Leadership

Assignment Taken

Summarizing the case and provide appropriate solution and conclusion

Case Understanding

Case Understanding: The case study is all about scope of renewable energy in India. India’s total market share in vehicles is near about 230 million. Automobile sector is moving towards renewable source of energy that’s why they moved towards electric vehicle rather than petrol or diesel vehicles. India’s market of electric vehicles is still in infant stage and has very good growth opportunities. Government of India is also planning to cover total market of electric vehicle near about 30% by the end of 2030. This target is achieved by launching of electric two wheelers, three wheelers or commercial vehicles. According to the above case, giants players like Tesla, Tata, Toyota and many more took several steps in this direction and they are in growth stage. But Indian market is still in infant stage and it still has many more things to be achieved. Peoples of India are still in dilemma that whether we should adopt the electric vehicles or not because of several reasons which may be: • More habitual of petrol/ diesel vehicles • More innovation are still required in electric vehicles segments • Not having resources like charging station, poor body of vehicle and many more As mentioned above that there is still very high growth potential in Indian market for electric vehicle, so we as an Indian electric vehicle producer have a growth opportunities and we have to develop a business related to electric vehicle because this is the future. Also in the case it is mentioned that we are a team of 8 budding entrepreneurs and we have 40 lakhs of corpus fund and we can raise 60 lakh loans from the bank if needed at the rate of 16% p.a. If our partners wants to work with us at work from office se we have to pay 3000/ workstation and average financial expense for our staff members can be maximum 50000 which is all up to us like we want to pay now or later. One of our team members is also having experience in making electric vehicle prototype as a college project so we have to prepare our plan and will have to choose a perfect business in electric vehicle because electric vehicle is future.

BCS Solution Summary

The current situation in our country due to this pandemic has seriously harmed our economy. But amid the uncertainties because of the epidemic situation, there is still a ray of hope for electric vehicle manufacturers in boosting the growth of the EVS market. But Indian electric vehicle revolution has come to halt due to the covid-19 lockdown. The mobility sector is a massive customer base for electric vehicle manufacturers that have been harmed heavily. The situation in our country is a little different as compared to other countries. Because the Indian auto industry was going through a tough phase before the crisis of this pandemic came. But times will change and that hope was given by Balbir Singh Dillon, head of Audi India, who said that electric vehicles are already on their way, but the important thing is the market, and it is not a piece of cake, it takes some time to Adopt EVs Infrastructure. But in India there are several weak points which affect the thinking of the Indian customers to move towards electric vehicles which are:  More habitual of petrol/ diesel vehicles  More innovation are still required in electric vehicles segments  Not having resources like charging station, poor body of vehicle and many more But to start our venture or business we are moving with production of 3 wheelers as market of three wheelers is not hit as much. Present market producer of electric vehicle are focusing on E-Rickshaws. Firstly our motive is to get stable in the Indian market by producing electric auto. That electric auto will gave best battery backup with the average speed of 40kmph. Also it can touch maximum speed of 80kmph. This auto may come in 2+ vertical that is base model and with premium version with added features and cost and prices will change accordingly. We can also focus on several businesses model for the expansion which are:  Public EV charging Stations  Battery recycling Business  Battery swapping Technology  solar electric vehicle charging  Home charging stations  EV Equipment Manufacturing  EV Franchise and Dealership Out of several models we will choose Public EV charging station to expand our market after 2-3 years down the line. If publically EV charging station will be there then peoples buying habit will change and they can easily shifted towards electric vehicle. And government of India is also focusing on electric vehicles and also they are providing subsidies to producer as well as customers so it will gave advantage to both the parties and this subsidy will also serves as our additional income to meet our expenses. So, by introducing Electric autos we get entry into the market of Electric vehicles (as currently there is no other producer of electric three wheelers in Auto segment in India) and after getting name in 2-3 years we can expand our business towards Public EV charging station.

Solution

Case Understanding:

The case study is all about scope of renewable energy in India. India’s total market share in vehicles is near about 230 million. Automobile sector is moving towards renewable source of energy that’s why they moved towards electric vehicle rather than petrol or diesel vehicles. India’s market of electric vehicles is still in infant stage and has very good growth opportunities.  Government of India is also planning to cover total market of electric vehicle near about 30% by the end of 2030. This target is achieved by launching of electric two wheelers, three wheelers or commercial vehicles.

According to the above case, giants players like Tesla, Tata, Toyota and many more took several steps in this direction and they are in growth stage. But Indian market is still in infant stage and it still has many more things to be achieved.

Peoples of India are still in dilemma that whether we should adopt the electric vehicles or not because of several reasons which may be:

• More habitual of petrol/ diesel vehicles
• More innovation are still required in electric vehicles segments
• Not having resources like charging station, poor body of vehicle and many more

As mentioned above that there is still very high growth potential in Indian market for electric vehicle, so we as an Indian electric vehicle producer have a growth opportunities and we have to develop a business related to electric vehicle because this is the future.

 

Also in the case it is mentioned that we are a team of 8 budding entrepreneurs and we have 40 lakhs of corpus fund and we can raise 60 lakh loans from the bank if needed at the rate of 16% p.a. If our partners wants to work with us at work from office se we have to pay 3000/ workstation and average financial expense for our staff members can be maximum 50000 which is all up to us like we want to pay now or later. One of our team members is also having experience in making electric vehicle prototype as a college project so we have to prepare our plan and will have to choose a perfect business in electric vehicle because electric vehicle is future.

 

 

 

 

 

 

 

 

 

 

 

 

Proposal for Fund Raising

 

Our Project

 

According to the case study which is based on the renewable energy and electric vehicles. Our Team Arsenal has decides to focus our business on the three wheeler Electric Vehicles as there are very less competitors and huge growth opportunity due to the huge population and increasing GDP and the Per Capita Income of the individuals. Which will directly lead to increase in the purchasing power of the all individuals. So there are huge opportunities regarding the same. As this will lead to requirement of huge investment for the same purpose.

Through growing and developing of the Indian Economy our Startup will lead to huge achievement.

 

Importance

 

This will be an alternative to the renewable energy as it is a scarce resources.

Focusing on the future Perspective of India there are huge growth opportunity in the same.

As in the data Electric Vehicle Market have grown up to 4times within few years.

This will also reduce the transportation cost.

Electric Vehicles will be 100 percent Eco-friendly as they run on power engines.

Electric Vehicles are safest vehicles to ride.

It also Reduces Noise pollution in the environment.

 

FUND REQUIRED

 

We need a total of approximately fund of INR 1, 10, 00,000 Or USD 11 Million for basic requirement for setting up and running the business. Which will include the followings:-

 

• Initial Investment
• Marketing Expense
• Production Expense
• Human Resource Expense
• Financial Expense
• Charging Station Expenses
• Research and Development Expense
• Patents and Copyrights
• Legal Expenses

 

We also will be required amount for various different types of expenses incurred on day to day and maintenance expenses.

 

OUTCOME

 

We can use your Fund for direct and positive impact on developing and providing best quality and services, to become the market leader in the three wheeler Electric vehicle market.

 

 

 

 

Overview of the Financial target, Product Mix & Expansion Plan for Next 5 Year

 

Financial Targets

 

Increasing the sales volume 10% every year for few initial years.

Reducing the expenses by minimum 1%.

Optimizing the Product and Service Pricings compared to its competitors.

Improves Profit Margins through Customer Satisfaction.

Reduction of cost of capital.

Expansion of the business on the same lines

Increase in the charging station availability.

Managing the Debt Services.

Generating Cash Flow for the business.

 

 

Product Mix

 

Our company will be focusing on basically two products at initial stages and later on will diversify based upon the growth of the company.

 

• Base Product of three wheeler
• Premium Product of three wheeler.

 

Expansion Plan

 

Our company will not focus on Expansion for first two year as company will be focused on providing best services and product to acquire a good market share in the industry and against its competitors.

 

After 2 years company will focus on its Expansion of business as follows:-

 

• Expanding the Product Mix
• Expanding the Market Size.
• Entering to new market.
• Developing new routes and plans for reduction of cost.
• Generating wealth for the stakeholders.
• From Concepts to Execution.
• Paying off debts.
• Offering Technology and Models exchange

 

 

 

 

 

 

 

 

 

 

Hiring, Training and Retention Strategy

Budget -20 Lakhs

 

Hiring Plan

Determining the budget for payroll

Identify the man audit resource

Create Job description

Sourcing of a candidate

Screening Process

Interviewing the candidate

References

Offer letter for selection of candidate

Onboarding

Will be focusing on following factors:

• Positions and Departments
• Timings of payroll
• Annual salary
• Starting date

Training and Development Strategy

Training is a continuous learning process for improvement and modification of the organization.

 

 

Our Organization will be focus on following steps of training:

• Orientation
• Analyze your needs and goals
• Identify the skill gaps
• Planning and Delivery of training

 

Our Organization will be focusing on Internal Training.

Internal Training: It involves strategies that involves the own resources of an organization.

• It will be cost effective
• Company Specific Goals
• Encourages team building
• Increased Productivity and economical beneficial

For the effective training, we will be focusing on various training methods:

• Internship: It will provide the situation for learning approach and understand the working behavior of an employee.
• Mentoring: It will focus on grooming people for growth and development opportunities.
• Team Training: It will help to establish the relationship and connect with teams.

 

 

Retention Plan

It will help to reduce the turnover ratio of an employee, prevent attrition and increase the employ engagement.

• Helps in lowering hiring cost
• Stronger work relationship

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARKET ENTRY: THREE-WHEELER ELECTRIC VEHICLE

THE TOTAL MAKET OF THREE-WHEELER IN INDIA IS APPROXIMATELY 701000 THREE VEHICLES, AN AS A NEW PLAYER IN ELECTRICAL SEGMENT WE ARE VERY POSITIVE OF CHANGING SCENERIO THAT THE MARKET WILL GOING TO CHANGE TO ELECTRICAL VEHICLE AND MORE DEMAND OF ELECTRIC VEHICLE IS GOING TO BOOM, AND THAT’S WHAT GIVES US AN VISION TO FOCOUS ON ELECTRICAL THREE-WHEELER

BUSINESS GOAL FOR EXPANSION:

OUR COMPANY IS FOCUSED TO GET 40 THREE WHEELERS MANUFACTURE AND SOLD INITIALLY IN FIRST YEAR AND WILL USE THE MONEY THAT WE WILL GET AFTER SALE IN FUTURE PLANNING TO CAPTURE MORE MARKET.

TARGETED LEVEL OF SALE FOR FIRST YEAR IS 40 THREE WHEELERS (ELECTRIC VEHICLE)

TARGET MARKET IS AUTO WALA’S AND PICKUP TEMPO (ELECTRICAL)

SIZE OF THE MARKET IS APPROXIMATELY 701000 AND WE ARE HOPING THAT IN INITIAL YEAR WE WILL CAPTURE THE MARKET OF APPROXIMATELY 100 THREE WHEELERS SELLING

OUR MODE OF ENTRY IS GOING TO BE FIRST CREATING DEMAND THEN WORK ON SUPPLY

IT WILL GOING TO COST US APPROXIMATELY 60 LAKHS IN INITIAL YEAR.

 

DISTRIBUTION STRATEGY:

DEMAND & SUPPLY

FIRST CREATING DEMAND AND THEN WORK ON SUPPLY,

IN INITIAL YEAR OUR DISTRIBUTION IS GOING TO BE ZERO LEVEL OF DISTRIBUTION I.E FROM MANUFACTURING UNIT TO BUYER,

FIRST ORDER THEN MANUFACTURE THEN DIRECT DISTRIBUTION TO THE BUYERS

IT WILL SAVE US FROM VARIOUS COST LIKE WAITING COST AND MIDDLE-MEN COST.

 

BRAND BUILDING PLAN:

WE ARE CUSTOMER CENTRIC ORGANISATION AND ONLY FOCOUSES ON PROVIDING BEST PRODUCT AND SERVICES EXPERIENCE TO OUR BUYERS THAT WILL CREATE FOLLOWING THINGS I.E,

1. WORD OF MOUTH
2. BEST SERVICES BEFORE SALES AND AFTER SALES
3. CUSTOMER CARE
4. INTEGRATED DIGITAL MARKETING
5. ENVIRONMENT FRIENDLY

COMBINATION OF ABOVE ARE GOING TO BE OUR BRAND BUILDING PLAN.

 

 

UNIQUE SELLING PROPOSITION THAT WILL GOING TO HELP TO INCREASE OUR THREE WHEELERS ELECTIC VEHICLE

WE ARE GOING TO PROVIDE VARIOUS USP’S RELATED TO OUR PRODUCT LET SEE,

1. BEST BEFORE/AFTER SALE SERVICES I.E PURE CUSTOMER CENTRIC
2. BEST BATTERY BACKUP IN COMPETITIVE RANGE
3. LOW PRICE VEHICLE IN COMPETITIVE PRICE
4. LUCRATIVE EMI OPTIONS FOR ALL TARGET MARKET
5. PREMIUM AND BASIC VERSION OF VEHICLE IS MADE ACCORDING TO REQUIREMENT

SO ABOVE ALL ARE GOING TO BE OUR USP’S FOR ENTERING INTO MARKET AND TO INCREASE THE SALES OF OUR COMPANY IN A COMPETITIVE MARKET.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market analysis for electric 3 wheelers

The predicted growth of the 3 wheeler electric Auto is 45.0% CAGR during the forecast period with its fleet size reaching 635.9 thousand units by 2027. After 2018 due to government initiative and urbanization there has been an incremental growth in the 3 wheelers electric business. The 3 wheeler electric consist of majorly e rickshaws and e autos. E-rickshaws hold the largest share in the Indian market, in terms of revenue as well as fleet size. E-rickshaws are anticipated to witness the fastest growth during the forecast period. Sealed lead acid, Li-ion, and NiMH are one of the most common battery type’s uses. Of all, sealed lead acid is the most common type of battery used in the electric two-wheelers in India. According to the voltage the market is divided / segmented into 24V, 36V, 48V, 60V, 72V. Of all 48V electric three-wheeler holds the largest share in the Indian electric three-wheeler market as it gives optimum power which helps in better performance of the vehicle.

PRODUCT DEVELOPMENT PLAN

Before the development of the rickshaws the company decides to do customer’s survey covering all aspects a person would expect from a commercial output version of the 3 wheeler electric autos. Questions regarding customers’ expectations on the type of three wheeler, maximum mileage, maximum load carrying capacity, price, etc. are taken into account. With the help of quality function deployment the results are been analysed. With the results obtained from the QFD matrix we get the various design and functional requirement. After many road test which are been carried out with different electric motors we got results for power requirement and suitable storage device are been selected. Next the theoretical design calculations and design of various necessary components like power strain parts, battery frame, etc. are made and analysed for strength and performance. For the feasibility of implementation the designs are been studied again and again. After the finalization of the design the fabrication of the parts begins. In the fabrication phase we check are design on the prototypes to look for any flaws. Safety, simplicity and reliability are been considered as important factors right from the start of the project. In between the design, performance, etc. are been checked against the survey to check whether the resulted product are according to the customers’ expectations or not.

 

 

 

 

 

The current situation in our country due to this pandemic has seriously harmed our economy. But amid the uncertainties because of the epidemic situation, there is still a ray of hope for electric vehicle manufacturers in boosting the growth of the EVS market.

But Indian electric vehicle revolution has come to halt due to the covid-19 lockdown. The mobility sector is a massive customer base for electric vehicle manufacturers that have been harmed heavily.

 The situation in our country is a little different as compared to other countries. Because the Indian auto industry was going through a tough phase before the crisis of this pandemic came. But times will change and that hope was given by Balbir Singh Dillon, head of Audi India, who said that electric vehicles are already on their way, but the important thing is the market, and it is not a piece of cake, it takes some time to Adopt EVs Infrastructure.

But in India there are several weak points which affect the thinking of the Indian customers to move towards electric vehicles which are:

• More habitual of petrol/ diesel vehicles
• More innovation are still required in electric vehicles segments
• Not having resources like charging station, poor body of vehicle and many more

But to start our venture or business we are moving with production of 3 wheelers as market of three wheelers is not hit as much. Present market producer of electric vehicle are focusing on E-Rickshaws.  Firstly our motive is to get stable in the Indian market by producing electric auto. That electric auto will gave best battery backup with the average speed of 40kmph. Also it can touch maximum speed of 80kmph. This auto may come in 2+ vertical that is base model and with premium version with added features and cost and prices will change accordingly.

We can also focus on several businesses model for the expansion which are:

• Public EV charging Stations
• Battery recycling Business
• Battery swapping Technology
• solar electric vehicle charging
• Home charging stations
• EV Equipment Manufacturing
• EV Franchise and Dealership

Out of several models we will choose Public EV charging station to expand our market after 2-3 years down the line. If publically EV charging station will be there then peoples buying habit will change and they can easily shifted towards electric vehicle. And government of India is also focusing on electric vehicles and also they are providing subsidies to producer as well as customers so it will gave advantage to both the parties and this subsidy will also serves as our additional income to meet our expenses. So, by introducing Electric autos we get entry into the market of Electric vehicles (as currently there is no other producer of electric three wheelers in Auto segment in India) and after getting name in 2-3 years we can expand our business towards Public EV charging station.

 

 

 

Conclusion

After reading the above case study and reading the solutions from all the departments we all are lend up with a solution that is our primary or first motive is to get stable in the market in the next 2-3 years after that we will be focusing on expansion plan, it can be introduction of new product or entry into new market that is launching our own electric charging station for public. To get stable in to market all our departments will be focusing on giving best services to customers in least cost Firstly we are focusing on 3 wheelers that are E-Autos because currently there is no such producer is available into market for autos. Only producer of E-rickshaws were available that’s why we choose E- autos, so for 1 year our proposal for fund raising is: 1.1 cr which will be divided into: • Initial Investment • Marketing Expense • Production Expense • Human Resource Expense • Financial Expense • Charging Station Expenses • Research and Development Expense • Patents and Copyrights • Legal Expenses Our primary target customer is rickshaw tempos, and pickup drivers and we will promote our products by: 1. WORD OF MOUTH 2. BEST SERVICES BEFORE SALES AND AFTER SALES 3. CUSTOMER CARE 4. INTEGRATED DIGITAL MARKETING 5. ENVIRONMENT FRIENDLY We also made several research in the market like which product is launched so we made several analysis on current situation and also projected demand for electric vehicles particularly in 3 wheelers and by this we all are lend with the final conclusion that demand for three wheelers will definitely goes up in the future and it is great opportunities for us to start our venture. For this our hiring plan is ready and we focused on following things: • Determining the budget for payroll • Identify the man audit resource • Create Job description • Sourcing of a candidate • Screening Process • Interviewing the candidate • References • Offer letter for selection of candidate • Onboarding For training we are focus on: On the Job Training and will focused on Internships, monitoring and team training and for retention we are focusing on lowering hiring cost and will gave non-monetary benefits to our staff members like stake in company and make them a part of decision making and in many more things. By this we will get stable in market and start our venture.

Attached File Details

Video

https://youtu.be/bDLg8IfwfMI