Assignment Taken

Proposal for Fund Raising

Case Understanding

Renewable energy has great scope in India. In India Electric Vehicles are extremely low in India while compared to other countries, Registered vehicles in India is 230 Million from that pollutants emitted from the automobiles are hydrocarbons, lead/benzene, carbon monoxide, sulphur dioxide, nitrogen dioxide and particulate matter due to depend on fossil fuels. So 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 that goal.

BCS Solution Summary

Fund Raising Proposal - Vayu

Solution

Executive Summary

Vayu.,

Bangalore

1. Objectives

 

Vayu is a start-up consisting of eight dynamic, ambitious and hardworking team members who as a team dreams of changing the electric vehicle landscape of the country. The team is focused into developing two-wheeler electric scooters with state-of-the-art features at affordable price. The name of the start-up signifies fast and flexible like air. The model names depict the smartness through electric system. The tagline of “Ab Smart Hoga India” denotes the effort made by the team to help India gain the leadership position in the worldwide revolution towards electrical vehicles and at the same time the smart features embedded in the scooter.

 

The long-term focus is to be the largest and most admired electric two-wheeler maker of India in a sustainable energy efficient way.

 

The start-up aims at launching two models- Vayu Elektra and Vayu Elektra Plus. Both the models are not constrained to any gender. Electra is a premium model that targets the young to middle age tech-savvy customer, belonging to Social Economic Category A1, A2, A who would want to portray this scooter as a part of their style statement and would enjoy fast rides with their near and dear ones. On the other hand, the model Vayu Elektra and Vayu Elektra Plus is perfect example of conjunction of efficiency, smartness and affordability. Common people, who wants an economic ride with latest functionalities. The targeted customer segment would be college goers, other people belonging to Social Economic Category B1, B2, B.

 

The primary objective of the company is to secure VC funding to arrange enough money for R&D, manufacturing and marketing expenses.

 

Expansion plan for the EV’s in Bangalore in the year of 2020-2021

 

·         Design

·         Product Development

·         Program Development

·         Financial target plan for next 5 years

·         Operating Plan for this year

·         Hiring, Training & Retention plan

·         Market analysis

 

We have an investment opportunity of corpus fund of Rs 46 Lakhs in personal investment and pooled by all team member of Rs 60 Lakhs Loan on it. We Have to expansion plan of making electric vehicle in Bangalore city

 

1.0 Keys to Success

Our keys to success points are:

                • Excellent product and service that will build and maintain customer loyalty.

                • A business location that will have investment friendliness

                • Proven management ability to successfully run a similar business.

                • Our commitment to continuous improvement and total quality services.           

 

1.1  Products and Services

Our organization is coming up with two types of models:

MODEL 1 - VAYU ELEKTRA PLUS

          This is our premium product with all advance features in it. This model will include smart screen which will allow our customers to get connected with the App, GPS navigation via Bluetooth Connection.

          This model also carries a good battery backup to improve the working of smart screen.

 

MODEL 2- VAYU ELEKTRA

          This model will be available in middle range says 60000 to 70000. This model does not include smart screen which will decrease its price from our premium product

1.2 Strategy and Implementation Summary

Our strategy is based on EV’s production & Product a strong customer value proposition in a niche market. We are looking to Hyderabad city and its surrounding areas.  I will give rationale behind choosing Hyderabad.

We intend to use various forms of marketing communication as an efficient way to reach our target market and raise their awareness of Ev’s Vehicle and their usage, service & process in current situation

Adequate funding has been accounted for when projecting the promotion expenses. We intend to spend the marketing value in the most cost-effective way. Therefore, many other advertising options will be evaluated during the project implementation, to make sure that we achieve best results.

 

2.0 SWOT Analysis

The SWOT analysis provides us with an excellent opportunity to examine and evaluate the internal & external strengths and weaknesses. It also allows us to focus on the external opportunities presented by the business environment as well as potential threats.

 

Next sections explain major strengths, weaknesses, opportunities, and threats

2.1 Strengths

Already an existing prototype

An understanding with government, ability to design products, Indian brand which is high eco-friendliness, experience in engineering and technology, and reduction in emissions.

Clear vision of the market needs, we know the customers' needs, we are familiar with the latest technology, and we can offer the Electric Vehicle sales & services that would bring the two together

Change it according to Hyderabad

2.2 Weakness

We are Startup-limited fund

Lack of business knowledge due to inexperienced team

Limited connection capacity

Limited energy stored in the battery

Range of most modern in electric bike around 70 kms

Human Factor – People can forgot to plug in their bike or feel uncomfortable about controlling their charging operation

Low consumer awareness

Cost factor associated with keeping state of the art equipment and technology

High initial price (around 30% more than equivalent conventional bike)

2.3 Opportunities

Increased demand for regulation power due to increased intermittency (renewable energy) in the power system.

Increase in demand for environment friendly electric bike           

Government may change the Lower tax for EV’s Product

Greater opportunities for research and development

Improve the governmental aim schemes for EV’s and strengthen the infrastructure

Provide training to dealers and launch more EV’s in the market

A large segment of Large-to-Large class population, and more than few of businesses in the area

 

2.4 Threats

 Lack of Coloration between EV manufacturing          

Slow recovery process of the economy from the current crisis

Co-operational challenges – Automotive industry ad power suppliers

 Oligopoly market structure        

Rise in cost of electricity

Competition from other international Ev’s bikes makers, increasing cost inputs of the new technology, the threat from fuel efficient petrol bikes, customer’s preferences, the stigma and trouble of not being able to charge the vehicle, and availability of charging stations in the country.

 

3. Financial Plan

States are playing equally important roles in adopting EVs. recently, the Karnataka government had said that it is exploring every possibility to attract investments worth Rs 10 Cr from companies looking to set up manufacturing and research and development (R&D) units for EVs in the state.

According to a report by the society of manufacturers of electric vehicles, there has been a 37.5% rise in the sale of EVs in India in recent years. in a bid to achieve 100% EV usage by 2030, the government has also announced a tax reduction of about 12 percent on EVs, along with the roll-out of goods and services tax (GST).

3.0 Hiring Plan

To hire fresh, Our Company Vayu must have an exposure to the outer world and we will make it through Social Media – Optimized LinkedIn Company Page, Face-book, Paid promotion for Instagram job posting, Creating Employee branding video and share that on social media. We will constantly update our work culture and future aspects of business so that we can attract employee who are our prime customers. We entertain gender equality in our organisation.

 

Potential Hires –

 

Marketing Head(1)

Marketing Executive(10)

Area Manager(5)

Marketing associates(9)

Sales manager/man (15)

Production Head(1)

Mechanical Engineer(20)

Electrical Engineer(10)

Production manager(10)

Product manager(9)

 

Operations Head(1)

Operations Manager(2)

Material Manager(1)

Purchasing manager (1)

Logistics officer(2)

QC/QA (3)

 

Finance Head(1)

Manager(2)

Executive(1)

Assistant(6)

Office Maintenance

Office boy(2)

Watch man(1)

Cleaners(2)

 

Human Capital Head(1)

Human Capital Manager(6)

Human Capital Executive(2)

Human Capital Associate(1)

Software Development Head(1)

Manager(2)

Executive(1)

Assistant(6)

 

Research & Development Team (5)

Remuneration for the new hires:-

 

• For Head of all the departments, Rs.12lpa
• For Executives, Rs.10lpa
• For Managers, Rs.8lpa
• For Engineers, Rs.7lpa

For Office boy, Watchman, Cleaner, Rs.2lpa

3.1 Market Plan

1. 4P’s (Product, Price, Place, Promotion)
2. STP(Segmentation, Targeting, Positioning)
3. Brand Identity Prism
4. Brand building and communication
5. Market entry and Distribution channel.

3.2 USP – Unique Selling point

VMS (Vehicle Management System) including health of vehicle, service management, GPS, nearest service station, charge station, lost device management for drivers, payment management for services rendered like at charging stations for that Approx cost of such app would be Rs 13Lakhs (cost is between Rs 1.5 – 5Lakhs)

Anti-Theft through cloud computing- If key is turned off twice, we need face/finger print unlock to turn the vehicle on Rs 1Lakh only for face un-clocking technology, the cloud computing would be included in VMS app

3.3 Break-even Analysis
       For our break-even analysis, we assume running costs of approximately Rs. 4.5Lakhs per month, which include payroll, utilities, insurance, rent and other fixed costs .We need to sell about 5-8 Ev’s for minimum Rs 8-9 Lakhs per month to break even, based on our assumptions.
We can be able to do that within breakeven sale is 8867 unit & breakeven point for 3 years.
 

3.4 Process

            Any administrative unit requesting central funding for a project or proposing to spend 1.06 Cr or more in unit fund in a project shall submit a document of the project and a project budget to the Budget office. The Budget office approves project under 1.06 Cr, all involving space allocation must be submitted to the provost for approval no matter the funding level.

            Units proposing to spend 1.06 Cr or more shall submit a document of the project and a project budget to the Budget office. The Budget office will tae the proposal to the Provost and

CFO (Chief Financial Officer) to review and approve if they feel the project has a significant impact on the Firm.

3.5 Development Program

            Our services range from concept studies, benchmarking, supplier management and development of drive control and energy management software, calibration, CAD, electronic and thermal design up to the build, first run and validation of the vehicle.Battery and High-Voltage safety is crucial for a successful EV, so our experience with homologation is highly beneficial for compliance with legal requirements. Independent from OEMs and suppliers, we are searching and integrating the best of-the-shelf components fitting the needs of our clients or co-developing new parts with the component suppliers.

            The Programming and feasibility study will be reviewed by the CPC, which will also review any space and outlet plan considerations.

3.6 Financial Plan Approval

            Approval the projects, FS (Financial Secretary) will develop and provide the unit an initial target budget for the project (renovation, expansion or new construction). The unit will work with the budget office to develop a financing plan that includes sources of revenue, timing of cash receipt, borrowing assumption and other pertinent information. Fund raising is the part of the financing plan, the unit will submit the plan to the Niti Aayog development for a feasibility opinion

 

Spending Approval Requirements

Project	Approval Authority
I. Annual Capital Budget	Capital Planning Committee (CPC) Projects of 1.06 Cr or more are identified individually
II. Outlet Master Plan	Board of directors

 

Project	Funded	Approval Authority
III. Individual Project
Up to 50Lakh	Unit funded	No approval required
	Center funded	Budget Office approves.
50L – 2Cr	Unit or Center funded	Budget Office approves.
2Cr – 4Cr	Unit or Center funded	Budget Office approves Proposal to CFO and provost for approval.
4Cr – 15Cr	Unit or Center funded	CPC reviews. President &Vice President Provost and CFO approve.
15Cr- 25Cr	Unit or Center funded	Board of Member, Directors & Trustees committee approves.

 

4. Confidentiality Statement

Business Plan is top secret,  If that’s the case, it’s up to make sure that’s clearly stated to those  the Business Plan. Way to protect our business and its intellectual property (IP), is to include a confidentiality, or nondisclosure (NDA) statement in our Business Plan.

 

 

 

 

 

 

Conclusion

A business can grow redefines the company's needs, the competence of management to achieve the goals and the key points to justify why the business will succeed with funding and to raise funds it is most important that fundraising will be important and crucial part to increase the capital of the firm.

Attached File Details

1-Business Model Canvas.jpg,2- Plant Layout.jpg,