revenue of $100 million at the
end of fifth year. It will get a profit of $20million in the 5th year.

Financial Plan

First year CetNet expects sales of 96000 units (400x20x12) there by producing a PBT
of 17.47008 crores and expect the sales of 128.25 Crore.It will pay rent for 1.5 crore in
a year for an average of 12000 sq.feet of office space. It will have a salary expense of 7
crore.It spends 1 crore for advertisement and 1 crore for brand ambassador. It will pay
income tax for 5.2410240 crore and 13.05Crore as CVD & VAT. It pays 1.18 Crore as
interest for the loan.It will purchase 5 more Omni car for the sales division. Also it
purchases 4 trucks for Rs 25 lakh each. So the total cost for vechiles comes around
1.25 crore.Now the total expenditure is 76.8 cr(manufacturing cost)+2 cr for ads+7
crore salary+1.5 cr rent+1.18 cr interest+vechiles 1.25cr+8 cr loan +5.2410240 cr tax
+CVD &VAT 13.05 Crore=116.02Crore.So PAT is 12.2290560 Crore.It forecasts
sales for 2nd year and 3rd year as $40 million,$60 million respectively.

Resource Requirements

Raw materials will be collected from suppliers in Chennai. Technology required will
be developed in R&D IIT Chennai. Personnel & Resource requirements are discussed
earlier. Raw materials are finished products procured from Intel, AMD and Samsung
etc.

Risks & Rewards

If sales is not picking up as expected company will start producing solar lights and
software products and services in order to diversify risk. Loan of 8 cr will be played
back in the first year itself. Amount required further will be raised by IPO and QIP.
Key Issues

Near Term

To produce net books as per demand and avoid delivery delay. For this more no of
people will be recruited as business demands and automation will be done if required.

Long Term

Getting subsidies from government and maintaining tie up’s with ISP’s.Export forecast
in order make use of tax holiday of SEZ.we are planning to get 25 Crore via IPO from
2.5 Crore share with face value rupees 10/-. Develop modem required for internet
connection.
BEP=56000.
Units Variable Revenue(Cro
Sold cost(Crores) res)
8000 7 0
16000 10 4
24000 15 10
32000 25 20
40000 35 30
48000 45 40
56000 50 50
64000 55 60
72000 68 75
80000 76 90
88000 84 110
96000 92 128

Social Responsibility
We will spend one percentage of the company profit for lighting the streets of rural
villages using solar lamps with automatic switching.