CONTENTS

1. Introduction 2. About the Project 3. About the Promoter 4. Scope and Market Potential of the Project 5. Financial Consideration 6. Objectives and Keys to Success 7. Technical Appraisal 8. Financial Appraisal a. About the Project b. Projection of Performance & Profitability c. Projected Balance Sheet d. Cash Flow Statement e. Funds Flow Statement f. Breakeven Analysis g. Statement of Ratio Analysis & Performance & Financial Indicators h. Pay Back Period i. Details of Salary & Wages j. Selling, Distribution & Administrative Expenses

This Project Report is the exclusive property of

M/s Sai Krishna Consultancy Services,

(Registered with Govt. of Orissa Vide EM-II No. 21-029-21-00225)

4, 1st Floor, Subham Complex, near V.D. College, JEYPORE 764 001(Koraput Orissa)
Telefax: 06854 232385, E mail- saikris_services@rediffmail.com

The contents of this Project Report shall not be copied, reproduced, lent or utilized in any manner directly or indirectly without our written consent. This Report has been prepared for M/s Sai Honda, Prop: Smt. Namita Padhi, at Mandir Chowk, Main road, Dongiriguda, Post: DNK - Umerkote, PS:Umerkote, Dist: Nabarangpur on the basis of information and explanation provided to us by the promoter of the above concern.

For M/s SAI KRISHNA CONSULTANCY SERVICES

Managing Partner

Of

(An exclusive show room for sale, service and spare parts of Honda Two wheelers)

Proprietress: Smt. Namita Padhi,

Mandir Chowk, Main Road, Dongiriguda, At/Po: DNK-Umerkote, PS: Umerkote, Dist: Nabarangpur Mobile No.9777760538

PREPARED BY

M/S Sai Krishna Consultancy Services,

(Registered with Govt. of Orissa Vide EM-II No.21-029-21-00225)

4, 1st Floor, Subham Complex, near V.D. College,

JEYPORE 764 001(Koraput Orissa) E mail- saikris_services@rediffmail.com

Telefax:

06854 232385,

PROJECT AT A GLANCE
1. 2. 3. NAME OF THE CONCERN CONSTITUTION ADDRESS

M/s Sai Honda

Proprietorship Santi Nagar, PO:PS - Umerkote, Dist: Nabarangpur Mandir Chowk, Main Road, Dongiriguda, PO: DNKUmerkote, Dist: Nabarangpur Smt. Namita Padhi, New Project
Sale, Service and Spare Parts of Honda Two Wheelers

4.

UNIT LOCATION

5. 6. 7. 8. 9.

PROMOTERS NAME PROJECT CLASSIFICATION NATURE OF BUSINESS POWER INSTALLED CAPACITY Year

South Co. (Orissa) per annum

1st
450

600

2nd

608

3rd

10. 11. 12.

CAPACITY UTILISATION Cash Credit Loan Required FINANCIAL PARAMETERS DEBT EQUITY RATIO

450 vehicles in the 1st year Rs. 45.00 lakhs

1.28
7 persons Single Phase Connection State Bank of India, Umerkote

13. EMPLOYMENT POTENTIAL

14. POWER REQUIREMENT

15. NAME OF THE BANK Branch

INTRODUCTION
M/s Sai Honda, is a proprietary concern whose proprietress- Smt. Namita Padhi, W/O Sri Sarat Chandra Padhi, intends to set up an exclusive showroom for sale, service and spare parts of two wheelers manufactured by Honda Motorcycle & Scooters India (Pvt) Ltd (HMSI) at Mandir Chowk, Main Road, Dongiriguda, PO: DNK-Umerkote, PS: Umerkote, Dist: Nabarangpur to promote sale, service and sale of spare parts of world class Motor cycles and Scooters manufactured by HMSI. The proposed show room will cover the commercial town of Umerkote, Raighar and other near by areas. Umerkote and nearby villages has a good concentration of capable and affluent customers for these vehicles and the enterprises has got a good scope for such this venture.

ABOUT THE PROMOTER

The above venture is an individual concern and details are as followsNAME & ADDRESS Smt. Namita Padhi, W/O Sri Sarat Chandra Padhi, Santi Nagar, PO/PS: Umerkote Dist: Nabarangpur AGE 39 years QUALIFICATION BUSINESS EXPERIENCE Matriculate She has good business exposure being a partner of Kirlosker pumps and agro implements at Nabarangpur from last five years

The above promoter is an income tax assessee and is financially sound to bring the margin money required to take up the project with the financial assistance from State Bank of India, Umerkote Branch.

SCOPE AND MARKET POTENTIAL OF THE PROJECT

The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs. 100,000 million. The two-wheeler market in India comprises of 3 types of vehicles, namely motorcycles, scooters, and mopeds. Foreign collaborations have been playing a major role in the growth of the Indian two-wheeler market, and most of them are Japanese firms. The modern two-wheeler firms in India have been manufacturing new categories of two wheelers such as Step Thrus and Scooterettes. These have been produced by combining two or more two-wheeler segments. Foreign firms have already taken initiatives to own their two-wheeler subsidiaries in India Among the 3 segments of the Indian two wheeler market, major growth trends have been seen in the motorcycle segment over the last four to five years. One good reason for such increase in demand for motorcycles is due to its resistance and balance even on bad road conditions. Most of the rural areas in

India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles had been felt. Some of the major players in the Indian motorcycles market are Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into economy, executive, and premium segments, Bajaj stands as the leader in the economy segment, Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj. The following are the main factors that affect two-wheeler sales in India: Increase in credit and financing for auto vehicles - Two-wheeler loans and financing has been on the rise. Increase in consumer's salary - Due to opportunities offered by multinationals the disposable incomes of salaried individuals have increase manifold. Constant petrol prices - Today, the government of India has been working on reducing subsidies on kerosene and diesel which will keep petrol prices at more or less the same level. Delay in initiation of Mass Transport System - Probably a future threat to the two-wheeler market, the implementation of the mass transport system has been delayed. However, the two-wheeler market in India is a fast growing market due to its technological advancements in product manufacturing and emphasis on design innovation India will be the biggest global market for Honda's two-wheeler business by 2015 before eventually accounting for 30 per cent of its overall market share. At present, this is 13 per cent but the company is going flat out with new product launches as part of an aggressive growth strategy. Officials said Honda R&D would now work closely with the Manesar operations of HMSI (Honda Motorcycle & Scooter India), which would facilitate faster product launches in the coming years. In addition, the company will increase the number of its zonal offices and training centres keeping in mind the growing demand from smaller towns and the need to be closer to this critical buyer base. Having crossed 10 Million sales mark & Enjoying overwhelming success and Customer Satisfaction, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is today the Fastest Growing 2Wheeler company in India Hondas High Quality & advanced technology products lead the growth curve All Honda products across motorcycle and automatic scooter segments have addressed the varied needs of Indian 2-wheeler market and made strong impact in their respective categories. In future too, Honda shall

endeavor to deliver products with No.1 mileage in their respective segments. While the motorcycle segment sales in India has dropped 1% in Apr-Sep period of FY12-13, HMSI motorcycle sales have grown phenomenally at 64%. Growing at healthy 39%, Honda also increased its Leadership in automatic scooter market, in comparison to 20% growth of domestic automatic scooter industry. For the above reasons the promoter is very confident to have an edge in the two wheeler market in the district.

FINANCIAL CONSIDERATION
The Promoter proposes to the set up the show room in the newly constructed show room located in the prime area at Mandir Chowk, Main Road, Dongriguda, PO: DNK-Umerkote on a long term lease from Sri Sarat Chandra Padhi and Sri Basant Kumar Padhi on a monthly rent of Rs. 5,000/- and to avail Working Capital Loan of Rs. 45.00 lacs with 25% own margin from State Bank of Bank, Umerkote Branch by contributing her own margin. The bank is interested to extend the financial assistance to the proposed unit.

OBJECTIVES AND KEYS TO SUCCESS

The primary keys and objectives of the unit for success will be based on the following factors:

Exceed the customer's expectations in supply of the world class motor cycles and scooters to its customers in time. Assembling an experience and effective staff. To increase the number of customers by 10% each year. To Increase exposure and market by using advertising. Provide quality service. Give each customer a sense that he is the top priority. Retain customers to ensure repeat purchase, etc.

TECHNICAL APPRAISAL
All the Motor cycles, scooter and the spare parts will be supplied by HMSI. The company will also impart in house training to the mechanics periodically to provide efficient and excellent service to the esteemed customers. The tools and equipment will also be provided by the manufacturer.
Job Process

All the service will be undertaken by the trained, experienced and courteous staff of the show room
Capacity The promoter aims at starting the business with sale of 450 Nos. of two wheelers in the first year which will increase every year.

Implementation Schedule:1. 2. 3. Arrangement of finance Fabrication of Show room and fitting of machinery Purchase of vehicles and sales and service 1 month 1 month 1 month 3 months