ied final report group6

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BUSINESS PLAN

On

ECO LED

Submitted to - Submitted by

Dr. Anita Tripathy Lal Group 6 FMG19 B

Associate Professor Shirshendu Pandey(191113)

FORE School of Management Shrey Gupta(191114)

SiddharthBHatnagar (191115)

Sripat Bagla (191116)

Sumita Kapoor (191117)

Karishma Talwar (191118)

Tanya Malik (191119)

Tarun Kumar (191120)

Vivek Mandowara(191121)

Yukti Mittal (191122)

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Contents

EXECUTIVE SUMMARY................................................................................................5

Chapter 1...................................................................................................................7

The Business..............................................................................................................8

1.1. OPPORTUNITY...................................................................................................8

1.2. DESCRIPTION OF BUSINESS .............................................................................8

1.3. COMPETITIVE ADVANTAGE...............................................................................9

Management Team..................................................................................................13

2.1. Board of directors..............................................................................................14

2.2. Board of Advisors..............................................................................................14

2.3. Key Professional Service Providers....................................................................14

3. Company structure, Intellectual Property.............................................................16

3.1. Organizational Chart......................................................................................16

3.2. Legal Structure...............................................................................................17

3.3. Intellectual Property.......................................................................................17

4. Industry Analysis..................................................................................................19

4.1. INDUSTRY DESCRIPTION................................................................................19

4.1.1 Industry Trends.........................................................................................19

4.1.2. Industry Size............................................................................................19

4.1.3. Industry Attractiveness............................................................................19

4.1.4. Market Attractiveness..............................................................................21

Target segment benefits and attractiveness.....................................................22

Marketing Plan.........................................................................................................26

Product Feasibility of LEDs....................................................................................26

Concept and Usability Testing...............................................................................28Competition...........................................................................................................28

Product Strategy and Goals...................................................................................28

Pricing Strategy.....................................................................................................29

Distribution ..........................................................................................................30

Advertising and Promotion....................................................................................30

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6. Location and Layout.............................................................................................33

6.1. Location - Faridabad.....................................................................................33

6.2. Demographic Analysis of Location.................................................................34

6.3. Faridabad Plant Location Advantages..........................................................35

6.4. Layout Size Requirements and Layout Plan.................................................36

7. Operational Plan...................................................................................................38

7.1. Method of Production.....................................................................................38

7.2. Availability of qualified labor pool..................................................................38

7.3. Business partnership......................................................................................39

7.4. Quality Control...............................................................................................39

7.5. Logistics.........................................................................................................39

7.6. Customer Support..........................................................................................39

8. Financial Plan.......................................................................................................41

8.1. Overview of financial projections...................................................................41

8.2. Financial Statements......................................................................................42

8.3. Break-Even Analysis.......................................................................................42

9. Critical Risk Factors..............................................................................................45

9.1. FINANCIAL RISK.............................................................................................46

9.2. OPERATIONAL RISK........................................................................................46

9.3. MANAGEMENT RISK........................................................................................46

9.4. MARKETING RISK............................................................................................46

9.5. OTHERS..........................................................................................................46

10. Loans & Investment Proposal.............................................................................50

10.1 Purpose & Use of Fund .................................................................................50

10.2. Exit Strategy................................................................................................51

10.3. Timetable for implementing plan and launching the business.....................51

11. Appendix............................................................................................................5311.1. Demographic Analysis of Faridabad.............................................................53

11.2. Map location of the plant ...........................................................................55

11.3. Layout Plan..................................................................................................56

11.4. The details of Channel Partners...................................................................57

11.5.Projected Financial Statements.....................................................................59

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EXECUTIVE SUMMARY

ECOLEDS is a cost saving, energy conserving, healthy, durable, brand value and quality lightingsolution to all the lighting requirements of domestic and corporate users for a lesser price than

existing in the market. It is a venture that readily solves a big problem of all consumers in

general and specific to the corporate which is power conservation and cost saving. On one hand

it ensures quality and life of the LEDs it uses and on the other its cost is way lesser than that

offered by equally good brands. It allows homes and offices to be lit by very highly efficient and

healthy lights. They consume lesser energy as compared to the CFL tubes and do not emit

radiation which is a major cause of concern these days. The corporate houses keen on going

green to secure CSR badges and construction companies become our first and natural targets.

The idea isnt novel but ECOLED has a strong selling point. The case for ECOLED is simple.

The operations (production) plan of the company is simple in both prospect and execution which

stands for better chances of success. The catch is that most of our production process is

outsourced. All the ingredients are supplied by our suppliers and only assembly of components

takes place with us. This ensures lower expenditure on fixed assets and lower risk. The

companys competitive advantage is also the product and the market in which it operates. In

India, the market is not mature but has a lot of potential. On the other hand the products quality

is a compelling buying point esp. for the unprecedently lucrative cost offered by the company.

The target market for the initial phases of the business are the realtors who create housing

spaces, commercial spaces and others that require lighting. These would be contacted by the

marketing team for their lighting needs and contracts would be secured. Some of the real estate

construction companies have already been contacted and good responses have been generated.

However, towards the later phases of the business it will spread in its scope to the corporate

offices which are keen on going green and saving energy costs. Alongside, the company will

also distribute the product to the end consumers directly through retail outlets.

The strength of the business however is its team. The management team is highly diverse and

capable of handling diverse positions in the company. The team is guided by a noble vision of

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Tanya the CEO and the respective departmental and functional heads who are committed to

creating the venture a success.

The Business is financially very secure. The team aims to break even by 1.5 years which is good.

considering the very conservative demand assumed for production. It is also worth mentioning

that the plant and machinery is highly scalable and in the early phases barely reaching even half

of its true capacity. The scalability of the machine is an indicator of how wise the investment on

the plant and machinery has been. Fixed cost is to be at ` 2500000. While contribution per unit is

aimed at ` 76.8, the company would break even at 32544 units and would take place precisely by a

year and half since the commencement of the operations.

The company would require a net startup capital of ` 25,00,000. The total amount invested by 10

partners would be ` 1,50,000 each. Thus, total equity from the partners would be ` 15,00,000. An

investment of ` 10,00,000 would be required from external source. The total investment would

be used to fund the machinery, dye, furniture, firm formation, legal expenditure and working

capital.

The market is bound to grow in the coming times as more and more governments would become

energy conscious and will take over the matter seriously and might even end up legislating rules

for the corporate and constructions all over. Corporate, otherwise also is conscious about its role

in energy conservatism in the society. The corporate is already spending a lot to come to the

good books of energy issues of our society and the norm is only to stay. However, the team is

ready to face critical risks involved in the whole process of business. These risks have not only

been identified but also plans are in place to mitigate and contain the effect of such risks. In case

of a fall out the team also has in mind an exit strategy. The basic exit strategy would be selling

out assets, which would be as good in value as they were when bought because more often than

not the risk of financial failure is high at the beginning. Operational failures are limited due to

the nature of outsourcing of most of the procedures. Given the plot as an asset, its price will onlyincrease in times to come and might pay out for any losses incurred in the investment. The

investor however, will be risk free as the break even happens in just a year and a halfs time.

Location of the plant: B-101, Phase I,

DLF Industrial Area,Faridabad

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Chapter 1

The Business

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The Business

1.1. OPPORTUNITY

Focus these days is on developing energy efficient and environment friendly devices. We

can no longer afford to play havoc with nature. We are already experiencing the ill

effects of global warming caused by the excessive carbon emissions in the atmosphere.

Keeping this in mind, LED bulbs have been introduced and they are fast replacing

incandescent bulbs and compact fluorescent bulbs (CFLs). LED bulbs use only a fraction

of the energy consumed by the incandescent and compact fluorescent bulbs. Therefore, it

is a green option for illuminating spaces.

Also, LED bulbs are mercury free and therefore do not harm the environment or the

health of the users. Also, they do not flicker which has been known to can cause

headaches for some people. Shocks and vibrations do not easily damage them because

they do not have any filament.

1.2. DESCRIPTION OF BUSINESS

Vision:

To provide our customers with the most environmentally friendly products and to help

customers in participating in the healing process of our environment through the

purchasing and educating our customers on environmentally friendly products and

services.

Mission:

To have LED lights in all residential and commercial buildings in Delhi and NCR within

next 7 years.

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OBJECTIVES:

Cost Reduction to make it accessible for the common man.

Provide better quality of lighting in every household and improve the life of the

LEDs.

Enhance power saving in LEDs.

1.3. COMPETITIVE ADVANTAGE

The demand for LEDs has increased significantly due to its applications in camera flash,

automotive, lighting and mobile devices. This is expected to increase demand manifold

in the global LED lighting market. As India is emerging as a key market for LED TVs

and other portable consumer electronics devices, LEDs' demand is expected to increase

manifold in the coming years.

Many countries have banned incandescent light bulbs owing to their low efficiency,

while increasing the energy- efficiency requirements for modern lighting technologies,

including LEDs. Furthermore, an increase in efficiency is also expected to translate into

cheaper lighting expenditure. India, being a price sensitive market, will witness a

significant increase in penetration, as LED lamp prices go down the price ladder.

LED lighting is expected to witness significant penetration in commercial applications

worldwide. The key driving factor is expected to be the quick ROI that LED lighting

provides in lighting applications requiring a continuous operational time of over 16 hours

per day. The energy savings alone account for significant cost savings. When coupled

with lower maintenance costs, this offers scope for achieving an ROI in lesser than twoyears in commercial applications.

Manufacturing of LEDs has not been taken up at a large scale in India as yet. Seeing its

advantages and scope in India and globally and the fact that its manufacturing has not

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began in India, it will give us the competitive advantage being one of the first movers.

Also since there is a huge potential market, the demand for LED lighting system is soon

going to increase manifold.

SWOT ANALYSIS

STRENGTHS

Competitive price

Short delivery time

Foremost service Production capacity

Well Qualified management team

Availability of cheap labour

Customer oriented customized solutions

Ease of access to customer

Location of business

WEAKNESSES

Underfunding in many departments

Difficult to predict consumer demand

Understaffing at many levels

Inadequate resources for recruitment, retention, reserch and marketing all the things

needed to Recruit and retain talents.

Rack of infrastructure including physical, financial, and human resources

Inadequate capital funds to support all that we want to do

We are a new company no brand value at present

OPPORTUNITIES Continuing Energy-saving as LED light enrichment protection appeal for industrial and

commercial lighting

Untapped market, high scope

Government policy support

Only few competitors exist in market

Online opportunities worldwide, in future

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THREATS

Domestic market purchasing power of customer

Growing competition from nearby LED Companies and small privates international

trading companies

Competition from substitutes - Low cost fluorescent and CFL bulbs

Lack of awareness amongst customers

Resistance in consumer behavior India still a price sensitive market

Arrival of new technologies

Chapter 2

Management Team

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Management Team

The company is managed by people who have the managerial as well as the technical expertise

to carry out the day to day business. Tanya Malik, the CEO of the company, had initially thought

of this concept of LED lighting solutions as a viable business opportunity. An engineer by

education, Tanya knew that going entrepreneurial was the thing for her. She started the

enterprise after completing her MBA in Marketing armed with all the skills necessary for an

entrepreneur.

Yukti Mittal (Director Finance) An engineer by education, Yukti did her MBA in Finance

and has been critical in deciding the financial policy and the funding of the company. She brings

sound financial knowledge to the organization and shares the long term dream of going public.

Karishma Talwar (Director, Marketing) Karishma did her MBA in Marketing and has been

very dynamic an proactive in generating awareness of the company.

Shirshendu Pandey(President, HR) With a background of managing people in the defence

services, Shirshendu has the ability to deal effectively with people issues and work towards

building a strong cohesive organization.

Shrey Gupta(Director, Operations) Shrey did his MBA in Operations and brings a whole lot

of new and valid ideas to the business every day. Streamlining production activities to achieve

cost effectiveness is a major goal that the company wishes to achieve on a regular basis.

Vivek Mandowara(VP, Finance) Vivek did his major in Finance and forms a great team with

Yukti, both working together to achieve the mission of the company.

Sumita Kapoor(VP, Marketing) Sumita completed her MBA majoring in Marketing and is

the key person regarding the brand positioning and promotion activities.

Siddharth Bhatnagar (Public Relations) Siddharth did his MBA in Marketing and is

responsible for portraying the companys operations and environmental and social concerns in

an objective manner.

Sripat Bagla(VP, HR) Sripat works in close contact with Shirshendu and is responsible for

deciding on the HR Policies of the company.

Tarun Kumar (GM, Operations) Tarun graduated with a MBA in operations and has the

knack to combine theory with practical problems to solve real time problems. He works in close

contact with Shrey to achieve operational efficiency.

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2.1. Board of directors

Being a partnership firm, the company will be having all the partners as the part of the

management team. Apart from this, a non working member would be the external investor in our

firm.

2.2. Board of Advisors

The company understands that the Board of Advisors plays an important role in the growth of

the company and to better fuel this growth the management team forms the advisory panel for

the company. The board of advisors meets regularly to discuss the affairs of the company and

thus give direction to the business. Apart from this, some key suppliers and buyers would also

form a part of the advisory team because the company understands that these outside entities

bring a fresh perspective to the table resulting in positive outcomes.

2.3. Key Professional Service Providers

The company has taken the need of service professionals into consideration while selecting the

management team. The team is competent enough in every domain to efficiently solve majorissues that crop up on a daily basis. Highly technical matters of law, management, marketing and

finance will be effectively dealt with utilizing the internal resources of the company. However,

as the company grows there would be greater need to take on people with relevant experience in

the industry and having the potential to contribute towards the growth of the organization. In

spite of the internal talent, some activities like transportation and logistics will be outsourced.

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Chapter 3

Company Structure, Intellectual

Property

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3. Company structure, Intellectual Property

Since the company is a new set up, the company will have a flat structure. There will not be

much of reporting lines. The company will be going registering its brand name, logo and tag

line.

The company is partnership consisting of 10 partners that also form a part of the core

management team. Each of these partners has put in Rs. 1.5lakh into the business. Apart fromthese one outside investor has also put in Rs. 10lakh into the business.

3.1. Organizational Chart

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3.2. Legal Structure

The legal structure a business chooses is fundamental to the way it operates. This legal

framework determines who shares in the profits and losses, how tax is paid, where legal

liabilities rests. It also determines the nature of a business' relationships with business associates,

investors, creditors and employees.

Ours is a partnership firm, so the legal structure followed by a partnership firm would be

applicable. In future, we may shift to a private limited and later a public limited company.

3.3. Intellectual Property

Intellectual property refers to a distinct type of creation for which the property rights are retained

with the creator. This also provides an onus to people to create and innovate more. Our firm will

have a registered trademark of its name and tagline.

Name: Eco Led

Tag: Light your way in the right way; Go green, Go LED.

Logo:

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Chapter 4

Industry Analysis

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4. Industry Analysis

4.1. INDUSTRY DESCRIPTION

4.1.1 Industry Trends

A few years backLED light bulbs had limited usage. They were used only in digital devices and

traffic lights, but now they are being used widely in residential and commercial lighting. Many

people are switching to LED lamps because of their manifold benefits. They are energy efficient,

environment friendly, and have good life span. Also, they are sturdy and do not get easily

damaged due to shocks. An LED lamp consumes one-tenth of energy consumed by an

incandescent bulb and has an average life span of 10 years.

The current lighting industry is mainly based on either the inefficient incandescent bulbs or

compact fluorescent lights which contain mercury. With the arrival of LED technology,

4.1.2. Industry Size

The initial use of white LEDs for LCD display backlights in notebook computers took place in

2005 in high-end, utra-lightweight models from Sony, Fujitsu and Toshiba. By 2007, LED

penetration had increased to just 3.5%. But in 2008 it reached 12%, and it is expected to reach

50% in 2009. Because of the improving price/performance situation of white side-view LEDs,

and the advantage of longer battery life provided by more efficient LCD backlights, the adoption

of LED backlights in notebook PCs increased manifold and it is expected to reach close to 100%

within a few more years.

4.1.3. Industry Attractiveness

The industry attractiveness can be studied with the help of Porters Five Forces Model.

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We will discuss all the forces one by one.

1. Potential entrants and existing players

As interest in LED lighting grows rapidly in the burgeoning Indian economy, several LED

lighting companies have mushroomed, offering low cost options that unfortunately fail to deliver

the promised benefits. LED is the latest and the most advanced illumination technology in the

world and not every lighting manufacturer may have the requisite mastery over optics, thermal

engineering and electronics technology that is needed to maintain the required lumens over the

promised "long life". Since the CAGR for LED market is around 17% there are very high

chances of new entrants but the low margin of around 5%- 6% might act as an obstacle and also

since initial setup requires technologically sound machinery and investment it acts as an easy

entrant but difficult exit market.

2. Substitutes

LEDs are a part of bigger family of Solid State Lighting. The product market is segmented into

submarkets for LEDs, OLEDs, CFLs, CCFL and high intensity discharge. The LED segment has

the most market potential with expected CAGR of 17.3 per cent from 2010 to 2015 due to itsgrowing penetration into backlighting and pure lightings application markets.

3. Suppliers

The raw materials used for manufacture are sourced from impeccable vendors in JAPAN,

TAIWAN & USA to ensure uncompromising quality inputs. As we are the manufacturers and

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the raw material required to manufacture LED is easily available there is very less threat from

the suppliers side.

4. Buyers

The current market for LED is more concentrated towards LED display manufacturers like

SAMSUNG, SONY etc. and less towards general lighting which includes households, street

lights etc. Since more concentration is in B2B the buyer bargaining power is their but gets

restricted due to lesser number of players. As the number of players will increase the prices as

well as profit margins will come down but on the other hand general lighting market will

increase which will give the volume to counter the decrease in margins.

4.1.4. Market Attractiveness

LED is the latest and the most advanced illumination technology in the world. Lately, the LED

industry has garnered a lot of attention, prompting the rapid expansion and substantial

investment by LED-related equipment and material suppliers globally. LED expansion and new

facility projects have literally mushroomed all over the world.

GROWTH PROSPECTS IN INDIA:

The 2010 packaged LED market was estimated at over Rs.45, 866.17 crore ($10 billion),

according to IMS Research. The market watcher says that revenues for the segment increased 67per cent from Rs.27, 978.36 crore ($6.1 billion) in 2009 to Rs.46, 783.49 crore ($10.2 billion) in

2010.

The Rs.18, 805.13 crore ($4.1 billion) increase in 2010 versus 2009 is by far the largest in the

history of LEDs. It is attributed to penetration of LEDs as backlighting for LCD TVs, with

packaged LED sales for TVs shooting up to Rs.11,466.54 crore ($2.5 billion) in 2010 from

Rs.1,834.65 crore ($0.4 billion) in 2009

The analyst predicts 25 per cent growth in 2011. Beyond 2013, the segment is expected to grow

from the increased use of LEDs in general lighting. There is a huge potential for LEDs in general

lighting applications, such as for hotels, retail, residential, outdoor and street lighting, so the

future remains bright for LEDs.

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Target segment benefits and attractiveness

There can be several categories of lighting customers in India, some of which are:

1. LED FLASHLIGHTS are gaining popularity nowadays.

They have become a must-have gadget for those who love camping, hiking, or any other outdoor

activity. In fact, LED flashlight has become a must-have gadget to keep at home, as well. Over

the years, LED flashlights have replaced the traditional flashlights which consisted of the old

incandescent bulb. The LED torch, which is how they are known in some other countries, is far

better than traditional flashlights.

2. LED LIGHT BULBS are very efficient and consume very little electricity, so one will

see an immediate decrease in your electric bill

3. VEHICLE LIGHTING APPLICATIONSAutomotive manufacturers are attracted by the potential reduction in energy consumption as well

as the space savings realized by smaller lighting fixtures. The styling potential of LEDs also is a

great benefit for consumers, which enables more attractive and distinctive designs. Consumers

also benefit from safety aspects of using solid-state signal lighting. The reason why LED Car

Lights Are Fast Gaining Popularity are that it Enhances Safety, they have a longer life, they

consume less energy and they are environment friendly.

4. RESIDENTIAL LIGHTING

Household LED lights can be used in all functions for the home. LED Lights work for both the

interior and the exterior of the home. All LED Light products will screw into commonplace

household light sockets. They are a direct and easy screw-in replacement. LED Lights, LED

bulbs, LED Lamps, and other LED lighting applications work magnificent in place of

incandescent bulbs or CFLs.

5. ARCHITECTURAL LIGHTING

Architectural building exterior and interior lighting is used to create special effects, but not

general illumination. The ability to make and project color changing light fixtures for hotels,

restaurants, casinos, fountains, landmarks, etc.

BENEFITS OF LED LIGHTING:

LED Light Bulbs Reduces Power Usage

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LED Lights have an Extended Life (between 50,000 and 100,000 hrs)

LED products are Solid State, High Shock and Vibration Resistant

LED Bulbs have very Low Heat Production

LED Light Bulbs are able to function in a wide range of Temperatures

LED Lights create no EMF (Radio Wave Interference)

LED Bulbs have High quality Brightness (Luminosity)

LED Lights contain No Mercury or other hazardous chemicals

LED Lights are Instantly On

LED T8 Tube Replacements have No Buzzing or Flickering

LED Bulbs are an Easy Retrofit

Solar LEDs are extremely environmentally friendly

LED Light Bulbs save you money

LED Lighting saves our environment

ADVANTAGES OVER CFLs

Seven Reasons Not To Buy or Use CFL's:

1. Even when you Buy ENERGY STAR CFLs. they are up to 50% less efficient than LED

Lighting

2. Do not use standard CFLs in fixtures controlled by dimmers. Unless your CFL

specifically states that it is rated for use with a dimmer, it can burn out in days or weeks.Even if

you leave the dimmer switch up all the way, it will still shorten the life of an ordinary CFL. LED

Lighting Makes many types and styles that are made to be dimmable and give you far superior

lighting and life longevity .

3. Do not use standard CFLs in recessed cans and air-tight enclosed fixtures.

CFLs are more sensitive to heat than ordinary bulbs.Unless your CFL is specifically rated for use

in air-tight enclosed fixtures and recessed cans, the heat build-up will harm the electronic ballast

and can dramatically shorten its life. LED Lighting can be used in any application. In fact LEd

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Lighting does not get above room temperature so heat is never a factor. The range of

temperatures of LED Lighting greatly surpasses the range for CFL's.

4. Avoid jostling and vibration. CFLs in fixtures that are subject to regular or strong vibration

will have a shorter life. LED Lighting is drop and vibration resistant and will not effect the life

longevity of the bulb.

5. Avoid excessive on-off cycles. A CFL usually has about 7,000 on-off cycles in it.Its up to

you how you use them.Repeated on-off cycles (more than 20 per day or in motion sensors) will

shorten the life of your bulb. LEd Lighting is not affected by turning on and off. LED lighting

does not have a on and off life cycle.

6. Make sure your wiring is in good shape. Wiring problems such as a loose neutral or

inadequate grounding can cause low voltage or voltage fluctuations which can shorten the lives

of CFLs. This is true for both bulbs. However LED's draw less power than CFL's

7. Do not use CFLs in fixtures exposed to damp or wet conditions unless they are rated for

that application. Most CFLs can be installed in outdoor fixtures if they are in a properly

enclosed fixture, well protected from rain, snow and moisture. Otherwise, look for bulbs rated

for damp or wet locations. LED Lighting thrives in these applications. In fact studies have shown

the colder the weather the better and longer LED Lighting will last above it rated life time.

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Chapter 5

Marketing Plan

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Marketing Plan

Product Feasibility of LEDs

LED lighting, energy saving, environmental protection, the salient features of industrial

development and market application of its national energy-saving strategies for emission

reduction strategy is of great significance.

Tensions in the global energy supply, environmental protection under the objective conditions of

the grim situation, our clear strategic objectives of energy saving and emission reduction.

Following the LED lighting as incandescent, fluorescent after the new generation of

"revolutionary" light source, will substantially reduce our energy consumption. The application

of industrial development and market strategy for achieving emission reduction targets is of

great significance.

The development of China's semiconductor lighting specific objectives of the 2015 white LED

luminous efficiency over the same period reached the international advanced level (150-2001m /

W), enter 30% of the general lighting market, replacing imports 70% Highlight chip, core

equipment and the key to achieving MOCVD localization of supporting materials: surrounding

the backlight, automobile, lighting, and other major strategic products, strengthen the technology

integration, demonstration and application to achieve large-scale, industrial scale reached 500

billion yuan, 50 million jobs: 140 000 000 000 degrees to achieve annual energy saving The

annual saving 49 million tons of standard coal and reduce CO2, SO2, NOx, dust emission of 1.4

billion tons.

China's LED lighting industry trends and prospects Forecast: Despite the current global financialcrisis, China's LED lighting industry and market application is still maintained a good

momentum of development, is the fastest growing countries in the global industry position on

the rise. 2008, applications have more than 45 billion yuan output value, the future market

demand is extremely huge. 1995 to 2008, average annual growth rate of China's LED lighting

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market by 30% (calculated based on industry sales for the year diameter), far higher than the

GDP of the average annual GDP growth rate of 10.35%.

Application of mature LED lighting market has been expanding: At present, the application of

LED areas of mature landscape architecture, LED lights, large screen display, traffic lights,

appliances and light digital display, auto lights, special lights, mobile phones, digital cameras,

computers, television sets and other areas of small and medium size backlight. By 2008, LED

products, application areas in the above sales of major distribution statistics show, in which

landscape architecture is still the largest application of LED areas; LED display screen and home

appliances accounted for 27% market share, becoming the second LED large applications;

phones, notebook computers and other small and medium size backlight accounted for 22%

market share and become the third largest category of applications. Others such as traffic lights,car lights, special lighting and other applications of the market share has steadily increased.

LED lights of major cities in the rapid development of market applications: With the luminous

efficiency white LED constant breakthroughs in key technologies to improve, in our roads,

tunnels and other municipal lighting, LED lighting products function gradually increased market

share, and the rapid growth . The end of 2008, more than 28 provinces and cities nationwide, 104

cities (towns) to install and use the LED lightsproducts, only 35 enterprises above designated

size practical engineering statistics, domestic production and installation of various types ofLED

lightsproducts amounted to 160,000, the tunnel lights a thousand lights, indoor lighting fixtures

60 000 sets.

China's huge market for LED lighting, in the upstream, midstream should form their own brand:

China's semiconductor lighting industry's overall objective is to create the industry's core

competitiveness as the goal to enhance the capability of independent innovation as the key to

improving the environment for industrial development as a means to integrate resources

worldwide through the creative, white general lighting core technology and promote the industry

chain and the innovation chain to the high-end development. Building technology research and

development of international standard service platform to form a high quality technical

innovation team to master a number of core technologies, foster a number of leading enterprises

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to create a number of well-known brands, establish and improve the technical innovation system

and industrial clusters and improve the industry continuous innovation. To promote energy

conservation and stimulate domestic demand planning to foster new economic growth point as

an opportunity to eventually form China's international competitiveness in emerging LED

lighting industry.

The face of industrial development opportunities, the Chinese local enterprises with the means to

occupy a favorable market position, occupy a higher market share in the formation of a number

of independent brands

Concept and Usability Testing

For the purpose of usability testing the LEDS before introducing it to the target audience that is

the real estate sector in case of our company, LED torches and lamps will be made and sold in

the market. This will be done in order to test the response of the consumers towards the product.

For the purpose of concept testing our team spoke to the construction companies and asked them

if they would go ahead with the installation of LEDS in the newly constructed commercial and

residential buildings.

Competition

The LED lighting solutions will face competition from the following products:

Kerosene wick lamps

Kerosene hurricane lamps

Incandescent lamps

Home solar systems

Fluorescent tube lamps

Compact fluorescent lamps(CFL)

Product Strategy and Goals

SHORT TERM GOALS-

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Streamline the process of penetrating new market

Provide good quality products to the real estate sector

After sales consumer service

Establish good relations with customers

LONG TERM GOALS-

Retain market focus

Target government projects

Set up manufacturing plants

Pricing StrategyPRICING STRATEGY

ITEM COST(Rs) SELLING PRICE

TO

DISTRIBUTER(1.5

TIME OF COST)

M.R.P.(Rs)

(1.65 TIMES

OF COST)

Actual

MRP (after

round off)

TUBE LIGHT

252 LED

580 870 957 960

TUBELIGHT

128

332 498 547.8 549

TUBELIGHT

112

300 450 495 499

CEILING LAMP 57.75 86.625 95.2875 99

FANCY LAMP 61.75 92.625 101.8875 110

Current alternative solutions available in the market

ITEM MRP.

Bulbs 15-50 rs/piece

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Tubelights 50-70/tubelight

CFLs bulbs 125-400 rs/unit

Price of the bulb,CFLs varies according to the consumption of watt which is directlyproportional to luminous.

For LED lightings, the prices of competitors, such as Philips etc, are as follows:

LED tubelights Rs. 1000 Rs. 1500

LED lamps Rs. 150 Rs. 200

Thus, we are keeping our prices lower than competitors to attract more customers, while

providing best quality products.

Distribution

In the initial phases, the company aims only for direct selling to the builders/contractors. Hence

there is no need of a distribution channel. However, the transport facilities will be outsourced.

The list of companies contacted for the same are included in the appendix.

In the long run, we aim to go for retail sales as well, once the brand has been established. Then,the selection of distribution/channel partners will be based on the following:

The supply chain to have minimum handovers

The use of existing distribution channels, i.e., those which are already dealing in this

market

Advertising and Promotion

1. PRINT ADVERTISING

Advertisements will be put up in business magazines like economic times, business standard and

real estate supplement of Times of India Times property for LED lights. Advertisements for

LED torches and lamps will be given in newspapers like Times of India, Hindustan Times and

DNA.

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2. PERSONAL SELLING

Salesmen to be appointed for the purpose of visiting real estate companies and giving detailed

explanation about the features and advantages of the product to initiate selling.

3. ONLINE ADVERTISING

A website to be created for the purpose of giving information about the company and product.

Advertisements of the LED lights to be given on professional websites like LinkedIn, websites

of business newspapers and magazines. LED torches and lamps will be advertised on social

networking sites like facebook and twitter. The lamps and torches will also be advertised on sites

like google and yahoo.

4. EXHIBITION AND TRADE FAIRS

Participate in consumer exhibitions and fairs for selling torches and lamps. For the purpose of

selling LED lights our company will participate in trade fairs.

For promotion purpose the LED lights will be sold at a discounted price to the construction

companies for bulk purchases.

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Chapter 6

Location and Layout

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6. Location and Layout

6.1. Location - FaridabadFaridabad a major industrial city and population center in Haryana state, northern India. It is

located in Faridabad District. The city was founded in 1607 by Shaikh Farid, treasurer of

Jahangir, with the object of protecting the highway which passed through the town. Shaikh Farid

built a fort, a tank and a mosque which are in ruins. Later, it becomes the headquarters of a

pargana which was held in jagir by the Ballabgarh ruler. Faridabad became 12th district of

Haryana State on 15th August, 1979.

Faridabad town adjoinsDelhion its south-eastern side and has grown enormously during the last

couple of decades, particularly because a large number of industries have come up in the town.

The present population of Faridabad is about 1.25 million which produces a waste water flow

and industrial waste flow.

Faridabad City itself is a plain bordered by the River Yamuna to the east and Aravalli Hills

towards the west and south West. Being in close proximity to the Yamuna the land east of the

National Highway is better in quality than the western side. Today virtually all of the land has

been filled up with residential housing as the population of the city swelled during the mid 90s.

The rapid growth of the city also brought immigrants to the city from other parts of the country.

Haryana Government has decided to go ahead with the setting up of new Industrial Model

Township (IMT) at Faridabad and Rohtak. These townships will be built on the pattern of

Manesar near Gurgaon. Based on the global model for an industrial hub, these townships will

integrate industrial, commercial, residential and institutional sites for operational convenience

and promoting walk-to-work-culture.

The industrial township at Faridabad will be developed in Sectors 66, 67, 68 and 69 of the Final

Development Plan of Faridabad. Here land measuring 1832 acres has been notified for

acquisition under Section 4 of Land Acquisition Act.

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6.2. Demographic Analysis of Location

1. Economy

Faridabad is the largest city and one of the major industrial hubs of Haryana. It generates 60% of

the revenue of the state. 50% of the income tax collected in Haryana is from Faridabad and

Gurgaon.Faridabad is famous for Henna Production on agriculture sector while tractors,

motorcycles, switch gears, refrigerators, shoes and tires are other famous industrial products of

the city. For the ease of civil administration, Faridabad District is divided into five sub divisions,

Faridabad, Ballabgarh, Palwal, Hodal and Hathin. Each subdivision is headed by a sub-

divisional officer.

2. Area Population

The district having an area of 2151.00 K.m. District having a share of 4.86% of the total stateland accommodates a population of 21,93,276 (2001 Population census figures) 10.40 percent of

the state population. Only 55 Sq. Km. is area under forest, which is about 2.61% of the total

geographical area of the District. The district has almost flat plains. The river Yamuna flow on

its entire eastern boundary. Its density according to 2001 population census is 1020 persons per

Sq. km. against 372 in the state. It is the most densely populated district in the state.

3. Manufacturing

Faridabad is the industrial heart of Haryana. It is a home to hundreds of large scale companies

like Auto Ignition Limited (AUTO-LEK), Star Wire India Limited, JCB,Escorts,Yamaha, Knorr

Bremse,ACE,ABB, GoodYear, ACC, IndianOil(R&D), Whirlpool, Easy Infotech,Jham Plastic

Industries,Havell's,L&T,Sangeeta industries, WEBTECH Engineering etc.

4. Information technology

Faridabad is emerging as the I.T. hub for the small and medium level enterprises providing the

resources heaven such as skilled and qualified professionals with a lot of scope of doing business

due to proximity to the national capital New Delhi.

5. Communications

Faridabad is well connected by the latest means of communications that includes GSM, WLL,

Dialup internet connection, DSL internet connection, Leased line internet connection.

Govt operated fixed line/land line telephone connections privately operated, world class network

of fixed line phones.

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Apart from electronics means of communication, the city is well connected through the postal

services as well. Government owned Indian Postal Service and privately owned postal services

like First Flight, DHL, FedEx, DTDC, Blue Dart etc. can be easily accessed.

6. Transportation

By Rail Faridabad is on the broad gauge of New Delhi- Mumbai Line. New Delhi and Hazrat

Nizammudin Railway Station is about 25 km away from Faridabad Station. The trains for big

cities like Mumbai, Chennai, Hyderabad are easily accessible from here. Local Trains runs

between New Delhi to Faridabad.

There are three railway stations in the city viz. Faridabad (FDB), New Town Faridabad (FDN)

and Ballabgarh (BVH). Earlier it was the last station of central railway, but now it has been

included in Northern railway. It is a very high revenue generating source for railways as

thousands of people move daily in local trains to and from Delhi for education/professions.

The Delhi Metro Rail Corporation has decided to extend the metro rail service to the city as well.

By Road The National Highway-2 (Delhi-Mathura Road) passes through the city, and thus it is

well connected to nearby states. Roadways services of Haryana (Haryana Roadways) and

neighbouring states like Delhi Transport Corporation, Uttar Pardesh Transport Department,

Madhya Pradesh Transport Department, etc. are easily accessible.

By air Faridabad is served by Indira Gandhi International Airport, New Delhi.

7. Education

Faridabad has several regionally reputed institutes for primary and secondary education; likeD.A.V Public School,Delhi Public School, Apeejay School, Modern Vidya Niketan, Eicher

School, and Manav Rachna; as the top schools in Faridabad.

Faridabad has several private universities including several engineering colleges. However, there

is a certain stigma associated with studying in a private institute and most senior secondary

students in Faridabad aim for studying in better reputed colleges in Delhi and elsewhere.

There is a large number of coaching centers in Faridabad that aim to prepare students for

entrance examinations to several prestigious colleges all over India; in particular engineering

entrance examinations for the Indian Institutes of Technology and National Institutes ofTechnology.

6.3. Faridabad Plant Location Advantages

1. Industrial township is growing rapidly in District Faridabad.

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2. Availability of raw material - The source of raw materials is one of the most important

factors influencing the selection of a plant site. Several factors considered were

purchased price of the raw materials, distance from the source of supply, freight and

transportation expenses, availability and reliability of supply, purity of raw materials and

storage requirements.

3. Availability of suitable land at a comparatively cheaper price. - The characteristics of

the land at the proposed plant site were examined carefully. The cost of the land is

important, as well as living conditions. Future changes may make it desirable or

necessary to expand the plant facilities. A full site evaluation was done to determine the

need for other special foundations before selecting Faridabad as the final location of our

manufacturing plant.

4. Plenty of labour available as per the requirements. The manufacturing plant demands

semi skilled labour capable of meeting the production requirements. For this, we need

labour who are active enough to meet the targets.

5. Proper industrial infrastructure - Availability of utilities like water, electricity, etc in

Faridabad.

6. Transport Facilities - The transport of materials and products to and from plant will be an

overriding consideration in site selection. Road transport will be used, and is suitable for

local distribution of raw materials and finished products. Faridabad excels in this area

and scores over the several other locations identified.

7. Favorable laws for setting up an industrial unit in Faridabad.

8. Above all this, Faridabad is well connected to Delhi, Gurgaon, Noida and Greater Noida,

all of which are areas of our potential customers (most corporate offices present and

upcoming lie in these regions of NCR).

6.4. Layout Size Requirements and Layout Plan

Area of Plant identified - 1000 sq. Metre @ 50 Rs per sq metreRent per month = 50,000 Rs.

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Rent per annum = 6,00,000 Rs.Number of labours = 9 @ Rs. 4800 per month

The layout plan for the plant is included in the appendix.

Chapter 7

Operational Plan

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7. Operational Plan

7.1. Method of Production

The basic operation required at the initial phases would be limited to production only. Though,

in due course of time, after sales services would also be a part of the operation of the company.

The operational plan is intended to work in simultaneity with the marketing plan. The basic

operation would be to aggregate demand coming from the realtor who are keen on using the

green stamp of led lights in their constructions and then schedule the assembly units at our

singular plant in Faridabad.

The company would initially outsource all the production steps but for assembly of the parts.

Since the industry being technologically sensitive, holding production capacity for LEDs isnt

wise in short run. The company would buy flexible PVC from domestic markets and also

outsource the mould designing and manufacturing. The PVC moulding would take place in

house as it is very much integral to the design of our product.

7.2. Availability of qualified labor pool

The skill set required is mostly for soldering the circuits and joining the LEDs with them. These

can be repetitiously done with little supervision after a good round of training. The training costs

could be high if the labour is very temporary and doesnt turn up regularly. A good HR and

labour policy should take care of that. In benefit of a young entity like ours, we are hiring semi

skilled and unskilled labor.

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7.3. Business partnership

The operational partnership is the key to creating a quality value offering to the customers. Since

our business is founded on outsourcing most of the production, the relationships with the

suppliers is key to deriving the best quality, short term cost advantage and long term businessviability. Our key business partners would be plastic and prismatic glass suppliers, packaging

providers, LED suppliers and real estate agents, construction companies, office spaces etc.

7.4. Quality Control

Though most of the lean job shop principles that can be applied without added cost, will be

applied, we as an organization would like to stand for supreme quality. In order to deliver on our

promise we are using metallization for better lighting. We are outsourcing goods from Bangalore

and other locations. In principle, we would like our suppliers to vouch for the quality agreed on

contract but on receipt, all the goods would be inspected for quality in batches. Every worker in

the assembly unit will be trained to check for quality lapse in the ingredients before assembly.

This approach would rule out any storage damages of the inventory. Apart from these measures

a great deal of caution would be spent on packaging quality as it would be the key to ensure the

preservation of quality of the product and hence the realized quality by the end consumer.

7.5. Logistics

The logistics would be primarily outsourced initially. The logistics is important because the

nature of the product is fragile and its shipment must be trauma free in order that its value

remains intact. A relationship approach is important and a vendor who offers logistical insurance

would be chosen.

7.6. Customer Support

We are very much customer focused. In the initial phases we would be wise enough to not spend

much on systematic 24x7 customer support. Neither does the nature of our product demand an

instantaneous replacement. But yes, a telephonic customer support is implementable and will

surely be in place to meet queries and complains from new and old customers alike. In later

phases (long term) when we take our business to corporate offices we would definitely need

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customized customer relationship module integrated with customer support for identifying and

retaining customers.

Chapter 8

Financial Plan

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8.2. Financial Statements

The projected income statement, balance sheet, and cash flow for the five year duration is

attached in the appendix.

The projected figures show a good growth for the firm with substantial profits.

8.3. Break-Even Analysis

The break-even units required for the company are 32544 units and the company can

achieve this target in a period of 1.5 years. For achieving this target, the company would

have to undertake around 4 contracts from the builders.

Break-Even Chart:

Calculation:

Fixed cost = 2500000

Contribution per unit = 76.8

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Break-even units = Fixed Cost/Contribution per unit = 32544

Details of the parameters considered for break even calculation are as follows:

FIXED COST:

1. Land Rs. 50,000 rent per month for 1000 sq meter land in Faridabad

2. Machinery Rs. 6,50,000 and its depreciation @ 20% straight line depreciation.

3. Salaries of employees Changing every year according to revenue growth

4. Dye (for plastic moulding) Rs. 2,50,000 and its depreciation @ 20% straight line

depreciation.

VARIABLE COST:

1. Labour cost Rs. 2.50 per piece of product manufactured on an average

2. Raw materials

a) LED outsourced from two suppliers:

i. Bangalore Rs. 2 [Rs. 1.75 per LED + Logistics Cost of Rs. 0.25 per

piece]

ii. China Rs. 2 [Rs. 1.25 per LED + Logistics Cost of Rs. 0.75 per piece]

b) Reflector

i. For tube light: Rs. 4.50 [Rs. 3 Aluminum sheet + Rs. 1.50 Metalization

Cost]

ii. For fancy lamps and ceiling lamps: Rs. 2.25 [Rs. 1.50 Aluminum sheet +

Rs. 0.75 Metalization Cost]

c) Plastic moulding

i. For tube light: Rs. 17

ii. For lamps: Rs. 10

d) Prism Glass

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e) Resistors, Diodes, Capacitors To be bought in bulk from Bhagirath Palace. Total

cost:



Number of LEDs required

i. For tube light: 252, 128, and 112 [for the three varieties of tube lights manufactured]

ii. For ceiling lamps: 8

iii. For fancy lamps: 10

For each of tube light, lamps (common requirement):

No. of Capacitors required = 2

No. of Resistors required = 2

No. of Diodes required = 4

Sum of variable costs for each item:

For tube light: Rs. 580, Rs. 332, Rs. 300 of each of the three varieties of 252, 128, and 112 LEDs

respectively

For ceiling lamp: Rs. 57.75

For fancy lamp: Rs. 61.75

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Chapter 9

Critical Risk Factors

9. Critical Risk Factors

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9.1. FINANCIAL RISK

If the outsider investor who withdrawn his investment in the later year of operations,it

may halt the whole planning process

9.2. OPERATIONAL RISK

Break down of machinery

Non conformity of the finished good to prescribed quality

Labour hassle.(absenteeism, low performance standard etc.)

Failure of timely supplies of raw material

9.3. MANAGEMENT RISK

Lack of competence in the industry

Lack of co-ordination of the management of the company

9.4. MARKETING RISK

Incompetent sales person may affect the sales growth of the company

As we are competing with established brand ,limited marketing budget may affect

our penetration in the market

9.5. OTHERS

If new technology came in the future which is superior than existing one may affect

the long term strategy

As entry barrier is low it may increase competitive risk in future

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FINANCIAL RISK MITIGATION

Financial Risk Mitigation, provides the critical background information and analyses needed by

sophisticated investors, financers, and corporate decision makers to evaluate new business

relationships and make proper determinations regarding whether or not to continue an

existing relationship.

Every business carries with it a degree of financial risk. For example, the customer may become

insolvent and unable to pay the contract fees; the service provider may cease to carry on

business; or either party may have insufficient funds to support an indemnity.

In case of financial crisis, following can be helpful :

Bank guarantees: A bank guarantee confers on one party the right to obtain money

from a bank usually payable on demand and without the need to provide reasons

or justifications to the bank for loss incurred as a result of the other partys default

or failure to perform.

Insurance : Insurance provides a level of comfort that the service provider will have access to

sufficient financial resources to satisfy liability claims that may arise under the contract, for

example, damages for personal injury and death, damage to property, breach of contract or

breach of a third party's intellectual property rights.

Liquidated damages : Liquidated damages are an amount of money intended to comprise a

genuine pre-estimate of damage or loss suffered by one party should the other party fail to

perform in accordance with the contract.

Limitation of liability : A limitation of liability (often called a liability cap) is a contractual

clause that enables the service provider to cap its financial risk. However, this form of risk

mitigation can be drafted mutually, provided that the specified limitations are reasonable and are

determined following a risk assessment.

Certain heads of loss are usually excluded from the cap, such as:

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death and personal injury

damage or loss to tangible property

breach of confidentiality, privacy and infringement of intellectual property rights

fraud.

OPERATIONAL RISK MITIGATION

Enormous competition and rapidly dwindling bottom lines have forced firms to renew their

focus on their cost strategy, of which outsourcing has become the most vital component. Firms

are increasingly aware that non-core activities, which do not create immediate tangible value for

the organization, can often be very well done by outside experts at a fraction of existing costs. So

we have decided to outsource the LEDs from China basically.

Outsourcing, especially offshore seems to offer significant benefits in terms of cost savings and

conversion of fixed costs into variable costs.

This does not mean that outsourcing does not have its own problems. At times, it becomes it

difficult to coordinate, monitor and control performance of their vendors effectively.

Chapter 10

Loan and Investment Proposal

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10. Loans & Investment Proposal

Startup capital = 25,000,00 Rs.

Amount invested by 10 partners= 150000 Rs each.

150000*10= 15,00,000 Rs.

Outside Partner amount invested = 10,00,000 Rs

10.1 Purpose & Use of Fund

PURPOSE

As there has been huge potential in LED light market, so we wish to start assembling LED lights

and want to make various tubelights, bulbs and lamps. In future we are looking to manufacture

LED at our own plant.

USE OF FUND

NO ITEM AMOUNT(Rupees)

1 Machinery 650,000

2 Dye 250,000

3 Miscelleaneous Expenditure(Furniture,Firm

Formation,Legal Expenditure)

600,000

4 Working Capital 10,00,000

TOTAL 25,00,000

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10.2. Exit Strategy

As our business has very quite a huge sum of initial capital requirements, so exiting out of the

business would be difficult. However, since we are outsourcing LEDs instead of manufacturing

them, our costs are still remarkably lesser.

Moreover, since we do not require a debt, so there is no obligation to pay an interest every year.

The profit as well as losses both will be borne by the equity holders.

The estimated profits are quite satisfying for the initial years. Break even is projected to be

after 1.5 years. After three years, the company would be able to generate enough profits and cash

and would become self-sustainable. Then the company can think of backward integration and

start manufacturing LEDs also. Otherwise, the investor can make a complete exit out of the

project after five years easily after gaining high amount of dividend.

10.3. Timetable for implementing plan and launching the

business

No. ActivityWeeks

1 2 3 4 5 6

1. Renting and designing office/factory

2.Installing machinery and buying of parts

and raw materials

3. Outsourcing LEDs

4. Finalizing channel partners

5. Contracting workers (semi skilled labours)

6. Starting with production activities

7. Selling activities

We will be starting in June12 and break even will be achieved by Dec13.

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Chapter 11

Appendix

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11. Appendix

11.1. Demographic Analysis of Faridabad

The Statistics of District Faridabad

Geographical Area Sq. Km. 1791.66

Sub Divisions Number 4

Panchayats Number 279

Towns Number 3

Parliament Seats Number 1

Vidhan Sabha Seats Number 5

Total Population (2001 Census) Number 1990719

Total Male Number 1084138

Total Female Number 906581

Rural Population Number 780291

Rural Population Percentage 39.20

Urban Population Number 1210428

Urban Population Percentage 60.80

Density Per sq.km. 1020

Literacy Rate Total Percentage 72.34

Literacy Rate Male Percentage 83.24

Literacy Rate Female Percentage 59.27

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Area Under Production of Food Grain 000 Hect. 264.8

Registered Working Factories Number 2471

Estimated No. of Workers Hundred 1778

PWD Roads in District k.m. 1209

Overall Profit per K.M. Paise (-)77

No. of Colleges (All Type) Number 20

High/ Senior Secondary Schools Number 417

Middle Schools Number 179

Primary/ Pre-Primary Schools Number 1045

No. of unemployed person on live

registerNumber 64628

Haryana Government Employees Number 19418

Hospital/ Dispensaries/ Health Services Number 184

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11.2. Map location of the plant

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11.3. Layout Plan

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11.4. The details of Channel Partners

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11.5.Projected Financial Statements

Projected Income Statement for 5 yearduration

Year 1 Year 2 Year 3 Year 4 Year 5Revenue

Sales 5323500 7434268 10381955 13626316 17884540

Expenses

COGS 3549000 4484162 5665738 6728064 7989576

Gross Profit 1774500 2950106 4716217 6898252 9894964

Office rent 600000 600000 600000 600000 600000

Marketing and

distributiom costs

500000 500000 700000 700000 700000

Renumeration 500000 1500000 2500000 3500000 3500000

Operating Profit 174500 350106 916217 2098252 5094964

Depreciation on

fixed assets

180000 180000 180000 180000 180000

Miscellaneous

Expenses

24000 36000 42000 42000 48000

PBIT -29500 134106 694217 1876252 4866964

Interest 0 0 0 0 0

PBT -29500 134106 694217 1876252 4866964Tax 0 44698 231382 625355 1622159

PAT -29500 89409 462834 1250897 3244805

Notes:

Depriciation on dye 50000

Depriciation onmachinery

130000

59

SUPPLIERS OFLED

NAME OF THE SUPPLIER PERSON CONTACTED CONTACT ADDRESS

Rulac Technologies Pvt. Ltd. Raninder Jha 8865874112A-13, Unit No. 117, Sector 48, Gurgaon,Haryana - 122006

Abdullah Lightening Systems Farzan Khan 9871532109A-9, Dda Colony, West Gorakh ParkExtn., Shahdara, Delhi - 110032

BUILDERS/ARCHITECTS CONTACTED

NAME OF THEORGANIZATION PERSON CONTACTED CONTACT ADDRESS

Spaces Architect Pranay Mittal 9811112109 B-6/109, Safdurjung Enclave, New Delhi

Modern India Architects Ashok Jain 1126569427J-6, Green Park Main, New Delhi -110016

BuilARCH Yuvraj Vats 9811260313C-185, Sarvodaya Enclave, New Delhi-110017

Checker & Associates Ajay Garg 9312289210C-7/14, MIANWALI NAGAR, ROHTAKROAD, NEW DELHI

Dream Creators nikku aeden 9711442799 Tilak nagar, new delhi 110018

S.Pal & Associates Surender Pal 9811651382 69/13,1st Floor,Sec-24,Rohini,N.Delhi

Renaissance Arch Pvt Ltd Amrendra Kr Srivastava 9899749566M-45, Chittaranjan Park, New Delhi110019

N P Roofings India Pvt.Ltd. Naresh Sharma 9818236833 B-4/53,Sector-11,Rohini

Channel Partners

NAME OF THEORGANIZATION PERSON CONTACTED CONTACT ADDRESS

Droid Transports Amit Ghai 8815965874

A-121,Fair Deal House, Near Arya Samaj

Mandir, Surajmal Vihar, Delhi - 110092

Prashar Road Carriers Sumit Arora 9810449113E-6/ F-7, Near ICICI Bank, DilshadColony, Seemapuri, Delhi - 110095

KTC India Pvt. Ltd. Kishan Prakash 9212888472D-480, Ramphal Chowk, Sec- 7, Dwarka,Delhi - 110075

Jai Balaji Carrirs R.C. Gupta 9310359364K-333/2,Near Telco Services, DLFGurgaon, Gurgaon - 122002

V Logistics Kiran Kumar 1141785498104, Dsidc Scheme-1, Okhla Indstrl Area 2,Okhla Industrial Area, Delhi - 110020


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Projected Balance sheet for 5 yearduration

Year 1

Liabilities Amount Assets Amount

Capital

25L

less loss

29,500 24,78,500 M/C 650000

less Dep 1,30,000 5,20,000

Dye 250000

Less: Depriciation@20% 50000

Book Value Of Dye 200000

Furniture 1,00,000

Accounts Payable 21500 Cash in hand 5,50,500

Accounts Receivable 829500

Total Liabilities 250000 Total Assets 250000

YEAR 2


Capital25L 2500000

M/C 520000

less Dep1,30,000 3,90,000

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Dye 250000



Furniture 1,00,000

Accounts Payable 150000 Cash in hand 5,74,711


Retained Earnings 89409


YEAR 3


Capital

25L 2500000

M/C 390000

less Dep

1,30,000 2,60,000

Dye 250000



Furniture 1,00,000

Accounts Payable 300000 Cash in hand 719502



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YEAR 4


Capital

25L 2500000

M/C 260000

less Dep

1,30,000 1,30,000

Dye 250000



Furniture 1,00,000





YEAR 5


Capital

25L 2500000

M/C 130000

less Dep1,30,000 0

Dye 250000

Less: Depriciation@ 50000

63


64/67

20%


Furniture 1,00,000





64


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Cash flow statement

Year 1 Year 2 Year 3 Year 4 Year 5

Net profit after interest and tax -29500 89408.6 462834 1250897 3244805

Add:Depreciation 180000 180000 180000 180000 180000

tax paid 0 44697.6 298042 839163 2124470

cash flow from operating activities 150500 224711 344792 591734 1300334

Initial net Working Capital 900000 1000000 1200000 1400000 1700000Closing net Working Capital 1000000 1200000 1400000 1700000 2000000

Increase In net Working Capital 100000 200000 200000 300000 300000

Free Cash Flow 50500 24711 144792 291734 1000334

opening cash 500000 550000 574711 719503 1011237

Ending cash 550000 574711 719503 1011237 2011572

65


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FIRST YEAR MONTHLY PROJECTIONS

MonthREVNUE

Tb 1REVENUE Tb 2

REVENUE Tb 3

REVENUE Lamp

REVENUE Lamp

TOTALREVENUE

Jan 95700 65736 113850 47643.7576415.62

5Feb 191400 65736 108900 57172.5 91698.75

Mar 287100 125994 9900052408.12

584566.62

5

Apr 143550 120516 34650 57172.5 96793.125

May 114840 109560 3960060031.12

5106981.8

75

Jun 76560 38346 5940071465.62

5 91698.75

Jul 66990 43824 7425080994.37

5 32604Aug 17400 5976 148500 85758.75 66690

Sep 210540 82170 99000 30492112076.2

5

Oct 220110 164340 49500

21916.12

5 96330Nov 114840 104082 59400 85758.75 73173.75Dec 114840 54780 59400 76230 87067.5

TotalRevenue 1653870 981060 945450

727043.625

1016096.25 5323520

All revenue numbers in rupees.

66

Monthunit sold

Tb 1Unit soldTb 2

Unit soldof Tb 3

Unit soldof CeilingLamp

Unit soldof FancyLamp

Jan 110 132 253 550 825Feb 220 132 242 660 990Mar 330 253 220 605 913Apr 165 242 77 660 1045May 132 220 88 693 1155

Jun 88 77 132 825 990 Jul 77 88 165 935 352Aug 20 12 330 990 720Sep 242 165 220 352 1210Oct 253 330 110 253 1040Nov 132 209 132 990 790Dec 132 110 132 880 940


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ied final report group6

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