FLY SKY PVT. LTD

Assignment Taken

Proposal for Fund Raising. Provide a detailed overview of the Financial target, Product Mix & Expansion Plan for Next 5 Year. Prepare Product development plan. Prepare an annual opera

Case Understanding

In my whole case study, I saw that Renewable energy has great scope in India. The automobile industry is one of them, auto mobile industry has expanded it by many ways in many countries like, U.S.A, U.K, CHINA, JAPAN…etc. Automobile sector has taken several giant steps in this direction around the world recently but Indian market is still at an infant stage. As compared to other countries, the market share of electric vehicles is extremely low in India. So, now this is a chance where we are going to develop electric vehicles so it can give a big fight to other countries in marketing. According to research some estimates, the total number of registered vehicles in India is 230 million and the market is growing continuously. This also leads to India's dependence on fossil fuels. Taking a reformist measure, the Government of India is aiming to promote electrical vehicle usage in the country. "The government target for 30% adoption of electric vehicles by 2030 will be majorly driven by the electrification of two wheeler, three-wheeler, and commercial vehicles. Lower rate of adoption of electric vehicles in the passenger vehicle segment is expected to have a limited impact in achieving the targets." We are a group of budding entrepreneurs & you all have discussed, researched and decided that you all should foray into any business related to "Electrical Vehicles" because you all think in unison that "this is the future". Here, we have given a corpus fund of Rs 46 Lakh, which is personal Investment, pooled by all team members & Rs. 60 Lakh loan can be arranged if need arises on 16% per annum fixed rate of interest. Our start-up acquired a coworking space for 8 people at a monthly rent of 3000/Workstation, in Bangalore City. 2 of our team members are mechanical engineers & 1 member is an electrical engineer. our start-up is also having 1 computer science graduate. 2 team members have left their marketing jobs from reputed automobile companies. Remaining 2 members have recently completed their post graduate management program. Every team member has an average monthly personal financial requirement of Rs.50 thousand, which they wish to withdraw every month from this business which seems very difficult at this point in time. our team's engineers have already designed and created a prototype electrical vehicle as a college project during their engineering courses. As our company is a start-up and doesn't have enough resources to hire in the beginning, thus you all have to decide who will take charge of which department internally. You all should divide assignments among all departments so that multiple solutions on one assignment can be avoided.

BCS Solution Summary

Our company FLY SKY PVT. LTD. Is a startup of electric vehicle charging point and we provide service and maintenance of electric vehicle. Our proposals for fund raising will be from HARE KRISHNA AUTOMOBILES, CHORD RD, RAJAJINAGAR; BANGLORE, KARNATAKA-560010 The annual budget is 7,132,100 After Expansion plan for next five years the surplus amount of the organisation is 5,240,000 For Planning of product development We will introduce the current technology used in the vehicles will be illustrated and in the second part will be clarify what the future vehicle will be like  Fast charging  Lane keeping  Automatic parking  Voice recognition  Wi-fi  Keyless entry start Product Mix decisions are broadly categorised into three: 1. Product item- Ever green charger 2. Product line- product: electric charger. Services: mobile application. 3. Product mix- a) charging point. b) cable available for all types of electric vehicle like e-rikshaw, bikes, scooters, cars etc. A market entry will be through Power ratings and Battery swapping. DISTRIBUTION STRATEGY We have to maximise our outlets to maximise sales. This is good for mass products which have to reach maximum target audience. We have to do selective distribution this includes carefully choosing multiple channels and partners. BRAND BUILDING PLAN First, we have to consider our overall business strategy. Then we have to identify our targeted clients. We have to do research our targeted client group. We have to develop our name, logo and tagline. Most importantly we have to develop our website • Features (USP's) which will be present in the vehicle and how those features will help sales. Focus on having a quality product. Help our customer to solve their problem. We should help our customers on purchases. Have high standards what we have sale. We as a company truly believes in progressive people culture. HIRING PROCESS RECRUITMENT SELECTION TRAINING COMPENSATION RETENTION PLAN Market analysis of electric vehicles Globally electric vehicles market in 2020 was 246.70 billion. Market has grown up from USD 287.36 billion in 2021 to USD 1,318.22 billion in 2028 according to the analysis data. If we talk about Indian market the sales for EV are less. Main concern in people is budget. But if we decrease the pricing for this people in India can easily afford it. And our company will work on this pricing strategy .People demanding for operating cost . Specially in youths.

Solution

• OUR PROPOSALS FOR FUND RAISING will be from HARE KRISHNA AUTOMOBILES, CHORD RD, RAJAJINAGAR; BANGLORE, KARNATAKA. 560010
• EXPANSION PLAN FOR NEXT FIVE YEARS: -

=10,600,000 (46,00,000 CORPUS FUND+ 60,00,000 LOAN AMOUNT, 16% p.a. @FIXED RATE.)

=3000*60*8 (RENT ESTIMATION FOR, 1 WORK, 8 PEOPLE STATION @3,000 p.m. FOR NEXT 5 YEARS)

= (1,440,000)

= 9,160,000 (REST AMOUNT, AFTER DEDUCTION OF RENT)

= (4,800,000) (RUPEES 25,000 ALOTTED TO EMPLOYEE FROM RUPEES 50,000 FOR PERSONAL NEEDS FOR NEXT 2 YEARS, i.e; 25,000*24*8)

=4,360,000

= 4,800,000 (REST AMOUNT FROM RUPEES 50,000 i.e; RUPEES 25,000*8*24)

=9,160,000 (REST AMOUNT FOR NEXT 2 YEARS)

• CALCULATION FOR NEXT 3 YEARS: -

=9,160,000 (REMAINING AMOUNT)

= (8,640,000) (RUPEES 30,000 ALOTTED TO EMPLOYEE FROM RUPEES 50,000 FOR PERSONAL NEEDS FOR NEXT 3 YEARS, i.e; 30,000*36*8)

=5,20,000 (REST AMOUNT)

=5,760,000 (RUPEES 20,000 ALOTTED TO EMPLOYEE FROM RUPEES 50,000 FOR PERSONAL NEEDS FOR NEXT 3 YEARS, i.e.; 20,000*36*8)

=5,240,000 (SURPLUS AMOUNT OF THE ORGANISATION)

• AN ANNUAL OPERATING PLAN FOR FINANCIAL YEAR 2021- 2022

=10,600,000 (46,00,000 CORPUS FUND+ 60,00,000 LOAN AMOUNT, 16% p.a. @FIXED RATE.)

=2,88,000 (WORK STATION RENT ESTIMATION FOR, 1 WORK STATION @3,000 p.m.*8 PEOPLES*12 MONTHS)

=10,00,000*3

=30,00,000 (ALOTTED TO MARKET DEPARTMENT, HR DEPARTMENT AND IT DEPARTMENT @10,00,000 EACH)

= 7,312,000 (SURPLUS AMOUNT OF THE ORGANISATION) =54,900+25,000+1,00,000 (RAW MATERAILS: - 5 ELECTRIC BATTERY @10,980 EACH, EV CHARGING CABLE @5,000 EACH, 10 EV REPAIRING KIT @10,000 EACH)

= (1,79,900) FINAL ESTIMATED AMOUNT OF THE ORGANISATION FOR THE GIVEN YEAR

Planning of product development

We will introduce the current technology used in the vehicles will be illustrated and in the second part will be clarify what the future vehicle will be like:

1. Looking upon all the best technologies in the past 10 years:

• Fast charging
• Lane keeping
• Automatic parking
• Voice recognition
• Wi- Fi
• Keyless entry start

All these technologies are used now a days.

2. The car of the future built accordingly to a new model that is electric, autonomous, less pollution more free time and services.

Planning of Electric vehicles:

• Enabling technologies for electric charging system.
• Survey analysis of public perception for electric cars.
• EV demand analysis.
• We look upon policies to increase EV market.
• We look the long-term impact of EV on environment.
• Then how the maximum revenue will be generated through this.
• Traffic control strategies will be there to support EV performances.

HOW DO WE DEVELOP IT?

• By Venders
• Parts (by manufacturing our own setup)
• Then share with the Head or dig companies.
• Focus on establishing good charge point coverage and plugging gaps.
• Right sizing and future proofing the charging infrastrure.

• Product Mix

These decisions are broadly categorised into three:

1. Product item- Ever green charger

2. Product line- product: electric charger.  Services: mobile application.

3. Product mix- a) charging point.

                          b) cable available for all types of electric vehicle like e-rikshaw, bikes, scooters, cars etc.

*Product mix width- ever green battery, wires, charge    controller platform, power metering, traction battery pack, charge port, onboard charger, battery(auxiliary), thermal system(cooling).

*Product mix length- charger and application.

*Product mix depth- product and services.

 

• A market entry, distribution strategy and brand building plan.

Power ratings – We will provide different power rating EV.

Battery swapping – In this we will remove EV battery from the vehicle and replaced with fully charged.

 

• DISTRIBUTION STRATEGY

 We have to maximise our outlets to maximise sales. This is good for mass products which have to reach maximum target audience.

We have to do selective distribution this includes carefully choosing multiple channels and partners.

• BRAND BUILDING PLAN

First, we have to consider our overall business strategy.

Then we have to identify our targeted clients.

We have to do research our targeted client group.

We have to develop our name, logo and tagline.

Most importantly we have to develop our website

 

• Features (USP's) which will be present in the vehicle and how those features will help sales.

Focus on having a quality product.

Help our customer to solve their problem.

We should help our customers on purchases.

Have high standards what we have sale.

We as a company truly believes in progressive people culture.

PRINCIPLES THAT WE KEPT IN MIND DURING HIRING PROCESS

• Principle of individual growth.
• Principle of allowing equal participation.
• Principle of right selection.
• Principle of incentives.
• Principle of labour management.

 

• HIRING PROCESS

As a company, we firmly believe in fostering a progressive work environment.

Our organisation ensures that a judicious (judgmental) mix of employees is maintained in their workplace by hiring multi-skilled people from both within the automobile industry and from other industries.

• RECRUITMENT

We recruit from both internal and external sources, and the structure of the company's recruitment process is governed by employment law.

Our major source of recruitment will be the internal source at the initial stages as it helps in cost cutting.

We recruit with the help of some external sources also

1. Direct marketing
2. Employee recommendations
3. Recruiting companies
4. Message boards

 

• SELECTION

After the application has been screened, we will contact the candidate for a written test. If the candidate passes the written test, they will be contacted for comprehensive interviews conducted by our engineering members. Once the candidate has passed the comprehensive interviews, the background investigation into the candidate will begin.

The candidate will receive an offer letter once the details have been validated.

For the entry-level employees, the selection process will be straightforward because they will be called for an interview and a practical exam to assess their abilities.

During the selection process, the candidate's experience is also taken into account.

• TRAINING

In house training is given to the employees by the head of their department. This training introduces the employees to the company's mission, vision, laws and regulations, as well as the company's working environment and also brief them about their roles in the organization.

Training for personal development and soft skills is also given to the employees by the human resource department as it is one of the major qualities required when you work in corporate sector.

Technology training is provided in accordance with their job title. The main goal of the training procedure will be to groom employees for greater professional performance.

• COMPENSATION

According to paysacle.com, the average wage for employees varies depending on the candidate's job profile.

In mechanical engineering, the typical monthly pay is between 20 and30 thousand.

The basic concept is that remuneration is determined by an individual's rank and expertise in a given profession.

The salary vary according to the working experience of an employee and incentives are distributed according to their contribution in the organization.

• RETENTION PLAN

To reduce the employee turnover of the company I have planed several things and made several policies which helps us in minimizing the employee turnover rate.

• There will be the staff party once in a year, which helps the employee to have better understanding of each other and this also helps in creating healthy and a friendly environment among the employees.
• A business trip is also planned for the employees once in year
• Incentives are given to employees on the basis of their performance and clints review.
• Promotion is given to the employees in monetary terms else upgrade in the designation of an employee.
• Open house is conducted on every last Sunday of the month where employees can share their problems to the human resource department.
• 2 extra leaves were given to the staff without deducting their salary.
• We give our staff the freedom to manage their work the way they want to.

 

• Market analysis of electric vehicles

Globally electric vehicles market in 2020 was 246.70 billion. Market has grown up from USD 287.36 billion in 2021 to USD 1,318.22 billion in 2028 according to the analysis data. If we talk about Indian market the sales for EV are less.

Main concern in people is budget. But if we decrease the pricing for this people in India can easily afford it .And our company will work on this pricing strategy .People demanding for operating cost . Specially in youths.

Conclusion

Hence, we conclude that as we starting a new company and our funds are limited, so we have to be careful in every stage. Our marketing strategy is to make app where we provide the service and maintenance of electric vehicle. We are making charging point for electric vehicle as maximum as we can.

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Video

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